Package Marking, Packing List and Invoice Data Requirements for EB Receiving & Invoicing

Package Marking, Packing List and Invoice Data Requirements for EB Receiving & Invoicing Approved for Public Release

Introduction • Problem • EB Receiving Process • Package Marking / Packing List Data • Invoice Requirements • Action • Conclusion Shipments to Electric Boat Approved for Public Release

The Problem Package marking and packing list / invoice data errors • Delays payment to our suppliers • Adds non-value project cost • Slows EB invoicing to the Navy Shipments to Electric Boat Approved for Public Release

The Problem Why is this a serious problem? • EB is under pressure to reduce the cost of building submarines • EB suppliers depend on prompt payment • Every month millions of dollars of billing are delayed Shipments to Electric Boat Approved for Public Release

The Problem • The Navy does not pay EB for material until we pay you • Non value-added project cost are incurred EB has strong incentive to pay vendors promptly! Shipments to Electric Boat Approved for Public Release

Topics • Problem • EB Receiving Process • Package Marking / Packing List Data • Invoice Requirements • Action • Conclusion Shipments to Electric Boat Approved for Public Release

EB Receiving Process • Requirements mandate that all material be positively identified throughout the shipbuilding process. • EB uses a structured system (MRP II) to order, track and pay for incoming material. • The EB supplier base includes thousands of suppliers. • EB receives hundreds of deliveries each day. • Our customer will only pay for material that is properly received and documented. Shipments to Electric Boat Approved for Public Release

Package Marking / Packing List Data Package Marking • Required Data : • EB PO number and line item number • EB Part Number • Quantity and Unit of Measure • Same unit as shown within the P.O. • Carton number • Total number of cartons • The packing list Shipments to Electric Boat Approved for Public Release

Package Marking / Packing List Data Shipments to Electric Boat Approved for Public Release

Package Marking / Packing List Data Shipments to Electric Boat Shipments to Electric Boat 11 Approved for Public Release

Package Marking / Packing List Data • Mark each EB PO number 1” down from the top edge of the container : • Make sure the EB PO is marked • When multiple POs or PO line item (POLI) numbers are shipped in a single container: • Record each PO / POLI starting 1” from the top • Separate multiple PO line items shipped in same container Shipments to Electric Boat Approved for Public Release

Package Marking / Packing List Data Packing Lists • Required Data : • EB PO number and line item number • EB part number • EB part description • Quantity and unit of measure • Same unit as shown within the P.O. Shipments to Electric Boat Approved for Public Release

Issues • Packing slip is missing • PO incorrect or missing • Supplier / distributor PO number used instead of EB • Part number incorrect or missing • Supplier / distributor part number used instead of EB • Material not separated / identified when shipped in one container Shipments to Electric Boat Approved for Public Release

Issues • Unit of measure does not match PO • For example, we order 1000 feet of pipe but supplier delivers 150 pieces • Cannot receive / issue payment until we call you to obtain units conversion Shipments to Electric Boat Approved for Public Release

Consequences: • Material can not be accepted • Material can not be located • Program incurs non value added cost • EB may return the material • Delays: ship’s construction; supplier payment Shipments to Electric Boat Approved for Public Release

Invoice Requirements • EB PO number • EB PO line item number • EB Part number • Quantity (unit of measure used in the PO) Master Pricing Agreements • Delivery Request number • Delivery Request Item Number Units of measure must match the PO! Clarify all pricing issues before submitting an invoice Shipments to Electric Boat Approved for Public Release

Action • Communicate these requirements to your shipping personnel • Verify proper marking • Assure that the packing slip & invoice are provided • If necessary, use checklists to make sure EB requirements are met • Emphasize correctly marking drop shipments Shipments to Electric Boat Approved for Public Release

Container Markings Correct EB PO and item number marked All POs listed Correct EB part number Quantity & unit of measure Carton number All markings legible Multiple POs / container All part numbers separated All part numbers identified as an EB part number, quantity, unit of measure etc. Packing Lists Is attached to the carton EB PO & line item EB part number Quantity, unit of measure matches PO Invoice EB PO & line item EB Part number Quantity (unit of measure used in the PO) Master Pricing Agreements EB PO & line item Delivery Request number & Item number Checklist Shipments to Electric Boat Approved for Public Release

Conclusion Compliance: • Faster processing of incoming material • Fewer phone calls and faxes • Faster invoice turnaround • Lower cost to build submarine Non-compliance • Incoming material “on-hold” • Production delays in shipyard • Labor spent resolving issues • Slower payment • All correctpacking slip / invoices can be paid within 30 days Shipments to Electric Boat Approved for Public Release

Package Marking, Packing List and Invoice Data Requirements for EB Receiving & Invoicing