Export Supply Chain Practices

Transcription

1 Simplification of Import / Export Supply Chain Practices Titanium 2007 Kathy Galbraith, Director Customer Svcs & Logistics Croda Inc.

2 Background: Uniqema (Specialty Chemicals business unit of ICI ) formed in Four businesses merged from within company and acquisition iti Strong commitment to well planned, and well executed, integration. Legal entity, ERP systems, employee culture Import OTIF (On Time/In Full) Metrics Gap Significant dependency upon importation (40% of US sales were imported) Europe reports hi-90 s on shipments US reports poor OTIF on receipts (~ 50 %) Thwarts desire to direct drop ship to customers Weak Process for Managing Import / Export Non-Conformances Substantial volume of export activity (25% of US sales) Lack of clarity regarding ownership & authority Basic Operational Deficiencies

3 Approach and Observations Focused Process Review utilized to identify improvement opportunities Two week, action packed process, employing an experienced consultant. Disciplined work sessions conducted - clear objectives, time management. Fully engaged employees, and management, in the process. Observations Strong knowledge of work patterns, but similar tasks executed by multiple employees Firefighting well honed employees, but insufficient use of IT systems and repetitive problems. Willingness to Change, but change management tools were required

4 Import Process Surfactants Chicago - Combined Lubricants Pull up MTO vs MTS Spreadsheet 1 Get/Obtain Forecast from Delphi 1 Review Brio Report 1 Update Fields for New Month 2 Open 123 Spreadsheet 2 Open 123 Spreadsheet #1 2 Review Inventory Note Changes 3 Update Inventory Spreadsheet #1Manually & Print 3 Update sales Information on sheet #1 3 Enter Inventory Levels into Spreadsheet 4 Open Next Spreadsheet #2 Stock Log. Prepare for Update4 Review Line Items & determine order qty's. Record Manually4 Configure & Run BRIO Report 5 Review Line Items & determine order qty's. Record Manually5 Update Inventory Spreadsheet #2 & attach to note to Cust Serv 5 Update Spreadsheet with New BRIO #'s 6 Determine which supplier will supply material 6 Update Spreadsheet #1 with PO qty and Req Del Date 6 Review MTO/MTS Forecast & Create Purchase Schedule 7 Determine which warehouse/ customer will receive material7 Receive Lotus Note with attached PO & Print 7 Update purchase Schedule 8 Write Query to see if supplier can satisfy order 8 Review accuracy of PO content. 8 AS-IS Send purchase schedule to UK via Notes 9 Place Manual Orders by SKU via Lotus Note 10 Print from Supplier. Have or Don't have Update/Create individual PO sheet #3. Attach to note 10 9 Place actual PO in BPCS 9 Update PO spreadsheet #2 with BPCS order# & date placed10 Update Spreadsheet to reflect order placement 11 Supplier sends backs order confirm Via Fax. USOM 11 Print Open Order Ack report & FAX to Supplier 11 Print Lotus Note from Planning & File 12 Hardcopy is filed 12 File Hardcopy 12 Log onto BPIC's Purchase Order Maint Screen 13 Supplier sends back shipping details via FAX 13 CSR updates BPCS with Vendor Ref # in SSA Enter Data for Xaction 14 Open stock log #2 & update with faxed info. Stock Only 14 Supplier sends back shipping details via Lotus Notes 14 Enter Data into Bolt-On Create Pseudo P.O. 15 Print Hardcopy. Fax to Broker Whats Hot & Whats Not 15 Receive C of A from plant of MFG via FAX 15 Electronicall Xmit Data to Broker 16 Creat Spreadsheet #4. W/hse Notify. Send to w/hse 16 Receive Invoice / BOL from Supplier via FAX 16 Run Un-Achknowledged Order Report & Print 17 Confirm from w/hse of actual receipt of material 17 FAX cover sheet / BOL / Invoice to Broker 17 Un-Acknowledged List to Supplier&Broker 18 Develop/Open Import File& File Overseas info 21 Update Spreadsheets #1 & #2 with Inventory data 18 Note from BDP "Customs Released". H/copy filed w/order 22 PO receipt in BPCS 18 Review Report With Broker 19 Pull PO and File in Import Folder 22 Labels generated. Print, Pack & Ship 23 Update PO notes with Import Details. Vessl,ETA etc. 19 Hardcopy PO from Broker. Update PO Due date on file list 20 Fax is received from overseas supplier 23 BDP Note: w/hse has received material24 Print PO and FAX to appropriate w'hse 20 Receive Invoice / BOL from Supplier and Courier 24 Confirmation from w/hse: actual receipt of material 25 C of A is manually entered into WORD 21 "Customs Cleared" note. BPIC's - est Pick up date & port 25 Inventory mass location Xfer in BPCS. 26 Note from Broker - BPIC's entry "Enroute" 26 Regulatory Record Keeping 27 Note from Broker - BPIC's Warehouse27 Approval Payment to Broker 28

5 Import Process Projected Planner Runs Multiple DRP Reports 1 Import Forecasts are provided to Overseas Suppliers 2 Review Line Items & Adjust if Applicable 3 (Metric) Planner will manually release PO's in Batch. (Auto Later) 4 is this applicable to domestic PFR's and Tolling?? Import Coord runs/prints open Import PO report 5 Import Coordinator creates International PO in Bolt-on. 6 Electronically Xmit Data to Broker and/or Vendor 7 Import Coord receives Acknowledgment within 24 hrs8 (Metric) started Import Coord receives confirm of product availability. (48hrs)9 (Metric) Import Coordinator updates PO line due date, if changed. 10 TO-BE Run Un-Confirmed Order Report & Print 11 Un-Confirmed List to Suppliers & Review 12 Import Coordinator transacts SSA100 PO Confirmation 13 (Metric) Measure OT-(IF) Stock Turns Line Items Picked/hr Customer Satisfaction Import Coord receives/prints International PO Develop/Open Import File & File Overseas info 15 (2 Metrics) Shipping Details & Doc's Update File in Import Folder with Shipping Details 16 Receive Invoice / BOL / CofA from Supplier and Courier 17 Import Coordinator updates PO line due date, if changed. FAX Invoice / BOL to Broker 18 "Customs Cleared" note from Broker. PO rec - ETA port 19 Note from Broker - BPCS MLT entry "Enroute"20 3rd Party Update PO note. Print & FAX to w/house 21 Uniqema Note from Broker- BPCS MLT Entry by W/house 22 Note from Broker- BPCS MLT Entry by Import Coord 22 Uniqema Site Services C of A manually entered into WORD 23 Labels generated. Print/Pack/Ship 24 C of A manually entered into WORD 23 Labels generated. Print/Pack/Ship 24 Planned Metric Potential Improvement Regulatory Record Keeping 25 Approval Payment to Broker 26

6 Example of Exports Exceptions Time Study Methodology Uniqema Exports - Exception Handling - Other Tasks Monthly Daily Daily Time Now Weekly Time Now Per Month Per Year Group Description Per Occur Min's Monthly Min's Proj. Time Delta Time Benefit $ Benefit $ Shipping Problems $ - Cust Se 1 Shipping to the w rong destination $ 600 Cust Se 2 Shipping the w rong product $ 850 Cust Se 3 Lack of provision of commercial invoice to driver $ 99 Cust Se 4 Warehouse turns aw ay Carrier $ - Cust Se 5 Confirmation errors. - What shipped? $ - Cust Se 6 Shipping Short w ithout authorization or Notification $ - Cust Se 7 Not enough effective communication $ - Cust Se 8 Domestic Phone Coverage & Sw itchboard Rollover $ 1,400 Cust Se 8 Customer Service Response by ( Read, Investigate, Respond) 0.00 Shipping Problems $ - Logistic 1 Shipping to the w rong destination $ 12,000 Logistic 2 Shipping the w rong product $ 5,800 Logistic 3 Lack of provision of commercial invoice to driver $ 1,100 Logistic 4 Warehouse turns aw ay Carrier $ - Logistic 5 Not enough effective communication $ - Logistic 6 Response by ( Read, Investigate, Respond) $ - Logistic 7 Un-Authorized Carrier consigned $ $ - TOTAL Hrs $ 1, $ 21,

7 Import / Export Recommendations Unification of International Supply Chain IMPORTS: Consolidate US organization and define inter-regional regional interfaces (deliveries & non-conformances) Significant opportunity for Imports Organizational Streamlining Reduction in fixed expense by upgrading role of Import Coordinator ($75K) Redeployment of resource to higher value activities ($20K) and Removal of hidden tasks from Customer Svcs Rep ($10K) Import System Strengthening introduction of Distribution Resource Planning (DRP) tools to raise visibility Establish inter-regional IBP (Integrated Business Planning Processes). Strengthen Supply Chain / SBU interactions. EXPORTS: Enhance Continuous Improvement activities through training and team-building. Cost Savings potential in Export Processes requiring a commitment to continuous improvement. Expand authority of Int l Logistics Specialist to effectively manage freight procurement, non-conformances and claims. Engage warehouse loading personnel, training on loading techniques and paperwork compliance.

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9 Onward Developments: Entire organization trained in Continuous Improvement methodology providing common language and platform. Over 30% improvements in Working Capital / Sales ratios. Forecast accuracy improved via use of simple IT tools. Coordinated inter-regional Supply Chain planning processes. Innovative Inventory Management Methodology Import Delivery performance driven up to low 90 s OTIF. C-TPAT (Customs Trading Partners Against Terrorism) certification achieved. Global SAP implementation, ongoing.