Improving Logistics Process with an “ERP Firewall” and ... · Slide 1 ©2011 GXS, Inc. Improving Logistics Process with an “ERP Firewall” and Real-Time Visibility Rochelle

Slide 1 ©2011 GXS, Inc.

Improving Logistics Process with an “ERP Firewall” and Real-Time Visibility

Rochelle Cohen, Sr. Product Marketing Manager, GXS

John Anacleto, Sr. Advisory Solutions Consultant, GXS

Slide 2 ©2011 GXS, Inc.

Agenda

Retailer Case Study Rochelle Cohen

– Old process and issues

– New process and benefits

Active Logistics Demo John Anacleto

– Obtaining updated status and ETA

– Improving carrier performance

– Ensuring data quality

• Q&A

Slide 3 ©2011 GXS, Inc.

Major Retailer

Thousands of off-the-shelf and special order products

Complex import process:

– 100s overseas suppliers

– Thousands of ocean containers/year

– Logistics network includes ocean carriers, US Customs, trucks

Complex network of retail stores, distribution centers, trans-load

facilities, coastal holding facilities, flatbed distribution centers,

reload centers

Slide 4 ©2011 GXS, Inc.

Manual Logistics ProcessesCostly, Time-Consuming, Error-Prone

1. Vendor contacted retailer for

ocean carrier selection

2. Vendor booked shipment

3. Retailer entered information

in a spreadsheet and

forwarded to purchasing and

logistics via email

4. Retailer arranged for trucking

to pick up from port and take

to DC

Status updates at

any point in the

process required

phone calls, visits to

carriers’ websites, or

contacting customs

Slide 5 ©2011 GXS, Inc.

Issues with the Manual Process

Shipments arrived at the port without advance notice to retailer

– Rush to get goods moved to DCs

– Increased container costs as shipments remained at the port for

days

– Inefficient operations at DCs that couldn’t plan in advance for

receiving

About 20% of import information was inaccurate, requiring

constant rework and vendor follow-up

Challenge: Improve shipment visibility to enable

support for dramatic increase in expected import

volumes

Slide 6 ©2011 GXS, Inc.

Solution Requirements

Real-time visibility of order

and shipment status– At all points in the supply chain

– By all functional users (purchasing,

logistics, transportation, DC

operations)

Automated communication

process

Ability for all vendors and

carriers to participate,

regardless of size

Slide 7 ©2011 GXS, Inc.

Solution Selected: GXS ActiveSM Logistics

Slide 8 ©2011 GXS, Inc.

GXS ActiveSM LogisticsSolution Components

Electronic exchange of documents Retailer sends and receives EDI documents

Vendors, carriers, customs brokers send and receive EDI

documents or web-based forms

ERPShipment

Status

Updates

Advance

Ship Notice

Purchase Order Purchase Order

Shipment Status

Updates

Advance

Ship Notice

Copy of Advance

Ship Notice

Vendors

Carriers

Ocean, Rail, Track

Customs Broker

1

2

3

4

R

e

t

a

i

l

e

r

Slide 9 ©2011 GXS, Inc.

All Trading Partners Can Exchange Documents Electronically

Web forms for SMB vendors via GXS web forms service using

business rules specific to retailer

EDI for large vendors – Active Logistics ensures clean data goes into

ERP/TMS/WMS systems

EDI for carriers – eliminates need for retailer to check individual portals

for status updates

Flat files for customs broker and other 3rd parties – Active Logistics

sends ASN copies to brokers to ensure speedy processing

Slide 10 ©2011 GXS, Inc.

Real-Time Status Information

Active Logistics portal

provides logistics,

purchasing, and

transportation and DC

operations with real-time

view of inventory

throughout the supply

chain

Slide 11 ©2011 GXS, Inc.

Data Quality Management

Active Logistics acts as an ERP Firewall

to prevent bad data from reaching

production system

Retailer-specific business rules

Field validations within web forms

Data exceptions view on portal

Slide 12 ©2011 GXS, Inc.

Performance Monitoring

50 custom reports and ad-hoc queries

are available to retailer’s functional users

Supplier Performance

Carrier Performance

Volume and Cost

Transit Times

Data Timeliness

Data Quality

Container Utilization

Slide 13 ©2011 GXS, Inc.

Results and Benefits

Managed a 600% increase in shipments per year

while adding minimal personnel

Improved error rate from 20% to less than 1%

Ability to proactively respond to and manage supply

chain exceptions

Metrics provide foundation for improvements and

negotiations with trading partners

Enables compliance with 10+2 regulations so goods

flow through customs without delay or penalty

Slide 14 ©2011 GXS, Inc.

Demo Scenarios

1. Responding to an Urgent

Customer Request

2. Using Logistics Data for

Strategic Analysis and Planning

3. Ensuring High Quality Data from

Your Logistics Trading Partners

Slide 15 ©2011 GXS, Inc.

Responding to an Urgent

Customer Request

Demo

Slide 16 ©2011 GXS, Inc.

Enter PO Number from Home Page

Slide 17 ©2011 GXS, Inc.

View Order Status

All Items have

been shipped

Click on specific item in question

Slide 18 ©2011 GXS, Inc.

Obtain Status Details

Goods arrived at port and cleared

Customs.

But, the container has not been

taken off the ship! We need the

carrier and BOL information ASAP!

Slide 19 ©2011 GXS, Inc.

Drill Down for More Details

Click on Container Number to

get the details

Slide 20 ©2011 GXS, Inc.

Expedite Delivery

Armed with these 3 values, the logistics manager

can call the carrier to expedite delivery

Slide 21 ©2011 GXS, Inc.

Using Logistics Data for Strategic

Analysis and Planning

Demo

Slide 22 ©2011 GXS, Inc.

Reports to Uncover Bottlenecks, Under-Performing TPs, Performance Data

Slide 23 ©2011 GXS, Inc.

Example: Carrier Transit Times Report

How long does it take for goods to move

from one location to another?

Helps manage DCs and optimize

inventory to lower inventory and

transportation costs, improve working

capital

Slide 24 ©2011 GXS, Inc.

Specify Report Details

Date

range

Specific

or all

carriers

Specific or All

destination

codes

Slide 25 ©2011 GXS, Inc.

Report Shows Carrier Transport TimesEnabling Better DC and Inventory Planning

Slide 26 ©2011 GXS, Inc.

Ensuring High Quality Data From

Your Logistics Trading Partners

Demo

Slide 27 ©2011 GXS, Inc.

Exceptions Quadrant on Main MenuMonitor for Timely Issue Resolution

Example:•37 Exceptions on

June 10

•Click for details

Slide 28 ©2011 GXS, Inc.

See Listing of All Exceptions

Slide 29 ©2011 GXS, Inc.

Click on Action Button and then Fix

Slide 30 ©2011 GXS, Inc.

Determine Cause of Error

Exclamation

point

highlights

the error

Slide 31 ©2011 GXS, Inc.

Click on Exclamation Point to Obtain Error Details

Now, you

can obtain

correct

carrier #,

enter on

screen and

submit

Slide 32 ©2011 GXS, Inc.

GXS Logistics Network

GXS Active LogisticsTrack and Trace for Shipments across All Transportation Modes

Reverse

Pipelines

Order and Shipment Correlation

Order Quantity

Roll-UpDynamic ETA

Exception

Alerts

Scorecards

Hosted Visibility Portal

GXS Logistics Network

• Hundreds of pre-configured logistics

connections

• Carrier/trading partner on-boarding

• Data quality management

• Data management services

• Error resolution dashboard

Slide 33 ©2011 GXS, Inc.

Questions?

Rochelle CohenSenior Product Marketing Manager

John AnacletoSr. Advisory Solutions Consultant, GXS

Slide 34 © 2011 GXS, Inc.

Thank You for Your Participation!

For More Information:

Phones:

US: 1-800-334-5669, option 3

EMEA: +44 (0) 1932 776047

ASPAC: +852 2884 6088

Japan: +81-3-5574-7545

GXS web sites:

US: www.gxs.com

EMEA: www.gxs.eu

ASPAC: www.gxs.asia.com

Japan: www.gxs.co.jp

Presenters:

John Anacleto, [email protected]

Rochelle Cohen, [email protected]