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Implement a globally aligned finance and finance control system (global P/L structure, operator productivity measures and KPI’s, profit / cost center structure, intercompany invoicing and accounting scheme
Implement a centralized and standardized approach to manage and close the file ledgers and volume statistics (e.g., kg, TEU, cbm) for the freight forwarding business
Implement an Operations Control Dashboard for the freight forwarding business
Implement an accurate file-based profit-sharing system for the international freight forwarding businesbusiness
Global Deployment Team
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Operations Control Dashboard (OCD)
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SEKO went live on July 5th with Late Billing KPIs. Late billing logic is strictly looking for the 1st Accounts Receivable billing invoice/sales invoice to be issued. Once that is issued the job will fall off the late billing dashboard. For files that are cost only and no receivable invoice will be issued, operators must put in a profit and loss reason code against the job in order for the job to fall off the dashboard. For BCN files, the dashboard is looking strictly at the ASM shipment type lead master file for the receivable invoice. If the BCN files are entered properly the sub jobs will not appear on the dashboard.
Direction & Product | Trigger 1 | Trigger 2 | Trigger 3 | Fall Back |
|---|---|---|---|---|
Ground | Actual Delivered Date + 3 Days |
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| Job Open +30 Days |
Air Export | Actual Departure + 2 Days |
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| Job Open +30 Days |
Air Import | Actual Delivered Date + 3 Days | Estimated Arrival + 5 Days |
| Job Open +30 Days |
Air Cross Trade | Actual Delivered Date + 3 Days | Estimated Arrival + 5 Days |
| Job Open +30 Days |
Ocean Export | Actual Departure + 3 Days | ETD + 7 Days |
| Job Open +30 Days |
Ocean Import | Actual Delivered Date + 3 Days | Estimated Arrival + 10 Days | Actual Departure + 60 Days | Job Open +75 Days |
Ocean Cross Trade | Actual Delivered Date + 3 Days | Estimated Arrival + 10 Days | Actual Departure + 60 Days | Job Open +75 Days |
Brokerage | Customs Cleared + 7 Days | Actual Arrival + 10 Days |
| Job Open +60 Days |
Contract Logistics |
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| Month End + 5 Days |
Periodic Invoicing | Agreed Configuration Date set up in ORG Profile |
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None of the Above |
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| Job Open +30 Days |
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SEKO went live with GP Accuracy on September 11th 2023 With Phase 1 & 2
Phase | Exception | Logic | Trigger Days | Trigger Event | ||||
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12 | Aged Recognized WIP | Shipments with recognized WIP older than X days
| 30 | 30 days from target billing Non Complete Jobs | Jobs in a working status WRK , 30 days AFTER Target Billing Date | Refer On time Billing per product/ mode + 30 days from target billing date |
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2 | Aged Unclosed | Job not in CLS ,JRC, IHL AND WHL , status date present 240 days, after Target billing date | 240 | From Target Billing date | ||||
1 | Aged Unrecognized Costs | Shipments with unrecognized costs older than X days | 90 | Date of CST posting1 | Negative Margin | Where GP < 0 & NO PNL reason code |
| Upon marking job CMP |
2 | Aged WHL/ IHL Status | Shipments that have a job status of WHL/IHL for more than 90 days | 90 | Job Status change date | ||||
21 | Aged Non Complete Jobs | Jobs in a working status WRK , 30 days AFTER Target Billing Date | Refer On time Billing per product/ mode + Recognized WIP | Shipments with recognized WIP older than X days
| 30 | 30 days from target billing date | ||
2 | Excessive Margin | Shipments with a margin above 50% , in combination with Job Status & NO PNL Reason Code | 50% | GP % = REV + WIP + CST + ACR)// (REV + WIP) | ||||
2 | Aged Unclosed | Job not in CLS ,JRC, IHL AND WHL , status date present 240 days, after Target billing date | 240 | From Target Billing dateFinancial Closure | Shows all jobs which are status JFC, which is 30 days prior to Auto Closure to CLS | 30 days prior to auto closure | Shows all jobs which are status JFC to review open WIPS & Accruals | |
3 | Incorrect Charge Code Usage | This metric is for all jobs and not limited to intercompany. However, this is a Critical Metric to ensure usage of Global Charge Codes is monitored to ensure that Auto Post Failures on intercompany transactions are reduced. Review the intercompany invoicing PowerPoint for a reminder on where to locate Global Charge Codes within CargoWise | Immediate | Use of NON Global Charge Code | ||||
2 | Job Dept Error | Will provide the correct department in separate Column |
| Job Dept Auto Defaults - Based on Job Type, Mode, Directions (Service Level required for International Parcel) KPI is providing the Flag and the "Correct dept" as another column. All jobs opened up to July 2023, have been bulk updated for errors. After July 2023 errors must be manually corrected | ||||
2 | Financial Closure | Shows all jobs which are status JFC, which is 30 days prior to Auto Closure to CLS | 30 days prior to auto closure | Shows all jobs which are status JFC to review open WIPS & Accruals | ||||
2 | Excessive Margin | Shipments with a margin above 50% , in combination with Job Status & NO PNL Reason Code | 50% | GP % = REV + WIP + CST + ACR)// (REV + WIP) | ||||
1 | Negative Margin | Where GP < 0 & NO PNL reason code |
| Upon marking job CMP | ||||
3 | Transaction Department Error | Shows any Transactions under the billing tab that have a Department mismatch Vs the Job header department. This is a 2nd check following correction of Job Dept Error released previously. Unposted transactions must be corrected daily and Postedtransactions corrected centrally 1 time per month. | Immediate | Upon posting of transaction lines where job department does not match the job header department | ||||
3 | Aged ACR | Shipments with ACR older than 90 days, not in Job Status WHL & IHL Accrued a supplier cost and not Posted supplier invoice. | 90 | Unposted ACR aged past 90 days of ACR date | ||||
3 | Duplicate Intercompany Costs | For intercompany jobs only. Metric highlights which files may have a duplicate cost with respect to intercompany postings. This is important for managers to ensure they are monitoring their intercompany ACR & CST actively. | ||||||
3 | Est vs Actual Intercompany Cost Variance | This is for intercompany jobs only. Metric highlights where accruals have been entered and intercompany cost posted, the variance between the estimated entry of the accrual versus actual cost posted. This will help identify if the sister company has possibly billed incorrectly vs what was to be expected. | ||||||
3 | Negative Out of Period Transactions | A job which has negative out-of-period transactions if the total GP booked in all reporting months after the job recognition month is negative. | Current reporting month |
How to Fix GP Accuracy Errors
Click here to view how to fix GP Accuracy Errors
Lightspeed Roadmap
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KPI/*Process Change | Go Live Date | Notes |
|---|---|---|
*Late Billing | Completed July 2023 | Global standard metrics for timely billing and launch of OCD Operations Control Dashboard |
**Phasing | Completed July 2023 | Mandatory date fields required for origin and destination |
**Job Management | Completed July 2023 | Auto Closure of CargoWise Jobs after 6 months of First AR. |
**Global Charge Codes | Completed July 2023 | Usage of the new Global Charge codes especially when intercompany billing |
*GP Accuracy | September 11th 2023 | |
**Collection of Client & Company Rates to Shared Service Center | September 2023 | Intro to new shared service center and begin process of standard rate collection to support moving GP recognition to origin |
**Intercompany Auto Invoicing & Profit Share | September 2023 | Auto posting of intercompany invoices Pre-Requisite using new Global Charge Codes |
Recorded Training Webinars & Documents
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