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Speakers. e-logistics for manufacturing Department of Trade & Economic Development. David Mifsud Managing Director Prodata Solutions. Shaun Coniglio Vic & SA Regional Manager Rand National Transport. Introduction. CARRIER. RECEIVER. Sales/Inventory System. Freight Operations System.
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Speakers e-logistics for manufacturing Department of Trade & Economic Development David Mifsud Managing Director Prodata Solutions Shaun Coniglio Vic & SA Regional Manager Rand National Transport
CARRIER RECEIVER Sales/Inventory System Freight Operations System ERP/Inventory System Shipper Documents + Carrier Con-Note POD POD Freight Invoice + POD Documents Invoice Goods Invoice Phone/Fax dialogue to resolve disputes Traditional Freight Transaction SHIPPER 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] E-mail Documents Proof of Delivery Delivery Labels
Sales/Inventory System Freight Operations System Warehouse Management System ERP/Inventory System STORES SHIPPERS CARRIERS RECEIVERS v:ol integration agent viper:online[Integration] Flow of Goods Flow of Information
Industry Research What Is the ‘True’ Cost of Processing a Freight Bill?By Howard K. Bass, Ashish Garg and T.J. IijimaA 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 … 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) 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
Who are we? • Rand Transport (1986) Pty. Ltd – a subsidiary of the Automotive Holdings Group • Suppliers ofrefrigerated 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
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
Services Offered 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
Business Complexity De -Consolidation Local Delivery Manifests Delivery Individual Receiving Customer Requirements Consolidation Freight Documentation Pick Up Individual Customer Documentation
Business Complexity • 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
Customer Benefits - Pre-Delivery • 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 - 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!
3 KEY ‘TAKEAWAYS’ • 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? • 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. • The costs are not high, implementation is straightforward … the return on investment is excellent. • Internet technologies have made information sharing routine • Transaction-based pricing methods dramatically reduce up-front costs and match costs to levels of business activity.