optimize ocean transportation execution - gt...
Post on 07-Mar-2018
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A STRATEGIC IMPERATIVE FOR MANUFACTURERS
Optimize Ocean Transportation ExecutionHow to Use a Single Platform to Manage Bookings and Shipping Instructions across All Carriers
Executing ocean transportation is an expensive and
time-consuming process when supply chains span
continents. In trying to manage their transportation
strategy, manufacturers are met with a level of complexity
that can result in high administrative costs, difficulty
tracking activity, difficulty integrating with partners, and
no reliable way to measure performance against the
original transportation plan.
The lack of accurate information in the ocean execution
stage makes it hard for manufacturers to streamline
their activity and make good decisions on improving
their strategies. Traditional ERP systems do a decent
job of tracking in-house data, but executing ocean
transportation requires high-quality data from a multitude
of partners and carriers across the globe.
User Carrier
Carrier
Carrier
User
User
Managing many carriers and assessing their performance levels
becomes a convoluted, manual process without a cloud technology
platform on which to view activity.
Impact of Poor Ocean Transportation Execution
When manufacturers don’t have the tools to efficiently
execute their transportation strategy, they end up with
suboptimal performance and a lack of data to measure
KPIs. Some negative effects include:
• Struggle to manage many carriers multi-nationally
• Manual, inconsistent processes between carriers
• No notification of port delays causing late shipments
• No consistent method of carrier measurement
• Difficulty bridging the gap between plan and
execution processes
• No historical records and “accurate evidence”
of activities
The Root of the Problem
At the core of poor ocean transportation execution is
the level of accuracy and agility needed to operate a
global supply chain. Without the right technology,
manufacturers cannot accurately track data from carriers
and partners in their supply chain network.
1. Incredibly complicated landscape
Global transportation planning involves thousands
of lanes in many regions, with processes differing
for each carrier. Manufacturers experience:
• Huge administrative burden
• Fees and fines for late bookings
2. Decentralized operations
Each carrier in each geographical area has a unique
process for executing ocean transportation, leading to:
• Reliance on external 3rd parties to do the work
• Unreliable notifications that cause late shipments
• Difficulty integrating to 3PLs and freight forwarders
on a one-off basis
The Challenge
Companies spend huge amounts of time and money executing across partner 3PLs and carriers, often leading to sub-optimal results.
By investing in a single platform for placing bookings
and shipping instructions across all carriers, companies
can leverage cloud technology to manage large global
supply chains. A centralized platform allows consistency
across partner and carrier data, tracking of milestones
throughout the execution stage, and assessment of
performance based on quality KPIs.
Shipment Execution
ASN/ManifestBooking/Tender
Load Plans
EDI/XML
Shipment PlansBill of Lading
Carriers
Execution data is stored in the cloud, eliminating costly and
time-consuming manual processes.
Track and analyze ocean transportation on a
cloud-based platform.
• Allow shipping party to place bookings directly
from orders
• Workbench to process and manage planned
shipments
• Use execution platform to communicate with
external forwarders and carriers
How to use an ocean transportation execution
platform:
1. Ensure advanced notice of to-be shipments from
shipping sites
2. Use advanced tools to make good decisions on
consolidation and routing options
3. Monitor partner performance against expected
SLAs for shipment execution
Value Propositions
By managing ocean transportation in the cloud, manu-
facturers can lower costs and reduce fees while more
accurately measuring supply chain activity. The benefits
from improved ocean transportation execution include:
1. Reduce SG&A costs through electronic collaboration
• Track all ocean shipments on one centralized
platform
2. Lower documentation fees by 75-100%
• Use electronic register of receipts
3. Compress booking and documentation cycle time
• Priority on electronic bookings and real-time
documentation registration
4. Improve working capital by decreasing DSO
• Shorten time required to collect payments from
customers via L/C automation
5. Use exception-based management
• Receive alerts when milestones are behind
schedule or projected to be late
• Use carrier KPIs for scorecarding to compare actual
vs. contract SLA
Ocean Transportation Execution and the
Networked Company
To better manage ocean transportation in a complex
global supply chain, companies must transform
themselves from silo-based, inward-facing corporate
operators to interconnected, highly agile business
network orchestrators.
NetworkConnectivity
Agility
B
A
Sense more accurately
Operate more e�ciently
Respond faster
Make better decisions
The Solution
Rather than attempt to track every
movement manually during shipments,
companies need to invest in cloud
technology that brings all relevant
information onto a single platform,
automatically.
GT Nexus provides the cloud-based collaboration platform that leaders in nearly
every sector rely on to automate hundreds of supply chain processes on a global
scale, across entire trade communities.
Copyright © 2017 GT Nexus, an Infor company. All rights reservedgtnexus.com
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