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TM. Moving Global Trade With IT Solutions. Bill Petersen 18 November 2005. Global Supply Chain Strategy And Technology Seminar. Who are we ?. Founded in 1984 Operating in 57 countries, with over 900 clients Headquartered in Dublin, Ireland US HQ in Chicago
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TM. Moving Global Trade With IT Solutions Bill Petersen 18 November 2005 Global Supply Chain Strategy And Technology Seminar
Who are we ? • Founded in 1984 • Operating in 57 countries, with over 900 clients • Headquartered in Dublin, Ireland • US HQ in Chicago • Now in Rotterdam, Coventry, Düsseldorf, Bucharestand Dallas • Now shipping our third-generation product – TRAXi3
Typical Domestic Shipment Factory Rail RDC Carrier DC truck Store
Typical International Shipment Factory Truck Consolidator Rail Container yard Port of lading Ship Port of discharge Container yard Rail Deconsolidator Truck DC Truck Store
Typical Domestic Players Producer Buyer Carrier(s) Storage
Typical International Players Broker/FF Foreign Bank(s) Producer Buyer Security Docs - Import Carrier(s) Storage Tax agent(s) Docs - Exp
Murphy’s Law • Nothing is as easy as it looks. • Everything takes longer than you think. • If anything can go wrong, it will.
Petersen’s Principle On Presentations The probability of any presentation going well is inversely proportional to the level of the audience in attendance.
Typical International Shipment Factory Truck Consolidator Rail Container yard Port of lading Ship Port of discharge Container yard Rail Deconsolidator Truck DC Truck Store
Typical International Shipment Factory Truck Consolidator Rail Container yard Port of lading Ship Port of discharge Container yard Rail Deconsolidator Truck DC Truck Store
Proof Point From The United Nations Every year, the inefficient administration of customs regulations and documents adds an additional 7% or $420 Billion Dollars to the cost of international trade.
TM. Moving Global Trade With IT Solutions Bill Petersen 18 November 2005 Global Supply Chain Strategy And Technology Seminar
What constitutes best practice? • Lowest Cost • Fastest cycle time (velocity) • Least risk • Greatest control
Lowest Cost - Freight • Rate shopping • Balance service level with requirements • Load consolidation • “Ocean skipping” • Full audit capabilities
Lowest Cost - Documentation • The right bundle of information at the right place delivered via the most efficient medium • Hardcopy • Email • Bowser access • Fax • WYSIWYG design capability (usable by users)
Lowest Cost - Operations • Preferential trade • European Union • NAFTA • Others • Provides for the rebate of duties paid • Requires integration at Item Master level
Increased velocity • Multiple Denied Party checks • At receipt of order • Prior to shipment (or any other time) • Extract data from ERP system • BOM • Lot and S/N level • Pack information
Increased Velocity • Correct documentation at every step • Standard forms for country of origin and destination • Capability to design custom documents (WUSIWYG) • Capability to “attach” images to documents • Automated alert function • Auto-correct to Letter of Credit
Reduced Risk • Denied parties/Embargoed countries • Multiple sources • Multiple levels • Legality is dependent on the nature of the goods involved • “Smart” checking • Override capability • Audit trail
Greatest Control/Visibility Shipment Lifecycle Upstream Downstream Shipment
Greatest Control/Visibility Shipment Lifecycle Upstream Downstream Delivery Shipment Management Rating Routing Tendering Ship Confirm Track & Trace
Greatest Control/Visibility Shipment Lifecycle Upstream Downstream Payment Management Delivery Shipment Management Rating Data warehousing Routing ERP integration Tendering Verification Ship Confirm Matching Track & Trace Receipt of invoice
Greatest Control/Visibility Visibility Visibility Control Control Upstream Downstream Shipment
MidWest Air:Hypothetical But Typical • MidWest Air manufactures and sells replacement parts for aircrafts to a world-wide market • Currently, they are experiencing heavy freight forwarding expenses for Red Rush orders • Susan Smith, MidWest’s new CFO feels this is too high, and want it brought down • Dick Stevenson, the VP of Sales, objects, saying that the nature of their business demands rapid customer response • Fred Myers, the VP of Logistics, agrees with Dick, and does not want his people in shipping to have to become international experts
The Solution: A Three-Dimensional Approach • Upstream: Add a set of rules to create appropriate documentation at time of shipment • Downstream: Audit the freight forwarder's bill to ensure that all charges are correct • Create a monthly report showing freight forwarding charges, by customer, by shift Visibility Visibility Control Control
What constitutes best practice? • Lowest Cost • Fastest cycle time (velocity) • Least risk • Greatest control C-TPAT
Summary Factory Truck Consolidator Rail Container yard Port of lading Ship Port of discharge Container yard Rail Deconsolidator Truck DC Truck Store This stuff ain’t easy
Summary It’s not just about dollars Factory Truck Consolidator Rail Container yard Port of lading Ship Port of discharge Container yard Rail Deconsolidator Truck DC Truck Store This stuff ain’t easy
Summary It’s not just about dollars Factory Truck Consolidator Rail Container yard Port of lading Ship Port of discharge Container yard Rail Deconsolidator Truck DC Truck Store This stuff ain’t easy There are bad people out there
Summary It’s not just about dollars Factory Truck Consolidator Rail Container yard Port of lading Ship Port of discharge Container yard Rail Deconsolidator Truck DC Truck Store This stuff ain’t easy Control and visibility There are bad people out there
Moving Global Trade With IT Solutions Questions????