Note from Editor. In the Works. In the Works. An Easier Way to Quote Freight How it Works. How to Automated Creation of Charges

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1 May 2010 In the Works An Easier Way to Quote Freight How it Works How to Automated Creation of Charges Case Study Packair Airfreight, Inc. Note from Editor This month s newsletter features a tip on how to automate charges in your Magaya software. See how to make the liquidation process easier and ensure all the required fees are included in your documents such as Warehouse Receipts or Shipments by setting up the fees to appear automatically each time one of these transactions is created. Automate common fees such as cartage, documentation, or express shipment surcharges and have the fees converted into the related accounting transactions to save time. Hollywood studios make movies all over the world. When they film on location, they need cameras, film, props, and other equipment transported there. They turn to specialist, Packair Airfreight Inc., who has over 30 years of experience handling this type of fragile equipment. See how Packair relies on the Magaya Cargo System to help them get this critical cargo delivered quickly and safely. In the Works An Easier Way to Quote Freight For the upcoming release, we added several enhancements to the existing rate system to speed up finding the correct sales price. Since freight quotes are often given over the phone, it s important to have the price information easily accessible. Knowing this, we enhanced the software to help you find what you need quickly and easily. How it Works: This new feature will be added to the Actions button in the Quotations document toolbar. Selecting Query Rates from the Actions menu will open a screen to enter the origin, destination, dimensions, and mode of transportation. Then the system will search in your rates database and display the charges that match those criteria, including any additional charges that you use for that transportation mode such as documentation, bunker surcharge, etc. You can create a quotation from the same screen using those charges by clicking a button. Then send it to the customer for approval.

2 Page 2 Automated Creation of Charges activate it. A checkmark will appear in the box. Automating charges so they appear automatically in operations transactions such as Warehouse Receipts or Shipments will speed up the time it takes to create the transactions and to liquidate them. The automated charges will be converted into the related accounting transactions automatically and be ready for you when you need them. To set up automation on existing charges, follow these steps: 1. Go to the Accounting folder in Magaya Explorer and click on Items and Services. 2. Select an item that you want to automate such as the Cartage Fee. This example will add a charge to each containerized ocean shipment for taking the container to the port. Double-click on Cartage Fee (or select it and click the Edit button). 3. The Items and Services dialog box of the Cartage Fee opens: 2. Check Ocean House Shipment (OHE) under the Export Shipments list. 3. Click on the Modes of Transportation button. A screen opens. Follow these steps in that screen: In the screen that opens, uncheck the box to Apply this charge to all the modes of transportation available (1). Then uncheck the other boxes Vessel and Barge so only the Vessel, Containerized option is checked (2): The dialog box has three tabs. Click on the Automatic Creation tab and follow these three steps: 1. Click on the box next to Enable Automatic creation for: to

3 Page 3 Result Click OK in the Modes of Transportation dialog box to return to the Items and Services dialog box. (Using the Modes of Transportation button is optional, but for this example we used it because we want only the Vessel, Containerized mode.) To allow the charges to appear in the operations documentation that is viewable to customers, leave the checkbox blank for Do not Show in Documents. If you do not want the charges to appear in the operations documents, check the box. Click the OK button when done. (Income). Follow these steps to add the Cost (Expense) for this or any other Item or Service you automate. Create a New Charge and Automate It In addition to adding the Automatic Creation functionality to an existing Item or Service, you can also add a new Item or Service and automate charges for it. For example you may want to automate an Express Shipment Surcharge for high-priority shipments. Then, each time you create a high-priority shipment, the surcharge will be added. First use the Add button in the Items and Services list to add a new item, and second, automate the charge by following the same steps above. When you are done, the Items and Services list will show which transactions have charges that will be automatically created. Note the OHE for the Cartage Fee in the column for Automatic Creation: You can override automated charges on a per-customer basis. If you have a customer that you want to apply a customized tariff to and automate it, you can do that on the Charges tab in the Customer s profile. In this example, when an Ocean Export Shipment is created and vessel containerized is selected as mode of transportation, a charge for Cartage Service will be added automatically to that house shipment. (Charges created automatically will always be added after you select the client to bill for that transaction.) The price of the created charge will be calculated based on the tariff (or rate) set for that charge. (The Tariff button is on the first tab of the Items and Services dialog box. Rates are set in the profile for the customer, carrier, etc. in the Maintenance folder.) The appropriate accounting transactions such as Invoices will automatically include these charges when you liquidate the shipment. This how-to tip showed you how to add a Fee

4 Page 4 Welcome New Magaya Customers Magaya Corporation welcomes the following 13 new customers to the Magaya Community: New Customers In the United States: Cargo Shipping Expedition, Hasbrouck Heights, NJ Courier Cargo & Maritimo, Miami, FL FIF Logistics, Miami, FL GDSB Export, Miami, FL L.C. Cargo Xpress, Inc., Los Angeles, CA MBX Logistics, Jacksonville, FL Williams Worldwide Shipping, Brooklyn, NY WSC America, Long Beach, CA New Customers in the Caribbean, Central America, and South America: Shipack Consolidators, S.A., Los Prados, Santo Domingo, Dominican Republic Viking Aruba, Aruba Honduamerican, Cotes, Honduras Transworld Logistics and Freight Forwarding, Panama City, Panama Merco Cargo Miami, Barranquilla, Colombia

5 CASE STUDY: PACKAIR Freight Forwarder and NVOCC The Logistics Behind the Camera Making Movies: Shipping Samurai Swords and Vintage Vehicles Hollywood studios rely on Packair to get their movie equipment to global filming locations on time and in working order. With over 30 years of experience, Packair knows how to pack and ship cameras, lights, props, film, and other items needed to make movies., In our business, it needs to be there yesterday. We re known for getting the cargo out the same day. We deliver on time., Steve Park, Senior Operations Manager, Packair

6 Packair At a Glance Packair Airfreight, Inc. Industry Freight Forwarder and NVOCC Solution Magaya Cargo System, Magaya OnTheGo Freight forwarder Packair of Los Angeles, California, has over 30 years of experience shipping for the film industry. Packair is also a licensed IATA agent and certified with the C-TPAT program. They also offer customs brokerage services, on-site production services, and ship time-sensitive materials for other industries and government agencies. Challenges Lights, camera, action! When a film crew is on location, they need all the movie production equipment that is used in a Hollywood studio, sometimes more. Some locations are remote and difficult to reach, subjecting people and equipment to extreme weather conditions such as humid and hilly jungle terrain, wind-blown sand on a desert or beach, or cold and snow, making transport and set up challenging. Getting this fragile equipment to these filming locations safely requires expertise that Packair Airfreight Inc. of Los Angeles, CA, has over 30 years doing successfully. In our business, it needs to be there yesterday, said Senior Operations Manager, Steve Park. We re known for getting the cargo out the same day. If something needs to fly out on short notice on a charter, we can do it. We arrange hand-carries as needed, depending on the importance and the client s security requirements of the item, and have documents ready. We deliver on time. Packair ships to locations within the US, to Europe, the Americas, Asia, Australia, Africa, and the Middle East literally all over the world. They coordinate with the destination agent to arrange local transportation of the items. The agents work in our niche market and their local knowledge is essential to getting shipments delivered right, Mr. Park said. Packair uses the Magaya Cargo System and Magaya OnTheGo remote access to ship the cargo and keep on top of any last minute needs during filming. Special Handling for Film and Filming Equipment Motion pictures are shot using raw film stock. Most film strips are made of 8-, 16-, or 35-mm polyester with an emulsion layer applied to it. The film is wrapped around a spool and placed inside a can for storage and protection from light, dirt, humidity, and degradation. When a can of film is sent from the US to a filming location, the film is used on the set where the actors and director shoot scenes; then the film is sent back to the US after each day s shoot. Both shipments require the film be put on a plane and sent through the airport, like all cargo; however, the film cannot be X-rayed. Packair s Export Manager, Luis M. Arroyo explained, X-raying film would destroy it. To ensure proper handling and avoid the loss of filming done by a film crew, Packair makes advanced arrangements with the carrier. Alternative cargo screening methods include Explosives Trace Detection (ETD), a method often used at airports to check for traces of explosives. Hand searches are another method used at airports, but exposure to light will ruin the film so a darkroom or other covered method must be used. In addition to shipping film, Packair also ships props to movie sets. Props can be as large as a vehicle or as small as a fake pistol. Theatrical weapons include guns, swords, knives, or other items depending on the type of film being made. For example, an historical film may require sabers or muskets while actors in a present-day police drama in New York City need current models of handguns. Some guns are made of rubber if the scene does not require the gun be fired, or blanks can be used to simulate firing. The shipment requirements for the weapons are stringent. These and other props require expert packaging and handling. Certified To improve the handling and speed up the processing of all these items, Packair s 10,000 square-foot warehouse is a Certified Cargo Screening Facility (CCSF). According to the Certified Cargo Screening Program (CCSP), all cargo that is shipped on passenger aircraft must be screened, item by item, before it is

7 Packair consolidated. To facilitate the movement of the cargo, it can be screened at a certified location before it is sent to the air carrier. Sales and Customer Service Representative Kathleen Tipton explained that Packair participated in the first phase of the screening program rollout and has met all the certification requirements such as specialized training for employees, ensuring the security of the facility and of the items while they are in the warehouse and during transit. To accommodate the reporting requirements of the US Department of Homeland Security and the Transportation Security Administration (TSA), Packair added custom fields to their Warehouse Receipt in their Magaya software to report all the data gathered about the screened cargo. We can now generate reports to comply with the CCSP reporting requirements, Mr. Park said. They are required to keep records of how much cargo they screen and maintain chain of custody standards for screened cargo. They can print the report for the TSA when requested or during spot checks. It s very good to have this capability in our Magaya software. We did not have to hire a programmer to configure a system, so it was an easy process to implement, said Mr. Park. The Correct Documentation Since items such as the cameras and lighting equipment will return to the US, they are shipped as Temporary Exports. Packair files a carnet document or certificate of registration as needed to facilitate the shipment and re-entry of the items. An ATA Carnet form is an international customs document that permits duty-free and tax-free temporary import of goods for up to one year. Temporary Exports are not charged Customs duties. We know which items can be shipped under a carnet and save our customers costly duties, Mr. Park said. They send a pre-alert of the shipment to the customer and follow up with phone calls. In addition to using the trade documents that are included in Magaya software, Luis M. Arroyo, the Exports Manager, and his export department staff of six use all the accounting features in the Magaya Cargo System, including billing, invoices, accounts receivable, accounts payable, and banking features. We liquidate in Magaya and do all our billing straight from Magaya, Mr. Arroyo said. We also run sales reports, aging reports, bank account balance, and other accounting reports that we give to the CPA. Magaya is an all-inclusive package, Mr. Arroyo said. I don t have to have a separate software program for accounting and another one for imports and exports. With Magaya, you have one software program and that s all you need. On The Go Sometimes a staff member will travel to the filming location to manage the shipments on location. When they log into Magaya OnTheGo, they can see their database just as if they were sitting in their office in Los Angeles. They generate shipments and print air waybills, pull reports and other features while on site at a film shoot. It s a lot easier to have Magaya OnTheGo because all my contact information is there such as names and phone numbers, Mr. Arroyo said. Sometimes there are last-minute items that need to be shipped in, Mr. Park said. Arrangements we made may need to be changed. If we had three LD-7 air freight containers booked, but then more items need to be shipped, we can change the shipment and make new documentation right there on site using Magaya

8 Packair OnTheGo on a laptop, and the documents are very professional. Some freight forwarders still use typewriters. In fact, we used to carry a typewriter to the locations and type the documents. We now can generate delivery orders and pickup orders in Magaya right there on site instead of having to call the office, fax documents or scan and send them back and forth. That s what makes us stand out, Mr. Arroyo said. Customers can call us any time, and with Magaya OnTheGo, we can access information from anywhere. If there is an issue, we just jump on the computer and fix it. Packair was using an old export program that was written in the 1980 s. When they were using that program, they had to have a separate accounting program also. The president of Packair, Sussan Sharifian, found Magaya and started using it in In Conclusion Packair is considering opening an office in Puerto Rico, and using Magaya OnTheGo will help us work there without buying expensive hardware or software, Mr. Park said. In addition to providing services for the film industry, Packair also ships a wide variety of general freight, including items for the government, perishables, and biomed, and plus they are certified to handle hazardous materials. Packair has experience handling temperature-sensitive items and fragile electronics. They also offer special crating services and can palletize and shrink wrap cargo. They have built crates for statues as small as the Oscar or as large as a Velociraptor for a dinosaur movie. Many of Packair s new clients learn about them by word of mouth. This business is a small world, Mr. Park said. We ve had customers tell other people to call us, saying, Call Luis at Packair We went to Jamaica and he got all our equipment there; the dailies were put on DVD and sent back to the producers so they could see what we shot that day. That personal touch makes the difference. All rights reserved. Magaya, the Magaya logo and all products are all trademarked unless specifically specified as of a third party. Copyright 2010, Magaya Corporation info@magaya.com magaya.com