Descartes: The path to Change · PDF fileDescartes: The path to Change. Introduction ... all...
Transcript of Descartes: The path to Change · PDF fileDescartes: The path to Change. Introduction ... all...
Tjalling SchakelIWD Global Transportation Management
2017
Descartes:
The path to Change
Introduction - Tjalling Schakel
2
Sr. Director Global Transportation Management
Almost 25 Years with Philips
Mostly in Supply Chain.
- Supply Planning
- NPI and Industrial project management
- SCM Factory management
- Divisional role on transport management.
Out of the 25 years lived 9 years abroad, Belgium, UK, Singapore and Poland.
- Area’s of Responsibilities:- Global Transport all modes- Transport budget- TMS Infodis- Lead time management
Change - Managing Chaos
3
How many transport is
coming to me , where is it
What is in the truck which is in front of the door
How to book transport
What is my performance and
leadtime
Where are my documents
Did I not pay that before
How many Carriers do I use
How much do I spend per lane, carrier and site
Change - The way to thinking
4
HOW TO:
1. Transport booking, SAP, WEB or WMS
2. What information do we have and what do we need
3. How to manage carrier connectivity, SAP or Platform
4. Hoe to manage: Key User, Master data, Calls internal external
5. How to on board Carriers and sites
6. Training and instructions
7. IT Department
8. Implementation
Change - Exploring
5
• What is the Market: many many nice stories
• Capabilities: many many different solution
• What is market practice on Platform choice. Independent or 3|4 PL
• How is the carrier market on all modes with TMS
What we need is focus, not everything at the same time
OPERATIONAL PROCESS
Change - The Choice
6
• Choice became Infodis, only on road freight Europe as this was main focus
• Transport ordering out of ERP/WMS
• Carrier Independent Platform
• What is market practice on Platform choice. Independent or 3|4 PL
• How is the carrier market on all modes with TMS
Change - Implementation
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•Design process, copy as current or new
•Get buy in from the sites
• Setting up the infrastructure
•Built organization
•Money
• First booking, 2 processes
Building - First step
9
Scope of infodis implementation in all flows in Philips healthtech:
Upstream: all shipment and all MOT From suppliers to factories Mainstream: all intercompany flow from Factory to DCDownstream: all flow to customers
Building - First step: capability and connectivity
Capabilities: does it fit or do we co develop | Carrier connectivity: we need to get carriers onboard
End-2-End Transportation process
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Building - Standardization
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User / booker
OEM-supplier Philips factorySupplier of parts Philips (R)DC
Key-user
ServiceNow -Helpdesk
Infodis support team
Global Transportation Management- Infodis team -
Issues related to booking shipments in SAP or INFODIS
- Carrier related - Change master data
- New booker request
- Create new booker- Portal related
- System change- Improve functionality
Acquire approval for change request
Qu
est
ion
s /
Issu
es
An
swer
s /
Solu
tio
ns
Approval
-Answer/solution -System change
Answer/solution
Answer/solution
Carrier
Managing - Communication structure: Key User community
Roles & Responsibilities
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Managing - Roles and Responsibilities
Implementation - The Steps
Phase 4 Pre-billing
- Pre-Billing
- Freight audit
- Invoice control
Phase 3 Cost Allocation
- Cost allocation on SKU level
- Rate evaluation
- Tendering
Phase 2 Operational Visibility on SKU Level
- Visibility on the Delivery lines
- Virtual consolidation & Optimization
- SKU tracking (Delivery lines)
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Pilot Phase: Operational process
Phase 1: Visibility on Master Level
Phase 3: Cost Allocation
Phase 4: Pre-Billing
Phase 2: Visibility on SKU Level
Phase 1 Operational Visibility on Master level
- Shipment tracking (transport unit)
- Carrier status updates
- Validation operational process
Pilot Phase Operational Process
- Transport bookings
- Carrier EDI connectivity
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Managing - What did it deliver… sofar
We know:• Whereabout of goods• Exceptions• Documents
Managing performance:• We are getting in control to drive improvement• People get the right focus• Customers satisfaction go up
TMID was the enabler for large saving
But not only money
Managing - Examples
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World - Global Transportation Hubs (Upstream / Mainstream)
New York (USNYC)
Los Angeles(USLAX)
Panama(PACFZ)
Montevideo (UYMVD)
Tanjung Pelepas (MYTPP)
Shanghai (CNSHA)
Shenzhen (CNSZX)
Budapest (HUBUD)
Warsaw (PLWAW)
Koper(SIKOP)
Colombo(LKCBM)
Rotterdam (NLRTM)
Managing - Examples
Managing - Examples
HANJIN CRISIS.
As soon the news came out Hanjin was in financial trouble,We could with the hour with the help of Infodis, get insight in the impact for Philips.
Initial 200 Containers where impacted.
By knowing what was in de container and where the container was. We were able to mitigate the initial business impact on lost sales to zero within a few weeks
GlobalTransportationManagement
Philips (R)DC
LocalTransportationManagement
CarrierManagement
Supply ChainManagement
TransportManagement
Freight audit Management
Collaborationplatform
RoadCarrier
Philips Factory
Service Now!
Supplier
Pre-bill Team
Sea freightCarrier
Air freightCarrier
InfodisSupport team
Key-userCommunity
F&A
PaymentTeam
OEM Suppliers
Express Courier
Procurement
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Managing - Infodis collaboration platform
Robert de SchrijverFreight Controller - F&A CoE Operations
2017
Descartes Guest speaker
Introduction - Robert de Schrijver
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SR FP&A Analyst- Freight Controller @ Philips
Financial Professional @ Yacht
• Project / Cost Controller @ Sabic Petrochemicals Europe
• Analyst @ Philips Consumer Care organization
Management Accountant-controller @ VDL Bus & Coach
University of California – San Diego
Minor Business Management
Fontys - Venlo
International Business Economics
- Finance counterpart of Sr. Director Global Transportation- Finance driver for improvement projects related to freight- Business / Market go-to person for freight related questions- Ensure correct reporting on financial closures- Enable forecasting for freight costs- Responsible for FAP/Prebilling process
Booking Confirmation Transport Receipt Freight Audit & Pay
B. End -2-end Transport Process
A. Master Data Process
C. Process Controls
End-2-End Transportation process
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3 2015 FP&A CoE Operations Confidential
Freight Audit & Pay - Why Prebilling
Lack of visibility
Philips entities have difficulties judging invoices (rates, add cost etc)
Carriers: Unclear what entity to invoice
F&A: What freight has been invoiced / what hasn’t
Double payments / Over payments
Direct invoice approval Outstanding questions to finance
Freight Audit & Pay – Pre-billing process
Pre bill
RATE
Descartes
/ Infodis
booking
ACTUAL VESSEL DEPT
Invoice
SAP payment
Rate
sheet
PRE BILL SCHEDULE
carrier
Upload
fileTenders
Additional
costs
A.
D.
Payment
Procurement
C.
Back office
Team
B.
System
-Descartes
Origin Inland Haulage
Origin Terminal
Handling
Standard Freight
Charge
Destination Terminal
Handling
Destination Inland
Haulage
standard pre-defined costs
included in 5 buckets as in
the rate sheet:
Dispute procedure
Additional costs
procedure
any non-standard
costs that may occur
during shipment due
to unforeseen
circumstances:
predetermined
costs (demurrage,
detention)
undetermined
costs (i.e
scanning , storage
etc.)
Freight Audit & Pay – Dispute & additional cost
• Any non-standard costs that may occur during shipment due to unforeseen circumstances:
• predetermined costs (demurrage, detention)
• undetermined costs (i.e scanning , storage etc.)
Additional costs incurred
• Additional costs sent to [email protected]
• IN CORRECT FORMAT on weekly bassis
Additional costs provided
• Additional costs sent for approval of Philips Key Contact Person
• Additional costs added in Infodis after obtaining the approval
Additional costs handled
• Additional costs included in pre bill if approved
• Information provided to carrier in case if additional costs rejected
Additional costs solved
Accrual creationDuring Month end closures, an accrual is created for the following:• Shipments didn’t appear on a prebill, but expected to • Shipments related to current month, put planned after prebill creation date.• Shipments without a rate known at moment of prebillingNO central accruals are made for shipments OUTSIDE Descartes / Infodis!
Freight Audit & Pay – True fact based accruals
Activity managed from an Operational process
• Centralized process• Comparable figures• Accurate and quick
Monthly P&L reportingDuring Month end closures, freight cost are expensed directly against the period they belong:• Shipments occurring in certain period• Any split by Origin, Destination, Freight Payer, Product types etc
Required in order to post the Invoice inSAP to correct Carrier.
To ensure that the Invoice will be posted to the “ Philips Organization”
This will allow Philips to quickly identify the Invoice.
CORRECT INVOICE
PRE BILL NUMBER
PURCHASE ORDER NUMBER
CORRECT INVOICE ADDRESS
Carrier should ALWAYS issue the invoice for the exact amount as is stated on the pre bill.
Standardize information flow for carrier, important invoice characteristics :
Freight Audit & Pay – Invoice control
Business cases
Business case calculations are always
supported by detailed Freight & financial
information.
Freight Audit & Pay – other finance
Forecasting
Automated forecasting by connecting Finance-
Supply chain information.
InsightsPremium freight drivers and leading right
discussion.
Freight Audit & Pay – other finance
Process controls
Process controls
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Future
Enable self-billingOvercome VAT difficulties
Global deployment
Communication
Direction & Vision
Automation
Key enablers for success !!
Thank you