What Hi Tech Solutions Shippers
and Customers expect from 3PL
Serafina Valente
Anixter - EMEA Freight Manager
Eyefortransport European Technology Forum
26th Sept 2007
Anixter - Who are we?
• Distribution Company- 350,000 telecom
products across the world
• Employ over 5,000 people
• $900M in Inventory
• 220 warehouses worldwide.
• Locations in 247 cities- in 49 countries
across the globe
Why Supply Chain visibility is important
to us
• We are shipping inbound and outbound goods across
the world using a variety of forwarders and methods
of transport
• Regular Customs inspections require fast and accurate
shipping documentation
• Our customers demand fast and accurate visibility of
their orders
• Transportation Costs have major impact on our
distribution process
Why visibility is important to shippers
and customers
• Enables Track and Trace
• Freight Costs Visibility
• Speeds up deliveries and Productivity
• Improves Consolidations and therefore freight costs
reductions
• Reduces unplanned costs (Demurrage)
• KPI Reporting
• Finally IMPROVE SERVICE TO CUSTOMERS
We, as added value
suppliers and
customers, want more
visibility on our orders
51
37
30
29
20
20
11
4
0 10 20 30 40 50 60
Lack of critical supply chain
process visibility
Uncoordinated multi tier supply
chain process
Loss of operational Control &
difficulty managing 3PL
Ability to affectively manage
company's growth
Rising Logistics Costs and Fuel
Prices
Longer lead times and lead time
variability
Customs and other regulatory
requirements and costs
Immaturity of logistics networks
in low-cost countries
Top Areas of Concern for Global Supply Chain
% of RespondentsSource :Aberdeen Group
Still most of suppliers
do not use any technology
for visibility…
Technologies Used for Global Visibility
Use
Commercial
Solution
28%
Use Home-
grown
solution
24%
Use solution
from 3PL's
16%Do not use
visibility
technology
32%
Source: Aberdeen Group
but this is slowly going
to change
0102030405060708090
Supply C
hain V
isib
ility
Supplie
r Colla
boratio
n
Supply
Chai
n Costin
gs
Custo
mer
Colla
boratio
n
Int'l
Tra
nsport
Mgm
t
Trade
Com
pliance
Ris
k M
anag
ement
% o
f Firm
s Plan
IT In
vestm
ents in
the N
ext 2
years
Global Supply Chain Technology Investment Areas
over the next 24 months
77%
63%
51%
42%
29% 27%22%
Source : Aberdeen Group
What shippers / customers
expect from 3PL
Supply Chain Major Areas of Visibility
Inter-Companies
Final Customers at
Destination
Distribution Points /
Whse at Destination
Manufacturer
Independent
Suppliers
Landed Costs
Digital POD’s
Scanned Documentation
Track and Trace
Track and Trace
Track and Trace-
Some of the recurring issues
• Goods Received at destination- System shows
“goods have not boarded the plane yet”
• Goods delivered in the warehouse- System shows
“goods arrived at the airport”
• Goods not arrived at destination - System shows
“delivered”
Goods delivered -System not updated
Shipment Number: 5479894596
Mode: Air
Origin CHICAGO (MIDWAY), IL USService Type: STANDARD W/CLEARANCE &
DELIVERY
Destination BIRMINGHAM GB
Pieces: 9Received Date/Time: 22 JUN 2007 6:00 PM
Date Time Status Location26 JUN 1:08 PM NOB YTO
Real Status : Goods delivered to our warehouse
Goods not arrived at destination- System shows “
delivered”
Shipment Number: 7051676434
Mode: Ocean
Origin TRENTON, NJ US
Destination STOCKHOLM SE
Received Date/Time: 15 JUN 2006 12:00 PM
Cargo Received At: US
Date Time Status Location
14 JUL 3:00 PM DELIVERED SPANGA, SE
Real Status : Goods were still NOT DELIVERED in our warehouse by 16th July
Goods delivered- System shows still “not arrived”
Date Time Status Location
11 JUL 08:43 AM NOT ON-HAND (1 of 12) BRUSSELS BE
Real Status : Goods arrived - Going through Clearance
Track and Trace- What shippers / customers
expect from 3PL
Track and trace - 3PL Expected solutions
• Real Time visibility: crucial for airfreight shipments
• Fast to rectify inaccuracies
• Accurate data to avoid unnecessary costs
• Proactive in pre-alerts management
• Standardise level of sophistication of their system -
This still varies from low to advanced.
Landed Freight Costs
Forwarders and Integrators
FORWARDERS
�Freight Costings are
produced at arrival point
�Any Customs financial
details are supplied when
goods are delivered to
final destination
INTEGRATORS
� Freight Costings CANNOT be
provided when cargo arrives at
destination.
� Any customs financial details
CANNOT be supplied at
delivery time
Freight Costings NOT supplied at
destination- Consequences
•Financial unbalances when invoices are supplied
•Unnecessary waste time to determine freight costs
•More room for manual mistakes
•Increased chance to pass to Sales /Customers
wrong freight amount
•More unhappy final customers
What we expect from the
Integrators
• Ability to supply financial details when
goods arrive at destination
• Customs paperwork visibility
• Better operational network to proactively
support customers and suppliers
Digital Proof of Delivery
Transportation Lifecycle
Purchase Orders Info
Advance Ship Notice
Receipt Notification
Invoice
Payment/ Remittance Advice
Pick Up NotificationPick Up Info
Bill of Lading
Assigning
Routing
Shipment Status
Freight Invoice
Shipment
Status
Freight Invoice
SELLER
BUYER
PROOF of DELIVERY
What are the PODs benefits ?
• Improve Cash flow
• Increase Customer satisfaction
• Easily to be retrieved at a simple click of a button
• Provided to customers securely over the internet
– reducing the strain of telephone calls
Additional Benefits of PODs
• Rapid Implementation
• Minimal up -front expenditure
• Easy Deployment throughout the organisation
• Latest technology with no upgrade issues
Why Digital PODs
• “Real Time” of signature and Time of
delivery
• Significant Implications for Premium
deliveries
• Substantial impact on “time sensitive”
projects
• No risks in getting lost
Forwarders and Integrators
FORWARDERS
�Most DON’T provide Digital
PODs
� Printed Signatures retrievable
only 24hrs after delivery
� Original hard copy are
provided not earlier than 3
days from delivery
INTEGRATORS
�Most CAN provide
Digital PODs
� No need for printed
signatures
� Hard Copies can be
immediately printed
Scanned Freight Documentation
How is this service provided to customers ?
FORWARDERS
� CAN provide scanned
copies of shipping docs
� CAN also submit at
time of delivery scanned
copies of customs
entries
INTEGRATORS
� CANNOT provide
scanned copies of docs
� CANNOT provide
scanned copies of
Customs entries
Scanned Docs NOT Provided:
Consequences
•Unnecessary administrative burden
•Impact on accuracy/time for audits
•Financial impact on freight costs reporting
Conclusions
• Track and Trace is still a concern to
shippers /customers.
– Real time visibility is still only on paper
• Uneven Hi Tech support provided by
forwarders and integrators.
– Customers are looking for more standardised
logistics processes to be integrated throughout
the entire Supply Chain