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Supply Chain Optimization Program Meeting NotesMay 21, 2014 Mar 2014 – Menlo Manual FeeMenlo Manual FeeALCCRSCO-EURSCO-NATOTALBusiness Group$ Charge% Charge$ Charge% ChargeRSCO-NA% Charge$ Charge% ChargeCIS$1753%?0%$3,50812%$3,68310%CRS$2004%?0%$3,92513%$4,12511%ECT$3256%$32511%$11,33339%$11,98332%EIA$60012%$1,35045%$9583%$2,9088%ENP$65013%$1,12537%$7,44225%$9,21725%EPM$3,15062%$2257%$2,1087%$5,48315%Total Manual Fee$5,100100%$3,025100%$29,275100%$37,400100%Feb-14 vs. Mar-14 Trend for Menlo InterventionSupport Team UpdatesASCO Power -/ Pentair? Pentair uses the portal as a reporting tool and not as a booking tool per agreement with John Parsons (Asco Power); as a result, the supplier does not care about proper shipment transits and orders fail. Action Item: Schedule call with Network Power and Elizabeth to go over issue with Pentair(COMPLETED) – call scheduled on Monday, May 19th.Working with DHL to deal with the issues regarding SHIP ID’s missing (Carol to provide updates next call)Initial report gives me the origin location – Carol will work with heavy hitters offenders first Mobrey? LTD (LON) – 50 bookings they had 0 ?SCO Ship ID referencedAstec International (HKG) – 21 bookings – 0 SHIP ID referenced Roles and Responsibilities Chart for Common Emails Inquiries Sent to SCO Support Typical QuestionsResponsible TeamHow to obtain ratesMode Team membersHow to run FTI reportsSuperuser @ Business groupFTI Reporting issues/questionsSuperuser @ Business GroupSystem Related InquiriesGREaTRCarrier Billing IssuesAudit Pay/Business UnitCarrier Billing QuestionsAudit Pay/Business UnitCarrier Transit Time questionsMode TeamRate Related InquiriesMode TeamCarrier failed to pick upBusiness Units/Mode TeamCarrier Turn back LoadBusiness Units/Mode TeamCarrier failed to deliver as requestedBusiness Units/Mode TeamMarch 2014 – Email Pareto AnalysisSupply Chain Optimization – AIROverall Ramp Up Plan (Freight Under Management) by Month$48M Run Rate vs $77M Plan (62% Implemented) Note: $77M ties out to Q2 Carrier Global ReportProviderJan-14Feb-14Mar-14Q2AnnualizedAgility$137,707$82,849$203,907$424,463$1,697,852DHL$704,318$789,584$949,714$2,443,615$9,774,460KWE$2,092,525$1,596,047$2,122,564$5,811,137$23,244,547SDV$214,664$0$0$214,664$858,655UPS$3,260,379$3,135,908$4,028,960$10,425,247$41,700,989Grand Total$6,409,593$5,604,387$7,305,145$19,319,126$77,276,502Averaging 1,080 shipments per week% FUM- Global Report vs. FTI/OTM Shipments (Air)Service Provider ID2014-12014-22014-3TOTALAIIC10%9%4%7%DZNA64%61%69%65%KWEI53%59%61%58%SDV0%0%0%0%UPSF68%68%63%66%Grand Total62%64%62%62%Implemented Savings as of 4/1:Business Group2YTD ShipmentsSum of Planned CostYTD Cost/(Savings)'Annualized ShipmentsSum of Annualized SpendSum of Annualized Savings (Std)Climate Technologies1046 $ 1,741,451.16 ($1,998,369)2,521$3,492,471 ($4,007,718)Commercial & Residential Solutions195 $ 441,419.28 ($436,698)470$885,264 ($875,796)Commercial Industrial Solutions578 $ 1,260,522.55 ($609,178)1,393$2,527,971 ($1,221,704)Embedded Computing & Power140 $ 120,243.51 ($15,062)337$241,148 ($30,207)Industrial Automation2254 $ 2,161,702.81 ($1,081,520)5,432$4,335,283 ($2,168,983)Network Power1496 $ 2,143,666.66 ($1,648,957)3,605$4,299,112 ($3,306,975)Process Management16817 $ 14,191,461.12 ($8,230,781)40,529$28,460,897 ($16,506,786)Grand Total22526 $ 22,060,467.08 ($14,020,566)54,288$44,242,146 ($28,118,168)Post Audited Old vs New Rate on 608 Lanes, including Top 120 lanes from Heavy Air Bid. Average savings was 38% vs 39%. Sample lanes below:Rate OD PairOld Cost per KgNew Cost per KgActual varianceExpectedATL-PVG$2.82 $1.39 -51%-42%DFW-BOM$4.39 $1.17 -73%-66%DFW-SIN$3.30 $1.30 -61%-56%FRA-ORD$3.11 $2.33 -25%-59%KUL-DFW$6.64 $3.54 -47%-50%ORD-BKK$2.64 $0.86 -67%-45%PEK-BOM$4.20 $3.94 -6%-31%SIN-FRA$4.09 $2.98 -27%-29%SIN-YYZ$4.79 $5.23 9%-2%Grand Total$3.37 $2.10 -38%-39%July 1st Cutover Date:Memo Sent May 1st to Mode Team and GLBLsJune 1st: Distribute Memo to all active SCO Air UsersCarriersDHL: Coordinating with DHL on 8 Origin Offices that will begin sending us copies of Non-SCO Shipments (Missing Shipment ID or SLI) beginning in JuneUPS: Review List of Origin Offices that will begin sending us copies of Non-SCO Shipments (Missing Shipment ID or SLI) beginning in JuneKWE: Plan to be developed 5/22 meetingGateway Setup:KWE: Dedicated Resources assigned in Europe, Asia, and USBi Monthly Call Kickoff 5/22UPS: Resources assigned in Each World Area Monthly Ops Call Since October 2013DHL: Dedicated Resources now assigned in Europe, Asia, US, and South America/CanadaBi Monthly Call Kickoff 5/14Agility: Resources assigned in US and AsiaOn Time Performance as of 5/20Including No-StatusExcluding No StatusCarrier NameOTD%OTD%UPS SUPPLY CHAIN SOLUTIONS INC74%?77%KINTETSU39%?59%DHL GLOBAL FORWARDING44%?80%Only UPS is sending delay codesRate Request ProcessDHL: N/AUPS: Country Level Non-DG rates in effectAve response time: ~2daysKWE: Regional DG and Non-DG Rates in Draft (Pending Signature)Ave response time: <1dayAgility: Regional and Lane Specific DG Rates in effectEDI Data Quality Strategy: Maintain a monthly file showing performance down to the site level of detail. Review visibility metrics at least monthly with each of the forwarders. In addition, we escalate poor performing locations and origins to both the forwarders and to air/sco contacts at the involved locations. Program visibility will be a sourcing total cost metric in the next bid.2014Grand Total1212345Service Provider IDValuesDZNA# Shipments4455424906797121864,007Sum of % With Pickup Status231%57%87%84%87%85%65%% With Final Delivery19%50%68%62%44%40%44%KWEI# Shipments9921,0341,0401,4001,4954378,455Sum of % With Pickup Status264%72%80%79%79%72%74%% With Final Delivery33%45%43%51%53%38%44%UPSF# Shipments2,0072,3822,3192,4102,43772916,821Sum of % With Pickup Status279%82%86%88%81%73%78%% With Final Delivery63%77%66%74%72%55%64%Total # Shipments3,4443,9583,8494,4894,6441,35229,283Total Sum of % With Pickup Status268%76%84%84%81%74%75%Total % With Final Delivery49%65%60%65%62%47%56%Root Cause Issues:User Not Receiving Notification Emails1 User=1 Account (anything else violates terms of our Oracle agreement)User attends training and submits account registration RESOLVEDUnmapped Location/City/Origin AdHoc??? Shipper or ProgramSend monthly location file to carriers for validation ONGOINGCarriers must have contingency for ad hoc origins DHL, Agility, UPS, KWE confirmed they doIncorrect Service Type? (DTD instead of DTA)? ShipperMake service type a mandatory field. Instruct shippers on use of Service Type. Indicate correct movement type. PENDING ENHANCEMENTManual Consolidation of Freight: Multiple Shipment ID’s, 1 HAWB? Carrier or ShipperCombine manually; Create one booking in OTM Change planning process to identify consol opportunities? orDo Not consolidateREVISE TRAINING TO REVIEW 3 OPTIONSCargo Pickup Before Shipment is Planned? Source: ShipperConfirm email receipt before releasing goods to forwarder COVERED IN TRAININGNo SLI / Shipment Reference Number in Scandocs? ShipperConfirm email receipt before releasing goods to forwarderManually Add Shipment # to scan docsInclude OTM SLI with scan docsCOVERED IN TRAININGAdding Multiple Reference Numbers in Shipment Reference Number Field?? Source: CarrierCarrier must instruct origin office to keep ‘Shipper Reference Number’ as a dedicated fieldDHL confirmed this is being doneUPS has sent corrective actionKWE- Status UnknownForwarder Transmit Incorrect Final Delivery Status (eg ‘Delivered’ instead of ‘Arrived at Final DestinationReview carrier performanceDHL is Monitoring OTM for Incomplete ShipmentsConducted Training with KWE on setting up Saved Queries and reviewing Incomplete Shipments in OTMUPS- Discussion underway to utilize Kansas City for closing incomplete shipmentsAsia Site Visit NotesEPM Singapore Ground freight opportunity Honsiong wants to get cross border Southeast Asia freight in programA lot of Nilai and Pen freight is 1 day from Singapore by Truck. KWE handling Cross border freightThailand is having unrest and is 3 days by truck- Singapore is an emergency option but there is more freighter capacity from Europe into Thailand than Singapore. Singapore now requires companies to bid on certificates of entitlement for new vehicles- vehicle costs have doubled and forwarders are outsourcing delivery in Singapore. Cargo is frequently sitting for 1-2 extra days at destination waiting for a truck. Offices report that forwarders aren’t respecting pickup or delivery transit time- citing the contract MRS for ATA transit only. KWE quoted $220 SGD to hire a 3rd party truck from Changi to Asco facility.KWE is awarded the inbound SIN brokerage plus customs clearance. Need to tell Cindy who the final broker is. KWE Site Meeting SingaporeSingapore office gets the strategy and is doing an okay not great job in Singapore. KWE HKG joined via conference call and it was clear they really do not have a clue regarding the program scope or objectives. This was validated in a later meeting with the ENP logistics team meeting in Manila. DHL Meeting (Hong Kong)Reporting a lot of Issues with INCO Terms and incompatible payment terms and service type- DHL to provide examplesUPS SCS Hong KongAdding multiple reference numbers. Not clear on process requirements. Need an improved pan-Emerson statement for all Asia sitesSDC Singapore (EPM)KWE does not want to use preassigned PROs but there is a list of US outbound origin sites that require it such as MMI Denver. We saw examples of shipments where KWE gave us status updates before pickupUser Feedback (from Logistics conference) Users want to be able to share templates. Can a user get the PRO number from the FTI Basic using the ‘On Time’ Report? (Richard to follow up) ENP:ALCC is being used for all air shipments. Side benefit: Eliminates rate shopping. Before, sites would call 2-3 forwarders for quote on every shipment. Wow! A misinterpretation of the ‘routing guide’. Quote process would add 24 hours due to turnaround time, timing. Cautioned ENP that we are forecasting 15% up (price, not net) in next bid.ENP China is opening a small warehouse in Yangon, MyanmarBatteries- lots of battery shipments are DDPComplex Accounting and Transport requirements. Customers in PH prefer to pickup in Singapore rather than PH because they get hit twice on VAT. No tax in Singapore, but sales tax is regressive on imports so Emerson gets taxed on sale then customers get taxed on sale. This is an issue for resellers. This is driving demand for drop shipments. ENP Program FeedbackCan we get an email notification when an order does NOT plan within 60 minutes?Can we get a rate for overheight cargo from HKG to Australia (DHL) Huntsville to AustraliaHow do users in Manila call the Toll Free US number for SCOSUpport? 1-855-554-4726 works for some users. (Richard to verify)Some shipments show ENROUTE but indicator is green?SCOSupport team providing some incorrect advice. Analyn was asked to change a 2 day to a 5 day based on lead time. We had 2 days ATA with the forwarder in the past. Need examples. Why isn’t Service Level printed on the SLI? KWE asks questions about who Shipper is… KWE hong kong. They keep asking for clarification on consignee, service level- all info on the SLI AND on the load tender. This is a carrier training issue and clearly shows they are not monitoring the tender process. Startup and Issue ManagementUPS Inbound to Shanghai OPEN IN PROCESS- TEAM HAS AGREED TO CHANGE ALL US/MEXICO LANES TO Shanghai eff 3/17Through December: Averaging 9 Days with 8%>15 Days Total Transit TImeOTD as Measured in OTM for most recent full week is 45%. Average shipment is 3 days late but varies between 1 and 15 days. UPS ORD-NRT (Japan) Climate Technologies CLOSEDAfter 30 days of issue management and meetings to align Climate consol schedule, UPS is 50% lateThese lanes are 100% Climate Recommend switching to KWE. No Price Impact. LANES HAVE BEEN SWITCHEDUPS GDL-PVG, FRA-PVG Process newProcess is reporting very low OTD numbers for UPS Mexico to Shanghai (and other lanes)UPS Billing Asia Pacific newBU’s report confusion and multiple billing questionsInvoices from October still unpaidDelayed statements from Local Office (Shanghai)Shippers don’t understand pass through chargesUPS is replacing account rep in ShanghaiKWE Nove Mesto – Middle East Under Review by BU new (BTS-Multiple Lanes)KWE is performing miserably with respect to data quality- only 27% of shipments are getting status updates. Agility was #2 ranked bid provider EU to Middle East- pricing was comparable to KWE. Agility has submitted revised pricing (+.40 per kg higher)DHL has rates on fileActions1.DHL Has confirmed pricing can be used2.Setup Preliminary call with provider to review local ops requirements (3 days) (SHIPPER)3.ON HOLD CLOSED ISSUESPI Components –UPS Texas- Munich RESOLVEDSeeking 4 Day DTD Service Service Issues Reported ResolvedClimate UPS filed AES RESOLVEDpost audit indicates that 80% of UPS filed AES on behalf of Climate are requiring amendments (primarily port of export and export date)UPS Missed Pickups at Origin- Atlanta Office CLOSEDAction: Begin providing UPS daily file of intransit shipmentsFeedback from Rosemount Wessling : UPS MUC office will not provide alert no due to low margins on freight CLOSEDCorrect- Emerson asked UPS to deploy Flex Global for document handlingFlex Global is useless for monitoring cargo before pickupFlex Global View is the only current solution for retrieving documentsGOT Consol Process CLOSEDASCO Japan- Inbound via NRT CLOSEDNeed local del via OSA (60Km vs 600Km)Set up new rateUPS Consols- Startup in ORD and DFW (UPS)(Training/Configuration/User Setup) CLOSEDEPM Russia Inbound (UPS) (Contract Required) CLOSEDRosemount-Wessling inbound from US (UPS)(RoutingAdding new rates to MUC (Resolved) Cernay (KWE) (Routing via FRA/Clearance in MLH) CLOSEDKWE to propose alternate routingHungary (via AMS) CLOSEDTwo recommendationsTender Accept Delays Hong Kong (DHL)(User Account/Training) CLOSEDSent report to DHL. MonitoringClimate- Ohio (UPS) (Delayed AES export info) CLOSEDNotified UPS project team. InvestigatingDaniel-Houston (UPS)(Local Office requesting shipper to complete manual AWB) CLOSEDNotified UPS project team. Investigating.Planning Locations- (El Paso, Calexico) CLOSEDPre-Alerts - Need to Schedule a Follow Up DiscussionUPS- pre-alerts via Flex Global View (Handle ‘Push’ broadcasting)This is an issue with CustomersRMT- Requires Pre-Alert on all inbound from supplierAffected BU’s: RMT, REGSDrop Shipments- Triangular Trade shipments – orders placed on factories by regional sales offices – shipped direct to customerRequirementsPre-Alert on Intransit FreightSwitching of Commercial Invoices while cargo is en-routeSetup of ‘Care of’ shipping locations for all drop shipmentsConsignee will be Emerson BU- NOT the customerIdentification of Additional Parties May be RequiredOrder Processing Cycle TimesCurrent Cycle Times in October are stable vs prior monthsTender Accept Cycle time up 50%Improvements in Planning and Order ReleaseAll New Award Locations are Setup to Process Via EDI- some non-award origins remain email. Rolling 60 day cycle time: 88% < 1 hour, 94%<2 hours. Cycle Time When No Defects are Identified When Intervention is Requiredless than 30 min99.68%12.24%30min to 4 Hrs0.14%42.63%More than 4 hrs0.16%45.12%Roadmap ItemsRate Administration (8 open requests as of 2/11)Rate Request Cycle TimesAveraging 2.3 Days from Open to CloseDG rates averaging 5+ DaysCountry Country RatesUPS has implemented Country-Country Rates- can be used to implement single shipment pricing on low volume/non repeat lanesDangerous GoodsNO Carriers have committed to Global DG rate/pricing strategyNeed alternate strategy for planning and costingOther IssuesDocument Management- Kickoff Call/Charter Document Drafted ON HOLDCharter Review Document COMPLETEDevelop Requirements List COMPLETEAlign with OTM and Outsourced capabilitiesIdentify Working Subteam to help develop scope Conduct BU Roundtable SCHEDULED 9/7 COMPLETERequirements:90 Day Minimum Retention PeriodMake Data Available via ‘Drop Box’ (OTM Login)Supply Chain Optimization – Ground NAAction ItemsOpportunity and LeakageFY14 Target: $144MSharePoint On-boarding Tracker has been created. Web address is below. FUM: $96.1M$5.6M additional leakage in planBusiness UnitLeakageCIS $ 879,247 CRS $ 4,089,839 ECT $ 868,491 EIA $ 1,627,871 ENP $ 3,317,667 EPM $ 169,496 Grand Total $ 10,952,611 LTLCurrent FUM: $13.7M$33.6M additional leakage in plan ($30M Outbound, $3.6M Inbound)Onboarding Plan by Business GroupRow LabelsCount of Shipper NameSum of LTL SpendSum of TL SpendTotal Onboarding SpendCIS21$1,992,521 $89,987 $2,082,508 CRS29$2,938,996 $3,614,777 $6,553,773 ECT28$3,116,054 $1,287,154 $4,403,208 EIA11$945,472 $445,390 $1,390,862 ENP28$2,881,217 $880,186 $3,761,403 EPM9$553,150 $0 $553,150 Grand Total126$12,427,410 $6,317,493 $18,744,904 MetricsBroadcast vs. Spot Bid Cost Tender Type# of ShipmentsTotal Base Planned CostTotal Last Planned CostTotal Bid amount% over Base Cost% over Last Planned CostBroadcast 724$1,056,520$1,118,464$1,443,43737%29%Spot Bid238$402,524$424,906$589,88347%39%Order lead time to tender acceptanceOrder Entry --> Shipment Start TimeTender Acceptance within 1 hour%Same Day20317.1%24 hour 30125.4%48 hour12610.6%Greater than 48 hour55546.8%Total1185100%# of shipmentsSupply Chain Optimization (Ground Europe)Freight Under Management Plan for FY14 - $12-27 M (depends on LTL outbound HVS extension )Current run rate 13M $ (5M $ Outbound, 7M$ Inbound), Bid spend 34M $ (25M $ Outbound, 9M $ Inbound)Copeland Mikulov outbound( 1,5 M $ ) is onboarded, high volume concept provedInbound:ENP Knuerr , IA Asco suppliers to be onboarded by 2014 Febr. Additional 0,7 M $ Outbound:ENP UK domestic to be implemented by 2014 Febr. Additional 0,3 M $ High Volume Outbound solution for the LTL flow is planned to be implemented by FY14 Q3-Q4. Potential additional 15-20 M $. Site level implementation schedule is to be confirmed by BG, BU’s by end of May. ECT is already done Detailed site list is shared with the BU’s to confirm the implementation schedule Freight Audit and PaymentPilot started in 11-11-13Shipment Volume, FUM Carrier Performance: 77% OTD, main issue Delivery date is not provided, mode team to follow up with DHL, escalated to Dan G. as well.Manual Intervention: 4,1% - 2050 $ for April. Top users causing manual interventions are escalated to the BU’sMain change type (80%) insufficient transit is selected by the userSupply Chain Optimization (OCEAN)Program Updates: Thailand unrest12/04/13 Update: Political protest has lead to 4 deaths in the worst unrest since 2010ISCO Program operations have not been impacted – continue to monitor 12/18/13 Update: Political protest has calmed since the dissolution of Parliament. Expect things to pickup as we near elections on February 2nd – though a boycott of elections is likely.ISCO Program operations have not been impacted – continue to monitor the situation2/12/14 Update: Two snap elections held February, results not yet know as protesters disrupted the polls. Elections will need to be run again to fill minimum 95% of seats in parliament.Key protest leader arrested yesterday under the “Emergency Rule”3/28/14 Update: Anti-government demonstrators resumed street protests, after lying low for weeks, in an effort to put pressure on PM Yingluck Shiwanatra who is expected to face impeachment within days.No impact to ocean operations. Be ready to airfreight.4/23/14 Update: Sporadic violence seen.No impact to ocean operations. Be ready to airfreight.5/7/14 Update: Most of protesters have been anti-government thus far. Now over 100K pro- government “red shirts” are ready to descend on Bangkok if the courts rule that Yingluck Shinawatra must step down as caretaker prime minister.No impact to ocean operations. Be ready to airfreight.5/20/14 Update: Thailand Army declared Martial Law on May 20, 2014, after six months of sometimes violent political unrest.Their reported intention is to restore peace and order and have asked the citizens to proceed to work as normal. The move comes one day after the Southeast Asian country's caretaker prime minister refused to step down and follows six months of anti-government demonstrations that have failed to oust the government.Egypt unrest9/11/13 Update:Need to be prepared with contingency after last week’s failed RPG terror attack on COSCO vessel in canal.3/12/14 Update:An Egyptian court convicted 26 people on 2/26/14 of forming a terrorist group to launch an attack on the country's vital Suez Canal waterway, with almost all receiving death sentences in absentiaTrial for Morsi and 35 co-defendants suspended on 2/27/14 after defense requested judge panel change. No date set for start of trial.Be prepared with contingency plan.3/28/14 Update:Morsi and 682 others went on trial on Tuesday 3/25 on charges including murder, a day after 500 Morsi supporters were sentenced to death.The trials and death sentences signify an intensifying crackdown on Morsi’s Brotherhood ahead of presidential elections that army chief Field Marshal Abdel Fattah al-Sisi is expected to win.4/23/14 Update:Morsi trial – court imposes media ban. 30 Morsi backers jailed for rioting.Vancouver Port Truck Strike3/12/14 Update:Last week non-union truckers at Port of Vancouver began a work action. The unionized truckers (UTS) decided to join them in solidarity and gave 72 hour strike notice. Before the 72 hours was up, they agreed to remain on the job with vote pending after reaching tentative agreement with arbitrator.The UTS voted down the tentative agreement and are back to striking and protesting as of Monday 3/10/143/28/14 Update:Deal reached late Wednesday 3/26/14 to end the prolonged strikeDeal includes rescinding any license suspensions of striking drivers introduced during strike12% hike in round trip rates and $25.13 minimum rate for hourly driversLos Angeles Truckers Strike5/07/14 Update:Only lasted two days, 4/28 & 4/29 and had no impact on SCO Ocean shipments.Impacts 4 companies that use union drivers.? Was very small, and happens frequently as Teamsters try to gather support.? Our freight has already transitioned to the contingency routings (Savannah and Prince Rupert) and therefore eliminated/minimized any effect this action may have had on Emerson work Congestion due to Winter Weather3/12/14 Update:Continue to suffer congestion and delays as continued bouts of inclement weather and cold hamper efforts to dig out of the backlogMostly seen in Midwest, East Coast and Northeast3/28/14 Update:Slowly getting better, but still some backlog and congestion in northeastISF / 10+2Monthly summary below:PeriodBL/HBLErrorsOn-timeLate% Error-free% TimelyMay’14*63906363100%99.53Apr’1488308821100%99.89Mar’1486608651100%99.88Feb’1476807662100%99.74Jan’14836081818100%97.84July-Dec’135742057339100%99.85*Month not yet complete.Most recent issue: 2 late files related to getting BL numbers from carrier APL late due to fact that they were unable to send prior to holiday on May 1st. When sent on Friday May 2nd, ISF was immediately filed, but too late. LSNA and EPT shipments from Leroy Somer Europe.HighlightsCBP is officially enforcing fee of $5k per occurrence since June 9, 2013ISCO at 100% on time, 100% error free since fee enforcedISF (10+2) needs to be filed 48H before Estimated Time of Vessel DepartureISCO supplier needs to submit complete 10+2 data elements at time of booking. Issue escalated to ISCO if supplier fails to do so.ISCO and BU will receive escalation email if resolution on any missing data is not resolved by CFS (consol freight) Cargo Receipt cut-off or 48 hours before carrier CY (Factory loaded) cut-off. Freight will not be loaded if 10+2 is not filed on time. Exception management NA (BBR action item):12/04/13 Update:Will publish updated transit matrix along with current cut-off matrix to BU’s for use in planning in conjunction with “change date” (expedite process) finalization.12/18/13 Update:Will finalize the new change date process, get team approval and look to implement by 1/13/14.Publish updated transit matrix and cut-off matrix to BU’s by 1/6/1401/15/14 Update:Updated transit time matrix published.03/12/14 Update:Removed the ability to save custom views on ISCO tracker March 1stAbility to select multiple filters and then ISCO will query the data rather than query after each filter selected.05/20/14 Update:Eliminate “Enabling”Plan to start enforcing the program requirement that each handling unit must have a proper label. APLL empowered to reject freight until properly labeled. Like to begin 6/2/14.Plan to start enforcing cut-off times for booking and freight delivery to CFS in order to make the scheduled sailing. (Have begun this with Sinter on EU-NA lane with positive results). Would like to begin enforcement 6/2/14.Lead time reduction (BBR action item):Europe-NA:1 days reduction overall after AMS cut-off reduction agreement with ICL (ocean liner)Meeting with Gabor next week to evaluate opportunities for door to port.Implemented new procedure with LS France to reduce total cycle time and increase frequency of shipment (weekly ground shuttle from Angouleme).Asia-NA: Working with Astec to reduce cycle time for Manila-West coast. Opportunity to reduce transit time by 2 days.Evaluating cost/benefit of extending x-dock work week on WC to allow Saturday pick-ups.8/28/13 Update:APLL and PLG have indicated that it is not an issue to support Saturday operations during peak seasonsRecommendation to operate Saturdays during:Chinese New Year (approx 4 weeks)Produce Season (approx 6 weeks mid-May to mid-July)As Needed (Labor Issues, Contingencies, etc)9/11/13 Update:Saturday 9/7 was last Saturday for Rancho cross-dock until Chinese New YearAdvised top carriers when we sent forecast 9/10Non-stackable Cargo:9/25/13 Update:Reviewed the plan with the Ocean team last week.We will begin sending the BU’s Mock Invoice (EU-NA) and details so they can work with supplier to comply (begin week of 9/30)Then after 30 days we will implement Still developing AS-NA & AS-EU mock invoice – will follow same plan10/23/13 Update:Pilot details:Non-stackable charged 20% fee over normal cbm chargeCompliant BU’s will be credited the penaltyUse existing process for ISCO Management Fee12/18/13 Update:Pro-forma data sent to BU’s 12/33/12/14 Update:Pilot began 2/1/2014Expand to all lanes 3/1/2014APLL now sending standard non-conformance reportsWill invoice quarterly through Corporate Accounting4/9/14 Update:Crispin creating the file for invoice for Q2 20144/23/14 Update:Internally reviewing file for Q2 2014Will review with Corporate Accounting5/6/14 Update:Meeting scheduled 5/13 with accounting5/20/14 Update:Met with Corporate Accounting to review the files and plan for making the quarterly debits and creditsGlitch with reports out of Asia (has been fixed), so only had the EU-NA data, total entries low. Accounting recommends we roll that into next quarter’s billing and we will begin with the period ending June 30.Intra-Asia Program (ASCO call follow-up)Evaluating reinstatement of intra-asia program.Key principles:Model/menu of service identical to all other trade lanes. We will need commitment from BUs for 3 years.West Coast ContingencyPlan to have cross-dock operational on East Coast January 2014APLL gathering cross-dock options and costsRequesting specifics for Savannah and/or Norfolk PLG options Julien to begin discussion with carriers for diversion of consol boxes during upcoming tripProgram will recommend options for FCLProgram to detail cost and transit estimates for BU’s Work with BU’s to confirm volume estimate by 12/20Provide carriers with volume estimate by 12/20/13Carriers reviewing numbers. Will discuss with the ocean team the concept of adding a reward/handicap to the NA bid regarding contingency support.Julien & Mike to finalize routing guide by 3/11Contingency Routings begin 3/17 from originCarriers still working on post CNY capacity deployment plans. As discussed in previous calls and during the Logistics Conference, the expectation is that carriers and alliance will manage capacity tightly over the next few months. Julien traveling to Asia in February to meet carriers.We will be scheduling visits in early December to visit:Cross-dock finalists, facilities, customs and ports on East CoastTravelling to Savannah 12/5 and 12/6 visiting customs, port, APLL, DHL and Agility cross-dock finalists.Cross-dock requirements: bonded, within 20 miles of port, CTPAT, able to invoice via EDICross-dock preferences: handle dray, marquee provider (under contract), have West Coast locationHolding scope call with providers ThursdayWill send RFQ by 12/20Plan to get pricing back week of 1/6/14 to finalize decisionX-dock RFQ published. Decision by 2/15. First ocean bookings in first part of March.Still on track. Bid ran yesterday with pricing between DHL and APLL being within 0.8% ($4k) favorable to DHL. Considering the two other key aspects of the evaluation (visit and operations), business will be awarded to APLL pending cost breakdown validation.After cost breakdown validation, APLL awarded business (using HWC in Pooler, GA.)HWC withdrew – APLL proposed Cal CartageTim and I visit last week to Cal CartageFacility more than meets needs. They are eager for our businessReduction in price for drayagePricing Appendix ready for signature. – CompleteWorkshop in Savannah with APLL and cross-dock to finalize SOP’s, LP and training April 14th & 15thHeld Review with APLL 4/8 to review LP and Origin processes to make sure all changes for contingency are documented and processes in placeSOP’s updated and compiled 4/21. TL Bid meeting with Andrew on Monday 2/17 – will review Savannah results.Working with Andrew to secure TL capacity for the FCL volume that will need to come through the cross-dockMeeting with Flynn in ST Louis 4/4/14-re-affirm commitmentFlynn committed to 42% of the volume.Andrew and Don –working on commitments from remaining carriers out of savannahCommitment allocations for top 8 TL lanes input into OTM 4/22Will work with Don/Andrew to build query for TL tender acceptanceMaurice Noellsch overseeing SCO/OTM items to be completedSimulation in Test to be completed 4/2/14Set-up In production to be complete by 4/4/14Advised UPS-SCS of the plan and they indicated no issues for brokerage during contingencyNeed to determine by April whether we will need to bid LA cross-dock, or we will have home with APLL (with no cost increase).Closetmaid reversed decision and will continue to ship FCL to West Coast. I have sign-off email.Contingency Cost estimate sheet updatedBookings began contingency routing on 3/17. Will nail down date of first freight arriving to Savannah by Monday. 4/22 is estimated date of arrival.First container to arrive to port 4/23. It will be offloaded, staged and shipped back out of x-dock by Friday 4/25.6 more container to arrive Fri/Sat for outbound loads next week.29 container expected to arrive following (2nd) week71 containers due 3rd weekTim and I plan on being on-site starting 4/28Contingency update:Cross-dock: 5/7 update: We have been working with the cross-dock to solidify the processes as much as possible before the volume spikes. 40 Containers expected to hit Wed 5/7. Stress test.We are working on a one page cheat sheet to help them maintain process discipline when volume overwhelms.5/20 update: Things are going much better in terms of the cross-dock performance. Found a confirmed error and investigating two possible from last week. Process improved again – stopped pre-staging loads which often changed before loading and now thoroughly label freight and note location on the floor – then pick to order when carrier arrives.Truckload:5/7 update Flynn and Landstar have each turned back 2 loads through Monday 5/5Flynn has had 2 missed pickups while Clipper Express has had oneWe had call with Flynn 5/6 to review the issues. We will be having a weekly call to address issues on either side that is contributing to non-performance. Had call with Werner to solidify commitment allocation to El Paso5/20 update:TL carrier turn-backs and missed ships continue to be an issue which causes tremendous amount of work for load-planner and cross-dock in the OTM environment. Increased risk of errors.Currently no metric for missed p/u and give-backs in OTM – I will be requesting enhancement to see if this can be added as there are few things worse a carrier can do. We are trying to quantify how many each carrier has had through email records and plan to meet with Steve later today to make changes to the carrier allocations up to possible removal.LTL:5/7 updateFedEx picked up early morning on Friday and Monday and then failed to return in afternoon.FedEx working on getting drop trailers. They need 3-4 days to lease and put in place.Wilson and AAA Cooper both missed a pickupWill monitor AAA Cooper as they did pick-up the following morningPlan to remove Wilson because their issue is systemic in that the route driver who handle the port area does not have a TWIC card5/20 updateFedEx has provided drop trailers, however they do not always pickup the last trailer before evening. Will speak to Jeff to see if we can get that 2nd and 3rd truck picked up same day.In-bond:5/7 updateDespite CBP advising that PTT not needed to dray in-bond to cross-dock, in-bond containers were placed on customs hold. Spoke with CBP and they advised we can dray to x-dock and the outbound 7512 will serve as the release for the ocean carrier.5/20 updateCustom holds not being released was causing demurrage issue as not able to return empty to the stack. Cal Cartage worked with GPA on Monday to update the scanner/reader program and it now appears this solution will work on gaining the customs hold release. If we find that it is not, will file PTT’s going forward.Port, brokerage and Hanjin in Prince Rupert.Reviewed port operations and spoke with local port union. Local unions are under a contract that is valid until 2018. Will protect existing customers and key reason for sympathy with WC unions would be for vessels being rerouted from ports on the US WC into Prince Rupert. Strike in PR would have a significant impact on the local community.Posted Q/A on ISCO website: in PR done by Canadian customs on behalf of CBPPort expanding and looking for volumeGreat potential for northern china to MidwestChinese New Year 2014 (Jan 31st)Carriers already starting to take out capacityProgram will begin tracking actual bookings by BU’s and compare to forecast and to carrier space given. Begun 11/3RLA’s will work with suppliers on weekly volume commitment and will communicate to APLL. Begun 11/3RLA’s stepping-up efforts to work with suppliers on forecasts and matching to volume commitments with carriers as CNY is less than 6 weeks away.Currently Asia origins reporting no space concernsCapacity very tight but all Emerson freight covered. Concerns over carriers pulling capacity after CNY if demand slows Y effect compounded with winter storms creating backlogs and congestions at ports on both coast and rail terminals. M Adler sent note. See ISCO website for details: 2013 BBR Highlights No more “enabling” - APLL to systematically write CARs when partners, shippers and BUs do not comply with program requirements. Failure to comply with data completeness/timeliness/accuracy requirements (carriers, 3PLs) – on-goingFailure to comply with packaging/label requirements (shippers) ISCO Team to define requirements which would cause reject freight/bookingWe will develop on-line tool to file and maintain CARsFollow-up with survey comment authors. Spoke with Doug Knupp and Robin Woods on 12/2I will speak with J. Sicking with APLL Sugar data – disconnect on exception management responsivenessCompleted mid-FebruaryCorrective Action Review – Perfect ExecutionSplit Shipment Issue – identified open loop and will implement process for cross-dock to receive ground freight by confirming receipt against information in OTMUPS-SCS Brokerage VisitAudited and updated Ocean Program Brokerage SOPImplement bi-annual reviews with one face-to-faceProcess ImprovementDO (delivery order) requests – working with ocean carriers to establish blanket DO’s. Any requests for DO’s need to be forwarded to municated with brokerage team on 11/5 call the opportunity to streamline and standardize the clearance process. Will be reviewing with BU’s special requests (most involve HTS code validation) to understand the need and whether we can improve the process.Discussed special request issue on brokerage team call in late February.Will finalize SOP update with UPS this week 3/28/14Changing expectation to all entries filed minimum of 3 days prior to vessel arrivalThis will help eliminate delays due to BU special requests (RFI’s)Brokerage SOP finalized 4/21ETH ETH Upgrade to Fusion 11G Complete with exception of data standards reportingAll connections to original SeeBeyond ETH must be moved to ETH 3.0 by August 2013ICOE has responsibility for this projectRequires upgrade of PO and PO Change TransactionsWe will need commitment from BUs for 3 years.All BU’s compliant with exception of Embedded Computing and PowerHave waiver, plan to upgrade by November 1st - confirmedETH 3.0 required in order to participate in ISCO programOTMEmerson plan to move Ocean Program to OTM in FY’15APLL Plan to Complete OTM Implementation late FY’14Discussed with Russ need to schedule another reviewCommunicationTimeliness – key milestonesx ................
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