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Project Deliverables
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 business
Global
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Operational Excellence Team Structure
The team below allows for anyone in the regional operations to have path of escalation and resolution with respect to topics around Process, Systems and Performance Management. The people in the org chart below & their relevant contact details by region have been made available.
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Global Operational Excellence Team Contact List & Escalation Path
Geographical Scope | Name | Contact Level | |
|---|---|---|---|
Americas | Jacquelene Manfredini | Escalation | |
Americas | Rebecca Runstrom | Primary | |
Americas | Nicki Genis Boyle | Primary | |
Americas | Veronica Fallin | Primary | |
EMEA | Corinne LeClercq | Escalation | |
APAC | Annie Wu | Escalation | |
APAC (VN+TH+SG+BD+IN+MY) | Claire Chen | Primary | |
APAC (CN+HK+TW) | Nicola Lin | Primary | |
APAC (ANZ) | Joshua Lilliss | Primary |
Global Operations Control Dashboard (OCD) - Training
SEKO Launched the Operations Control Dashboard (OCD) July 5 ,2023 All global with the purpose to ensure that every operator, department manager & branch manager globally is able to view their performance Vs Globally established KPI’s . This tool has been rolled out globally and is the foundation and basis of Global Operational Excellence & Reporting Excellence. All operators should have access to the OCD and utilize this daily to monitor exceptions. If you need access to the OCD contact your regional corporate sponsor for Operational Excellence
Click Here to Access the Operations Control Dashboard |
Check out this short 3 minute video on how to navigate and use the OCD |
Operations Control Dashboard Metrics (Definition & Logic)
Late Billing Metrics
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 |
Gross Profit (GP) Accuracy Metrics
SEKO went live with GP Accuracy on September 11th 2023 With Phase 1 & 2
Phase | Exception | Logic | Trigger Days | Trigger Event | |
|---|---|---|---|---|---|
2 | Aged 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 CostsTransactions | Shipments with unrecognized costs older than X the target billing date. | 0 days | 90 | Date of CST postingFrom Target Billing Date |
2 | Aged WHL/ IHL Status | Shipments that have a job status of WHL/IHL for more than 90 days | 90 | Job Status change date | |
1 | Aged Recognized WIP | Shipments with recognized WIP older than X days
| 30 | 30 days from target billing date/ WIP create 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 | 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 | |
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 | |
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
Milestone Completeness Performance Metrics
Milestone | Fix | Ocean | Air | Road | Trigger |
|---|---|---|---|---|---|
Departure Completeness | Ensure all ATD Milestones are completed for all legs on Consol>Routing Tab, and Shipment level ETD is entered. | 72 hours | 24 hours | 36 hours | From ETD |
Arrival Completeness | Ensure all ATD Milestones are completed for all legs on Consol>Routing Tab, and Shipment level ETA is entered. | 168 hours | 36 hours | 36 hours | From ETA |
Proof of Delivery Completeness* | LCL & Airfreight = Ensure Actual Delivery date is updated on Shipment>Delivery Tab>Actual Delivery FCL = Ensure Actual Delivery Date is Updated from Consol>Containers>Import Process>Actual Delivery Date Per container. Upon delivery completion of the last container CargoWise will auto update the Shipment>Delivery Tab>Actual Delivery Date of the last container | 24 hours | 24 hours | 24 hours | From Est Delivery |
*Delivery Dates are required for all shipments. If SEKO is not doing the actual delivery, actual delivery date is still mandatory and should be the date SEKO’s responsibility has ended for the file | |||||
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Data Quality
Data quality KPIs are now available and actionable on the OCD. All files including brokerage and shipments require a controlling agent and controlling customer to be entered. Below are the definitions of controlling customer and agent.
Controlling Customer – Is a CargoWise term that appears in an Organization Record and in a One-Off Quote, Booking, and Shipment. It is defined as an external customer organization that controls a Shipment. The highest client family level and will be used to track client reporting. SEKO should never be a controlling customer. For routed business and if the controlling customer is unknown, enter the foreign shipper or consignee as controlling customer
Controlling Agent - Is a CargoWise term that appears in an Organization Record and in a One-Off Quote, Booking, and Shipment. It is defined as the internal party that owns the commercial relationship with the controlling customer and will be used to track controlling station reporting.
To Fix: Enter proper controlling agent and customer on all files where controlling agent and customer are blank. For controlling customers listed as SEKO - update the file to show corrected controlling customer
CashFlow Management
The Cashflow Management sections of the OCD provides important visibility to our Operators, Department & Branch Managers with regards to how their respective Teams are Collecting cash from our Clients as well as ensuring intercompany postings & relevant claims are processed on time.
Overdue 3rd Party AR : This section allows by Aging bracket in days after the invoice due date for Operators to understand which 3rd party Accounts are due to be collected from. Please Note this is more for Managers to get an overview and not for Operators to be chasing Clients all the time , as there is a delay of atleast 48 hours once Finance upates payments recieved in CW1 to it reflecting on the OCD. In future enhancements of our PBI Environment we will be aiming to get this refresh time down to much closer to real Time
Overdue Intercompany AR : This section allows by Action Status the Overdue Intercompany Invoices that have not been posted and operators can use the Bill to / From Branch filters to quickly know what invoices are pending to be cleared by them
Pending Claims : This Section allows users to quickly view the pending claims that have come in from overseas branches against specific Jobs. This reflects the AR & AP Claims section of CW1
Global Operations Excellence Roadmap
*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
Completed November 6th 2023 | Phase 1-3 Completed | |
**Intercompany Auto Invoicing & Profit Share | Completed November 8th, 2023 | Auto posting of intercompany invoices Pre-Requisite using new Global Charge Codes |
*Milestones & Data Quality KPI | Completed November 21st, 2023 | New KPI for performance on milestone entry & Data Quality |
*Billing Completeness | TBD | Focus on ensuring billing is completed for duties, taxes, storage, demurrage, per diem, detention, etc. |
*Cashflow Management | Completed August 2024 | Aging visibility for Third Party and Intercompany Invoicing Aging |
Global Auto Rating & Auto Costing | November - December 2023 - Go Live | Intro to new shared service center and begin process of standard rate collection to support moving GP recognition to origin. KPI is to be at 80% Globally for All Countries |
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September 2023
File Management SOP | Completed May 2024 | Global Roll Out of File Management SOP standardizing globally how files are processed financially |
**Global CargoWise Support Site | Completed Feb 2024 - LIVE | Re-Launch of Global CargoWise Support Site with updated Globally Standard CargoWise SOPs |
Recorded Training Webinars & Documents
Topic | Webinar Date | Video | |||
|---|---|---|---|---|---|
Operations Control Dashboard GP Accuracy Phase 1 Power Point Training | September 13, 2023 | Message from Steen Global Operational Excellence | October 17th, 2023 | ||
Operations Control Dashboard GP Accuracy Phase 2 Power Point Training | September 2023 | ||||
Operations Control Dashboard GP Accuracy Phase 3 Power Point Training | November 8th, 2023 | ||||
November 2nd, 2023 | |||||
November 20th, 2023 | |||||