Ndevr + Simplot InSync 2012 Presentation - A Close Look at E1 Transportation Management

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JD Edwards E1 9.0

A Close look at E1 Transportation

Management


Agenda

• Who are Simplot?

• Simplot Supply Chain Overview

• Simplot Order Cycle

• Business Challenges

• Load Planning

• JDE Modifications

• Transport Module - Lessons learnt


Stephen Cathie

• National Logistics Manager – Simplot Australia

• Background mixed in Logistics and Accounting

• 10 years service with Simplot

• Transport Management Functional Lead for Simplot’s JDE

implementation “Project Catalyst”


Simplot Overview

• Owned by JR Simplot – USA based private family owned company

• Owner of well known food brand names such as Birdseye, Edgell, John

West, Leggos and Chiko

• Mixture of in-house manufacturing and outsourced supply

• Mixture of Retail & Foodservice customers


Simplot Products


Simplot Customers


Simplot Supply Chain Network

• 6 domestic manufacturing sites

• Multiple outsourced suppliers both domestic and imported

• Decentraliesed 3PL warehouse network – 3 ambient and 7

frozen

• Several hundred customer delivery locations

• 1,000+ products


Simplot Order Cycle

• Orders are received by customer service team

• Orders are passed to the logistics team for load planning

• Loads are ‘planned’ to maximise the utilisation of vehicles

• Orders are transmitted (EDI) to warehouses for picking and

transport providers notified of a impending transport task

• Goods are invoiced and dispatched

• Transport accruals are matched to freight invoices


JDE @ Simplot

• Order to Cash JDE modules Go Live = July 2011

• E1 Transport module manages…

– Internal Transfers (warehouse to warehouse),

– Customer Distribution (warehouse to customer & customer pick ups),

– Credit Returns (customer to warehouse)

• Simplot’s Transport module is highly integrated with Sales

Order Management, Inventory Management and Accounting


The Business Challenges

• All JDE shipments/orders go through internal load planning.

• Large orders are split into smaller transport tasks (shipments)

• Small shipments are grouped together

• A mixture of transport modes (boat, train, truck) and varying

travel distances leads to multiple billing methods.

• Transport varies between full load rates and variable rates (ie

per tonne)


The Business Challenges - Rates

• JDE handles a mixture of billing methods from multiple

transport providers…

– Full load rates (Semi Trailer, B-Double, 20’ or 40’ Container, etc…)

– Per pallet

– Per pallet space

– Per tonne (including pallet weight)

– Per tonne (excluding pallet weight)


The Business Challenges - Rates

• JDE handles on cost and other ad hoc charges

– Fuel levies

– Minimum Charges

– Document Fees

– Government rebates (Tasmania to Mainland)

• Carrier payments occur 2 different ways

– RCTI and traditional invoice processing/accrual matching


The Business Challenges - Routes• Multiple routes required (1,200+ routes)

• Lots of similar routes e.g. Mel > Syd

– multiple temperatures (frozen, chilled, ambient)

– multiple service providers

– multiple truck types

– multiple vehicle paths (direct, via Canberra).

• Preferences required for certain customers

• Intermodal routes where multiple carriers are involved (i.e. Mel > Perth

route involves train and 2 trucks = 3 carriers)


The Business Challenges - RoutesSydney

Customer

Melbourne

DC

Sydney

DC

Shipment 1

Chips

Shipment 2

Fish

- Chips supplied out of Mel

- Fish supplied out of Syd

- JDE creates & auto-routes 2 shipments

- Sydney customer places an order for

Fish & Chips

- Customer expects all product to be on

one delivery. Chips need to be cross-

docked via the Syd DC.

- Load Planning Example


The Business Challenges - RoutesSydney

Customer

Melbourne

DC

Sydney

DC

Load 1

(Chips for several

customers)

Load 2

(Fish & Chips)

- JDE – shipment is load planned to be

delivered via the Syd DC xdock.

- Immediately after the Mel-Syd load is

approved, JDE auto-routes a new

shipment leg for the chips

- Finally the Fish & Chips can be load

planned together for delivery

- Load Planning Example


JDE Modifications- Paperwork - pick slips, invoices, proof of delivery documentation were

all heavily customized

- Pallet calculation – custom pallet calculator had to be written to correctly

predict the numbers of pallets required per order

- Transport Invoice Matching – Simplot invested in a custom invoicing

scanning/matching solution to increase efficiency

- Accounting - Multiple mods to achieve Simplot’s desired cost allocation

and reporting requirements


E1 Tpt Module - Lessons Learnt• Synchronizing order status is challenging

– sales order status, shipment status and load status

• Lack of ‘Shipment Ledger’ complicates problem solving

• Transport module can be quite fickle and is not as robust as other

modules. Simplot’s heavy use of load building, intermodal routes and

EDI contributes to this complexity.

• Users require quality training and instructions. In Simplot’s environment

shipments can be easily broken by users (i.e. shipments become

corrupted and orders require re-entry).


Questions


Thank You

Ndevr + Simplot InSync 2012 Presentation - A Close Look at E1 Transportation Management

Technology

Transcript of Ndevr + Simplot InSync 2012 Presentation - A Close Look at E1 Transportation Management