Kuehne + Nagel's OMS is designed to provide leading-edge data integration and exception-based management tools for logistics and procurement professionals, giving complete, timely and actionable information to improve supply chain decisions.
Through integration of supply chain partners and processes, OMS can be used not only to capture and provide data for ERP, supply chain and financial management systems, but also as a single platform for visibility, monitoring and reporting. Providing visibility of product in the pipeline allows management by exception, and can identify products, orders and shipments requiring specific actions.
Vendor Integration and Management
Kuehne + Nagel works closely with vendors to ensure that they clearly understand the client’s business requirements, including administrative processes, communication standards and physical goods flows.
Vendor logistics guidelines
Following a new business award, as part of the implementation process, vendor logistics guidelines are created, together with clients, in order to advise the vendors of both operational and system processes.
Orientation, training, and local country support
Standardised implementation methodology reduces the time needed to bring new vendors into the programme, allowing a faster roll-out out to new sourcing regions and channels.
Information and training is communicated locally by Kuehne + Nagel staff who are familiar with local customs, and in the same time zone. This increases vendor and third party compliance and reliability.
Long distance communication costs are reduced and customer productivity increased: automated distribution and on-line visibility of guidelines reduces distribution costs and ensures all users have access to the most current documentation.
Connectivity via KN Login
Visibility and interaction with OMS activity is supported via the KN Login Order solution, which allows interaction and information view via the web solution, receipt and transmission of data via electronic data interchange (EDI), and the collation of this information into reports
Even vendors with little IT infrastructure can benefit from connectivity via KN Login, as automated communication and confirmation processes further reduce administrative and communication costs.
Scorecards and performance measurement
KN Login information can be collated into scorecards to measure vendor performance. For example, when buyers are visiting sourcing locations to renegotiate next season’s products, a report can be generated from KN Login to find out how many late, early or incomplete orders were shipped during the previous season.
EDI order receipt and confirmation
Following receipt of order data into KN Login, automated alerts can be generated within defined timelines, and sent to nominated vendor or manufacturing parties requesting order confirmation.
The nominated party will receive an email with a hyperlink to access KN Login enabling them to select the appropriate action – accept or reject. The results, including reason codes for rejected orders, will be shown in the status history within KN Login. Email or EDI advice can also be sent to the client and/or the Kuehne + Nagel account management team.
Proactive order follow-up
Prior to the shipping date, timings can be defined for further alerts to the vendor, prompting the entry of follow-up information. This might include production progress checks, expected readiness dates, and product quantities.
Purchase orders for seasonal or promotional events, for example Easter or Christmas, can be flagged with a priority code or reference to ensure they get special monitoring. The status of these orders can also be extracted to a report or spreadsheet for further coordination.
Supplier booking against order lines
KN Login Booking enables vendors to submit booking and revision requests online. KN Login Booking enables the shipper to request equipment, advise a pick-up address and cargo-readiness date, enter reference information and submit shipping instructions. Templates simplify the repeat booking process, reducing the workload of our clients and Kuehne + Nagel operational staff.
Variance monitoring and reporting
KN Login Monitoring promotes order management by exception, and enables systematic communication with vendors on order discrepancies.
Commercial document management tools
Any document generated within the transportation chain is converted into a PDF image and shown on KN Login. In addition, commercial documents provided to Kuehne + Nagel by third parties are physically scanned as a PDF file and uploaded to the system.
This combination creates a comprehensive database of documents that our clients and their authorised third parties can view, download, or have automatically emailed from KN Login. In order to support receipt and completeness of documents, KN Login has an automated exception routine that can monitor and issue alerts on document availability.
Having all documentation available on KN Login as PDF images saves on courier costs and can speed up customs clearance. In addition, freight stands less chance of going into detention/ demurrage as late documentation can be highlighted using the KN Login Monitoring engine, allowing issues to be rectified before the vessel arrives.
Consolidation services enable goods from multiple vendors to be merged. This results in full containers, improving overall transportation product flows.
Buyers can place smaller order quantities more frequently, and benefit from the cost saving opportunities provided by full-container-load (FCL) movements and lower storage charges at destination. Both FCL and this reduction in inventory assist in decreasing carbon emissions.
With Kuehne + Nagel managing how containers are loaded, better utilisation factors can be achieved, ensuring overall transportation cost of an article is lower. This can apply to freight loaded in our Container Freight Stations (CFS) and also for supervised factory loads, where necessary.
During peak season, consolidation planning allows space and equipment to be secured in advance, avoiding delays and bottlenecks in the supply chain.
Automated cargo on-hand reporting can be used to prioritise and optimise container loading based on destination requirements. Container manifests can be transmitted automatically as soon as product is confirmed on board, enabling pre-planning of container de-consolidation and receiving.
Multi-country Consolidation (MCC)
In addition to single origin consolidations, Kuehne + Nagel can offer MCC opportunities whereby smaller orders from various origins are combined in a designated hub into full container loads.
The Store and Call-off programme provides product storage off-shore and enables management of call-off once goods are required at destination. It offers the following benefits
- Postponement strategies supported by allowing deferment of inventory location closer to demand
- Supports off-peak production, enabling cost savings by having product manufactured during vendor quiet periods
- Flexibility to react to changing market opportunities
- Within China, VAT is refunded to vendors prior to shipment if a Bonded Logistics Park (BLP) or a Free Trade Zone (FTZ) facility is used
- During call-off, ability to calculate volumes, ensuring maximum efficiency in use of containers
- Overflow can be consolidated in under-utilised call-off containers, non-storage cargo or an LCL (less-than-container-load) service
- Vendors and manufacturers with limited space for finished goods can store products at the CFS as an alternative to additional costly storage facilities
The Store and Call-off module includes reporting on stock receipts, weekly confirmation of stock on-hand, date code recording and reporting, and compliance with the principles of FIFO (first-in, first-out).
As the storage programme is supported by KN Login, it can be rolled-out quickly and easily to most warehouse and CFS facilities globally, including small facilities used for special promotions or events.
Origin Logistics Services
Many of Kuehne + Nagel’s existing customers are taking advantage of logistics solutions at origin by asking Kuehne + Nagel to perform certain valued-added services, including:
- Quality control
- Barcode labelling
- Scan packing
- Price marking
- Security tagging
- Product display units
- Pick and pack
In China, the nature of our processing hubs means we are able to open cartons from different vendors and consolidate individual items into a new carton for store-ready delivery. Services include:
- Consolidating goods by carton or item level
- Re-packing goods into new cartons based on store orders
- Receiving sales orders and creating ratio-packs for store delivery
- Consolidating shipments to specific destination DCs or direct-to-store deliveries
Our comprehensive pick-and-pack capabilities include a full range of on-site equipment including scanners, barcode printers and a computer system, to perform barcode scanning and label printing. These scanning systems ensure that the correct quantities of the right product are put into cartons for direct-to-store delivery.
In addition, through receipt of EDI we can control order call-off down to store level, and can create tailor-made outer carton labels as requested by the client.
Carton ID information can be transmitted via EDI into KN Login; vendors and manufacturers can access this to download and print the label data at the factory site.
Commercial documentation preparation
The vendor can also transmit the packing list electronically for integration with data in KN Login. The system will validate the incoming packing list information against the existing profile. The packing list can be printed and/or sent as a PDF image via email and/or extracted to an Excel spreadsheet.
Integrated packing and carton ID solutions enable seamless integration and a single source of data and validation against order details. Customers can have the packing list data converted into an EDI message that can be transmitted to their ERP system. This visibility on upcoming inventory levels enables informed product replenishment decisions, while the use of EDI eliminates any need for manual entry, further improving productivity.
A seamless solution also ensures that the vendor generates a packing list that conforms to the order planning dates, quantities and tolerance levels, or previously authorised details.
As a global organisation shipping in excess of 2.5 million TEUs, Kuehne + Nagel has firmly established relationships with most global carriers in all geographies. Based on our experience, we have clear working guidelines governing how we book, manage and deliver equipment and goods at all locations.
Kuehne + Nagel’s Freight Management service was established to enable clients with their own shipping line carrier contracts to benefit from Kuehne + Nagel’s advanced seafreight experience, management and coordination. The service offers a central infrastructure for communication and information exchange with carriers and other relevant service providers, such as truckers and customs brokers.
Regardless of whether shipments move via direct carrier contracts, or through Kuehne + Nagel’s own NVOCC service, Blue Anchor Line, everything can be managed in one seamless programme. Combined with KN Login Shipment we offer a centralised shipping management concept covering carrier allocation management, shipment visibility and monitoring, along with EDI data and performance reporting.
Carrier performance scorecards can measure transit times, and ensure that they are within agreed compliance levels. These reports are applicable both under the Freight Management service and Kuehne + Nagel’s own Blue Anchor Line
- OMS facilitates third party interaction by improving communication, and easing location challenges. It systematically prompts vendors and other parties to follow structured processes, and can monitor and evaluate trading partner performance
- Advice of order completion prior to product receipt at destination permits better planning for workload, staffing and capacity requirements, and assists in optimising product flow into distribution centres
- OMS supports efforts to improve product availability through production planning by optimising inventory levels, increasing stock turns and reducing lead times. It also helps to increase sales by reducing the risk of stock-outs and mark downs through improved delivery scheduling and support for multiple distribution strategies
- Documentation services provide paperless accuracy and availability, and can assist in the reduction of demurrage and detention costs arising from documentation and planning errors
- Overall productivity is increased due to automated logistics management and decision making processes, enabling logistics operators to focus on their core activities
For more information, please contact us.