Adding Value to your Transportation Processes Mark McMonagle VP Solutions Engineer Operations Simplifying Your Shipping

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Adding Value to your Transportation Processes Mark McMonagle VP Solutions Engineer Operations Simplifying Your Shipping Slide 2 Adding Value to your Transportation Processes Simplifying your Non-Production Shipping QAD TMS Overview -Transportation Management -Global Trade Management -Trade Compliance -Package Exception Management Live Software Demonstration Available On Demand Recap of Benefits Q&A Agenda Simplifying Your Shipping Slide 3 Return on Investment Reduce Transportation Costs -Consolidations, Rate Shopping, Routing Guide Automate Manual Processes -Reduce keystrokes and duplicate processes -Error Free and compliant International Paperwork and Manifests -Reduction in Overtime -Reduce Headcount Increase opportunities for consolidations -Zone Skipping, Group destinations Eliminate some 3 rd party activity QAD TMS - Adding Value to your Transportation Processes Slide 4 Automotive Industry Challenge -Meet Industry Standards (e.g. AIAIG & Odette Shipping Labels / documents) -Customer-specific document and label requirements -Customer Routings based on weight/carrier -Scheduled / Consolidated Shipments Solution -Automate label creation based on product / customer -Maintain customer-specific routing instructions electronically -Consolidate shipments by customer for scheduled deliveries Transportation / Trade Challenges & Opportunities by Industry Slide 5 Consumer Products Challenge -Control Shipment Costs (esp. from offshore suppliers) -On-time deliveries / pro-active customer service -Regulatory Compliance for broad base of customers -Collaboration with suppliers for direct delivery to customers Solution -Multi-modal shipments and rate shopping -Restricted party checks and product/country/end use compliance -Visibility & tracking of inbound and outbound Transportation / Trade Challenges & Opportunities by Industry Slide 6 High Tech / Electronics Challenge -On-time delivery for manufacturing lines -Moving parts to spare parts depots / field service engineers -Some hazmat -Return / Repair Mgmt Solution -Automation of key logistics processes via workflow management -Electronic routing guide to support customer-routed shipments and product requirements -Rules-based documentation library ensures cross- border compliance -Product classification for import/export reporting -Package Tracking to ensure on-time delivery -Landed Cost calculations for inventory network optimization Transportation / Trade Challenges & Opportunities by Industry Slide 7 Industrial Challenge -Often hazardous types of shipments -Large / Bulky equipment needing to be broken up into multiple shipments -Multiple drop shipments Solution -Product compliance checks for hazardous shipments -Automate hazmat documentation and label printing -Load building of trucks for multiple drop-offs -Create single manifest for multiple shipments Transportation / Trade Challenges & Opportunities by Industry Slide 8 Life Sciences Challenge -On-time Delivery (e.g. critical drug delivery, for equipment maintenance/repair -Cold Chain Shipping -Product Approvals by Country -Visibility within the Supply Chain Solution -Track inventory from supplier through delivery to customer -Reduce transportation costs through carrier and service-level choice -Automate documentation to meeting country/product-specific regulations -Automate regulatory compliance checks Transportation / Trade Challenges & Opportunities by Industry Slide 9 Logistics Service Providers Challenge -Management / Fulfillment for multiple customers -Reverse Logistics / Return & Repair Management -Need for visibility to inventory movements & locations -Accountability for handling goods across multiple industries/regulatory bodies Solution -A single system for transportation, global trade and compliance -Visibility to multiple clients, locations, inventory and transportation tracking -Return labels and tracking of inbound shipments Transportation / Trade Challenges & Opportunities by Industry Slide 10 Retail Challenge -Often high volumes of shipments -Visibility to supply chain to match demand with inventory availability -Control of transportation costs -Need for import / export compliance as new suppliers and markets are developed Solution -SOA deployment of PRECISION for high volume processing -Automated documentation and compliance checks -Supply Chain visibility and tracking of inventory Transportation / Trade Challenges & Opportunities by Industry Slide 11 Slide 12 Base Supply Chain Portal & Transportation Tracking Global Trade Management Transportation Management Trade Compliance Package Exception Management Database Set of Rules and Workflow User Interface (black box / interactive) Shared Architecture based on 1 QAD TMS Solution Overview Slide 13 QAD TMS Base Slide 14 Key Master TablesFunctionalityStandard Integrations Partners* Workflow QAD SE / EE Applications Products* Rules/Rulebooks Other ERP Systems Languages (Includes Translations) QADTMS ePage (Form Design) Any WMS System Edit Codes (Numeric Formats) Document Production and Distribution (Note: This does NOT include Document Library See GTM) Units of MeasureDocument Imaging CurrenciesSecurity Setup Transaction Types*Packing Pack Types*Dataflow (Create Master Shipment) Cost/Charge Codes*XML Data Exchange Utility Hazmat UN Codes*Highway (Messaging Subsystem) Functional Breakdown: QAD TMS Base Slide 15 Transportation Management Slide 16 Carrier-Related Functionality FunctionalityKey Transportation Documents & Labels Certified / Approved Carriers ( Refer to Topic 029 Per Carrier Functionality) Routing GuidePacking List Generate Tracking Numbers (Pro #s / Waybill #s) Charge Table/Rate Maintenance (All modes, spreadsheet updates) Bill of Lading (BOL) Label Production (Carrier Compliant for Integrated Carriers) Rating (Other non-carrier charges, e.g., handling, insurance) Generic Labels Electronic Communication (including End-of-Day Manifesting) Rate ShoppingDispatch / Consignment Notes Carrier Rate Maintenance and Upload Freight QuotingHazardous / Dangerous Goods Notes (ADR, IATA, Sea) Rating (Carrier rates and accessorials) Load Offering (e-mail offer of a shipment, portal for carrier to accept, user selects carrier) Drivers Manifest Transit TimesConsolidations/ Master Shipments Carrier Consolidations (FedEx Intl Priority Distribution IPD, UPS WorldEase, DHL Breakbulk Zone Skipping Load Building Desktop Shipping Basic Freight Audit (Match carrier invoice to shipping estimates) Functional Breakdown: QAD TMS Slide 17 Sample Worldwide Carrier Coverage Slide 18 Multi-modal Domestic & International Shipping QAD TMS Transportation Management System Certified with 40+ carriers worldwide Automated Routing Guide -Selection of carrier/mode -Adhere to company policy / customer routings Communication with Multiple Carriers -Rate, Label and Manifest Shipments Return Label Support Transportation Visibility in real time Benefits Uniform way of working with all shipments Transportation Visibility Ensure compliance with carrier requirements Slide 19 Standard QAD TMS Features Automatic Hundredweight Consolidation Electronic Communications with Customers and Carriers Carrier Certified Manifests and Labels Automated BOL Generation Automated EOD Manifest Generation Automated HazMat compliance and documentation Automated International Document Generation Buy and Sell rating capable - Could be published vs. negotiated - Negotiated, with uplift applied - Manage Promotions around shipping cost Slide 20 Carrier Certification Programmes Tracking number generation Label Rating -Published / List -Negotiated EOD -FTP, HTTP, other Test Case Validation Carrier Certification Slide 21 Label Rating Engine Tracking Number generation EOD Manifest URL Tracking link Other Carriers - Overview Slide 22 Sender Address Details Receiver Address Details Carrier Code Pro Number (Tracking Number) Barcode of Pro Number Also available without Pro number Customizable reference field Ship Date Total Weight Mailing Label LTL and other Carriers - Shipping Label Slide 23 Zone Skipping Consolidate based on end-point delivery Ship From nearer to final destination Pre-label with alternative Ship From Sample : US to US carrier hub Slide 24 Zone Skipping - Example Slide 25 QAD TMS Invoice Matching Invoice Matching Engine Automated Matching for -Actual Freight Invoice -Estimated Cost Determination of discrepancies Approval of supplier invoices Creation of light shipments Slide 26 QAD TMS Matching Process Shipment Retrieval by tracking number Invoice Cost tends to be Totalled Estimates matched in precedence: -Freight -Fuel -Accessorial charges Variance calculated -Carrier variance (default) -Shipper variance (manually chosen) Slide 27 Multiple departments Different types of shipments Limited or no process in place Time consuming Little oversight Non-Production Shipping Challenges Simplifying your Non-Production Shipping Process According to a study by PARCEL Magazine and the ARC Advisory Group, poor management of desktop shipping can lead to shipping cost increases of at least 20% on a yearly basis. Slide 28 Empower employees Control Freight Usage Streamline handling in your mailroom / dock Automate documentation Gain visibility to costs Consolidation of carriers / accounts Opportunities for Improvement Non-Production Shipping Opportunities One high-tech firm found that they had 73 different contracts in place with parcel carriers around the world. By consolidating that to three or four carriers that could serve the entire company, they found they would save an estimated 10% from their annual parcel spend. Slide 29 Departments and people across your company Who Uses Desktop shipping? Non-Production Shipping Shipping things like -Samples -Engineering pre-production products -Marketing materials -Documents -Internal assets (Equipment) Slide 30 Why Use Desktop Shipping? Non-Production Shippin