moss - material off-shore sourcing
DESCRIPTION
TRANSCRIPT
1
Material Off-Shore Sourcing – MOSS Project
Midwest User Group March 20, 2006
Presented by:
Kevin Wade - Honda of America Mfg.Michael Comerford - Global Commerce Systems
2
Customs / Logistics Strategies to Strengthen Long Distance Supply Chains
Story Points:
• Define the Problem
• Adverse Impact
• Goals and Objectives
• Industry Survey, AIAG Project/Scope
• Current Status, Next Steps
3
Customs / Logistics Strategies to Strengthen Long Distance Supply Chains
Current Long Distance Supply Chain Problems
• an inordinate amount of paper documents has resulted in substantial delays in moving freight,
• many service providers are faxing, emailing and even carrying paper documents,
• faxed documents, and faxes of faxes are often unreadable or missing critical information,
• end to end shipment visibility is limited to numerous proprietary systems, many of these are not real time and do not cover all events end to end,
• split shipments and other disruptions are difficult to manage.
4
Customs / Logistics Strategies to Strengthen Long Distance Supply Chains
Adverse Impact:
The identified problems result in:
• Cost associated with increased Buffer Stock
• Cost associated with increased Expedites
• Cost associated with “Follow-Up” • Cost of human interventions in normal processing
• Cost of human interventions in problem shipments
• Problems associated with deficient visibility
5
Customs / Logistics Strategies to Strengthen Long Distance Supply Chains
Project Goals and Objectives:
♦ eliminate or significantly reduce the use of paper documents and enhance the electronic flow of information,
♦ improve compliance, improve predictability,
♦ enhance security (C-TPAT, WCO),
♦ real-time visibility based upon real-time business events,
♦ improve strategies for the mitigation of supply chain disruptions, split shipments, alternate routings, changing carriers,
♦ decrease uncertainties in the supply chain thus significantly improving overall timing, consistency and visibility,
♦ increase corporate profitability: saving time and money by developing economies in the overall compression of the supply chain.
6
Expediting continues for most.Expediting continues for most.
Over the past 2 years, the incidence of expedited shipments has...
Remained the same28%
Decreased26%
Increased46%
74% of the respondents continue to incur the cost of expediting to support business needs.
7
Common Benefits Among Auto SCCommon Benefits Among Auto SC
22%
46%
61%
74%
73%
78%
35%
58%
71%
75%
71%
63%
Increase government-relatedcompliance levels
Improve data quality/integrity
Improve visibility to materialflow
Reduce use of premiumfreight
Reduce the cost of expediting
Reduce buffer stock inventory
OEMs
Suppliers
Which benefits would you expect your company to achieve from improvements in offshore/long distance supply chains?
8
Real time visibility is a challengeReal time visibility is a challenge
80%
39%
40%
46%
25%
23%
30%
47%
21%
61%
60%
54%
75%
77%
70%
Arrive destination
In-transit movement fromcustoms
Clear U.S. Customs
Arrive North America
In transit movement fromforeign port
Depart foreign port
In transit from supplier
Depart supplier
Have real time visibility No real time visibility
87% of respondents indicated improvement needed in visibility.
Real time visibility thru each stage of global flow of goods:
53%
9
79% believe standardizing ‘exchange of info’ will reduce disruptions in supply chain.
Which communication methods cause the greatest number of problems?
16%
25%
28%
22%
8%
1%
Emails Phone calls Faxes Paper EDI EDIFACT XML
% who use these methods to move data through the long distance SC
90% 83% 81% 56% 53% 18% 11%
Communication of Mtl Movement Communication of Mtl Movement
10
Customs Mandates Adds CostCustoms Mandates Adds Cost
(1=No impact / 5=Significant impact)
17%
24%
32%
21%
6%
1 2 3 4 5
No impactSignificant impact
30% of the survey respondents have added staff to handle problems, disruptions and/or issues related to govt. compliance over past 2 yrs.
What has been the impact of enhanced customs and other government agency security on your long distance supply chains?
11
32% 31% 31%
47%44% 48%
21% 25% 22%
Business Customs Shipping
Not re-keyed
Multiple times
One time
Data Redundancy ExistsData Redundancy ExistsThroughout a multi-stage offshore supply chain, how many times is data re-keyed into various systems, including proprietary systems, for business, customs & shipping?
15% of shipments experience delays due to inaccurate or incomplete data.
12
Operational Impacts w/Ocean FreightOperational Impacts w/Ocean Freight
Yes
50%
No
50%
Yes
41%
No
59%
OEMs Suppliers
Production stoppage due to delayed ocean freight?
Both OEM & Suppliers experiencing production stoppage.
13
How many days of inventory to cover delays in ocean shipments?How many days of inventory to cover delays in ocean shipments?
12%
4%
13%
30%
40 %
Manufacturers are carrying excessive levels of inventory
11%
7%
20%
26%
37%
None
1-4 days
5-9 days
10-20 days
More than 20 days
OEMs
Suppliers
Buffer Inventory for Ocean DelaysBuffer Inventory for Ocean Delays
14
Summary of Findings
• 91% still use manual procedures to correct shipments, communicate status and visibility.
• 15% of shipments experience delays due to inaccurate or incomplete data.
• 79% believe standardizing ‘exchange of info’ will reduce disruptions in supply chain.
• 87% believe improvement in long distance supply chains is needed.
15
Customs / Logistics Strategies to Strengthen Long Distance Supply Chains
AIAG Core Planning Team
♦ Automotive Industry Action Group♦ Bosch♦ Daimler Chrysler Corporation ♦ Ford Motor Corporation♦ General Motors Corporation♦ Honda of America Mfg.
16
♦ Project Scope Document♦ Project Business Case♦ Project Charter♦ Project Plan
AIAG MOSS Project Management
17
MOSS Project Plan Timeline
Completed In Process Planned Work
March 2006
Pre-Planning
Plan / Analyze
AS IS
Build Solutions
Define Deploy Post Review
Plan / Analyze
TO BE
2006 20062006 20072005/620052005 2007
Q2/Q3 Q4Q3/Q4 Q1Q4/Q1Q4Q3 Q2
Validate
18
MOSS: Plan / Analyze AS-IS State
Pre-Planning
Plan / Analyze
AS IS
Build Solutions
Define Deploy Post Review
Plan / Analyze
TO BE
2006 20062006 20072005/620052005 2007
Q2/Q3 Q4Q3/Q4 Q1Q4/Q1Q4Q3 Q2
Validate
AS-IS or Current State Model ♦ Developed Workflow Process Models ♦ Developed Associated Metrics ♦ Initiated Lead-User Interviews ♦ Developing USE CASE ♦ Developing Data Element Matrix
19
Honda of America Manufacturing:Import Logistics Functions & Future Image
Honda of America Mfg., Inc.
20
KD
(JSP
) K
D (J
SP)
From JPN KD PlantFrom JPN KD Plant
KD
(M
issi
on)
KD
(M
issi
on)
From Southeast Asia HM PlantsFrom Southeast Asia HM Plants
Dire
ct
(OEM
)
Dire
ct
(OEM
)
PUR to procure from NAPUR to procure from NA
2004.08.27_North American LogisticsHonda Procurement Logistics Styles•Standard Global Procurement Processes
•Asia•Plant PC Issued Orders
•KD Set•Plant Issued Orders
•Part by Part•Honda Motor Order Receipt
•Local Procurement•Final POD responsibility
•North America•Purchasing Issued part by part•Canadian Import
•Supplier or HAM IOR•Direct Pickup at Supplier
•Mexico Import•Supplier responsibility•Pickup at Texas WH Honda of America Mfg., Inc.
21
Honda Import Honda Import Intermodal FunctionIntermodal Function
Honda Export Honda Export IOOIOO
TransportTransport
Order, Receipt, Order, Receipt, Packing, Delivery, Packing, Delivery, Manifest TransmissionManifest Transmission
Full Container LoadsFull Container Loads
W7, W3 Order Lead 10-days ocean transit <5 days OH Inventory7-days Inland
Honda - International Overseas OperationsN.A. Honda N.A. Honda
Plants Plants SuppliersSuppliers
5-days IOO process
Manifest Receipt, Manifest Receipt, Clearance, Performance Clearance, Performance Tracking, Expedite Tracking, Expedite Control, Distribution Control, Distribution ManagementManagement
Honda of America Mfg., Inc.
Honda Motor Inc.Honda Motor Inc.
22
Expedites Must Be Arranged 24 hrs. Prior To Port ETAPort N-2 AEP
VESSEL SS Line ETD Updated ATD Sch. Day Updated Actual Location Sched dep. SS Projection Actual dep. Sch. Day Updated ETA Actual Train Truck Air RTA Prod Comments
Hyundai Duke APL 2/11 2/11 2/12 Sun 2/20 2/22 2/22 Sea 2/21 2/24 2/24 Tue 3/1 3/3 3/3 X Labor short in Tacoma caused late Seattle arrivalHyundai Duke MOL 2/11 2/11 2/12 Sun 2/20 2/22 2/22 Sea 2/21 2/24 2/24 Tue 3/1 3/3 3/3 X Labor short in Tacoma caused late Seattle arrivalEver Ulysses EVG 2/8 2/10 2/10 Fri 2/18 2/20 2/20 Tcm 2/20 2/22 2/23 Wed 3/2 3/4 3/1 XVerrazano Bridge K-L 2/16 2/16 2/16 Thu 2/24 2/24 2/24 Tcm 2/25 2/25 2/25 Fri 3/4 3/4 3/4 XSpringtide NYK 2/12 2/12 2/12 Mon 2/21 2/22 2/22 Oak 2/23 2/23 2/24 Wed 3/2 3/2 3/2 XHyundai Emperor APL 2/18 2/19 2/19 Sun 2/27 3/1 3/1 Sea 2/28 3/3 3/2 Tue 3/8 3/10 3/10 X X Late previous voyage, missed chicago interchangeHyundai Emperor MOL 2/18 2/19 2/19 Sun 2/27 3/1 3/1 Sea 2/28 3/3 3/2 Tue 3/8 3/10 3/10 X Late previous voyage, missed chicago interchangeEver Ursula EVG 2/15 2/16 2/16 Fri 2/25 2/26 2/25 Tcm 2/27 2/27 2/28 Wed 3/9 3/9 3/10 XVirginia Bridge K-L 2/23 2/23 2/23 Thu 3/3 3/3 3/3 Tcm 3/4 3/4 3/4 Fri 3/11 3/11 3/11 XSanta Barbara NYK 2/19 2/19 2/19 Mon 2/28 3/1 3/1 Oak 3/2 3/3 3/3 Wed 3/9 3/14 3/14 X Engine trouble at sea, Ca. Rail track project, Cinci congestionHyundai Admiral APL 2/25 2/25 2/25 Sun 3/6 3/7 3/6 Sea 3/7 3/8 3/8 Tue 3/15 3/16 3/15 X Chicago congestionHyundai Admiral MOL 2/25 2/25 2/25 Sun 3/6 3/7 3/6 Sea 3/7 3/8 3/8 Tue 3/15 3/16 3/15 X Chicago congestionEver Ultra EVG 2/22 2/23 2/23 Fri 3/4 3/4 3/4 Tcm 3/6 3/6 3/7 Wed 3/16 3/17 3/15 XVincent Thomas Bridge K-L 3/2 3/2 3/2 Thu 3/10 3/10 3/9 Tcm 3/11 3/11 3/10 Fri 3/18 3/21 3/19 X Rail congestionSanta Monica NYK 2/26 2/26 2/26 Mon 3/7 3/8 3/8 Oak 3/9 3/10 3/10 Wed 3/16 3/21 3/19 X Weather at sea. Ca. rail track projectHyundai Commodore APL 3/4 3/4 3/4 Sun 3/13 3/14 3/13 Sea 3/14 3/15 3/15 Tue 3/22 3/22 3/21 XHyundai Commodore MOL 3/4 3/4 3/4 Sun 3/13 3/14 3/13 Sea 3/14 3/15 3/15 Tue 3/22 3/22 3/21 XCalifornia Mercury NYK 3/5 3/6 3/7 Mon 3/14 3/16 3/16 Oak 3/16 3/18 3/18 Wed 3/23 03-24/03-27 3/25 X Late previous voyage, Ca. rail track projectVancouver Bridge K-L 3/9 3/9 3/9 Thu 3/17 3/17 3/17 Tcm 3/18 3/18 3/18 Fri 3/25 3/24 3/24 XHyundai Baron APL 3/11 3/11 3/11 Sun 3/20 3/21 3/21 Sea 3/21 3/22 3/23 Tue 3/29 3/30 3/29 X U.P. power problemsHyundai Baron MOL 3/11 3/11 3/11 Sun 3/20 3/21 3/21 Sea 3/21 3/22 3/23 Tue 3/29 3/30 3/29 X U.P. power problemsSanta Cruz NYK 3/12 3/12 3/12 Mon 3/21 3/22 3/22 Oak 3/23 3/24 3/25 Wed 3/30 4/4 4/4 X Ca. rail track project. N.S rail delaysValencia Bridge K-L 3/16 3/16 3/16 Thu 3/24 3/24 3/23 Tcm 3/25 3/25 3/24 Fri 4/1 4/1 4/1 X X KKTU7073737 being trucked at MMP requestHyundai Duke APL 3/18 3/18 3/18 Sun 3/27 3/28 3/28 Sea 3/28 3/29 3/29 Tue 4/5 4/5 4/5 XHyundai Duke MOL 3/18 3/18 3/18 Sun 3/27 3/28 3/28 Sea 3/28 3/29 3/29 Tue 4/5 4/5 4/5 XVerrazano Bridge K-L 3/23 3/23 3/23 Thu 3/31 3/31 3/31 Tcm 4/1 4/1 4/1 Fri 4/8 4/7 4/7 XHyundai Emperor APL 3/25 3/28 3/28 Sun 4/3 4/4 4/4 Sea 4/4 4/6 4/6 Tue 4/12 4/13 4/13 XHyundai Emperor MOL 3/25 3/28 3/28 Sun 4/3 4/4 4/4 Sea 4/4 4/6 4/6 Tue 4/12 4/13 4/13 XStarlight NYK 3/26 3/30 3/30 Mon 4/4 4/8 4/8 Oak 4/6 4/10 4/11 Wed 4/13 4/18 4/18 XVirginia Bridge K-L 3/30 3/30 3/30 Thu 4/7 4/7 4/7 Tcm 4/8 4/8 4/8 Fri 4/15 4/14 4/14 XHyundai Admiral APL 4/1 4/4 4/4 Sun 4/10 4/12 4/12 Sea 4/11 4/13 4/13 Tue 4/19 4/20 4/20 XHyundai Admiral MOL 4/1 4/4 4/4 Sun 4/10 4/12 4/12 Sea 4/11 4/13 4/13 Tue 4/19 4/20 4/20 X CAXU4681035, CRXU3057245 due on 04/27Santa Barbara NYK 4/2 4/2 4/2 Mon 4/11 4/12 4/12 Oak 4/13 4/14 4/14 Wed 4/20 4/21 4/21 X Mechanical problem at sea. N.S. congestionVincent Thomas Bridge K-L 4/6 4/6 4/6 Thu 4/14 4/14 4/13 Tcm 4/15 4/15 4/15 Fri 4/22 4/22 4/21 XHyundai Commodore APL 4/8 4/9 4/9 Sun 4/17 4/18 4/18 Sea 4/18 4/19 4/19 Tue 4/26 4/27 4/27 X Possible Chicago delayHyundai Commodore MOL 4/8 4/9 4/9 Sun 4/17 4/18 4/18 Sea 4/18 4/19 4/19 Tue 4/26 4/27 4/27 X Possible Chicago delay
Transportation MethodMIT ArrivalJapan Prt Departure U.S. Port Arrival Port Departure (Train)
HAM Inbound JSP Tracking
Honda of America Mfg., Inc.
JPN Port DepartureExpected/Updated/ActualUS Port Arrival
Sched/Updated/ActualUS Port Departure
Sched/Projected/ActualHonda ArrivalSched/Updated/Actual
23
Honda U.S. Inbound Rail Routes
Cincinnati
HAM
Chicago
St. Louis
Oakland
Los Angeles
Seattle
Tacoma
HAMHMAHSCHPE
Honda Company
(APL, Mitsui)
(NYK)
(K-Line)
HSC
HPEBNSF
BNSF
NS
CSX
UPUP
(Evergreen)
(P&O Ned Lloyd, MOL )
Norfolk
Atlanta
BNSF (Maersk)
Savannah
Jacksonville
HMA
(K-Line, MOL)
UP
BNSF (NYK)
Philadelphia
Boston
Baltimore
Charleston
New Orleans
Miami
Houston
UP (MOL)
Memphis
Birmingham
Honda of America Mfg., Inc.
24
Carrier E
Met ETA @ MIT45%Late
55%
Percentage of containers
Carrier C
Met ETA @ MIT31%
Late69%
Percentage of containers
Carrier A
Met ETA @ MIT74%
Late26%
Percentage of containers
Carrier B
Met ETA @ MIT26%
Late74%
Percentage of containers
4/04-3/05 Intermodal Delivery Performance for HAM (MIT)
Carrier D
Met ETA @ MIT29%
Late71%
Percentage of containers
Honda of America Mfg., Inc.
On Time range
25
HOO PC
【 10/29/03 CA WILD FIRE Response Process 】Plant
Vessel Departure
Overseas Transport
US Port Arrival
Inland Transport
MIT Rec’v
Cross Docks
CC Rec’v
NAL
MS
VesselCompany
HOO PC
10/27Wild Fire effects
Rail Info
Vessel containersMIT arr. info
UP date
Prod. tracking@ each Plant
10/29Container transportprocedure change
consensus
Request containerssubject to
Transp. ProcedureChanges
Arrangetrucks
Load totrucks
PartsStaging
Rail info 10/28 Prod.Assessment Req.
10/21Wild Fire
Rail infoconfirmed
10/28NA overallProduction
Assessment req.
・ Production tracking request at each plant( Container # / KD Order Lot / Prod. Date info )
・ Container # / KD Order Lot / Prod. Date info
Inbound KD parts report
10/27Wild Fire
effects info
10/27HMA Wild Fire
effects notification
10/27Wild fire info rec’d
10/29Rail STOP
10/29Container transport
method changeconsensus
10/28Prod. Assessment
Key Concern:・ Lead time is 3 days from INFO REC’V to PLANT PROD. ASSESSMENT to ACTION PLAN DECISION
⇒ Establish a mgmt procedure/system for container/production date correlation
HOO PC
HAMAssessment
Status
ContainersReceived
・ Unclear wild fire status・ Unclear when prod. will be impacted
・ Wild fire status understood・ Railway info understood・ Unclear when prod. will be impacted
・ Railway status understood・ Unclear when prod. will be impacted
・ Production impact date understood・ Action proposal understood
Rail stop Info
HMA/ HCMContact/
Activity request
Inbound JSP Daily Tracking & Response Processes
Honda of America Mfg., Inc.
10/21Wild Fire
10/27Wild fire info rec’d
10/28NA overallProduction
Assessment req.
10/28Prod. Assessment
10/29Container transport
procedure changeconsensus
Arrangetrucks
26
HAM Inbound Tracking System Proposal
•Improve accuracy and efficiency of decision making for daily & crisis situations
•Requirement for accurate, real time information to production allocation
•Single source data base to retrieve and update key information
•Automatic data mining from ocean carriers, rail lines and customs
Honda of America Mfg., Inc.
27
HAM Inbound Container Management System Process Overview NAL
Containertracking system
production assessment
NALTransportInfo Mgmt
MSProd. Date
Mgmt
HOO PCOverall Central Mgmt
ContainerTracking System
Confirmation
ContainerTracking system
automatic Creation
Rec’vManifest
VesselDepart/US Arr/MIT Arr
Change InfoOceanCarrier
PortStatus
Inland transportationInfo/MIT Arrival
Results Info
Request for part-level
assessment
NAL / PCC/M proposal establishment
Impacted LOT #
assessment
Vessel Departure Overseas Transportation US Arrival Inland Transportation MIT Arr.
Daily Mgmt Crisis Mgmt
Transportationmethod change
proposal
TOPDecision
Transportation Method Change
・ Compare container receiving actualand production plan⇒Production judgment update
Assess impactto production
Go approval for action
OKNG
・ Vessel unit・ Plant unit・ Container #・ Vessel depart・ US Arr.・ MIT Arr.・ RTA
Containertracking system
update
・ Vessel actual Dep. results・ETA - Updated・ Input actual arrival of container
Confirm impact to production
( Overall consensus )
Part-levelAssessment
PartsTracking system
・ Container #・ PC #・ KDLOT #・ Prod. date・ MTOC
PartsTracking system
Port InfoAll Delays
Port InfoAll Delays
Port InfoAll Delays
Info Mgmt
Information Sharing
ContainerTracking System/
Confirmation
Crisis InfoReceived
Crisis Info
System Update
・ Involvement・ Transport methodchange
System Update
System Update
System Update
RTAvs.
ETA Capability
Information Update Sources:
S.S. Line, Port feedbackWeb Site Tracking
Honda of America Mfg., Inc.
Information Mgmt
Live Information
Access
Daily Mgmt Crisis Mgmt
28
Log costLog cost
2step2stepTracking parts in packing Tracking parts in packing processprocess
OrderShippingDeliveryPackingVanningShippingCustomsDeparture
Port departure ETA forecast Port Arrival
Production
Line deliveryInventoryArrival
Initiate response to abnormality
Initiate response to abnormality
Pack pro.Pack pro. Plant shipPlant ship
3step3stepTracking by linking local port to local Tracking by linking local port to local operation (actual)operation (actual)
CustomsCustoms DCCDCC ProductionProduction
KD Order NoKD Order NoPart NoPart NoPart namePart nameQTYQTY
KD Order NoKD Order NoPart NoPart NoPart namePart nameQTYQTYPack specPack specContainerContainerVesselVessel
Pack pro.Pack pro.CTRL systemCTRL system
Bas
ic In
foB
as
ic In
fo Lo
gi In
foL
og
i Info
Steamship Steamship compcomp
DBDB
G Tracking DBG Tracking DB
1step: Establish tracking function from JPN 1step: Establish tracking function from JPN shipping to local portshipping to local port
Forwarder Forwarder DBDB
Info linkageInfo linkage Info linkageInfo linkage
KD Order NoKD Order NoPart NoPart NoPart namePart nameQTYQTYPack specPack specContainerContainerVesselVesselCustoms dateCustoms date
KD Order NoKD Order NoPart NoPart NoPart namePart nameQTYQTYPack specPack specContainerContainerVesselVesselCustoms dateDeparture dateDeparture date(Flight date)(Flight date)
KD Order NoKD Order NoPart NoPart No
Part namePart nameQTYQTY
Pack specPack specContainerContainer
VesselVesselCustoms date
Departure datePort arrival datePort arrival date
Arrival dateArrival date
KD Order NoKD Order NoPart NoPart NoPart namePart nameQTYQTYPack specPack specContainerContainerVesselVesselCustoms DeparturePort arrivalRAIL ONRAIL ON
KD Order NoKD Order NoPart NoPart NoPart namePart nameQTYQTYPack specPack specContainerContainerVesselVesselCustomsDeparturePort arrivalRAIL ONRAIL OFFRAIL OFFCustoms dateCustoms date
KD Order NoKD Order NoPart NoPart NoPart namePart nameQTYQTYPack specPack specContainerContainerVesselVesselCustoms Departure Port arrival RAIL ONRAIL OFFAct. customsActual partActual partdelivery datedelivery date
KD Order NoKD Order NoPart NoPart NoPart namePart nameQTYQTYPack specPack specContainerContainerVesselVesselCustoms Departure Port arrival RAIL ONRAIL OFFAct. customsAct. Del. dateAct prodAct prod
Port arrivalPort arrival
Steamship Steamship compcomp
DBDB
PlanPlanPack specPack spec
ProdnProdnsimulationsimulation
DCCDCC
Prod. CtrlProd. CtrlInventory Inventory
CtrlCtrl
Railroad Railroad DBDB
Ac
cu
mu
late
d
Ac
cu
mu
late
d
info
(Pla
nin
fo(P
lan /A
ct.)
/Ac
t.)
Port departure
Port departureCustomsCustoms
Digitalize customs documents/ accumulate data in Digitalize customs documents/ accumulate data in DB that will be developed in futureDB that will be developed in future
KDOrder
Track from part delivery in JPN to production Track from part delivery in JPN to production by creating link with actual local production/ by creating link with actual local production/ Inventory/prod. simulation functionsInventory/prod. simulation functions
★Part delivery
★Act.packing
★Act.shipping
ForwarderForwarder★Act.customs
Steamship compSteamship comp★Port (flight) departure
★ ★ ★Ocean
situation
★Act.arrival
Railroad comp DCC HAM★In-landON
★In-landOFF
★Act.Delivery
★Act.W/H
★Act.customs
★Prod. Act (Progress)
Phase 2Phase 2
Track part delivery to local portTrack part delivery to local portby creating linkage of planning by creating linkage of planning to packing processto packing process
GPCSGPCS
Phase 1Phase 1
Phase 3Phase 3
Part Logistics OfficePhase 3Phase 3
Honda of America Mfg., Inc.
Honda Global Logistics Tracking System
Key Points:• Global Tracking Data Base• Digitized customs documents• Link to production allocation
Implementation Phases1. JPN Supplier to local Port2. JPN port to destination plant3. NA IOO to destination plant4. Global IOO
29
DEST 81KI PROD. # OF PARTS
JAPAN 377,527 143TAIWAN 6,420 40CHINA 142,980 41INDIA 2,970 29
THAILAND 16,050 65MALAYSIA 4,560 51MEXICO 22,880 1,057BRAZIL 24,120 306
CANADA 386,634 6ALABAMA 213,331 10SATURN 62,532 26TOTAL 1,260,004 1,774
EXPORT OPERATION DESTINATIONS
AFGHANISTAN
TURKMENISTAN
HONDA SIEL CARSLIMITED. - INDIA561
MALAYSIA
THAILAND
INDIA
RUSSIACANADA
UNITED STATES
MEXICO
CHINA
MONGOLIAKAZAKHSTAN
INDIA
UZBEKISTAN
PAKISTAN
KYRGYZSTAN
TAJIKISTAN
NEPAL
BHUTAN
BANGLADESH
BURMAVIETNAM
THAILAND
LAOS
CAMBODIA
MALAYSIA
INDONESIAPAPUA NEW GUINEA
AUSTRALIA
NEW ZEALAND
VENEZUELA
COLOMBIA
ECUADOR
PERU
BOLIVIA
BRAZIL
ARGENTINA
CHILE
PAR AGUAY
URUGUAY
JAPANNORTHKOREA
SOUTHKOREA
PHILIPPINES
TAIWAN
HONDA MOTOR - SAYAMA CIOO 011, 01EHONDA MOTOR - SUZUKA SIOO 031
HONDA TAIWAN (HTW)34A
HONDA CARS MFG.AYUTTHAYA HATC 373
HONDA MALAYSIASdn. Bhd. 33Y
HONDA AUTO MOVEIS DO BRAZILSAO PAULOHAB 41B
HONDA DE MEXICOGUADALAJARAHDM 120
HONDA OF CANADA MFGALLISTON,ONTARIOHM 146, 145
GUANGZHOU HONDA AUTO CO., LTD.HUANG PU - GHAC 32A, 32B
HONDA MOTOR - WAKO 012
HONDA OF AMERICAMARYSVILLE, OHIO
HONDA MOTOR - HAMAMATSU SIOO 021
HONDA DE AMAZONMANAUSHAB 41B
HONDA MOTOR - HAMAMATSU SIOO 023HONDA MFG ALABAMA 15B
JAPAN
CANADA
MEXICO
BRAZIL
ALABAMACHINA
TAIWANHONDA WUHAN CHINA (HWC)
32F
GM-Saturn
NA CKD Business RelationsThis map identifies all the
Honda and Non HondaCompanies that AH/HAM
have a business relationshipwith.
Honda of America Mfg., Inc.
HAM International & Domestic Part Supply Customer Map
(IDPS)Phase 3 Implementation•HAM Export
30Honda of America Mfg., Inc.
•Honda requirement for increased International Supply Chain visibility
• U.S. Port & Rail volume frequently exceeds capacity• Decreasing opportunity for Rail Network diversions• Increased CBP examinations & potential port security shut downs• Normal rail maintenance and unplanned disruptions (derailments, maintenance, etc.)• Lead Time reduction initiatives• Increased Global Procurement activities• Shipping Capacity fluctuations• Labor Capacity fluctuations
Conclusions:
31
•Honda to participate & support the AIAG Materials Off Shore Sourcing Project•Key areas for integration
•Customs clearance•Ocean Carrier status•Rail Lines status•3PL, Expeditors
•Utilize best business practices for the Honda Project
Conclusions:
Honda of America Mfg., Inc.
32
Workflow Process Mapping:
♦ Physical Flow:
Identify all parties and all hand-offs at each physical location as the goods move from point to point. ♦ Information Flow: Business Operational View: Identify all business documents used to effect the movement of goods.
Technology Function View: Identify all electronic messaging used to effect the movement of goods.
33
Trucker Receives204 Load Tender
Trucker ProBill
CommercialInvoice
EX1 Or T1 Packing List
Trucker DepartsSupplier with
goods
Supplier EDIcapable
YES
NO MM creates ASN
Inland Foreign Trucker
Trucker DeliversFreight to
ConsolidationCenter
Trade Lane Process Map EU In-Direct to USA
A
Trucker Arrives atSupplier
Suppliergenerates
Invoice, EX1 andPacking List andTOT to Trucker
TruckerGenerates ProBill
CommercialInvoice
Trucker ProBill EX1 Or T1 Packing List
Supplier sendsASN to MM and
Buyer,
MM forwards ASNto FF, CC and
Buyer
4PLProprietary
System,Milestone 1
PAS
Consolidation Center (CC)
FFProprietary
System
Trucker Arrives atConsol Center
Trucker ProBill
CommercialInvoice
EX1 Or T1
Packing List
Is the ASN onfile
Move freight toPending
Trucker sends214 Arrival
Notice to MM
CC performsmanual
intervention toobtain correct
Data
4PLProprietary
SystemMilestone 2
ACC
NO
YESFreight Now
Arrived at CC
B
MMProprietary
Systemsends 315
to 4PL
TL920euf/V1.2 p2
34
Trucker ProBill
CommercialInvoice
EX1 Or T1
Does Freightmatch Part#,
QTY, etc.
Packing List
YES*
NO**
FF notifies CC allpaperwork ready
for Export
YES
NO
CC TOT DOCSto FF
Freight NowReceived by CC
Trade Lane Process Map EU In-Direct to USA
Consolidation Center (CC)
B
Freight now Arrivedat CC
CC performsmanual
intervention toresolve
discrepancy
CC sends RECADVto MM
MM ProprietarySystem sends
RECADV to 4PL,
CC Pre-stagesContainer
*Minor discrepancies resolved while freight is being consolidated.**Major discrepancies freight placed in Pending until issue resolved..
Trucker ProBillCommercial
Invoice
EX1 Or T1, andCustoms OGA
Docs
FF Pick UpSheet
Is all paperworkready for Export
FF performsintervention andobtains required
and complete docs
4PL ProprietarySystem
Milestone 3 RCC
FF makesnecessary
adjustments
FF couriersEX1 to
customs atPOD for
processing
IS EX1processed by
customsNO
IS EX1processed by
customs
Freight Forwarder (FF)
CC EmailsFF a
Pre-LoadList
CC EmailsMM a
ConfirmedLoad List
Pre-Load List
CC Loads Container
Container NowLoaded
Confirmed LoadList
CC sends DESADV - Cto MM
FF ProprietarySystem
4PL ProprietarySystem
Milestone 4 LOC
MM sendsDESADV-C to FF
and Buyer
C
C
FF updatesASN withdocs and
freight rec’din Proprietary
System
TL920euf/V1.2 p3
35
Doc
umen
t Typ
e
SUMMARY INBOUND PROCESS FLOW: EU-CAMTR-USA
Pur
chas
e O
rder
Eve
ntP
oten
tial F
ailu
re P
oint
s
Sup
plie
r pr
oduc
es g
oods
LatePickup
WrongGoods
No ASN
IncompleteShipping
Documents
Inaccurateinformation in
documents
InaccurateStatus
Reporting
Late Deliveryto CC
Goods placedin Pending
Port ofDeparture
capacity delaysNo EX1
InaccurateEX1
OSDGoods
24 HourRule Failureto Comply
CustomsExport Hold/
Exam
ShipmentSplit
Document& EDI
KeyingErrors Data Deficient
Customs andOGA Docs
CustomsEntry NOF
Failure toComply with
AEN
Note: throughout Eventactivity there is numerous
315 status reporting
CustomsImport /Export
Hold/ ExamCustoms Hold
or Exam
MissingCustoms /OGA Docs
Deficient/Illegible Faxes
OSD Goodsto Pending
Port ofDeparturecapacitydelays
Out ofScope
TransportationMode Change
TransportationMode Change
MOSSAFD011006a
Supplier
MaterialManager Drayage
Carrier
Inland ForeignTrucker
ConsolidationCenter
FreightForwarder
Ship ToParty /
Customer
Document &EDI Keying
Errors
Document &EDI Keying
Errors
OGA Holdor Exam
ShipmentSplit
Act
or
POA PortAuthority
SteamshipOperator
ExportCustoms
POD PortAuthority
POE CustomsBroker
RailRoadCarrier
HighwayCarrier
POACustoms
POECustoms
POE OGA
POE ServiceProvider
DomesticInland Carrier
DeConsolidationCenter
Document &EDI Keying
Errors
36
DISCUSSION POINTS FOR 01/24/06 MOSS MEETING1 MOSS BASELINE METRICS Participating OEM’s and Suppliers will provide the below listed trade lane metrics on both a pre-implementation and a post implementation basis. It is requested that both sets of metrics include data for a specific trade lane over a representative period of time. Baseline Metric Explanatory Note
1 Transit Times Mean Average number days goods are in transit from: depart Supplier to Delivery to Ship-to-Party, incurred for this Trade Lane during the representative period of time (include all transit times and all dwell times). (what about late pick-up : deviations from scheduled departure time?)
2 Trade Lane Uncertainty The Standard Deviation from Mean Average incurred for this Trade Lane during the representative period of time (may be used as an indicator of the degree of uncertainty in the Trade Lane). Also want this for each segment of the trip.
3 Expedites Provide both the Number of expedites and the Percent of total shipments requiring expedited transportation for this Trade Lane during the representative period of time. If doable, differentiate between expedites caused by: transportation deficiencies, demand variation and forecasting deficiencies.
4 Premium Freight
Total cost of Premium Transportation incurred for this Trade Lane during the representative period of time. If doable, differentiate between premium transportation costs caused by: transportation deficiencies, demand variation and forecasting deficiencies.
5 Buffer Inventory
Average number of days of buffer stock inventory normally held for this Trade Lane during the representative period of time (supply chain uncertainty vs. forecasting uncertainty). If doable, differentiate between buffer inventories held for: transportation deficiencies, demand variation and forecasting deficiencies.
6 Holding Costs
Total value of goods shipped for this Trade Lane during the representative period of time (will be used to develop holding cost indices).
7 Transportation Costs
Total transportation costs for goods shipped in this Trade Lane during the representative period of time (includes all associated logistical and material handling costs).
8 Population Total number of shipments transported in this Trade Lane during the representative period of time. (containers and or shipments).
9 Compliance Percent of shipments that cleared customs first pass in this Trade Lane during the representative period of time.
10 Visibility
What percent of shipments did you have real time visibility of (within x hours) at each event during the transport from the supplier to the Ship-To-Party for this Trade Lane during the representative period of time (measured in percent and number of hours – age of data).
11 Responsiveness/Resiliency What was the level of your ability to readily process split shipments, change carriers and or change modes in this Trade Lane during the representative period of time (measured in days and or hours).
1 MOSS Metrics012406a
37
Trade Lane Example 1
Transit -Supplier to
Consol
Dwell -At Consol
Transit -Consol to
Port of Departure
Dwell -At POD
Transit -Port to Port
Dwell -At Port of
Entry
Transit -POE to Final Destination
Total Transit -Supplier to Destination
Shipment Data Points 546
Average 3.78 7.38 1.12 7.49 10.09 4.39 4.62 36.03
STDEV 9.08
AVG+STDEV 45.11
AVG+2STDEV 54.19
# Shipments >AVG+1STDEV 61
# Shipments >AVG+2STDEV 25
INDICES 61 or 11.2 % of shipments took >45 days from SU to ST
25 or 4.6% of shipments took >54 days from SU to ST
15.8% of all shipments incurred above average delays
38
MOSS Trade Lane MetricsStandard Deviation as a Measure of Supply Chain Uncertainty
Days
Fre
quen
cy
10 20 30 40 50 60 70 80
36 = Mean Average Number of Days in Transit from
Foreign Supplier to Delivery to Domestic Ship To Party
1 STDEV = 9 days
2 STDEV= 18 days
3 STDEV= 27 days
68% of all shipments were delivered within 45 days
95% of all shipments were delivered within 54 days
99% of all shipments were delivered within 63 days
61 shipments
25 shipments
Sample Population was 546 shipments, of which: 61 took greater than 45 days and an additional 25 shipments took greater than 54 days in transit. Thus, 86 shipments, or 15.7% of total shipments, took between 46 and 63 days to transit from EU to USA.
As a result of the uncertainty in the supply chain as to which shipment will arrive on time (the average of 36 days) or take up to 63 transit days, Buffer inventories are established to mitigate this uncertainty of shipment delivery .
•
•
•
•
•
•
•
•
•
••
•
•
•
•
•
•
39
Actors Roles Consolidation Center
Makes decision to arrive goods into consolidation center pending resolution of discrepancy and may detain other goods until documentation discrepancy issues have been resolved.
3PL May be involved in resolving discrepancies Customer May be involved in resolving discrepancies Freight Forwarder Receives documentation from CC and reviews to ensure compliance for exportation. Supplier May be involved in resolving discrepancies
Goods in Pending or HoldStatus at Consolidation Center
Supplier
ConsolidationCenter
3PL
FreightForwarder
Customer
CASE 10b Goods have been placed in pending status and or detained at Consolidation Center
Use Case Diagram
40
Use case name Goods have been placed in Pending Status and or Detained Actors Consolidation Center, 3PL, Customer, Freight Forwarder, Supplier Description This Use Case describes what takes place at the Consolidation Center when an inland foreign
trucker attempts to deliver goods to the CC and the CC has no ASN on file and places the goods into a Pending Area, or the goods are accepted ‘Arrived’ by the CC and then during unloading etc they discover discrepancy issues that result in the goods being placed into a hold status until documentation issues have been resolved. e.g. quantity issues, part # issues, OSD issues, etc. Also, a third instance of potential hold occurs when after ‘Receiving’ the goods the goods may be detained and withheld loading into a container because all paperwork has not been deemed ready for export customs by the Freight Forwarder.
Pre Condition Inland Foreign Carrier has delivered goods to Consolidation center and CC has unloaded then and or arrived them into CC.
Post Condition Consolidation Center has placed goods into a pending and or hold status until various types of discrepancy issues have been resolved..
Begins When Consolidation Center unloads goods and places them in pending status or arrives goods into CC and placed them in Hold Status prior to ‘Receiving ‘ goods or placed them in detain status awaiting certification from Freight Forwarder that all paperwork is ready for exportation.
Main Flow 1. Consolidation Center accepts goods from inland foreign carrier with some discrepancy issues such as no ASN on file and then places goods into Pending status. Goods are not considered ‘Arrived Consolidation Center” and thus no status reporting has taken place. 2. Goods remain in Pending status until discrepancy has been resolved. 3. Goods which have been ‘Arrived’ into Consolidation Center are found to have some discrepancy issues such as part#, quantity, OSD, etc. These goods are placed in a hold status until the discrepancy has been resolved. 4. Goods have been ‘Arrived” and “Received’ by Consolidation Center but are placed in a hold status because all documentation has not been certified ready for export by the freight forwarder.
Ends When Goods are loaded into container. Challenges/Pain Points
a. Need to identify specific reasons for goods being placed into pending and assign reason codes for reporting purposes. b. Need to identify exact reason for goods that have been ‘Arrived’ by Consolidation Center but are being detained and have not been received due to some type of discrepancy that may involve quantity issues, part# issues, OSD issues etc. c. Need to identify exact reason for goods that have been “Received” by Consolidation Center but are being detained and withheld loading into consolidated container because paper work is not ready to clear export customs. Need to determine how each of these problems are communicated and to whom. How they are monitored for milestone reporting purposes. May need enhanced milestone reporting. What is the root cause for goods being placed in pending or hold status?
Suggestions/Comments for “To Be” Use Case
Use Case 10b. Goods have been placed in pending status and or detained at Consolidation CenterDescription Example
41
MOSS Next Steps:
Pre-Planning
Plan / Analyze
AS IS
Build SolutionsDefine Deploy
Post Review
Plan / Analyze
TO BE
2006 20062006 20072005/620052005 2007
Q2/Q3 Q4Q3/Q4 Q1Q4/Q1Q4Q3 Q2
Validate
AS-IS or Current State Model ♦ Continue to use developed Workflow Process Models and add K-Line Models ♦ Develop Associated Metrics for pre (and post implementation) ♦ Continue Lead-User Interviews ♦ Finalize and Validate USE CASE ♦ Finalize Data Element Matrix
TO-BE or Future State Model ♦ Develop Future State Model ♦ Continue Lead-User Interviews ♦ Construct Gap Analysis ♦ Finalize Future State Model ♦ Begin Model and Build Phase ♦ Conduct Proof of Concept
42
Contact Information
♦ Pat Snack and Morris Brown at AIAG
♦ Co-chairs:Michael Comerford ([email protected])Kevin Wade ([email protected])
THANK YOU!!