NEECOM May 2010 Valerie Kilburn 1 E Commerce at Panalpina Valerie Kilburn Vice President Supply Chain Solutions / EDI NEECOM May 2010 Valerie Kilburn 2 Agenda Items About Panalpina Implementation and Information Technology Account Management Customer Logistics Solutions Convergence and EDI NEECOM May 2010 Valerie Kilburn 3 Panalpina Overview About Panalpina Air Freight Ocean Freight About Panalpina… Supply Chain Management Information Technology NEECOM May 2010 Valerie Kilburn 4 Core activities Air Freight Ocean Freight Supply Chain Management • Central procurement and • Central procurement and • Road Freight capacity management capacity management • Lead Logistics Provider • Strategic partnership • Strategic partnership with (LLP) with leading airlines leading carriers • Competence in key • 24x7 hub and charter • NVOCC Pantainer Express industries activities Line • Innovative IT applications • Intermodal services • Panprojects NEECOM May 2010 Valerie Kilburn 5 Panalpina at a glance Corporate figures 2009 • Among global top five in air and ocean forwarding • 500 owned offices in 80 countries • Approximately 13 500 employees • CHF 5,958 million net forwarding revenue • CHF 1,377 million gross profit • CHF 80 million EBITDA • Listed at SIX (Swiss Stock Exchange) Monika Ribar, CEO NEECOM May 2010 Product Knowledge Part II Valerie Kilburn 6 Key Industries Specialized in catering to the needs of customers within key industries, offering customized logistics and value-added services to all companies active within the supply chain. Healthcare & Retail & Industrial Automotive Hi-tech Telecom Oil & Gas Chemicals Fashion Projects Manufacturers Manufacturers Manufacturers Manufacturers Manufacturers Oil & Gas Project Transports and suppliers, and suppliers of and suppliers of and suppliers of and suppliers of companies Mining Drilling operators Cross trade Inbound Pharmaceuticals PCs Devices Fashion Oilfield service Heavy-Lift & Marine Production Life science Electronic Mobiles Retail companies Engineering Aftermarket Medical devices devices Networks Fast moving Deepwater instal- Specialty Vehicle Semiconductors consumer goods lation companies Bio & speciality Operators Transport chemicals Accessories (FMCG) Personal Care Home goods NEECOM May 2010 Valerie Kilburn 7 Global Panalpina network Countries with Panalpina presence Countries with partner presence NEECOM May 2010 Valerie Kilburn 8 USA Office and Gateway Network AK Anchorage ME Seattle VT Toronto NH WA New England (Boston) Minneapolis MI MA MT ND NY CT Bradley Special Accounts OR WI HBL Fashion MN MI JFK GTWY & TriState ID Detroit PA • JFK BU SD NJ Morristown • New York MD • Philadelphia WY Chicago BU & GTWY Columbus DE • HBL Washington FMS IA IN NE OH Mid-Atlantic IL WV NV • Norfolk VA Denver • Washington UT KY San Francisco St. Louis NC CA KS Charlotte CO Nashville MO TN Greenville Memphis SC Tulsa Los Angeles BU & GTWY Huntsville BU & Charleston AZ Atlanta OK AR GTWY San Diego NM Phoenix GA AL Dallas MS LA Orlando El Paso Tampa TX FL Midwest New Orleans Miami BU Houston & GTWY San Juan West Laredo PR South McAllen US Headquarters South-East Business Unit Key Contacts Directory Click here for list of handling North-East Airfreight Gateway offices based on zip code NEECOM May 2010 Valerie Kilburn 9 Implementation and Account Management Content NEECOM May 2010 Valerie Kilburn 10 Business Implementation Paul Moss Head of Account Implementation Morristown New Jersey IT Solutions APCO / CAPCO Carrie McConnaughey Jonathon Walton Manager BIM Manager BIM Nashville, TN Huntsville, AL PA Legal PA Customs Compliance Local Implementation Set-up Linking Professionalism, Experience and Enthusiasm PA Subject Matter Experts Area Business Process & Quality NEECOM May 2010 Valerie Kilburn 11 The Business Implementation 6 Phase Approach 1. Customer Information / Requirement 2. Develop Implementation Plan 3. Define Business Processes 4. Set up IT Solution 5. Test Phase 6. Go Live / Production NEECOM May 2010 Valerie Kilburn 12 Customer Logistics IT Project Governance and Methodology: IT request written All IT projects must be approved: 1. Business Unit manager 2. District Manager 3. Customer IT Project Review Board Customer IT Project Review Board – held every month to discuss and prioritize IT projects – (NORAM: HOO, HMS, Head of IT, Head of Account implementation). Advantage: Allows visibility of IT projects at the highest management levels in USA and the ability to prioritize projects if there is a resource issue. Business Requirements Specifications MS Project Plan IT Solution Document NEECOM May 2010 Valerie Kilburn 13 Business Implementation Tools Account Implementation Checklist A= Action, G= General Information Communication Responsible Completed Remarks A Project plan established AI Shared Account A A Insist on implementation “management” meeting, should be face to face between account manager / key ops and AI team Establish a scorecard that is from an AI perspective and not shipment level perspective (this is the ongoing customer / ops scorecard) AI AI A Establish KPI’s for Sales and Operations or external (e.g. vendors) AI Implementation Checklist A A Clear contingency plan must be established if promised items cannot be accomplished from either the customer or the PA perspective.(i.e. manual input, lack of supplier list, etc.) Instructions (i.e. Rates, SOPs) for ad-hoc shipments must be provided even though ad-hoc shipments may be considered “sporadic”. They are very time-consuming and may be more frequent than expected. Account Manager Account Manager A Check with the customer for PA to be on-site in order to learn their internal processes / gain understanding Account Manager / AI of how PA is to conform or support these processes. This would need to occur prior to launch and soon after (or even before) the first implementation meetings. A Review customer internal written SOP for accuracy, SOW and application to the business. Account Manager / AI (We find these to have errors, outdated, non-compliant with regulations, etc.) A Compile list of all reports required as per SOW (traffic, transit, accounting, KPIs…) Account Manager / AI A Review special requests from the customer for conformance of the SOW. (We should “attempt” to fulfill Account Manager / AI special requests but we should have the caveat that these requests be qualified.) A Determine if transit time, transit clock start / stop, has been discussed and is clear for origin and destination. AI A Verify application of charges during “tender” phase versus application of charges when business starts. Account Manager Example: FSC has increased since bid date, BAF has increased or PSS has become applicable A Over-scope the manpower needed during a new customer launch. AI This should be clearly discussed with the BUM. Any added manpower can be reduced AFTER the customer is launched and stable. A Determine if “Internal selling rates” have been discussed with offshore partners to the business. Account Manager / AI A Has the Account Implementation check list been posted on the K-web AI G Escalation in a non-threatening manner to management should occur to keep them abreast of issues AI G Positive AND negative feedback should be shared. Concentration is usually on what is going wrong, not what All is going right. G More aggressive/mandatory compliance with "topic" meetings at origin and at destination desk level AI personnel. This is to ensure total understanding and compliance on the subject "topic" from origin and destinatin ("Show me…..") G Increased awareness and interaction with key implementation managers / contacts worldwide. AI This has been an ongoing benefit. Key roles / participants Responsible Completed Remarks A Review the way the tasks are organized. AI Example: Who is in charge of which items and that this is logical. A Verify roles of sales if covering operational tasks/desk. AI Should not be involving sales persons in operational tasks even in emergencies. Should be adequate ops backups setup for the account from the beginning. A Establish and communicate escalation path for all 3 rd parties (whether customer related or PA related). AI This should be part of the contact matrix. Example: Internal 3 rd party would be the correct airline contacts. Example of a customer related 3rd party would be their broker or dedicated trucker) A Ensure that BUM supports ALL TRAINING. This would be making sure that staff has adequate time to be AI / BUM participating in: Account Implementation Scorecard Shared Timeline NEECOM May 2010 Valerie Kilburn 14 Information Technology Content NEECOM May 2010 Valerie Kilburn 15 The Panalpina premise Our business was built on a simple premise: to help our customers to get their goods to market quickly and economically, wherever that might be. Information Technology plays a vital part in this premise. NEECOM May 2010 Valerie Kilburn 16 Information Technology Panalpina has a Global Network that connects all 500 offices worldwide. Priority 1 in our IT strategy has been to connect all of our back office solutions in order to standardize and globalize our IT applications. PA USAYork New Basel Basel IT Competency IT Competency Center Center PA SIN IT Competency Center Our EDI servers are strategically located at the major Panalpina IT Competency Centers in order to ensure business continuity and maximum performance. NEECOM May 2010 Valerie Kilburn 17 Panalpina’s Service Oriented Architecture (SOA) connects internal and external stakeholders and applications. Clients Headquarters Distribution Centers Factories Panalpina Panalpina Supply Chain Management Supply Chain Application Lead Logistics Provider First Tier Panalpina Panalpina Panalpina Panalpina Operations Shipping Communication Financial Operations Systems Platform (SCP) Systems Second Tier Subcontractors Ocean Carrier A Ocean Carrier B Trucking Company A Trucking Company B User Company A Carrier Portals NEECOM May 2010 Valerie Kilburn 18 Panalpina offers today a highly modular SCM IT architecture that provides end-to-end execution capabilities. Buyers Suppliers Shippers Consignees Clients Carriers Warehouses FreightForwarders Supply Chain Application Order Transport Inventory & Ware- Fulfillment Management Management house Management Supplier Connectivity Warehouse Connectivity Carrier Connectivity Warehouse Management PO Management Order Fulfillment Merge-in-Transit Inventory Visibility Split Deliveries Case Building Buyer’s Consolidation Pull Requests Requisition Packing Cross-Docking Back Order Handling Negotiation Label Printing Milk-Runs Sequencing Inspection In- and Outbound Scan Delivery Appointments VMI Quality Assurance ASN Creation Direct-Store-Deliveries Charge Backs Reverse Logistics Ancillary Services Key Performance Indicators (KPI) Milestone & Exception Management Schedules & Events EDI and User interfaces NEECOM May 2010 Valerie Kilburn 19 Customer Logistics Solutions and EDI at Panalpina Content NEECOM May 2010 Product Knowledge Part II Valerie Kilburn 20 Customer Logistics Solutions Organization Americas: Customer Logistics Systems Americas, VP Valerie Kilburn Area / Regional EDI Manager Warehousing CAPCO CAPCO Americas CAPCO Americas CAPCO Americas CAPCO Americas Americas Americas Rosie Mancia TBA Alonso Montoya Joao Campos Gerhard Ostermann Rodolfo Bolanos (US) (US) (Latam) (Latam) EDI Analyst/ EDI Analyst/ Supply Chain CAPCO Canada CAPCO USA Developer Americas Developer Americas CAPCO USA Ivy Cheng Rachael DeSouza Heather Rayan Marty Cassel Juan Cardona CAPCO South CAPCO South Business Unit District USA District USA Jason Lominac Tyler Nodine CAPCO = Customer Application Consultants NEECOM May 2010 Valerie Kilburn 21 Evolution of EDI at Panalpina 1987 - EDI Manager started with ANSI X.12 • Translator – Gentran PC standalone solution running on DOS • Volume/month: 5-10 messages (not including flat files) • Data exchanged: invoices, purchase orders, booking request/confirmation, statuses • Number of Trading Partners: 8-10 • Size of EDI team: 1 (multi tasking) NEECOM May 2010 Valerie Kilburn 22 Evolution of EDI at Panalpina Early 1990’s • Translator – Gentran PC standalone became network capable • Volume/month: 20-25 messages • Data exchanged: invoices, purchase orders, Booking request/confirmation, statuses • Number of Trading Partners: 25-30 • Size of EDI team: 2-3 (multi tasking) Mid 1990’s • Translator – Windows based solution • Volume/month: 35 messages • Data exchanged: same + inventory controls warehouse/distribution management • Number of Trading Partners: 40 • Size of EDI team: 2-3 (multi tasking) NEECOM May 2010 Valerie Kilburn 23 Evolution of EDI at Panalpina Early 2000’s • Translator – Migrated all maps from DOS To TLE on a central EDI server • Volume/month: 35-40 • Kind of Data exchanged: same + shipper letter of instruction, ASNs • Number of Trading Partners: 50 • Size of EDI team: 2-3 (only EDI) Realizations: • Needed to provide FTP, EDI over internet and different protocols like AS1, AS2 • Started to trade data more globally - EDIFACT. • Connections with partners (Descartes, Traxon, INTTRA, ExWorks) • Started looking at XML (eXtensible Markup Language) • Realized that we needed many tools in order to support end to end requirements NEECOM May 2010 Valerie Kilburn 24 Evolution of EDI at Panalpina Mid 2000 – to current • Volume: 40-50 • Data exchanged: Same + B/L, shipper letter of instruction, ASNs • Number of Trading Partners: 65 • Size of EDI team: 3-4 2006 moved to Sterling Commerce GIS (SOA) a global, central enterprise and integrated solution Customers were looking for near real time processing Started using GIS BPML as opposed to pre-imposed process scripting. Started push and pull using webservices Currently we are migration all of the TLE mapping to GIS NEECOM May 2010 Valerie Kilburn 25 EDI with US Customs Filing with US Customs • ISF – Importer Security Filing • pre-filing of data to customs before loading the vessel at origin • Brokerage and 7501 Customer sends Panalpina Commercial Invoice data and Parts File master catalogue Panalpina reports to customs on behalf of our customers Receive back customs clearance All entries are paperless (expediting the filing with customs) NEECOM May 2010 Valerie Kilburn 26 EDI Sucesses Successes • Improving the process • Creating efficiencies • Reduce manual data entry • Quicker turn around with invoicing and getting paid • Time, cost, integrity of the data • Received an award from a global retailer proving that Panalpina was a valued partner • Filing ACI in Canada and ISF in US by government deadlines • Global Hi-tech win in the mid 1990’s and still holding this customer today • Diversity in all the verticals accommodating for the different niche solutions (i.e. RosettaNet) • Luxury Fashion customer implementation with 14 interfaces/EDI success NEECOM May 2010 Valerie Kilburn 27 EDI Challenges Challenges • The solution! • Cost to implement • Getting buy-in from all parties (negotiating what Panalpina can provide) • Clear project management and SOPs • Implementing new cutting edge supply chain applications and Integration with our customers • Having a fully integrated data warehouse from which all data can be exchanged • Lack of supplier data therefore forcing associates to manually update the systems NEECOM May 2010 Valerie Kilburn 28 EDI Future for Panalpina Future • Supplier connectivity • Pushing toward real time data exchange • Complete over haul of our TMS system (transportation management) on SAP with new EDI integration • OCR capablility • Investments in new technology ‘Did you Know’ video now! NEECOM May 2010 Valerie Kilburn 29 Convergence Content by: XPLANE, The Economist, Scott McLoed, Karl Fisch, Laura Bestler • A surge of new technologies and innovations is altering how we do business • The sharing of knowledge has exploded • Convergence is everywhere. It is easier than ever to reach out to many • 10 million visit ABC, CBS and NBC/month; • 250 million visit MySpace, YouTube, FaceBook/month. None of these social networking sites existed 6 years ago! NEECOM May 2010 Valerie Kilburn 30 Convergence Content by: XPLANE, The Economist, Scott McLoed, Karl Fisch, Laura Bestler • Traditional advertising is down; digital advertising is growing rapidly • More YouTube was uploaded in the last 2 months than all the new content on ABC, CBS and NBC since1948! • Wikipedia launched in 2001 has over 13 million articles in more than 200 languages. • What used to fit in a building now fits into your pocket , what fits in your pocket now will fit inside a blood cell in 25 years! Where will we be with electronic commerce? NEECOM May 2010 Valerie Kilburn 31 Thank you for your kind attention!
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