Supply Chain Vector [Electronic resources] : Methods for Linking the Execution of Global Business Models With Financial Performance نسخه متنی

Chapter 3, a 3PL firm can play a value-adding role in the proper handling of documentation.

The key to successful management of document flows depends on adherence to what can be called the "3 Cs," or correct, complete and consistent, as summarized in Table 6.1. "Correct" means that all information is consistent with the physical merchandise (weight, product description, number of pieces, etc.) and characteristics of the transaction (shipper and consignee information, unit price, currency, etc.). "Complete" means that no individual document is missing from the packet.

Requirements vary from country to country, but a complete document package might consist of the commercial invoice, packing list, certificate of origin and ocean bill of lading. If any one of these documents is missing, the shipment will be delayed at some point in the chain, most likely in customs. "Consistent" is meant to convey the need for all documents to match in terms of their content. Shipper addresses, notify parties, country of origin and marks and numbers are but a few of the items that must be exactly the same on each document. If, for example, the consignee address on the commercial invoice does not match the address on a certificate of origin, delays are inevitable, with the possibility of fines or product confiscation very real, depending on the country with which one is dealing.

With a realistic understanding of the importance of proper documentation, the value that 3PL firms can bring to this element of SCM is unimpeachable. In an export transaction, the 3PL firm at origin receives not only the merchandise but also the commercial documentation that is intended to accompany the cargo. It is at this point that the 3PL firm generates its own transport documentation, using the 3 Cs methodology to match it to the commercial set provided by the seller. Finally, the 3PL firm checks the documentation against the labels, marks and numbers on the merchandise itself, in order to minimize at origin the probability of problems farther down the supply chain. Given that the majority of all logistics-related problems are generated upstream in the process yet only manifest themselves downstream (when it is too late), this procedure enhances supply chain execution with a minimum of additional investment or expense.

When dealing with export transactions, the 3PL firm can offer similar benefits through its knowledge of requirements from both the country of export and the destination country. Using its global network and access to local expertise, the 3PL firm can again take an upstream approach to avoiding downstream difficulties. Whether working with documentation or physical cargo, imports or exports, the operating expertise offered by the 3PL firm is indispensable to the proper management of any supply chain.

From only a pair of examples, it should be obvious that the value proposition of a 3PL firm is very consistent with the lean mentality. First, the idea of building quality into upstream processes is native to the 3PL operation. The presence of 3PL firms in major operating centers around the world also offers the opportunity for local participation in quality circles, supplier associations and general continuous improvement initiatives. Given the task-intense nature of moving goods around the world, it also is a prime area for continuous improvement initiatives. The examples of documentation flows are but one manifestation of this potential and should be viewed as the tip of the iceberg. If the objective of lean thinking is to eliminate waste by removing redundancy, unnecessary handoffs and rework, the logistics field is a good place to seek improvements.