Presented by: Amit Kumar Pandey

Expeditors is a fortune 500 global logistics company headquartered in Seattle, Washington. Expeditors has grown from one to over 250 offices and 13000 employees worldwide. Different services provided by Expeditors like custom clearance, distribution, order management and risk management etc.

Improvement the performance level of Master Bill of Lading (MBL) turnaround time from the Shipping Line

Resolve the issues in Billing.

Analyzing the problems and providing suitable solutions to the

problems.

Complete and accurate Information.

Identifying the internal problems of the employees of the MBL department in determining billing accuracy levels. Time Limit.

Gathered the primary data from the Ocean Exports. Done analysis on a rating scale by using the following tools to determine the problems in MBL and Billing:
Risk Assessment taken on a scale of 0 5. FMEA (Failure Mode Effect Analysis).

Solution Effectiveness on the scale of 0 15.

ISSUES

IN PERCENTAGE

Billing Sheet

31

Desk file issue

21

ISC Bangalore team

31

Shipping bill not clear

Rate issues 2% Additional charges Delay from 3% Internal A/Cs department issues 4% 7% Shipping bill not clear 1%

Issues in MBL

Delay from A/Cs department

Billing Sheet 31% Desk file issue 21%

Rate issues

Additional charges

Internal issues

Total

100

ISC Bangalore team 31%

PROBLEMS

SEVERITY

OCCURRENCE

DETECTION

RPN(Risk Priority Numbers) S*O*D

Billing Sheet Desk file issue ISC team Internal issues Delay from A/Cs department Additional charges Rate issues Shipping bill not clear

9 9 8 7 5 4 4 3

7 7 7 3 5 4 3 2

6 5 6 6 5 4 4 3

378 315 336 126 125 64 48 18

Measurements used in FMEA

RATING 1 2 3 4/5/6 7/8 9/10 SEVERITY No effect Very Minor Minor Moderate High Very High OCCURRENCE No Known Occurrences Very Low Low (relatively few failures) Moderate (Occasional failure) High Very High DETECTION Certain Almost Certain High Moderate Low Undetected

Since the various different problems in releasing the MBL turnaround time are identified, some solutions are found to these problems. Finding of these solutions is done through a process of RISK ASSESSMENT which also includes feasibility assessment, ease of implementation and time spend on a scale of 0 - 5 .

RISK ASSESSMENT Feasibility assessment Ease of implementation Time spend Total

SCALE (0-5) 5 5 3 13

In Case of Delay with ISC Bangalore Team

RISK ASSESSMENT SCALE (0-5)

Feasibility assessment
Ease of implementation Time spend Total

5
4 4 13

In Case of Desk File Issue

RISK ASSESSMENT Feasibility assessment Ease of implementation Time spend Total SCALE (0-5) 5 5 4 14

In Case of Rate Issue

RISK ASSESSMENT Feasibility assessment Ease of implementation SCALE (0-5) 5 4

Time spend
Total

3
12

RISK ASSESSMENT Feasibility assessment Ease of implementation Time spend Total

SCALE (0-5) 5 4 4 13

Internal Problems
RISK ASSESSMENT Feasibility assessment SCALE (0-5) 5

Ease of implementation
Time spend Total

5
3 13

SOLUTIONS

SCALING (0-15)

Billing should be done after freight receiving date

Regularly follow up ISC team for billing and make sure it should be done before COB CS executives should provide the revise desk file to the customer and also ISC Bangalore team. If absence of an executive the responsibility of that executive should be divided. CS executives should follow up the destination for new sell rate Operations executives should check line site and follow up line for MBL

13
13

14

12

13 13

Solution effectiveness on the scale of 15

14 13 13

13

13

12

Billing sheet follow up ISC CS should responsibility CS follow up operations make after revise desk file should be detination executive FRD divided in the should foolow absence up line and check line site for MBL Soltion effectiveness on the scale of 15

WEEKS Week 1 Week 2 Week 3 Week 4 Week 5

MBL Status 69.33% 84.21% 93.18% 100% 100%

MBL Status
MBL status

84.21% 69.33%

93.18%

100%

100%

WEEK 1 WEEK 2 WEEK 3 WEEK 4 WEEK 5

Issues in Billing:
ISSUES No. of problems Destination office asked for changes Operational error by branch EHO changed to EDO 2 1 8% Terms of Shipment 17% Destination changed Terms of shipment or Prepaid customer 1 2

Issues in Billing

Changes in Operational error by ISC 4 terms of shipment 8% Operational error by ISC 34%

Destination office asked for changes

Destination changed 8% EHO changed to EDO 8% Operational error by branch 17%

TOTAL

11

PROBLEMS

SEVERITY

OCCURRENCE

DETECTION

RPN(Risk

Priority

Numbers) S*O*D
Operational error by ISC 8 6 6 288

Operational error by CS
EHO changed to EDO Destination changed Terms of shipment or Prepaid customer Destination office asked for changes Changes in terms of shipment

7
4 3 5 4 4

6
4 4 3 3 4

6
4 4 4 4 3

252
64 48 60 48 48

Measurements used in FMEA

RATING SEVERITY OCCURRENCE DETECTION

1
2 3 4/5/6 7/8 9/10

No effect
Very Minor Minor Moderate High Very High

No Known Occurrences
Very Low Low (relatively few failures) Moderate (Occasional failure) High Very High

Certain
Almost Certain High Moderate Low Undetected

Operational error by ISC

RISK ASSESSMENT Feasibility assessment Ease of implementation Time spend SCALE (0-5) 5 4 3

Total

12

Operational error by the Branch

RISK ASSESSMENT SCALE (0-5)

Feasibility assessment
Ease of implementation Time spend Total

5
4 3 12

Other Problems
RISK ASSESSMENT SCALE (0-5)

Feasibility assessment

Ease of implementation

Time spend

Total

SOLUTION ISC - Tariff sheet. CS accuracy for billing sheet Relations with destination node

SCALING (0 to 15) 12 12 6

solution effectiveness on the scale of 15

14 12 10 8 6 4 2 0 Tariff sheet accurate billing sheet relationship

solution effectiveness on the scale of 15

Operations executive should regularly follow up the customer executives, So that the MBL should release at right time. The department should follow up daily report so that the performance can be checked and one has to take responsibility of this and also make necessary meetings and discuss all the performance. They should maintain good relationship with the carriers, shipping line if possible they should meet Shipper in case of problems arising in a

consignment.

Manager should call A/Cs manager and meet them and also introduced to other executives, make good relationship with the shipping line company and also discuss different challenges and make possible solution to the

problems.

One has to take responsibility to identify individual performance also in a daily or weekly basis, so that it will be easy to identify and also easy to solve the problem if necessary provide them training.