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Norwegian Trade Council Total Business Integration

Norwegian Trade Council Total Business Integration. Traditional Industry Utilizing New Technology 15-April-2002. Agenda. Introduction Fritz Overview E-Business Opportunities Case Study: Flex Global View Lessons Learned Q&A. Fritz/UPS Freight Services Overview. Who We Are:

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Norwegian Trade Council Total Business Integration

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  1. Norwegian Trade CouncilTotal Business Integration Traditional Industry Utilizing New Technology 15-April-2002

  2. Agenda • Introduction • Fritz Overview • E-Business Opportunities • Case Study: Flex Global View • Lessons Learned • Q&A

  3. Fritz/UPS Freight Services Overview Who We Are: • Highly trained and qualified in-house team of global freight solutions specialists • Industry-leading technology and systems • Project management skills and proven capability to implement successfully • Established global infrastructure • Experience with leading companies in the sectors served • Backed by the global resources of UPS

  4. Presence Since Region Offices 22 130 73 99 22 153 499 1994 1972 1990 1990 1990 1933 Africa Asia/Australia Central/South America Europe Middle East North America Total Total Frtiz’s Global Presence Fritz Offices Worldwide:

  5. Fritz Service Portfolio Integrated Logistics Transportation What we do • Air Freight • Ocean Freight • Road Freight • Project Logistics • Offshore Consolidation • Customized Solutions Material Management Trade Management • Freight Forwarding • Customs Brokerage • Cargo Insurance • Trade Finance • Trade Consulting • Cargo Distribution • Order Fulfillment • JIT Manufacturing Support • Value Added Distribution • Packing & Crating

  6. Fritz Key Services in Norway KEY SERVICES Air Freight Ocean Freight • Global consolidated transportation • Global NVOCC services • Feeder service via continent • LCL cargo by truck via • Rotterdam/Netherlands • Global air freight transportation • Door-to-door transportation • Airport-to-airport transportation • Cargo tracking, POD services Road Freight Special Services • Scheduled departures from and to • all major European Industrial areas • Groupage, part loads and full loads • Door-to-door, Customs clearance, • warehousing • Cross Trade • Ships Supply service • Customs brokerage • Warehousing

  7. Bay Area History of Technical Innovation… In1939, the Golden Gate International Exposition (World Fair) was held on San Francisco’s Treasure Island to celebrate the opening of the Golden Gate and Bay Bridges. The Auburn Ski Club rose to the challenge of creating a championship- quality ski slope for the fair.

  8. E-business Opportunities in Integrated Logistics • Achieve competitive differentiation by through information delivery • Reduce customer costs by facilitating supply chain integration • Increase costs of switching to competitors • Increase efficiency of internal operations • Enable outsourcing opportunities • New product potential

  9. Technical Challenges in Exploiting New Opportunities • Burden of numerous legacy transportation systems • Lack of connectivity to Fritz offices, carriers, and customers • Inability to extend applications to client desktops • Lack of standardization for information exchange • Complex coordination responsibilities among multiple parties • Extensive client-specific requirements • Aggressive client-mandated implementation schedules

  10. How Fritz Met These Challenges in the Past • Redundant data entry • Phone, fax, couriers, Value-Added Networks (VANs), & leased lines • Expensive on-site application installations • Custom interfaces & Electronic Data Interchange (EDI) • Manual, redundant, error-prone business processes • Client-specific application & process customization • Lots of apologizing!

  11. E-Business Enabling Technologies • The Internet Browser • Proliferation of low-cost Internet Service Providers (ISPs) • eXtensible Markup Language (XML) • Cheap & Fast Distributed Computing

  12. Case Study: Flex Global View Overview • Flex Global View (FGV) was conceived as a customer Internet portal that provided customers visibility into services provided on their behalf • Has been expanded to provide electronic document creation & direct data updates • Also expanded to serve as integration point between global business systems • Provides OLAP & decision support functions to executives

  13. Case Study: Flex Global View Extending Fritz Applications beyond traditional locations • Customers • Track shipments in transit • Manage Purchase Orders (header & line details) • Monitor customs clearance • Coordinate goods movement for warehousing (VMI) • Exception-based alerting on business events • Remote Operations • Create shipments • Enter activity milestones • Perform detailed investigations for customer service purposes • Regional and Corporate-level reporting (e.g. tonnage by carrier, volumes by area)

  14. Case Study: Flex Global View Business Process Integration • Internal UPS/Fritz Systems • Different applications perform different activities for the same business process • Different systems around the world customized for regional differences • Different systems from UPS/Fritz past acquisitions • Business Partner Systems (Customers and Providers) • Data transmitted from customers’ systems (e.g. shipment orders) • Data pushed to customers’ systems (e.g. exception data) • Integration with carriers and competitor 3PL’s (e.g. carrier milestones)

  15. ROP Alert Shipment Order Shipment Intent Delivery Confirmation ASN Product Product Case Study: Flex Global View Vendor-Managed Inventory (VMI) Business Process: Supplier Warehouse Mfg Customer

  16. Case Study: Flex Global View Vendor-Managed Inventory (VMI) Technology Architecture: XML Transmissions XML Transmissions Vendor Systems VMI Module of Flex Global View Client Systems EDI Transmissions EDI Transmissions File Transmissions File Transmissions Internet Internet Web Queries & Entries Web Queries & Entries E-mail Alerts E-mail Alerts Client Users Vendor Users

  17. E-Business Lessons Learned • Things are always more complicated than you think (plan accordingly!) • Swiss Army Knife Syndrome – having a single tool that performs many functions provides additional challenges • Strategic Alignment of Business and IS • Create menu of e-business services rather than reacting to demands by customers • Determine what clients really need, not just what they ask for • Bleeding Edge vs. Mature Products/Technologies

  18. Wrap-Up Questions? Please feel free to e-mail: ben.burbridge@fritz.com ted.walker@fritz.com

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