Copyright © 2004 Prodata Solutions Pty Ltde-logistics for manufacturing – May 2004 Speakers...

Copyright © 2004 Prodata Solutions Pty Ltd e-logistics for manufacturing – May 2004

Speakers

e-logistics for manufacturingDepartment of Trade & Economic Development

David MifsudManaging Director

Prodata Solutions

Shaun ConiglioVic & SA Regional ManagerRand National Transport


Introduction


Traditional Freight Transaction

SHIPPER

Sales/Inventory System

Freight Operations System

ERP/Inventory System

CARRIER RECEIVER

POD POD

Shipper Documents + Carrier Con-Note

Freight Invoice + POD Documents

Goods Invoice

Invoice

Phone/Fax dialogue to resolve disputes

delays …

write-offs …

duplicated effort …

confusion …

$

delays …

write-offs …

duplicated effort …

confusion …

$


Business Process Improvement

Resource intensive processes

Document Management Reduce effort to collate, process and access documents

Order Entry – Electronic transfer of orders / information

Eliminate duplication of effort – increase accuracy/timeliness

Invoice Reconciliation Automate manual intensive and error prone process

Load Consolidation & Reverse Billing Optimise transportation costs & control charges


viper:online [Document Management]


Proof of Delivery

Delivery Labels

E-mail Documents

viper:online [Document Management]


viper:online [Order Entry]


SHIPPERS CARRIERS STORES RECEIVERS

Flow of Goods

Flow of Information

Freight Operations

System

Sales/Inventory System

Warehouse Management

System

ERP/Inventory System

v:ol integration agent

viper:online [Integration]


Industry Research

Freight Services - Projected Financial Savings

Transportation procurement: 6%-12%

Transportation planning: 8%-15%

Transportation execution: 8%-12%

Monitoring & visibility: 5%-10%I2 Technologies - http://www.i2technologies.com/Home/SolutionAreas/SupplyChainManagement

… Woolworths alone could save up to $1 billion per annum if all of its dealings with the transport sector were done

electronically.Trucks Online - National Road Transport Scoping Study (NOIE 1999)

What Is the ‘True’ Cost of Processing a Freight Bill?

By Howard K. Bass, Ashish Garg and T.J. Iijima

A recent Ernst & Young study found that accounts receivable costs within the transportation sector can

consume 2% to 4% of the total invoice, depending on the mode of transportation and invoice value.

Global Logistics & Supply Chain Strategies - October, 2002


Rand Transport (1986) Pty. Ltd

– a subsidiary of the Automotive Holdings Group

Suppliers of refrigerated transport, storage and distribution services

Offices and Cold Storage/Distribution centres strategically located across Australia

Employ over 200 permanent staff

Fleet of purpose-built temperature controlled containers and Pantechnicons providing interstate transport

Fleet of frozen/chilled local distribution pans, trucks and vans

Service both small and large food manufacturing companies

HACCP and Trucksafe Accredited

Who are we?


Services Offered

Frozen and chilled storage - Fully Integrated Warehouse Management System

Shuttle Distribution

Interstate Freight Haulage – Integrated Booking, Load Planning & Manifesting

Cross Docking Facilities

Direct Major Customer Delivery – Retail and Foodservice

Order Processing - Pick and Pack Operation

Local Distribution – chain and independent retail stores plus foodservice distributors


To food manufacturers, distributors, importers and retailers,

Rand is your National Cold Chain Partner that provides a

complete range of in-house, fully integrated, refrigerated line-

haul transport, cold storage and further distribution services

that guarantees cold chain integrity from pickup to end delivery

Services Offered


RandReceiving

DepotRailhead Railhead

Receiving Customer B

Receiving Customer C

Receiving Customer D

Receiving Customer A

Rand LineHaulRandPUD

RandPUD

RandPUD

RandPUD

RandPUD

RandPUD

RandSendingDepot

SendingCustomer C

Sending Customer D

SendingCustomer E

SendingCustomer A

SendingCustomer B

RandPUD

RandPUD

RandPUD

Rand PUD

Rand PUD

Pick Up

Individual Customer Documentation

Consolidation

Freight Documentation

De -Consolidation

Local Delivery Manifests

Delivery

Individual Receiving Customer Requirements

Business Complexity


Receiving Customer

Receiving Customer

Receiving Customer

Receiving Customer

Receiving Customer

Receiving Customer

Reconciliation

Batched

Scanned

Associated

Viper

Accounting

Customer Service

Sales

ProactiveInvestigation

Business Process


600 active customers

Over 10,000 pallets moved per week

5,000 active pick up and delivery points

Handing over 250,000 pieces of paper per month

- consignment note- customer out loading document- customer load plan- customer delivery docket- customer invoice- freight forwarder con note

Business Complexity


Control data entry – one entry point – reduced data error – greater planning opportunities – increased sales opportunities

Reduced paperwork flow – less chance of misplacement – reduced costs

Immediate booking confirmation

Automatic con note generation

Visibility – all details available 24/7

Flexibility – load changes can be amended on line

Customer Benefits - Pre-Delivery


Customer Benefits - Post-Delivery

POD images available on line – generally within 36 hours

Visibility - available 24/7

Ease of traceability – uses customer unique reference number

Internal “Exceptions Report” – alerts Rand immediately of missing POD’s

Proactive rather than reactive

All associated documents available – con note, POD, freight invoice etc

On line approval on invoices

Customer and service provider viewing same information – reduces confusion

Images can be emailed or faxed

Everyone gets paid!


What you can’t measure, you can’t Manage!


3 KEY ‘TAKEAWAYS’

1. Electronic collaboration with freight services providers offers significant opportunities for cost savings and process improvement –

How much is it costing you to purchase, manage and reconcile your companies freight services?

How many resources could be freed up if these tasks were automated?

2. Achieving these savings requires appropriate technology PLUS a partnership approach –

Computers have revolutionised business processes and the management of information within companies – the same can now be achieved between companies.

3. The costs are not high, implementation is straightforward … the return on investment is excellent.

1. Internet technologies have made information sharing routine

2. Transaction-based pricing methods dramatically reduce up-front costs and match costs to levels of business activity.

Copyright © 2004 Prodata Solutions Pty Ltde-logistics for manufacturing – May 2004 Speakers...

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