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MOTOR CARRIER EDI Presented by John J. Daub, Kleinschmidt Inc.

MOTOR CARRIER EDI Presented by John J. Daub, Kleinschmidt Inc. "What you are, You are always becoming" Rutgers TYMSHARE-TYMNET Honeywell GE (for as long as "Jack" was CEO) ICC Kleinschmidt. Not an " expert “, simply a professional salesman who has worn many hats. Teleprocessing

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MOTOR CARRIER EDI Presented by John J. Daub, Kleinschmidt Inc.

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  1. MOTOR CARRIER EDI Presented by John J. Daub, Kleinschmidt Inc.

  2. "What you are, You are always becoming" Rutgers TYMSHARE-TYMNET Honeywell GE (for as long as "Jack" was CEO) ICC Kleinschmidt

  3. Not an "expert“, simply a professional salesman who has worn many hats. Teleprocessing Custom and Network Applications EMAIL Workstations Software Industry EDI/Proprietary Standards EDI via the Internet Global EDI and E-Commerce.

  4. Kleinschmidt Delivering Innovative eBusiness Solutions What We Are… • Premier Service VAN • Outstanding 24 X 7 Customer Service • Experienced Employees • Personalized Service • Employee Owned / Private / Profitable What We Are NOT… • Ruled by Voice Mail System • Constant Employee Turnover • Owned by a Non-EC Company

  5. Kleinschmidt Delivering Innovative eBusiness Solutions Cost-Effective Outsourcing Solution • Packaged Translation Software Costs Big $$$ • No More Maintenance, Upgrades, Licenses • Custom Translation Based on Individual Business Requirements • Custom Web Applications to Streamline non-EDI Business • New Implementation or Conversion from Current Software • Complete Trading Partner Set-up, Regardless of Communications: • AS2, MQ, FTP, Dial-up, Async, etc. • All Document Types Supported: X12, XML, Flat Files, etc. • 24x7 Operations and Technical Support

  6. MOTOR CARRIER EDI • A discussion of the movement of business documents in the supply chain is needed in the movement and tracking of goods by the Trucking industry. • Document Types: • 204-Load Tender • 210-Invoice and Freight detail • 211-Bill of Lading • 212-Delivery Manifest • 213-Motor shipment Status • 214-Carrier Shipment Status Message • 215-Pickup Manifest • 216-Shipment Pickup Notification • 217-Loading and Route Guide • 990-Response to a Load Tender

  7. Business Process Reengineering - EDI • The Old Days: • Customer ABC has a load of widgets to be delivered to the Receiver (The buyer, The retailer). The Logistics manager creates a Load Tender document (paperwork) and mails or faxes to Keep on Truckin’ Express (KOT - Carrier). • KOT Express’ Dispatcher gets the LT and manually enters data into his trucking software. Let’s hope there are no manual entry mistakes! • He phones, faxes, or emails his acceptance of the load back to ABC. • KOT Express sends a truck to ABC and gets load. The load takes a trip. In the meantime, the Receiver is running out of the widgets it is waiting for and calls ABC! ABC calls KOT Express. The Dispatcher must call the driver and determine the location of the load.

  8. The Old Days…. Continued • The Truck arrives and off-loads the widgets at the receiver’s warehouse. Delivery documents are signed and usually are sent back to KOTExpress in the mail. Sometimes the driver is not heading directly back! • Meanwhile, The Sales manager at ABC is calling the Logistics department to find out if the delivery has happened…and the Logistics Manager is calling KOT….and the Dispatcher at KOT is calling the driver….and sooner or later…..everybody finds out what they need to know. • Finally, in this 1970’s scenario….(80’s?….90’s?), The delivery docs get to Keep on Truckin' and a billing person sets up the invoice and sends it to ABC – again, by mail. At ABC, some weeks go by and a check is finally mailed back to KOT. Hopefully there are no errors in this manual process.

  9. The EDI Way: The main Carrier documents in play: 204- Load Tender 990- Load Tender Response 214- Motor Carrier Shipment Status 210- Freight Invoice 997- Acknowledgement ABC is sending the widgets, but its Logistics software generates a 204 and sends it to KOT Express via EDI (EDI Outsource Vendor). KOT Express automatically generates a 997 and sends that back via EDI. Tender acknowledged! The Dispatcher accepts the load and a 990 is sent to ABC via EDI. Tender Accepted! If the load is declined….the 990 will tell ABC that as well, and they can pick a different carrier to haul the load.

  10. The EDI Way… continued The KOT driver picks up the load and sends a 214 Status Message, via his mobile device on top of his cab. Out the yard gate! Additional 214s are sent during the road trip. Shipment in transit. Shipment delivered and off loaded! The 210 Freight Invoice is generated by KOT and sent to ABC electronically. Hopefully the payables application marks it for payment quickly. Pickup to payment clock is sped up considerably!

  11. "The simple fable of ‘before and after’ belies a more complex supply chain environment with many transaction sets in play."

  12. Business Data Flow Prior to Tendering Freight Price/Sales Catalog (832) Routing and Carrier Instruction (853) CUSTOMER SUPPLIER Purchase Order (850) Purchase Order Change (860) P.O. Acknowledgment (855) Purchase Order Change Acknowledgement (865) Purchase Order Status Inquiry (869) Order Status Report (870) Planning Schedule w/Release Capability (830) Request For Routing Instruction(753) Trailer Usage Report(227) Trailer Usage Report(227) CARRIER Carrier Loading & Route Guide (217) Carrier Loading & Route Guide (217) PO Shipment Management Doc (250) Request for Carrier Rate Proposal(107) Request for Carrier Rate Proposal(107) Domestic TL, LTL Carrier Rate Proposal (106) Carrier Rate Proposal (106) Response to Carrier Rate Proposal (108) Response to Carrier Rate Proposal (108)

  13. Tendering Freight to a TL Carrier CUSTOMER SUPPLIER Appt Schedule Info- Pick-up (163) Appt Schedule Info - Delivery (163) Ship Notice/Manifest (856) Routing Instruction (754) Load Tender (204) Load Tender (204) CARRIER Response to Load Tender (990) Response to Load Tender (990) Appt Schedule Info Pick-up (163) Appt Schedule Info Delivery (163) Shipment Status Inquire (213) Shipment Status Inquiry(213) Domestic TL Shipment Status (214) Shipment Status (214)

  14. CUSTOMER SUPPLIER Appt Schedule Info- Pick-up (163) Appt Schedule Info - Delivery (163) Ship Notice/Manifest (856) Routing Instruction (754) CARRIER Domestic LTL Tendering Freight to a LTL Carrier Pickup Notification (216) Pickup Notification (216) Appt Schedule Info Pick-up (163) Appt Schedule Info Delivery (163) Bill of Lading - LTL (211) Shipment Status Inquiry (213) Shipment Status Inquiry (213) Shipment Status Message (214) Shipment Status Message (214)

  15. CUSTOMER SUPPLIER CARRIER Small Package Tendering Freight to a Small Package Carrier Ship Notice/Manifest (856) Pickup Notification (216) Shipment Status Inquiry (213) Pick-up Manifest(215) Package Status (240) Shipment Status Inquiry (213) Package Status Message (240)

  16. CUSTOMER SUPPLIER CARRIER Domestic TL Freight in Transit for a TL Carrier Ship Notice/Manifest (856) Shipment & Billing Notice (857) Invoice (810) Payment/Remittance Advice (820) Shipment Status Inquiry (213) Shipment Status Inquiry (213) Appt Schedule Info Delivery (163) Shipment Status (214) Shipment Status (214) Freight Invoice (210) Freight Invoice (210) Consolidators Freight Bill & Invoice (223) Consolidators Freight Bill & Invoice (223) Motor Carrier Summary Frt. Bill Manifest (224) Motor Carrier Summary Frt. Bill Manifest (224) Payment/Remittance Advice (820) Payment/Remittance Advice (820)

  17. CUSTOMER SUPPLIER CARRIER Domestic LTL Freight in Transit for a LTL Carrier Ship Notice/Manifest (856) Shipment & Billing Notice (857) Invoice (810) Payment/Remittance Advice (820) Shipment Status Inquiry (213) Shipment Status Inquiry (213) Appt Schedule Info Delivery (163) Shipment Status (214) Shipment Status (214) Freight Invoice (210) Freight Invoice (210) Delivery Trailer Manifest (212) Motor Carrier Summary Frt. Bill Manifest (224) Consolidators Freight Bill & Invoice (223) Motor Carrier Summary Frt. Bill Manifest (224) Payment/Remittance Advice (820) Payment/Remittance Advice (820)

  18. CUSTOMER Ship Notice/Manifest (856) SUPPLIER Shipment & Billing Notice (857) Invoice (810) Payment/Remittance Advice (820) CARRIER Domestic Small Package Freight in Transit for a Small Package Carrier Shipment Status Inquiry (213) Shipment Status Inquiry (213) Package Status (240) Package Status (240) Delivery Trailer Manifest (212) Freight Invoice (210) Freight Invoice (210) Consolidators Freight Bill & Invoice (223) Consolidators Freight Bill & Invoice (223) Motor Carrier Summary Frt. Bill Manifest (224) Motor Carrier Summary Frt. Bill Manifest (224) Payment/Remittance Advice (820) Payment/Remittance Advice (820)

  19. CUSTOMER SUPPLIER CARRIER Domestic TL, LTL, Small Package Delivered Freight for all Carriers Receiving Advice/Acceptance Certificate (861) Shipment Status Inquiry (213) Shipment Status Inquiry (213) Shipment Status (214/240) Shipment Status (214/240) Freight Invoice (210) Freight Invoice (210) Motor Carrier Summary Frt. Bill Manifest (224) Motor Carrier Summary Frt. Bill Manifest (224) Payment/Remit. Advice (820) Loss or Damage Claim (920) Loss or Damage Claim (920) Claim Tracer (925) Claim Tracer (925) Claim Status Rpt & Tracer Reply (926) Claim Status Rpt & Tracer Reply (926) Payment/Remittance Advice (820) Payment/Remittance Advice (820) Credit/Debit Adjustment (812) Credit/Debit Adjustment (812)

  20. Domestic Business Data Flow - LTL CARRIER Price/Sales Catalog. (832) Carrier Routing Instructions (853) CUSTOMER SUPPLIER Purchase Order and PO Change (850/860) PO Acknowledgement and PO Change Ack. (855/865) Purchase Order Status Inquiry (869) Order Status Report (870) Planning Schedule w/Release Capability (830) Appt Schedule Info (163) Ship Notice/Manifest (856) Invoice (810) Payment/Remittance Advice (820) Receiving Advice (861) Request For Routing Instruction (753) Routing Instruction (754) Rate Proposal (106/108) Rate Proposal(106/108) Req. for Rate Proposal (107) Req. for Rate Proposal (107) CARRIER Loading&Route Guide (217) Loading &Route Guide (217) Appt Schedule Info Pkup (163) PO Shipment Mangmnt Doc (250) Pick up notification (216) & Trailer Usage Report(227) Appt Schedule Info Delivery (163) Pick up notification (216) & Trailer Usage Report(227) Bill of Lading (211) Bill of Lading (211) ShipmentInquiry (213) Shipment Inquiry (213) Shipment Status (214) Shipment Status (214) Freight Invoice (210) Delivery Trailer Manifest (212) Freight Invoice (210) Loss or Damage Claim (920) Loss or Damage Claim (920) Claim Tracer (925) Claim Tracer (925) Domestic LTL Claim Status Report & Tracer Reply (926) Claim Status Report & Tracer Reply (926) Consolidators Freight Bill and Invoice (223) Consolidators Freight Bill and Invoice (223) Freight Bill Manifest (224) Freight Bill Manifest (224) Payment/Remittance Advice (820) Payment/Remittance Advice (820) Debit/Credit Adjustment (812) Debit/Credit Adjustment (812)

  21. Domestic Business Data Flow - TL CARRIER Price/Sales Catalog. (832) Carrier Routing Instructions (853) CUSTOMER SUPPLIER Purchase Order and PO Change (850/860) PO Acknowledgement and PO Change Ack. (855/865) Purchase Order Status Inquiry (869) Order Status Report (870) Planning Schedule w/Release Capability (830) Appt Schedule Info (163) Ship Notice/Manifest (856) Invoice (810) Payment/Remittance Advice (820) Receiving Advice (861) Rate Proposal (106/108) Rate Proposal(106/108) Req. for Rate Proposal (107) Req. for Rate Proposal (107) CARRIER Loading&Route Guide (217) Loading &Route Guide (217) Load Tender (204) Trailer Usage Report(227) Response to a Load Tender (990) Load Tender (204) Response to a Load Tender (990) Trailer Usage Report(227) Appt Schedule Info Delivery (163) Appt Schedule Info Pick up (163) ShipmentInquiry (213) Shipment Inquiry (213) Shipment Status (214) Shipment Status (214) Freight Invoice (210) Freight Invoice (210) Loss or Damage Claim (920) Loss or Damage Claim (920) Claim Tracer (925) Claim Tracer (925) Domestic TL Claim Status Report & Tracer Reply (926) Claim Status Report & Tracer Reply (926) Consolidators Freight Bill and Invoice (223) Consolidators Freight Bill and Invoice (223) Freight Bill Manifest (224) Freight Bill Manifest (224) Payment/Remittance Advice (820) Payment/Remittance Advice (820) Debit/Credit Adjustment (812) Debit/Credit Adjustment (812)

  22. Domestic Business Data Flow - Small Pkg. Price/Sales Catalog. (832) Carrier Routing Instructions (853) CUSTOMER SUPPLIER Purchase Order and PO Change (850/860) PO Acknowledgement and PO Change Ack. (855/865) Purchase Order Status Inquiry (869) Order Status Report (870) Planning Schedule w/Release Capability (830) Appt Schedule Info (163) Ship Notice/Manifest (856) Invoice (810) Payment/Remittance Advice (820) Receiving Advice (861) Trailer Usage Report(227) CARRIER Trailer Usage Report(227) PO Shipment Mangmnt Doc (250) Appt Schedule Info Pkup (163) Pick up notification (216) Appt Schedule Info Delivery (163) Pick up notification (216) Pick up Manifest (215) Pick up Manifest (215) ShipmentInquiry (213) ShipmentInquiry (213) Shipment Inquiry (213) Package Status (240/214) Package Status (240/214) Freight Invoice (210) Delivery Trailer Manifest (212) Freight Invoice (210) Loss or Damage Claim (920) Loss or Damage Claim (920) Claim Tracer (925) Claim Tracer (925) Domestic Small Package Claim Status Report & Tracer Reply (926) Claim Status Report & Tracer Reply (926) Freight Bill Manifest (224) Freight Bill Manifest (224) Payment/Remittance Advice (820) Payment/Remittance Advice (820) Debit/Credit Adjustment (812) Debit/Credit Adjustment (812)

  23. Trucking Industry Insights Trucking Industry Insights Trucking Industry Insights A positive sign of economic recovery is the increase in freight transportation. There are signs of improving industrial demand in recent weeks. rail_industry_trends/news/US-rail-traffic-gains-should-continue-in-the-second-half-Baird-says--27047 The Intermodal Association of North America's (IANA) latest "Intermodal Market Trends & Statistics" report states that in the second quarter, both domestic and international intermodal volumes registered "solid gains". Domestic container volume grew at a stronger pace than the two previous quarters and posted an "especially impressive" rate of increase since the highest gain of 16.4 percent was recorded in second-quarter 2010, IANA officials said in the report. "Early indications are painting a rosy picture for the U.S. Freight Railroads in 2011. In the first quarter of 2011, the U.S. rail carload volume was up nearly 5.3% compared with the prior-year quarter", states Zacks Equity Research.Bureau of Transportation Statistics (BTS), a part of the Research and Innovative Technology Administration, reported that freight shipments in June measured by the freight Traffic Safety Institute (TSI) rose to their second highest level since August 2008, exceeded only by those in March. T he current trend shows freight shipments have increased in 18 of the last 26 months rising 1.3 percent in the past six months. Shipments rose 14.5 percent over the last 26 months. In July, the American Trucking Association (ATA) announced their advance Seasonally Adjusted For-Hire Truck Tonnage Index increased in June. Most would agree, as the U.S. economy gets back on track, freight movement will expand, creating a need for better shipment tracking for all transportation sectors: Land, Sea, and Air.

  24. "Around the Terminal" Capacity Constraints as Demand Up-Ticks Shipper’s Fleets - 50% of all Freight For Hire Carriers use on slight increase Number of drivers down Federal Regulation up Trucking Companies talk about the same things that you do... Technology, Planning, BPR, Company Culture, Best Service, and the Lowest Cost (not the lowest price). Something to think about during the next long haul: AD Pyle is getting ready for another winter. Last winter, their drivers (Line Haul Team) did 7.8 million miles!! They had only 3 preventable accidents. Drive safe!

  25. EDI INDUSTRY Landscape: Carriers: Dispatch Platforms McLeod, TMW, Telsys… Import-Export of data Shippers: TMS and Logistics Software, Web Portals Communicate Directly: FTP, AS2, Dial-up? Third party Van for EDI Outsource Shippers want to cut costs: The MBUSA story ANSI X12 Predominates 9/11 and crossing the border today

  26. Why Use a Motor EDI Web Application? The emphasis in motor EDI is shifting from increasing EDI to decreasing non-EDI communications. However, it can be very difficult for some carriers to do EDI. It's difficult for them to generate EDI to various carriers' specifications. Shipper-specific PC software is expensive to distribute and maintain. A Kleinschmidt motor EDI Web application can be the solution. Decrease your non-EDI data. When shippers and carriers first began using EDI, success was measured by increases in EDI usage. 20% EDI was twice as good as 10% EDI. As the use of EDI by shippers and carriers has become more common, the emphasis has shifted from increasing EDI to reducing non-EDI data exchange. For example, if 92% of a shipper's communications with its carriers is EDI, and that can be increased by 3%, the benefit is not just a 3 percent increase in EDI. It is a far more significant three-eighths reduction in non-EDI communications.

  27. It's Hard for Small Carriers to Comply Many carriers, particularly small carriers, have not yet implemented EDI. When they try, they are dismayed to find that each shipper uses the "standard" EDI transactions differently. For example: Initial pickup information may be in the stop off loop, or in the main body of the 204. 204 Stop-offs may be numbered consecutively, or pickups and deliveries may be numbered separately. Tracking information varies from shipper to shipper, and is passed in different locations in the 204, but must be returned in 214s. Different shippers expect different levels of 214 reporting. They expect different subsets of the standard status codes and status code reasons. Some shippers ignore unexpected status; others reject it. Yes, it's all "standard," but... Even if carriers can afford to implement and support all their shippers' varied requirements, it takes a long time, and they ask a lot of questions.

  28. As a company engaged in B-T-B automation: When you Outsource to KS-you outsource to real people in the same time zone who you know! EDI is Shared Processes with Partners. "Time is the Enemy when it comes to exceptions and problems!" As a business entity you need to mitigate risks!-----KS helps. You need to enhance visibility-"where did the goods come from-where did the goods ultimately go" Enhance visibility-----KS helps. When your tech partners move or change via a merger and acquisition----there is an inherent risk to you... as a user! "There is an Easy way and a Right way" "As Supply Chain and IT professionals-We organize the world." "Hard work brings Good Luck"  "People do business with people they like"

  29. Thanks to my friendly clients who provided some great photos It is nice to have IT contacts who are "Truck NUTZ" Logistics One, NYA. Duie Pyle, PAPeters Bros., PA

  30. Thank you for your Attention John J. Daub III Asst. VP of Sales Direct: 201.864.0801 John@Kleinschmidt.com 1808 Kennedy Blvd. 3rd Floor Union City, NJ 07087 USA www.Kleinschmidt.com Kleinschmidt HQ Main: 847.945.1000 Fax: 847.945.4619

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