A Shipper s View of EDI with a LTL carrier

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A Shipper s View of EDI with a LTL carrier A Quick overview of the Transportation EDI transactions to be used in monitoring a LTL carrier s service level David L Jordan Manager, Transportation Spicetec/ConAgra Foods, Inc. TLC Conference April 25, 2012

Background In the past few years LTL carriers have vastly improved their ability to collect and transmit shipment data more timely. They do this through the use of handheld computer modules. These modules allow the driver to indicate when he/she arrives at the destination as well as when he/she leaves. It also transmits what shipments the driver has picked up. This information, transmitted as frequent as every 2 hours, can provide improved real time delivery information that is captured through the use of the EDI transaction status messages and reason codes.

Why Consider EDI with an LTL Carrier? Vast improvement in real time data flow Better data that reflects the shipment true delivery status as well as captures missed appointments dates and times which will be reflected in the data. Better data which will include the carrier PRO number and your shipment reference number which can be used in a customer service or tracing situation. Allows for the systematic creation of service reports.

What Type of Reporting On-time Service report: Reflects the carrier delivery date to a) the Appointment b) to your customer s RDD (required delivery date) or c) to the delivery date on your Bill or Lading (BOL). Service Standard report: The EDI data can provide specific transit information if you monitor the carrier s service standard percentage. In some cases, the information can provide data about delivery delays or detention concerns (arrival times vs. unloading times although this information is not always available or accurate).

Initial Steps 1) Be able to articulate your intentions for the use of the data collected when you initiate the on-boarding process with your IT/EDI group, 3 rd party software provider (if applicable) and the carrier 2) Develop a defined status message and reason code protocol so the carrier will clearly understand what to report especially if you have specific code information that will be integrated into the carriers 214 responses. 3) Be sure to have the your EDI template completed and be able to integrate this information into the carrier s on-boarding document, if required. 4) Be sure your IT/EDI folks understand your reporting needs and how the data received should be used to create your reports 5) Know the volume of transmissions (shipments) and what type of the transmission process you will use. 1) VAN- Value added Network. Used by many partners, many of whom use the VAN as the facilitator for the formatting of the 214 response reason codes and the reporting that is created from the data collected. 2) FTP File Transfer Protocol. This sending the data over the internet. Becoming more common. 3) AS2 File transfers using EDIINT over HTTP (Internet address)

Initial Steps continued Although EDI Status message protocol is fairly standard, some customizing on the part of the LTL carrier can occur to meet the requirements of the EDI partner such as coding specific segments in the 214 to reflect arrival at destination, identify specific customer locations or products types and the corresponding reason codes. The average timeframe to get up and running is about 4 weeks.

The Transportation Transactions EDI 204- Load tender to the Carrier. EDI 211 Electronic BOL sent to the LTL carrier EDI 990 functional response; either an Accept or Decline. Most LTL carriers auto-accept. EDI 214 Delivery status message. This is the important data sent by the carrier to the EDI Partner. The correct corresponding reason code is important as well.

Sampling of Status messages AF Departs from origin X9 Date and time Carrier called to make the appointment AB The date and time of the actual appointment. X1 The date and time the carrier arrived at destination D1 Delivery complete and Driver departs from destination. SD Shipment Delayed JI Joint or connecting line P1 Departed Terminal

A Sampling of Reason Codes A1 MISSED DELIVERY AD CUSTOMER REQUESTED FUTURE DELIVERY DATE AG CONSIGNEE RELATED AH DRIVER RELATED AI MECHANICAL BREAKDOWN AM SHIPPER RELATED AO WEATHER RELATED AL PREVIOUS STOP CREATED DELAY NS NORMAL STATUS NA NORMAL APPOINTMENT

Practical Information If an appointment is required, Carrier should make an appointment and send a 214 AB status message and an appropriate reason code that the EDI partner requires. The appointment should be made prior to the expected arrival date. Caution here: Some LTL carriers still do not call for appointments timely. LTL Carriers, generally speaking, do not make appointments for pickups and do not send the arrival at origin code. Once pick up is done, the carrier will send a departure code (AF) which places the shipment into in-route status. LTL Carriers must send in an X1 status code when the driver arrives at destination to allow the system to determine the on-time delivery calculation. LTL Carrier will send in a D1 code when the shipment it totally delivered. LTL Carrier must send in any changes to appointment dates and times if unable to meet initial one report in system. Carrier must send in the appropriate reason code to allow the system to be able to calculate the proper on-time delivery.

Final Steps Monitor the data coming into your system (via the 214) to validate the information you expected is actually being received. Validate your reporting calculations, such as the on time delivery calculation, based upon the data being received. Run sample reports after collecting a month or two worth of data. Share your results with the carrier EDI group to correct any errors or to report that all is well.

QUESTIONS