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Ontario
International Transport and logistics
Chapter 14: Action !
FACTS GATHERING:Take a close look at each step of your logistic chain, from the
PO up to client invoicing. You need to have total control on each of them.
Also: Validate import and export official ‘liquidation’ (compliance
7501, B-3); Validate Incoterms in use (minimize the risks); Validate the partners with whom you are dealing with:
carriers, forwarders, customs broker, couriers, warehousers, consolidators, etc. (liability, security, costs).
.
Once the facts on hand:. Implement benchmarks at each important step. Implement a negotiation process with
customer/supplier deals. Put in place tools to order, follow-up and validate
invoicing. Separate the functions: import, export, receiving,
shipping. Train personnel of import and export teams. Use technologies. Outsource some tasks, steps, functions
ACTION PLAN
THE COSTS
WARNING: Carrier’s rates are NOT the only financial data to considerIt is often more on the ‘transport organization’ that
we need to look.
1. Simplicity of the the steps, the management2. Priority placed in the incoming/outgoing
shipments: Urgent Vs non-urgent as an example3. Verification of each invoice Vs the quotation.
STARTING POINT: Your actual logistic scenario
Where are we located geographically?Do we need to have our own trucks ?Is that task performed by someone who has another
main function?To reduce management, can we outsource some
functions while keeping control?Should/Do I have to use technologies ?Witch Incoterms®2010 are we using?
SIMPLE MANAGEMENT SYSTEM
Incoming:1. Order form, including the Incoterm2. Transport quotations3. Information on the movement: ETD / ETA /
intermodal coordination and follow-up4. Documented reception
SIMPLE MANAGEMENT SYSTEM
Outgoing:1. Shipping form, including the Incoterm2. Transport quotations3. Information on the movement: ETD / ETA /
intermodal coordination and follow-up4. Shipment documented, supervised and
scelled.ALL: Approbation of each invoice by
logistic first and then payables.
INTERNAL ORGANIZATION
Import and Export functions separatedShipping/Receiving separatedDocumented procéduresDaily/weekly follow-ups on shipmentsNo proof of delivery = no paymentVERY IMPORTANT: Validate all invoices (do not assume),
(different rate, extra charges, % of fuel surcharge, wrong HS, wrong custom duties, etc.).
INTERNAL ORGANISATION
If in the negotiated Incoterm it is the client/supplier that pays the bill and you have a good transport department, you have 2 options:1. They take care of it themselves2. You coordinate and RE-BILL!Since you already have negotiated good rates,
you can charge a premium (min 10%).You are funding your own department!
INTERNAL ORGANIZATION
OUTSOURCING: Do it for the good reasons! Some or all tasks can be outsourced
externally. There are some firms that are taking
charge of some of these steps and pays themselves with the savings.
You must have someone revising EACH INVOICE.
INTERNAL ORGANIZATION: SHIPPING Outgoing shipments: Watch out for hidden fees.Priorities: Identify what is urgent and what is NOT
(courier/road or Ocean/air for example) You can see a drop in your coast rapidly.
Have a weekly Shipping Calendar (not a daily one). Example: Shipments on Mon, Wed and Friday).
Regroup shipments: LTL Vs FTLControl the accesses to these zones. Reserve it to
authorized employees only (theft, security, etc.)Use consolidation hubs with 3PL’s.
9 points to Consider for Saving $$$
1. Choice of Incoterm®2010 and write it on documentation2. Choose recognized partners: Know the people and have the
numbers/way to get to them quickly3. $ Detailled quotations: Minimum of 3, occasionnal
movements as well as regular4. Import and Export functions separated
9 points to Consider for Saving $$$
5. Follow-up on shipments with ETD/ETA6. Caro insurance necessary? All risks?7. $$ Shipping dept: Manage urgent Vs non-urgent8. $$$ Have import/export services validate EACH invoice
prior to send to payables9. Train your staff, give them the tools