Simplification of Import /
Export Supply Chain Practices
Titanium 2007
Kathy Galbraith, Director –
Customer Svcs & Logistics
Croda Inc.
Background:
•
Uniqema (Specialty Chemicals business unit of ICI ) formed in 1999.
• Four
F
businesses
b i
merged
d ffrom within
ithi company and
d acquisition
i iti
• Strong commitment to well planned, and well executed, integration.
– Legal entity, ERP systems, employee culture
•
I
Import
t OTIF (On
(O Time/In
Ti /I Full)
F ll) Metrics
M t i Gap
G
• Significant dependency upon importation (40% of US sales were imported)
• Europe reports hi-90’s on shipments
• US reports poor OTIF on receipts (~ 50 %)
– Thwarts desire to direct “drop
“
ship”” to customers
•
Weak Process for Managing Import / Export Non-Conformances
• Substantial volume of export activity (25% of US sales)
• Lack off clarity regarding “ownership
“
& authority”
• Basic Operational Deficiencies
Approach
pp
and Observations
• Focused Process Review utilized to identify
improvement opportunities
• Two week, action packed process, employing an experienced
consultant.
• Disciplined work sessions conducted - clear objectives
objectives, time
management.
• Fully engaged employees, and management, in the process.
• Observations
• Strong knowledge of work patterns, but similar tasks executed by
multiple employees
• Firefighting – well honed employees,
employees but insufficient use of IT
systems and repetitive problems.
• Willingness to Change, but change management tools were
required
Import Process
Surfactants
Lubricants
Pull up MTO vs MTS
Spreadsheet
1
Update Fields for
New Month
2
Review Inventory
Note Changes
3
Update Inventory Spreadsheet
#1Manually & Print
3
Update sales Information on
sheet #1
3
Enter Inventory Levels into
Spreadsheet
4
Open Next Spreadsheet #2
Stock Log. Prepare for Update4
Review Line Items & determine
order qty's. Record Manually 4
5
Review Line Items & determine
order qty's. Record Manually 5
Update Inventory Spreadsheet
#2 & attach to note to Cust Serv
5
Update Spreadsheet with New
BRIO #'s
6
Determine which supplier will
supply material
6
Update Spreadsheet #1 with
PO qty and Req Del Date 6
Review MTO/MTS Forecast &
Create Purchase Schedule 7
Determine which warehouse/
customer will receive material7
Receive Lotus Note with
attached PO & Print
Update purchase Schedule
8
W rite Query E-Mail to see if
supplier can satisfy order 8
Review accuracy of PO content.
8
Send purchase schedule to UK
via Notes
9
Print E-Mail from Supplier.
Have or Don't have
9
Place actual PO in BPCS
Place Manual Orders by SKU
via Lotus Note
10
Update/Create individual PO
sheet #3 . Attach to note 10
Update PO spreadsheet #2 with
BPCS order# & date placed10
Update Spreadsheet to reflect
order placement
11
Supplier sends backs order
confirm Via Fax. USOM 11
Print Open Order Ack report &
FAX to Supplier
11
Configure & Run
BRIO Report
AS-IS
AS
IS
Chicago - Combined
Get/Obtain Forecast from
Delphi
1
Open 123 Spreadsheet
Print Lotus Note from Planning
& File
12
Hardcopy is filed
Log onto BPIC's Purchase
Order Maint Screen
3
13
Review Brio Report
Open 123 Spreadsheet #1
2
File Hardcopy
12
1
2
7
9
12
Supplier sends back shipping
details via FAX
3
13
CSR updates BPCS with
Vendor Ref # in SSA100. 13
3
14
Open stock log #2 & update
with faxed info. Stock Only 14
Supplier sends back shipping
details via Lotus Notes 14
15
Print Hardcopy. Fax to Broker
W hats Hot & W hats Not 15
Receive C of A from plant of
MFG via FAX
15
Electronicall Xmit Data to
Broker
16
Creat Spreadsheet #4. W /hse
Notify. Send to w/hse 16
Receive Invoice / BOL from
Supplier via FAX
16
Run Un-Achknowledged
g Order
Report & Print
17
Confirm from w/hse of actual
receipt of material
17
FAX cover sheet / BOL / Invoice
to Broker
17
Enter Data for Xaction
Enter Data into Bolt-On
Create Pseudo P.O.
E-Mail Un-Acknowledged List
to Supplier&Broker
18
Develop/Open Import File&
File Overseas info
21
Update Spreadsheets #1 & #2
with Inventory data
18
Note from BDP "Customs
Released". H/copy filed w/order
22
18
19
Pull PO and
File in Import Folder
22
Hardcopy PO from Broker.
Update PO Due date on file list
20
Fax is received from
overseas supplier
23
BDP Note:
w/hse has received material24
Print PO and FAX to
appropriate w'hse
20
Receive Invoice / BOL from
Supplier and Courier
24
Confirmation from w/hse:
actual receipt of material 25
C of A is manually
entered into WORD
21
"Customs Cleared" note.
BPIC's - est Pick up date & port
25
Inventory mass location Xfer in
BPCS.
26
Review Report W ith Broker
Note from Broker
- BPIC's entry "Enroute" 26
Note from Broker
- BPIC's Entry @ Warehouse27
Labels generated.
Print, Pack & Ship
PO receipt in BPCS
Regulatory Record Keeping
23
27
Approval Payment to Broker
28
Update PO notes with Import
Details. Vessl,ETA etc. 19
Planner Runs Multiple
DRP Reports
Import Process
Projected
1
Import Forecasts are provided
to Overseas Suppliers
2
Review Line Items &
Adjust if Applicable
3
Planner will manually release
PO's in Batch. (Auto Later) 4
(Metric)
is this applicable to domestic
PFR's and Tolling??
Import Coord runs/prints open
Import PO report
5
Import Coordinator creates
International PO in Bolt-on. 6
Electronically Xmit Data to
Broker and/or Vendor
7
Import Coord receives
Acknowledgment within 24 hrs8
Import Coord receives confirm
of product availability. (48hrs)9
(Metric)
started 10-02-00
(Metric)
Import Coordinator updates PO
line due date, if changed. 10
Run Un-Confirmed Order
Report & Print
11
Measure OT-(IF)
Stock Turns
Line Items Picked/hr
Customer Satisfaction
(Metric)
E-Mail Un-Confirmed List to
Suppliers & Review
12
TO BE
TO-BE
Import Coordinator transacts
SSA100 PO Confirmation 13
Import Coord receives/prints
International PO.
20
14
Develop/Open Import File &
File Overseas info
15
Update
p
File in Import
p Folder
with Shipping Details
16
(2 Metrics)
Shipping Details
&
Doc's
Import
p Coordinator updates
p
PO
line due date, if changed.
Receive Invoice / BOL / CofA
from Supplier and Courier 17
FAX Invoice / BOL to Broker
18
"Customs Cleared" note from
Broker. PO rec - ETA port 19
N
Note
ffrom B
Broker
k
- BPCS MLT entry "Enroute"20
3rd Party
Update PO note.
Print & FAX to w/house 21
Uniqema
Uniqema
Site
Services
Note from Broker- BPCS MLT
Entry by W /house
22
Note from Broker- BPCS MLT
Entry by Import Coord 22
C of A manuallyy entered into
WORD
23
C of A manuallyy entered into
WORD
23
Labels generated.
Print/Pack/Ship
24
Labels generated.
Print/Pack/Ship
24
Planned Metric
Potential Improvement
Regulatory Record Keeping
25
Approval Payment to Broker
26
Example of Exports “Exceptions”
Time Study Methodology
Uniqema Exports - Exception Handling - Other Tasks
Group
Description
Shipping Problems
Shipping to the w rong destination
Shipping the w rong product
Lack of provision of commercial invoice to driver
Warehouse turns aw ay Carrier
Confirmation errors
errors. - What shipped?
Shipping Short w ithout authorization or Notification
Not enough effective communication
Domestic Phone Coverage & Sw itchboard Rollover
Customer Service Response by E-Mail ( Read, Investigate, Respond)
Cust Se
Cust Se
Cust Se
Cust Se
Cust Se
Cust Se
Cust Se
Cust Se
Cust Se
1
2
3
4
5
6
7
8
8
Logistic
Logistic
Logistic
Logistic
Logistic
Logistic
Logistic
Shipping Problems
Shipping to the w rong destination
1
Shipping the w rong product
2
Lack of provision of commercial invoice to driver
3
Warehouse turns aw ay Carrier
4
Not enough effective communication
5
6 Response by E-Mail ( Read, Investigate, Respond)
7 Un-Authorized Carrier consigned
P
Per
Occur
O
60
45
5
5
30
20
40
1200
300
60
45
TOTAL Hrs
63.33
26.92
Monthly
Daily
Daily
Tim e Now Weekly Tim e Now
Per Month
Min's
Monthly
Min's
Proj Tim e Delta Tim e Benefit $
Proj.
0.00
0.00
60.00
0.00
60.00
50.00
90.00
5.00
85.00
70.83
10.00
0.10
9.90
8.25
125.00
125.00
0.00
0.00
150 00
150.00
150 00
150.00
0 00
0.00
0 00
0.00
160.00
160.00
0.00
0.00
0.00
0.00
0.00
0.00
160.00
20.00
140.00
116.67
0.00
1200.00
600.00
120.00
1125.00
3800.00
0.00
20.00
10.00
1125.00
0.00
1615.10
0.00
1200.00
580.00
110.00
0.00
0.00
0.00
0.00
0.00
0.00
1000.00
483.33
91.67
0.00
0.00
0.00
0.00
0.00
2184.90 $ 1,820.75
Per Year
Benefit $
$
$
600
$
850
$
99
$
$
$
$
$ 1,400
$
$ 12,000
$ 5,800
$ 1,100
$
$
$
$
$
$ 21,849
Import / Export Recommendations
•
Unification of International Supply Chain
– IMPORTS: Consolidate US organization and define inter-regional
inter regional
interfaces (deliveries & non-conformances)
• Significant opportunity for Imports Organizational Streamlining
– Reduction in fixed expense by upgrading role of Import Coordinator ($75K)
– Redeployment of resource to higher value activities ($20K) and
– Removal of hidden tasks from Customer Svcs Rep ($10K)
• Import System Strengthening – introduction of Distribution Resource
Planning (DRP) tools to raise visibility
• Establish inter-regional IBP (Integrated Business Planning Processes).
– Strengthen Supply Chain / SBU interactions
interactions.
– EXPORTS: Enhance Continuous Improvement activities through
training and team-building.
• Cost Savings
g p
potential in Export
p Processes – requiring
q
g a commitment to
continuous improvement.
• Expand authority of Int’l Logistics Specialist to effectively manage freight
procurement, non-conformances and claims.
• Engage warehouse loading personnel, training on loading techniques and
paperwork compliance.
compliance
Onward Developments:
•
Entire organization trained in Continuous Improvement methodology
providing common language and platform.
•
Over 30% improvements in “Working Capital / Sales” ratios.
•
Forecast accuracy
y improved
p
via use of simple
p IT tools.
•
Coordinated inter-regional Supply Chain planning processes.
•
Innovative Inventory Management Methodology
•
Import Delivery performance driven up to low 90’s OTIF.
•
C-TPAT (Customs – Trading Partners Against Terrorism)
certification achieved.
•
Global SAP implementation, ongoing.