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The Management of Inbound Logistics Represents the Next Significant Strategic Initiative for Leading Companies.
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Companies procure transportation services with specific carrier partners
that both meet their requirements for price & service and have a solid
understanding of the nuances of their business needs. Additionally, these
companies establish business processes and rules of engagement to facilitate
the efficient flow of information and material into and throughout their
organizations.
To convey information
internally and externally, companies have historically implemented the use
of paper routing guides. These guides are prepared, printed and distributed
several times a year and often require vendors to acknowledge receipt of the
new guide, fax an acknowledgement and immediately comply with the new
directives.
A routing guide
should be looked upon as a collaborative resource that improves trading
partner relations, management decisions and reduces costs for all parties.
Typically, a routing guide
contains carrier assignments as well as special label requirements, special
packaging and palletizing requirements, and fines for making mistakes.
Additional requirements include garment on hanger instructions, shipping
procedures, carton requirements, pallet configuration, pallet supply
programs, customs instructions, and distribution facility specifications.
The content of routing guides is not
standardized from guide to guide. Moreover, the methods to make changes and
distribute such changes are antiquated, making routing guides cryptic
sources of information and making compliance difficult.
It might seem to some
companies that the sole purpose of a routing guide may be to create charge
backs or deductions for non-compliance, but smart companies have come to
realize that the supply chain is a connected entity where increased costs
incurred by a vendor will ultimately be passed onto the customer. With the
current emphasis being placed on logistics processes
like just-in-time inventory, vendor
managed inventory, continuous replenishment, along with reductions in safety
stocks and the acceptance of spot rate pricing, a new emphasis needs to be
placed on the routing guide. A routing guide should be looked upon
as a collaborative resource that improves trading partner relations,
management decisions and reduces costs for all parties.
Non-compliance with routing guides costs both
vendors and their customers millions of dollars annually.
To
adjust to the conditions that exist today, manufacturers, distributors, and
retailers have implemented a solution from
RoutingGuides.com.
RoutingGuides.com enables companies to ensure that trading partners use the
carriers, rates, services, business rules, and communications that are
required to effectively manage their supply chain. It empowers users with
real-time information and utilities to immediately execute decisions based
upon current information. It makes this information visible, thereby
providing a solid basis for decision-making. It eliminates voids between
the decision and the implementation of the decision and improves
communications and relations between trading partners.
Vendors log into a secure,
standard environment and obtain the most current information related to
carrier selection, business processes and rules of engagement and can access
a customers routing guide directly from a hyperlink on their corporate web
site. They are presented with a simple inquiry screen that provides them
with access to specific carrier assignments and the rules of engagement.
Once the inquiry is
performed, vendors are presented with clear, concise, and standard
information that simplifies their ability to obtain and execute the correct
information.
Changes such as special label requirements, special packaging and
palletizing requirements and fines for making mistakes must be communicated
as soon as they occur. Any time one of these elements is updated, vendors
are automatically notified.
Hyperlinks can be embedded
within a routing guide so that trading partners can be directed to a carrier
web site or contact information for that carrier or facility. RoutingGuides.com enables two-way communications between customers and vendors.
In the event that unique
transportation services need to be deployed, or an authorization number
needs to be granted, RoutingGuides.com enables vendors to execute a
customizable form, on-line, that collects all of the shipment parameters.
This information is conveyed to administrators through email or the web
interface depending upon the vendor assigned priority. Once entered,
RoutingGuides.com administrators have immediate access to the shipment
information allowing them to assign a carrier or authorization number. This
feature eliminates faxes and interruptive phone calls and facilitates the
flow of information and business processes of RoutingGuides.com customers.
In addition, it provides an electronic footprint that can verify compliance
to specific instructions.
By implementing
RoutingGuides.com, manufacturers, distributors and retailers have eliminated
the painful and costly process of printing their routing guides, mailing
them and monitoring receipt.
The electronic guide can be used internally as well. Purchasing staff can refer to it when they place orders, so they can remind vendors how to route the goods.
Customers in the supply
chain can set up a routing guide at RoutingGuides.com in seven simple steps:
Once the routing guide is
established, customers have 24/7 access to their routing guide and
associated information and can proactively monitor and manage compliance.
Reports provide administrators with visibility so that they can see which
vendors are accessing their routing guide and the assignments that they have
been issued. RoutingGuides.com provides information about who is accessing the guide, so compliance can be monitored up front.
Users can execute a change
to their routing guide within seconds and automatically notify their trading
partners that a change to the routing guide has occurred. This is of
particular advantage in case of emergencies such as a carrier going on
strike, access roads being disrupted, or temporary suspension of
transportation services. In also enables a customer to implement changes at
short notice such as an opportunity to capitalize on a spot rate, or to
implement a new carrier contract.
RoutingGuides represents
the best of both worlds - it maintains all the benefits of a tried and
tested process and takes advantage of the fast communication opportunities
of the web. This is in stark contrast to the approach taken by many who
started with the web, and “invented” processes to accommodate it.
People in general and
management in particular, do not deliberately make mistakes. Charge-backs
imply that a mistake has been made somewhere along the supply-chain. The
most common causes of errors are inadequate and inaccurate data.
RoutingGuides was designed to address these issues. RoutingGuides
capitalizes on what computers and people do best. Computers are excellent
at handling data, but not so good at decision making. People are nowhere
near as good at handling data but, excellent at making decisions if given
the right information. RoutingGuides is the tool that gives decision makers
the right data at the right time to allow them to make the right decisions.
The right decisions made at the right time, increases service, improves
performance, and eliminates charge backs.
Disclaimer
The
information presented herein represents the opinion of the author(s) but not
necessarily the opinion of TransportGistics, Inc. nor is it presented as a
legal position or opinion.
All content copyright by TransportGistics, Inc. All rights are reserved. The author(s) of this article retains the copyright to their article. No material may be reproduced electronically or in print without the express written permission from the individual authors and/or TransportGistics, Inc. papers@transportgistics.com |
TransportGistics Products Solutions should not be more complicated than the problems they are trying to solve!
Generate, Distribute and Manage Bills of Lading on the Web
Tracing and Tracking information in a central location to all authorized users
Freight Bill Management, Shipment Information, Cost Control Portal
Communicate routing guides rules of engagement and carrier selection
Extend visibility & gain accountability to the desktop by tracking shipments & goods
Additional Resources
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