Bombardier Parts Logistics. Important Changes to Bombardier s Warehouse Management System

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1 Bombardier Parts Logistics Important Changes to Bombardier s Warehouse Management System

2 Improving the parts experience through an improved Warehouse Management System This presentation details important changes to Bombardier s warehouse management system taking place November 15, We invite you to read on to learn more about special arrangements being made to provide support during the system migration period from November as well as important changes to processes and procedures you should be aware of. 2

3 New Warehouse Management System 1. What is the new system? 2. When does the change take place, and what will happen during migration? 3. What are the changes that impact customers? 4. What if I have questions? 3

4 1. Bombardier s new warehouse management system A simpler way to manage our warehouses: Currently, Parts Logistics manages its warehouses through a combination of 2 systems Bombardier s SAP and Caterpillar Logistics LIMS The new solution will consolidate the software into one simplified system within Bombardier SAP, to provide: Greater functionality Increased flexibility Improved visibility of inventory Better inventory management and accuracy Enhanced automation and fewer manual processes The new system will be used for the Chicago and Frankfurt warehouses 4

5 2. When does the change take place, and what will happen during migration to the new system? Our computer systems will be offline from 2300 Central Standard time (CST) on Friday 12 November until 0500 CST on Monday 15 November. We will offer AOG support only on cutover weekend. Critical and C Check orders will be filled if capacity permits. NOVEMBER 2010 Sunday Monday Tuesday Wednesday Thursday Friday Saturday AOG Support Only AOG Support 1S Go-Live Only AOG Support Only 5

6 3. What are the Changes that Impact Customers? 1. Order Confirmations 2. Warehouse documents 3. Invoices 4. Order Consolidation We will use old and new icons to help illustrate what will change in the documentation you receive from Bombardier Old New 6

7 Two Changes to Order Confirmations Today we provide you an up front air waybill on your order confirmation and an notification when the part is shipped Sometimes you are not able to track either air waybill because it changes in the shipping process You requested that we include your Customer Purchase Order number on the notification 1 st Change Going forward you will still receive order confirmations with up front air waybills and an notification when the part is shipped Air waybill accuracy in the shipping notification will improve and can be tracked Customer PO number included on notification Today you see single digit priority information on your order confirmations 2 nd Change Going forward (for all depots) you will see two digit priority codes and description on your order confirmations 1 st digit is mainly used by Customer Service and Material Logistics 2 nd digit is mainly used by the distribution centre or depot 7

8 Order Confirmation Minor Change Order Type AOG Next Flight Out Delivery Priority 11 Test Customer Test Address Test Contact Name Test Payment Terms Test address AOG Overnight 12 Critical 22 Normal 32 Routine 33 Test Customer Test Address Initial Provisioning (IP) Consolidated 75 8

9 Revised Order Priorities Order Type Delivery Priority Definitions AOG Next Flight Out AOG Overnight Critical Normal Routine Initial Provisioning (IP) Consolidated We will manage your AOG orders to support Next Flight out or Counter to Counter shipments by an Independent Carrier (e.g. Expeditors, Sterling) following the release of the outbound delivery. We will manage your AOG orders to support Cargo Air Carrier (e.g. Fed Ex, UPS, DHL) cutoff times following the release of the outbound delivery. We will manage your Critical orders to support same day carrier cutoff times following the release of the outbound delivery. We will manage your Normal orders to support same day carrier cutoff times following the release of the outbound delivery. We will manage your Routine orders to ship within 2 to 3 days following the release of the outbound delivery. We will work with Customer Service to process and stage your IP order to meet your required shipping dates. We will define your consolidation parameters with you in advance and we will manage your consolidated orders to support predetermined carrier cutoff times. 9

10 Delivery Note Minor Change Will include your purchase order reference number (as previously requested) Test Customer Test Address Test Customer Test Address Test Customer Test Address The air waybill tracking number will be more accurate and will track when you receive this message This is a mock up only. The final document may look slightly different. 10

11 Changes that Impact Customers 1. Order Confirmations 2. Warehouse documents 3. Invoices 4. Order Consolidation 11

12 Warehouse Documents Today and Tomorrow CID Summary Case Packing List Airworthiness Certification Vendor Certificate of Compliance Commercial / Pro Forma Invoice Pick Ticket Label 12

13 Warehouse Documents - Today and Tomorrow Document CID Summary Do you receive this today? Yes, for orders received from Chicago. The CID Summary links regulatory documents to the case packing list. What changes after November 15, 2010? Yes, for orders received from Chicago. The CID Summary links regulatory documents to the case packing list. You will also see a new label for shipments received from Frankfurt and Chicago 13

14 Old No Change Example CID Summary The CID Number is an internal Bombardier tracking number. This is the airworthiness certification number. This is the Certificate Identification Document (CID) Summary. This accompanies all shipments from Chicago. 14

15 New Certificate Identification Document (CID) Label New Starting November 15, 2010 two labels will be consolidated into a single label (a sticker attached to part packaging) including the CID number and Material Number The Certification Identification Document (CID) Summary is an internal Bombardier number that links Bombardier s Certificate of Conformance statement to the vendor s airworthiness document for a specific part You will see this on shipments from the Chicago and Frankfurt distribution centres At a future date this may apply to all depots. We will advise you if this happens. 15

16 Warehouse Documents - Today and Tomorrow Document Do you receive this today? What changes after November 15, 2010? Case Packing List Yes. Two new sections will be added: 1) Grand Invoice Total will be provided for all Consolidated Shipments 2) Transportation Details will be provided including weight and dimensions, delivery priorities and air waybills 16

17 Old Example Case Packing List The Case Packing List is included with all shipments Test Customer Test Address Test Customer Test Address The Delivery No. and Item link the Case Packing List to the CID Summary This form will continue to be used for shipments from Sydney, Tokyo, Beijing and Dubai 17

18 Case Packing List New Test Customer Test Address Customer Purchase Order: Test 123 Test Customer Test Address After November 15, this new form will be used for shipments from Chicago and Frankfurt only. Weights and dimensions are now included and the Customer Purchase Order Number 18

19 Warehouse Documents - Today and Tomorrow Document Airworthiness Certification Form (FAA) Form (Canada) EASA Form (European Union) Do you receive this today? Yes. One of the three airworthiness certification forms is provided depending upon how the material was certified. The exception is a standard part received by Bombardier after Nov 26 th, 2007 in which case you receive a Vendor Certificate of Compliance. What changes after November 15, 2010? On Forms and the Form Tracking number sequence found in Block 3 will be reformatted for shipments from Chicago (the earlier version of the form are still valid and will be used for current stock on hand in the depots) There are no changes to the EASA Form 19

20 Old New Numbering Sequence Example Airworthiness Certification The box Form Tracking Number (Block 3) is found on FAA, Transport Canada, and EASA documents This numbering sequence changes as of November 15 th, 2010 The airworthiness certificate is linked to the CID Summary by the Form Tracking Number 20

21 Warehouse Documents - Today and Tomorrow Document Vendor Certificate of Conformance Do you receive this today? Yes, if it s for a standard part received by Bombardier after Nov. 26th, What changes after November 15, 2010? No Change For parts Bombardier received prior to Nov. 26 th, 2007 you may still receive an Airworthiness Certificate or Bombardier Release Note, both of which are acceptable. 21

22 Old No Change Example Vendor Certificate of Compliance (C of C) The Bombardier Purchase Order number links the vendor C of C to the form tracking number on the CID Summary For standard parts, Bombardier is acting as a distributor Therefore Bombardier is including the certificate of conformance (C of C) from the vendor for shipments received by Bombardier before Nov 26 th 2007 For stock received by Bombardier before November 26, 2007, you may still receive an airworthiness certificate or a Bombardier release note 22

23 Warehouse Documents - Today and Tomorrow Document Commercial / Pro Forma Invoice Do you receive this today? Yes, if the final shipping destination is outside the United States. What changes after November 15, 2010? Will still be included if the final shipping destination is outside the United States. An expanded Reference Section now includes the Grand Total of consolidation. The original customer purchase order now shows on this document 23

24 Old Test Customer Test Address Example Pro Forma Invoice Test Customer Test Address A pro forma invoice is included in all shipments where the final destination is outside the United States The No. field on this form links to the Delivery Number on the CID Summary 24

25 Old Example - Pro Forma Invoice (cont d) This is Page 2 of the Pro Forma Invoice Shipments within the US will not receive a Pro Forma Invoice 25

26 Example Commercial / Pro Forma Invoice For shipments from Chicago and Frankfurt only New Test Customer Test Address Test Customer Test Address The References section now includes the Customer Purchase order number to easily link to the SAP sales order and delivery note numbers 26

27 Example Commercial / Pro Forma Invoice For shipments from Chicago and Frankfurt only New Consolidated shipments show the Grand Total of the shipment 27

28 Warehouse Documents - Today and Tomorrow Document Pick Ticket Label Do you receive this today? Occasionally, attached to part or packaging. What changes after November 15, 2010? The format and information on the Pick Ticket Label is changing. You will see a Handling Unit Number (HU#) that connects the sales order to the warehouse transaction. 28

29 E Pick Ticket New The new Pick Ticket connects the Customer Order and Priority at the warehouse level. The new format will start Nov 15, 2010 for shipments from Chicago and Frankfurt Old Old pick tickets these may still be attached to parts from previous deployment activities 29

30 Changes that Impact Customers 1. Order Confirmations 2. Warehouse documents 3. Invoices 4. Order Consolidation 30

31 Invoice Instead of being a separate line item (FREIGHT1) on the invoice, as of November 15 th, the Freight costs will be a subtotal under the first line item on the invoice. Today As of November 15 th 31

32 Changes that Impact Customers 1. Order Confirmations 2. Warehouse documents 3. Invoices 4. Order Consolidation We will launch money saving order consolidation options after the 1S platform is stabilized (Q4, 2010) 32

33 You May Choose to Consolidate Daily or Weekly You can consolidate if: Your orders have the same: Customer Code Ship to Address Carrier (eg Fed Ex) and Service Level (eg 10:30 AM) Any delivery priority code except for 11 AOG Next Flight Out Consolidation is clearly indicated on your Purchase Order Your consolidation parameters have been programmed into our consolidation table in advance Hazardous materials may be consolidated if the parts have the same United Nations Number (UN#) and if weight limits are not exceeded as per International Civil Aviation Organization (ICAO) and the United States Code of Federal Regulations (CFR) Please be aware that canceling an order scheduled for consolidation or changing your shipping method is possible, but requires manual intervention 33

34 Daily Order Consolidation Process Flow Daily Consolidation Customer Service Input Order by Consolidation Day at 8am or 12pm CST Your consolidation profile must be set up in advance and a daily cut off time established Distibution Collect/ Initiate Processing of orders dependent carrier choice Review size of consolidation for possible additional staffing or pickup by carrier Close out daily consolidation and update Carrier tracking of consolidation for Customer Carrier / Transportation Provide proof of tender / delivery of consolidation 34

35 Weekly Order Consolidation Process Flow Weekly Consolidation Customer Service Input Order by Consolidation Day at 12am CST If you are interested in weekly order consolidation, what day do you believe your organization will prefer? Distibution Collect/ Initiate Processing of orders dependent carrier choice Review size of consolidation for possible additional staffing or pickup by carrier Close out weekly consolidation and update Carrier tracking of consolidation for Customer Carrier / Transportation Provide proof of tender / delivery of consolidation Note: If one day proves to be overwhelmingly popular we will work with the Customer Service and Sales teams to develop criteria for assigning weekly consolidation days. 35

36 What happens when I choose to consolidate my orders? 1. Contact your Customer Account Manager to request weekly order consolidation A profile will be set up for your account in the distribution centre Requests for specific days will be considered but cannot be guaranteed You will be informed of your consolidation day and cutoff times Note: no action is required for customers to benefit from natural consolidation within a picking wave 2. Once consolidation is configured for your account, you must note on your purchase orders that you are requesting order consolidation Your order will be booked as per usual using an order consolidation code which you will see on your order confirmation When stock on hand is available, the delivery note is transferred to the distribution centre The distribution centre holds your delivery note in queue until it is time to release the picking wave 3. We pick, pack and ship your consolidated order to meet the carrier s cut off times Consolidating orders may help you reduce freight costs 36

37 Order Consolidation -- Questions and Answers Order consolidation will not be available on November 15th, 2010 so when will the option become available to me? We must first stabilize One System and estimate we will be able to start offering order consolidation in January On what days will Commercial Aircraft customers be able to consolidate orders weekly? Tentatively we have reserved Monday, Wednesday and Friday for Commercial Aircraft orders. However, all weekdays are in scope to meet the needs of Commercial and Business aircraft customers. Due to carrier cutoff times, Saturdays and Sundays are not options for weekly consolidation. Can I consolidate my orders from any depot? Only orders shipping from the same depot (either Chicago or Frankfurt) may be consolidated at this time If I choose to consolidate, do I have to consolidate all of my orders? No, you have the choice on which orders you would like to consolidate but it must be clearly indicated on your Purchase Order 37

38 Order Consolidation -- Questions and Answers What happens if I decide to consolidate an order and I change my mind? After the order cutoff time assigned to your account, it is a manual process to change your order. Changes before your cutoff time are relatively easy to make. How do I get an air waybill for consolidated orders? Upon completion of picking and packaging the order is tendered for transportation, the confirmed air waybill(s) will be ed to you What are the cutoff times for order consolidation? Note: This means your order must be booked and the delivery note generated to the warehouse by this time. Local time = Local time Chicago and local time Frankfurt Daily Consolidation Order Cutoff 08:00 Local time (Europe / Asia - Exports) 12:00 (noon) Local Time (North and South America - Exports) 12:00 (noon) Local Time All Domestic (US) Ship By Carrier Cutoff Carrier Cutoff Carrier Cutoff Weekly Consolidation Order Cutoff 23:59 Local Time (Domestic and Exports) the day before Carrier Cutoff (i.e. Monday 23:59) Ship By Carrier Cutoff (i.e. Tuesday Carrier Cutoff)

39 4. What if I have questions? Please call Customer Services at your usual contact numbers. 39

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