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

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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