A STRATEGIC IMPERATIVE FOR MANUFACTURERS

Optimize Ocean Transportation ExecutionHow to Use a Single Platform to Manage Bookings and Shipping Instructions across All Carriers

Executing ocean transportation is an expensive and

time-consuming process when supply chains span

continents. In trying to manage their transportation

strategy, manufacturers are met with a level of complexity

that can result in high administrative costs, difficulty

tracking activity, difficulty integrating with partners, and

no reliable way to measure performance against the

original transportation plan.

The lack of accurate information in the ocean execution

stage makes it hard for manufacturers to streamline

their activity and make good decisions on improving

their strategies. Traditional ERP systems do a decent

job of tracking in-house data, but executing ocean

transportation requires high-quality data from a multitude

of partners and carriers across the globe.

User Carrier

Carrier

Carrier

User

User

Managing many carriers and assessing their performance levels

becomes a convoluted, manual process without a cloud technology

platform on which to view activity.

Impact of Poor Ocean Transportation Execution

When manufacturers don’t have the tools to efficiently

execute their transportation strategy, they end up with

suboptimal performance and a lack of data to measure

KPIs. Some negative effects include:

• Struggle to manage many carriers multi-nationally

• Manual, inconsistent processes between carriers

• No notification of port delays causing late shipments

• No consistent method of carrier measurement

• Difficulty bridging the gap between plan and

execution processes

• No historical records and “accurate evidence”

of activities

The Root of the Problem

At the core of poor ocean transportation execution is

the level of accuracy and agility needed to operate a

global supply chain. Without the right technology,

manufacturers cannot accurately track data from carriers

and partners in their supply chain network.

1. Incredibly complicated landscape

Global transportation planning involves thousands

of lanes in many regions, with processes differing

for each carrier. Manufacturers experience:

• Huge administrative burden

• Fees and fines for late bookings

2. Decentralized operations

Each carrier in each geographical area has a unique

process for executing ocean transportation, leading to:

• Reliance on external 3rd parties to do the work

• Unreliable notifications that cause late shipments

• Difficulty integrating to 3PLs and freight forwarders

on a one-off basis

The Challenge

Companies spend huge amounts of time and money executing across partner 3PLs and carriers, often leading to sub-optimal results.

By investing in a single platform for placing bookings

and shipping instructions across all carriers, companies

can leverage cloud technology to manage large global

supply chains. A centralized platform allows consistency

across partner and carrier data, tracking of milestones

throughout the execution stage, and assessment of

performance based on quality KPIs.

Shipment Execution

ASN/ManifestBooking/Tender

Load Plans

EDI/XML

Shipment PlansBill of Lading

Carriers

Execution data is stored in the cloud, eliminating costly and

time-consuming manual processes.

Track and analyze ocean transportation on a

cloud-based platform.

• Allow shipping party to place bookings directly

from orders

• Workbench to process and manage planned

shipments

• Use execution platform to communicate with

external forwarders and carriers

How to use an ocean transportation execution

platform:

1. Ensure advanced notice of to-be shipments from

shipping sites

2. Use advanced tools to make good decisions on

consolidation and routing options

3. Monitor partner performance against expected

SLAs for shipment execution

Value Propositions

By managing ocean transportation in the cloud, manu-

facturers can lower costs and reduce fees while more

accurately measuring supply chain activity. The benefits

from improved ocean transportation execution include:

1. Reduce SG&A costs through electronic collaboration

• Track all ocean shipments on one centralized

platform

2. Lower documentation fees by 75-100%

• Use electronic register of receipts

3. Compress booking and documentation cycle time

• Priority on electronic bookings and real-time

documentation registration

4. Improve working capital by decreasing DSO

• Shorten time required to collect payments from

customers via L/C automation

5. Use exception-based management

• Receive alerts when milestones are behind

schedule or projected to be late

• Use carrier KPIs for scorecarding to compare actual

vs. contract SLA

Ocean Transportation Execution and the

Networked Company

To better manage ocean transportation in a complex

global supply chain, companies must transform

themselves from silo-based, inward-facing corporate

operators to interconnected, highly agile business

network orchestrators.

NetworkConnectivity

Agility

B

A

Sense more accurately

Operate more e�ciently

Respond faster

Make better decisions

The Solution

Rather than attempt to track every

movement manually during shipments,

companies need to invest in cloud

technology that brings all relevant

information onto a single platform,

automatically.

GT Nexus provides the cloud-based collaboration platform that leaders in nearly

every sector rely on to automate hundreds of supply chain processes on a global

scale, across entire trade communities.

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