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Norwegian Trade Council Total Business Integration Traditional Industry Utilizing New Technology 15-April-2002

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Norwegian Trade Council Total Business Integration. Traditional Industry Utilizing New Technology 15-April-2002. Agenda. Introduction Fritz Overview E-Business Opportunities Case Study: Flex Global View Lessons Learned Q&A. Fritz/UPS Freight Services Overview. Who We Are: - PowerPoint PPT Presentation

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Norwegian Trade CouncilTotal Business Integration

Traditional Industry Utilizing New Technology

15-April-2002

2 15-April-2002

Fritz E-Business Overview

Agenda

Introduction

Fritz Overview

E-Business Opportunities

Case Study: Flex Global View

Lessons Learned

Q&A

3 15-April-2002

Fritz E-Business Overview

Fritz/UPS Freight Services Overview

Who We Are:

Highly trained and qualified in-house team of global freight solutions specialists

Industry-leading technology and systems

Project management skills and proven capability to implement successfully

Established global infrastructure

Experience with leading companies in the sectors served

Backed by the global resources of UPS

4 15-April-2002

Fritz E-Business Overview

22

130

73

99

22

153

499

1994

1972

1990

1990

1990

1933

Africa

Asia/Australia

Central/South America

Europe

Middle East

North America

Total

Presence SinceRegion Offices

Total

Frtiz’s Global Presence

Fritz Offices Worldwide:

5 15-April-2002

Fritz E-Business Overview

Fritz Service Portfolio

What we do

• Project Logistics

• Offshore Consolidation

• Customized Solutions

TransportationTransportation Integrated LogisticsIntegrated Logistics

Trade ManagementTrade Management Material ManagementMaterial Management

• Freight Forwarding

• Customs Brokerage

• Cargo Insurance

• Trade Finance

• Trade Consulting

• Air Freight

• Ocean Freight

• Road Freight

• Cargo Distribution

• Order Fulfillment

• JIT Manufacturing Support

• Value Added Distribution

• Packing & Crating

6 15-April-2002

Fritz E-Business Overview

Air FreightAir Freight

• Global air freight transportation• Door-to-door transportation• Airport-to-airport transportation• Cargo tracking, POD services

• Global air freight transportation• Door-to-door transportation• Airport-to-airport transportation• Cargo tracking, POD services

Ocean FreightOcean Freight

• Global consolidated transportation• Global NVOCC services• Feeder service via continent• LCL cargo by truck via Rotterdam/Netherlands

• Global consolidated transportation• Global NVOCC services• Feeder service via continent• LCL cargo by truck via Rotterdam/Netherlands

Road FreightRoad Freight

• Scheduled departures from and to all major European Industrial areas• Groupage, part loads and full loads• Door-to-door, Customs clearance, warehousing

• Scheduled departures from and to all major European Industrial areas• Groupage, part loads and full loads• Door-to-door, Customs clearance, warehousing

KEY SERVICES

Special ServicesSpecial Services

• Cross Trade• Ships Supply service• Customs brokerage• Warehousing

• Cross Trade• Ships Supply service• Customs brokerage• Warehousing

Fritz Key Services in Norway

7 15-April-2002

Fritz E-Business Overview

Bay Area History of Technical Innovation…

In1939, the Golden Gate International Exposition (World Fair) was held on San Francisco’s Treasure Island to celebrate the opening of the Golden Gate and Bay Bridges. The Auburn Ski Club rose to the challenge of creating a championship- quality ski slope for the fair.

8 15-April-2002

Fritz E-Business Overview

E-business Opportunities in Integrated Logistics

Achieve competitive differentiation by through information delivery

Reduce customer costs by facilitating supply chain integration

Increase costs of switching to competitors

Increase efficiency of internal operations

Enable outsourcing opportunities

New product potential

9 15-April-2002

Fritz E-Business Overview

Technical Challenges in Exploiting New Opportunities

Burden of numerous legacy transportation systems

Lack of connectivity to Fritz offices, carriers, and customers

Inability to extend applications to client desktops

Lack of standardization for information exchange

Complex coordination responsibilities among multiple parties

Extensive client-specific requirements

Aggressive client-mandated implementation schedules

10 15-April-2002

Fritz E-Business Overview

How Fritz Met These Challenges in the Past

Redundant data entry

Phone, fax, couriers, Value-Added Networks (VANs), & leased lines

Expensive on-site application installations

Custom interfaces & Electronic Data Interchange (EDI)

Manual, redundant, error-prone business processes

Client-specific application & process customization

Lots of apologizing!

11 15-April-2002

Fritz E-Business Overview

E-Business Enabling Technologies

The Internet Browser

Proliferation of low-cost Internet Service Providers (ISPs)

eXtensible Markup Language (XML)

Cheap & Fast Distributed Computing

12 15-April-2002

Fritz E-Business Overview

Case Study: Flex Global View

Overview

Flex Global View (FGV) was conceived as a customer Internet portal that provided customers visibility into services provided on their behalf

Has been expanded to provide electronic document creation & direct data updates

Also expanded to serve as integration point between global business systems

Provides OLAP & decision support functions to executives

13 15-April-2002

Fritz E-Business Overview

Case Study: Flex Global View

Extending Fritz Applications beyond traditional locations

Customers

– Track shipments in transit

– Manage Purchase Orders (header & line details)

– Monitor customs clearance

– Coordinate goods movement for warehousing (VMI)

– Exception-based alerting on business events

Remote Operations

– Create shipments

– Enter activity milestones

– Perform detailed investigations for customer service purposes

– Regional and Corporate-level reporting (e.g. tonnage by carrier, volumes by area)

14 15-April-2002

Fritz E-Business Overview

Case Study: Flex Global View

Business Process Integration

Internal UPS/Fritz Systems

– Different applications perform different activities for the same business process

– Different systems around the world customized for regional differences

– Different systems from UPS/Fritz past acquisitions

Business Partner Systems (Customers and Providers)

– Data transmitted from customers’ systems (e.g. shipment orders)

– Data pushed to customers’ systems (e.g. exception data)

– Integration with carriers and competitor 3PL’s (e.g. carrier milestones)

15 15-April-2002

Fritz E-Business Overview

Case Study: Flex Global View

Vendor-Managed Inventory (VMI) Business Process:

ROP Alert

Shipment Intent

ASN

Product

Shipment Order

Delivery Confirmation

Product

WarehouseMfg

CustomerSupplier

16 15-April-2002

Fritz E-Business Overview

VendorSystems

Case Study: Flex Global View

Vendor-Managed Inventory (VMI) Technology Architecture:

ClientSystemsVMI

Moduleof

Flex Global View

Internet Internet

VendorUsers

Client Users

XML Transmissions

EDI Transmissions

File Transmissions

Web Queries & Entries

E-mail Alerts

XML Transmissions

EDI Transmissions

File Transmissions

Web Queries & Entries

E-mail Alerts

17 15-April-2002

Fritz E-Business Overview

E-Business Lessons Learned

Things are always more complicated than you think (plan accordingly!)

Swiss Army Knife Syndrome – having a single tool that performs many functions provides additional challenges

Strategic Alignment of Business and IS

Create menu of e-business services rather than reacting to demands by customers

Determine what clients really need, not just what they ask for

Bleeding Edge vs. Mature Products/Technologies

18 15-April-2002

Fritz E-Business Overview

Wrap-Up

Questions?

Please feel free to e-mail:

[email protected]

[email protected]