Bonded warehouse implementation with Descartes Customs Solution

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Neovia’s core business

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• For companies facing complex logistics challenges

• Continuous improvements

• Supply chain optimizations

• Cost reductions for supply chain

• …

• Neovia is the global,

integrated logistics service provider

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Neovia’s roots

• Formerly known as Caterpillar Logistics Services

• Founded in 1986

• Internal & external customers

• Leading global contract logistics company

• Leveraging 80 years of Caterpillar’s expertise

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Cat’s transition to Neovia

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• Caterpillar refocused on their core business

• Platinum Equity acquired 65% stake (2012)

• Rebranded to Neovia Logistics Services

• As of 2015, Goldman Sachs and

Rhône Capital own the company

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Service Offering & Footprint

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Scope of Services in Lummen

• Warehouse operations

• Special Services (kitting, relabeling, ...)

• Offsite Operations

• Transport Management

• Customs representation (bonded warehouse Entrepot license E with D procedures)

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New business challenge

• One of Neovia’s biggest customers was about to implement a new Warehouse Management System

• This new WMS no longer supported bonded warehouse management nor declaration management

• Neovia selected Descartes Customs Solution to fill the gap

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Descartes Duty Management Framework

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WAREHOUSE MANAGEMENT FRAMEWORK

FREE WAREHOUSE

BONDED WAREHOUSE

DECLARATIONS Import – Export – Transit – Excise – Globalization (GPA/XML)

EXCISE WAREHOUSE

Smart Picking

NETWORK Duty

Calculation

Maintenance of Stock Records

Stock Adjustments

Revaluation

Usual Forms of Handling

Transfers

INBOUND INBOUND

OUTBOUND OUTBOUND

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Blueprint phase

• During blueprint phase all business processes have been analysed and documented in the “As is” situation

• A detailed “To be” situation has been designed and the scope of the project has been defined

• Processes to be automated:

– Inbound

– Stock adjustment +/-

– Outbound

– Legal reports

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High level process

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Inbound

• When bonded goods arrive at the warehouse a manual NCTS Arrival declaration is created to end the transit procedure

• A simplified procedure allows to register the goods in the warehouse administration without creation of a PLDA Import declaration

• The customer sends the inbound order in flat file format to GLN

• The inbound order is translated into SMF and imported in the Descartes Customs Solution with autosubmit flag on

• After successful processing of the inbound order stock record(s) are automatically created

• 95 % of all inbound orders is processed automatically!

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Inbound

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Inbound Order Create New Stock Record

Submit

New Stock Record Transaction

New Certificates

1 Detailline = 1 Stock Record 1:1

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Stock administration

• Separate interface messages have been implemented for automatically registering stock adjustments in plus and minus

• Handling (kitting) is not used

• Transfers between warehouses are created manually

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Stock administration

• Stock adjustment plus

– Surplus

– Corrections

– Revaluation

• Stock adjustment minus

– Shortage

– Corrections

– Destructions

– Loss

– Revaluation

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Outbound

• The customer sends the outbound order in flat file format to GLN

• The outbound order is translated into SMF and imported in the Descartes Customs Solution with autosubmit flag on

• After successful processing of the outbound order stock record(s) are automatically updated and following customs procedure is automatically created

• 70 % of all outbound orders is processed automatically!

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Outbound

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Outbound Order

Request / Claim

1 Detailline = multiple Stock Records 1:n

Claim:

FIFO Principle or lot/batch controlled

Smart picking functionality

Block Stock Records (n)

Step 1: Request / Claim

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Outbound

Outbound Order

Update Stock Records (n)

New Stock Record Transaction(s)

Update Certificates

Calculate Duties

Generate declaration(s)

Submit

IMPORT – EXPORT TRANSIT DECLARATION

Step 2: (auto)Submit

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Legal reports

• Neovia imports the standard reports generated by the Descartes Customs Solution into their own reporting environment allowing them to create all required reports with the flexibility of quickly changing layout and/or content when needed:

– Monthly globalization report

– Year end closing report

– Inbound Maintenance Register (IMR)

• NCTS Arrival

– Outbound Maintenance Register (OMR)

• PLDA Export

• NCTS Departure

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Statistics

• Project lead time: 2 months

– kick-off Sep 22

– Go live Nov 14

• # stock records at go live: 278.095

• 2015

– # Inbound orders: 15.734

– # Outbound orders: 17.719

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Union Customs Code

• May 1, 2016 the first PLDA changes related to the Union Customs Code (UCC) came into effect

• For Neovia the impact was limited:

– Code 4008 (“domiciliëringsprocedure”) had to be changed in the

outbound order mapping into C514

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Q & A

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THANK YOU

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