Parcel - April 2008 - (Page 44)

A CASE STUDY IN EFFICIENCY A logistics solution was the answer to Breg, Inc.’s shipping situation By Noah Ostanik were forced to determine which containers would be subject to the new dimensional rating requirements introduced by UPS and FedEx. They manually calculated the dimensional weight of each shipment by multiplying the container’s length by its width by its height and dividing by 194. If the shipper calculations were incorrect, Breg faced unexpected charge-backs and penalties. With transportation detail “locked up” in disparate shipping systems, Breg lacked the ability to manage and control costs. Accounts payable struggled to reconcile carrier bills against orders and cost centers because it lacked a uniﬁed view of all transportation activity. Similarly, customer service lacked one place to look for complete, detailed and up-to-date orders status. Customer service agents frequently interrupted shipping personnel for tracking information. Lack of visibility resulted in call backs and delays in closing inquiries, frustrating both employees and customers. Breg is a subsidiary of a public company subject to Sarbanes Oxley ﬁnancial reporting requirements. Separate interfaces to disparate shipping systems in Breg’s multiple facilities made transportation cost accounting and reporting controls more complex. B reg, Inc., based in Vista, California, is a pioneer in the development of premium orthopedic, reconstructive and post-operative products. With a solid commitment to customer-driven innovation, Breg has established itself as an industry leader by continually delivering world-class solutions that address the critical needs of its customers. Acquired by Orthoﬁx International in 2003, Breg products are distributed through a global network of more than 100 distributors in 36 countries. Situation Breg processes over 1,000 shipments per day via USPS, UPS and FedEx from distribution centers in Vista, CA; McKinney, TX; and Verona, Italy. Over 30% of Breg’s shipments are international. Breg used a variety of different shipping systems supplied by third-party software providers and carriers such as UPS, USPS and FedEx. Each system required a different process for recording shipments and a separate interface into Breg’s Oracle E-Business Suite to access consignee ship-to name and address and return shipment conﬁrmation detail. None of the systems had the ability to access line item detail necessary to automatically classify tariffs and generate international export documentation. As a consequence, US Customs compliance requirements were manually processed and managed. Many of Breg’s products were packed and shipped in large, low-density shipping containers. Breg shipping personnel 44 Spring 2008 Capabilities Required When they realized they needed help, Breg identiﬁed the following key system requirements: 1. One interface to Oracle E-Business Suite 2. One enterprise-class platform to automate shipment and international export processing across all facilities 3. One centralized database to store all shipping transactions for improved cost visibility and control 4. Ability to automate dimensional weight rating processes to reduce unexpected carrier charge-backs www.PARCELindustry.com http://www.PARCELindustry.com

Table of Contents Feed for the Digital Edition of Parcel - April 2008

PARCEL - April 2008 Contents Editor's Note Moving Forward Recycling for Safety’s Sake Want Some Good News? Negotiations Have No Finish Line... Lowering your Parcel Shipping Costs Meeting Industry Challenges New Pricing, New Opportunities Time to Track It’s Scan-tastic! 10 Recycling Facts The New USPS Law Changes New Law, New Opportunities for Package Shippers A Diamond in the Rough Seven Shipping Trends for 2010 ...and Beyond The Move Update Changes A Simple Shipping Solution A Case Study in Efficiency New Products and Services Industry News Advertiser Index

Parcel - April 2008

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