FEATURE SHIPPING LOGISTICS
MANAGING GLOBAL SHIPMENTS P
Volkswagen Group relies on standardised, end-to-end software from AEB International for the efficient management of over 1.6 million shipments each year, writes Gursh Atwal
owerful solutions provide a reliable IT backbone for large companies such as
Volkswagen Group (VW) which relies on a complex system environment consisting of different applications that perform a wide variety of tasks. To support logistics processes in its
shipping operations Volkswagen has implemented AEB’s standard software ASSIST4 which it refers to as their “shipping and transport system”. “We use ASSIST4 to ship anything that anyone needs to ship that is not part of our logistics system for finished automobiles eg defective mobile phones that need to be returned to the manufacturer,” says Dennis Hanitsch, project manager responsible for shipping, IT and supply and transport logistics. In 2015 ASSIST4 helped to manage over
1.6 million shipments. Deployed at 36 sites across Europe, it can accommodate 281 users working simultaneously across all sites. One major advantage of the system is that it can map entire transport chains and define not only the consignee but intermediate consignees such as the departure or arrival airport. It automatically assembles the various freight documents so the relevant ones are sent to every service provider involved in the supply chain. Volkswagen uses AEB’s software to control the movement of its containers around the world. It generates the appropriate transport documents and draws all the information about the
which is compared to the carrier’s electronic transport record in VW’s billing system. If the contents of both records match a credit can be issued. At its Wolfsburg headquarters VW uses
empties from the container management system. After the delivery note data has been entered it is shared with ASSIST4. The ASSIST4 user then generates the necessary waybills to ship the materials. Transport management is largely automated and once the data has been captured it can be used and re-used with no danger of errors being introduced
REDUCING ADMINISTRATIVE OVERHEADS VW uses shipping data to manage its freight costs, operating a self-billing procedure: instead of the carrier calculating the shipping costs for performed services and issuing an invoice, VW calculates the freight costs and issues a credit to the carrier. This reduces the administrative overheads for VW’s freight billing. ASSIST4 supplies the necessary delivery note and shipment data in the form of a customer record
NO TOLERANCE ON NEW CONTAINER WEIGHING REGULATIONS
Despite rumours about ‘tolerance’ regarding the SOLAS container weighing rules which came into effect 1 July there is little room for manoeuvre for most shippers. At a Multimodal seminar held in May Lars Kjaer, senior VP, World Shipping Council, said there were two main changes to the rules regarding
container weighing: shippers need to provide a VGM (verified gross
mass); an estimated weight is no longer sufficient carriers and ports/terminals are jointly responsible for not loading a packed container which does not have a VGM onto a ship. “Loading will not happen,” said Kjaer. “There is no
leeway. This is global law which shipping lines will follow so no VGM, no load.” Kjaer said there needs to be close collaboration
between shippers, carriers and terminals to work with these rules or “international trade will suffer”. For example, cut-off times for shippers to communicate the VGM to the carrier will be
S1 SEPTEMBER/OCTOBER 2016 | MATERIALS HANDLING & LOGISTICS 0
determined by the individual carrier according to local practice and arrangements. There are two methods of determining VGM:
weighing the packed container using calibrated and certified equipment and weighing all packages and cargo items including packing materials and the tare weight of the container and adding them together. In order to be able to use the second option in the
UK, shippers need to be approved and accredited by the MCA. Most UK ports say they will supply a weighing facility at a cost so that is always an option, at least in the short-term. Even meeting the new SOLAS requirements will not be enough. “The rules have been designed to improve safety and there is more risk from poorly packed or poorly distributed cargo throughout the container than from mis-declared weight per se,” says Peregrine Storrs-Fox, risk management director, TT Club. Shippers are urged to use their organisations’ websites for further information.
ASSIST4 supports processes including shipments of empty containers or scrap disposal
ASSIST4 to send steel scrap by train to steel plants or dealers. Space is precious in the plants and only very limited storage capacities are set aside for scrap so if the disposal process runs into problems it can bring production to a standstill. VW’s procurement department which sells the scrap is the start of the sensitive scrap shipping chain. A contract is created in SAP specifying for example, that a buyer has purchased 40,000 tons. SAP sends this information to ASSIST4 and before the shipment goes out ASSIST4 checks whether the customer actually has enough credit with VW to pay for the goods. If so, the loaded and weighed trucks or railcars are cleared. If not, the order is stopped. Volkswagen mostly relies on the standard functionality of AEB’s ASSIST4 software. Only 3% of the shipping and transport system has been customised, making it easier to install updates at any time. Should an individualised solution prove necessary VW first checks for potential conflicts with other systems or current features before implementing any customisation. The solution is well integrated into the automaker’s complex IT environment. A large company like VW, where many processes have evolved over the years into a tapestry of different systems, is a world in itself. Old systems are still in use; a reality that must be dealt with. Unsurprisingly, VW is contemplating
rolling out ASSIST4 to more of its plants and further areas within the company. There are plans for linking a new plant in Poland and for connecting the new VW employee web shop. From the first day of the rollout staff will be able to order 4,500 different items including model cars, jackets, ballpoint pens and bicycles with ASSIST4 organising the shipping. As it is not yet possible to predict how popular the new web shop will be, the potential shipping volume is unknown but it could mean anywhere from 100 to 6,000 additional shipments per day.
AEB International T: 01926 801250
www.aeb.com/uk
/ MATERIALSHANDLINGLOGISTICS
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