Managing a Transport Network in Procurement. IT process recommendations for collaborating along the supply chain

Transcription

1 Best Practice Managing a Transport Network in Procurement Version: 02/2018 IT process recommendations for collaborating along the supply chain AXIT GmbH. A Siemens Company. Nachtweideweg Frankenthal.

2 Contents Introduction... 3 Business case... 4 Background & requirements... 4 Best practice description... 4 Scope of solution... 5 Highly recommended features... 6 Benefits... 6 Best Practice Managing a Transport Network in Procurement 2

3 Introduction Accumulated knowledge in reference processes Information technology both supports and drives new and innovative processes along the supply chain. One opportunity in particular that IT offers is to define and suggest best practices for collaboration among supply chain partners. No one knows these processes better than AXIT: In the roughly 2,500 supply chain management projects that AXIT has managed on behalf of its customers, we ve learned that the participating companies often face similar problems. AXIT has developed reference processes to document the best, most efficient solutions to these problems. These reference processes systematically capture the knowledge and experience of AXIT experts. They serve as a template for implementing similar projects. AXIT s best practice recommendations reduce complexity, bring stability to the supply chain, and smooth the collaborative processes among all involved parties. They are quick and easy to use, are already in practice among over 200,000 users, and address the typical challenges encountered in the operational management of logistical networks with many different participants. One central platform for all participants Cross-enterprise process standardization is achieved only when the participants look beyond the boundaries of their current in-house systems. That s why it s so important to have a central platform that connects diverse system environments and their users. This makes it possible for all parties, wherever they might be, to communicate and exchange information. Services AXIT offers various services to help businesses optimize the best practices: Workshops help you find the right solution. Training seminars support the rollout of the solution and ensure you re using it properly. And once the solution is up and running, review workshops and consultations help you discover useful extensions. Best Practice Managing a Transport Network in Procurement 3

4 Business case Background & requirements An industrial or commercial enterprise with multiple sites organizes procurement transports break bulk cargo, partial loads, full loads for its products. These transports go to production for further processing or are put into temporary storage prior to distribution. Typically, the consignee is responsible for hiring and paying the forwarder, but the supplier sends out and confirms the pickup orders. The process for requesting pickups often lacks transparency. Such processes sometimes evolve gradually over time, depending on where the consignee is located and which forwarders and suppliers are used. The suppliers might issue pickup requests by phone, fax, , or EDI, for example or the pickups might happen automatically based on a fixed schedule of regular milk runs. This yields the following requirements: Centralized, standardized method for transmitting pickup alerts/orders from various suppliers to various forwarders (via web or interface) Quick and easy rollout to new suppliers and forwarders Creation of the necessary transport documents (labels and waybills) Monitoring and analysis of transport performance across sites Potential for consolidation through visibility of pickup volumes End-to-end transparency on the progress of shipments and ETAs; early escalations in the event of any discrepancies from the regular process Easy analysis of shipping volumes Easy verification of incoming freight invoices based on shipments actually completed Best practice description The solution includes management of a procurement network with various suppliers and forwarders from the perspective of a manufacturer or retailer. Figure: Best Practice overview Best Practice Managing a Transport Network in Procurement 4

5 Scope of solution 1. The suppliers submit pickup orders/alerts through the web account or transmit them to the forwarders through the EDI interface. AX4 can automatically supplement the shipping information with other key data by running calculations, accessing the master data, etc. - Calculation of delivery date based on an existing pickup date and stored transit times, calculation of pickup date based on an existing delivery date and stored transit times - Automated routing of the shipment to the appropriate forwarder based on stored routing tables and services - Calculation of loading meters, volume, chargeable weight (see also Highly recommended features) - Option to let forwarder rather than supplier submit pickup orders online, ensuring that 100% of the data is available in AX4 2. The forwarders receive the pickup shipments through the interface to their AX4 web account. 3. They report back tracking data from the pickup to final delivery. AX4 actively compares target times to actual times and issues alerts if any discrepancies are found. Examples of negative tracking data: requested but not picked up, problems with pickup, not delivered on expected date, etc. Tracking includes monitoring of the complete transport, including pre-carriage, main transport, on-carriage even across various modes of transport such as road and rail. 4. A control tower lets the consignee monitor all processes and data across all sites. 5. Standard reports measure the performance of the forwarders and shipping volumes (helpful when issuing calls for bids, for example). 6. Additional mix-and-match options: - Freight billing: assessment of actual shipping data with stored freight tariffs, creation of credit notes that are transmitted to the ERP system - Time slot management for smooth and efficient delivery at the loading dock Best Practice Managing a Transport Network in Procurement 5

6 Highly recommended features Auto-generation of pickup orders from pre-alerts previously transmitted by the suppliers via EDI, which AX4 achieves by importing delivery note data and accessing master data to augment as follows: - Calculation of packaging data (required packaging, number of packages, gross weight) - Storing of transit time tables to calculate pickup or delivery dates - Storing of calendars (of public holidays, company hours, company holidays) to calculate exact delivery times based on transit time tables Shipment upload as an alternative to the manual input of pickup orders Bundling of shipments for pickup Consolidation of shipments to manifests for pre-carriage, main transport, and on-carriage; allocation to the appropriate forwarder Transit time monitoring reports by forwarder: comparison of calculated target times with actual times from tracking data Advanced tracking: exchange of documents (proof of delivery, customs documents, etc.) to avoid separate faxes, making it possible to upload the customs documents for a shipment and provide them to the import department, which can then check whether the documents are complete before releasing the shipment to downstream workflows Reports with all the data needed to put out a call for bids Creation of custom overviews for the end user Decentralization of master data maintenance (forwarders can update freight tariffs, suppliers can update addresses and business hours, etc.) AX4 mobile, the app for remote access to the AX4 logistics platform, featuring a range of possible uses (driver scans QR code to report tracking data, etc.) that can be customized in AX4 Open under the Mobile Profile menu option (see AX4info Use Cases for the AX4 mobile App ) Benefits End-to-end transparency for pickup processes Fewer errors and greater supply chain stability through the standardization of processes across sites Unified data pool enables multi-site reports at the click of a mouse (for measuring supply chain performance or generating data for calls for bids, etc.) Transport preview yields additional bundling potential (single pickup for multiple plants, etc.) Option to connect a new supplier or forwarder within 1 day instead of several weeks, resulting in time savings of at least 50% Lower error rate due to better decision-making based on complete, centralized data Reliable delivery due to automatic monitoring of process workflow and proactive notifications when discrepancies occur, thereby reducing the time needed to research problems and enabling quicker responses Easier monitoring of billing based on the comparison of shipping data and planned freight costs with actual freight invoices Best Practice Managing a Transport Network in Procurement 6

7 Published by AXIT GmbH A Siemens Company Nachtweideweg Frankenthal Contact Germany: info.germany@axit.de phone: Contact UK: info.uk@axit.de phone: Contact US: info.us@axit.de phone: Contact China: info.china@axit.de phone: You can find this and other best practices at: Best Practice Managing a Transport Network in Procurement 7