Post on 20-Jan-2015
description
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MOSS ProjectMaterial Off-Shore Sourcing
ECSC October 29, 2009
Peter Denno, NIST
Michael Comerford, Global Commerce Systems, Inc.
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Presentation Overview
▪ Problem / Objective / Solution
▪ Technical Solution Details
▪ Pilot KR-US
▪ Cost / Benefit Analysis
▪ Future Direction
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Problem/Objective/Solution
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Complexities of the Long Distance Supply Chain
Mes
sage
s / D
ocum
ents
Typ
e
SUMMARY INBOUND PROCESS FLOW: Foreign to USA
Mile
ston
e R
epor
ting
Even
t
Note: throughout Event activity there is numerous 997 FA and 824 AA reporting
Act
or
RCC Received
Consol Center
PAS Picked up at
Supplier
ACCArrived Consol
Center
LOCLoaded Consol
Center
APDArrived Port of
Departure
DCCDeparted
Consol Center
DOSDeparted on Ship
APAArrived Port of
Arrival
HEC Hold Export
Customs
CECCleraed Export
Customs
OPAOutgated Port
of Arrival
HICHold Import
Customs
CICCleared Import
Customs
PCP Picked up by Carrier at Port
ADCArived Deconsol
Center
RDCReceived
Deconsol Center
PDCPicked up from
Deconsol Center
LDCLoaded Deconsol
Center
DIMSDomestic
Intermediary Movements
DTD Delivered
to Destination
Supplier
Material Manager
Freight Forwarder
Inland Foreign Trucker
Consolidation Center
POD Port Authority
Drayage Carrier
Export Customs
Steamship Operator
POA Port Authority
POA Customs
Highway Carrier
RailRoad Carrier
POE Service Provider
POE Customs Broker
POE Customs
DeConsolidation Center
Ship To Party
Domestic Inland Carrier
POE OGA
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Technical Solution Details
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MOSS Solution
Current Process MOSS ApproachWith MOSS, processes follow a documented flow, and the body of information produced forms a cohesive whole.
Without MOSS, processes execute as isolated point-to-point communications; information is often obtained second- or third-hand.
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NIST provides to MOSS technical expertise in developing standardized data protocols used in long distance supply chains.
♦ Developed the MOSS Website at http://syseng.nist.gov/moss
♦ Developing the MOSS Conceptual Model
♦ Defining MOSS Message Structures
♦ Developing a MOSS Testbed
Manufacturing Engineering Laboratory
Manufacturing Systems Integration Division
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MOSS Data Matrix ( 220 columns X ~1450 lines ) ... (22 messages X 1450 lines)
EDI Path
Example Data
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MOSS Conceptual Model
MOSS Property : Line Item HTS Number
DESADV.SG10.SG17.PIA.4347(670:10)
ORDERS.SG28.PIA[PIA.7143=HS].4347(1050:10)
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MOSS Pilot KR-US
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MOSS Pilot Exercise 1 KR-US FCL
MOSS pilot exercises are experimental deployments of the MOSS solution performed for the purpose of assessing the correctness and effectiveness of the MOSS recommendation, and for fine-tuning the specification.
Pilot exercises are performed with “live data” run concurrent with existing “production” supply chain processes.
Exercise 1 involved a Korean – US supply lane of service part batteries;
▪1,379 shipments per year
▪annual purchase volume of $55 million.
▪operates as full-container load (FCL) shipments,
▪shipped under Incoterm Free Carrier (FCA) to multiple destinations.
▪ocean carrier service “port-to-door” from Busan, Korea to San Pedro, California, to rail into a
General Motors (GM) Kansas City, Missouri, warehouse.
The pilot exercise, using MOSS-conforming software from TradeMerit, managed ~20 containers monthly for three months. Exercise 1 was concluded in July, 2009.
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Pilot Participants
AIAG – Project Management and Technical Support
General Motors Company – SPO, Tax, Purchasing, Logistics
TradeMerit – MOSS Conforming SaaS system
AtlasBx – KR- Supplier
CEVA Logistics – LSP - US and AP offices
Eagle/CEVA – Customs Broker
DHL – Freight Forwarder - US and AP offices
APL – Ocean Carrier
Menlo WorldWide – Ship-To Party - KC BDC Whse
NIST – Conformance testing and technical support
Pohang Technical University KR/NIST – Dr. Hyunbo Cho
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Pilot Finding - Reduced Task Counts
*No Email, No Fax. In some cases these tasks require only one data element being entered into the MOSS TradeMerit System.
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Pilot Finding - Supply Chain Sources of ISF Data
TradeMerit - TCS ORDERS DELFOR DELJIT DESADV INVOIC IFTMIN IFTMBF
Manufacturer (line item)
Preloaded** from OEM data, confirmed by Shipper R274 DM* R274 DM* R274 DM* R274 DM R274 DM
HTS (line item)Preloaded** from OEM data R804 DM R804 DM R804 DM R804 DM R804 DM
C/O (line item)
Preloaded** from OEM data, confirmed by Shipper R704 DM R704 DM R704 DM R704 DM R704 DM
SellerPreloaded** from OEM data, R68 DM R68 DM R68 DM R68 DM R68 DM R68 DM R68 DM
BuyerPreloaded** from OEM data R244 DM R244 DM R244 DM R244 DM R244 DM
Ship To
Various are Preloaded** from OEM data, confirmed by Shipper R5 DM R5 DM R5 DM R5 DM R5 DM R5 DM R5 DM
Container Stuffing Location Shipper R 727 DM R 727 DM
Consolidator
Preloaded** from OEM data, confirmed by Shipper R 53 DM R 53 DM
Importer of Record #Preloaded** from OEM data R257 DM R257 DM R257 DM R257 DM R257 DM
Consignee #Preloaded** from OEM data, R 167 DM R 167 DM R 167 DM R 167 DM R 167 DM
* DM - Data Matrix ** Preloaded from OEM includes: Order, Schedule and General Shipping Instructions.
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Future State Solution
▪ The Pilot demonstrated that the error-prone, low value tasks common to the operation of most supply chains – the re-keying of data, the emailing and faxing of documents - can be eliminated
▪ In the Pilot, there was no re-keying – data was entered once and then reused as necessary by authorized supply chain trading partners
▪ In the Pilot, there was no faxing or emailing documents – all documents were either imaged paper documents or system-controlled documents (eDocs)
▪ In the Pilot, milestone reporting was real time
▪ In the Pilot, data was entered once into the TradeMerit Trade Collaboration System (TCS) and reused as necessary by authorized trading partners.
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MARSH CBA – Cost / Benefit Analysis
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MOSS BenefitsBenefits of MOSS to
US Automotive Industry
Other Direct Benefits
Improve Delivery
Predictability
Eliminates Data Re-Keying
Eliminates Faxing and
Emailing
Reduce Expediting
Real Time Visibility
100% Compliant
with Customs
eDocuments
Reduce Demurrage
Quantified Direct Savings
On-Going Cost Avoidance
One Time Cost Avoidance
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Investment Analysis – Pilot KR-US
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Investment Analysis – Pilot Lane KR-US
Note: this investment analysis does not include the one-time benefit of freed working capital of $ 313,511.
Initial Investment $ 32,000.
Recurring Cost $ 95,000.
Recurring Savings $ 228,000.
Net Cash Flow $ 133,000.
Net present Value (NPV) = $ 323,000.
Internal Rate of Return (IRR) = 413%
Payback period = 2.9 months
Note: this investment analysis does not include the one-
time benefit of freed working capital of $1,844,903.
Initial Investment $ 32,000.
Recurring Cost $ 95,000.
Recurring Savings $ 392,000.
Net Cash Flow $ 297,000.
Net present Value (NPV) = $ 761,886.
Internal Rate of Return (IRR) > 413%
Payback period = 1.3 months
UNIT
represents 1 day of transit reduction and 1 day buffer reduction
PILOT
represents 4.85 days of transit reduction and 7 day buffer reduction
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Future Direction
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Phase Gate
AIAG Governance
Pro
ject
Pha
ses
Business Case-Governance Model-Project Scope-Resource Needs-Cost/Benefit
Idea Acceptance
Analyze
Build
Validate
Deploy
Tem
plat
es &
Wor
k P
rodu
cts
CommunicationPlan
Kick-off Meeting
Pre-Plan
Project Nominated
OK toPre-plan
Business Case Definition
“Call to Action”Project
Qualification
Obtain Resources & Leadership
Current State
Build Guideline
Stakeholder review
Organize Work Groups
Project Plan
Project Charter
Prepare for Kick-Off
Industry Survey
Stakeholder Workshops
Collect Data
UML Activity Diagrams
Use Case Narrative of:- Current State- Ideal State - Gap Analysis - Future State
Define
Define Overall Charter
Develop Project Plan
Gap Analysis
These phases may be repeated as needed
Ideal State
Future State
Internal ReviewPOC Testing
AIAG Project Management Process
Pilot Testing
KR-US FCLQTR 1/2 2009
MOSS/MARSH Cost:Benefit Analysis Qtr 3
EU-US LCL Pilot
Exercise 2
QTR 4 2009
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MOSS Deliverables
● Cost Benefit Analysis
● Recommended Best Practices
● Technical Requirements
● TradeMerit Case Study
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Thank you. Questions?
MOSS Contact Information
AIAG Morris Brown, Program Manager (mbrown@aiag.org)
GM Michael Comerford, MOSS Co-Chair (michael.comerford@usgcs.com)
Honda Kevin Wade, MOSS Co-Chair (kevin_wade@ham.honda.com)
NIST Peter Denno (peter.denno@nist.gov)