When Xerox and its 3PL needed to improve the accuracy of export data filings, they thought it would mean costly changes to a warehouse management system. Instead, they found a much simpler way.
Contributing Editor Toby Gooley is a writer and editor specializing in supply chain, logistics, and material handling, and a lecturer at MIT's Center for Transportation & Logistics. She previously was Senior Editor at DC VELOCITY and Editor of DCV's sister publication, CSCMP's Supply Chain Quarterly. Prior to joining AGiLE Business Media in 2007, she spent 20 years at Logistics Management magazine as Managing Editor and Senior Editor covering international trade and transportation. Prior to that she was an export traffic manager for 10 years. She holds a B.A. in Asian Studies from Cornell University.
Implementing changes to software can be like opening the proverbial can of worms. For one thing, the interconnected nature of business systems today means that revisions or upgrades in one area will almost certainly lead to changes elsewhere. For another, what appears on the surface to be a simple matter—adding new fields to a report, for instance—may end up requiring costly and time-consuming reprogramming.
That was a concern at the Groveport, Ohio, distribution center operated by the third-party logistics company (3PL) Genco on behalf of Xerox. In order to improve the accuracy of government-mandated export filings, the facility would have to change the way it collected and entered data for those reports. But that raised the prospect of expensive revisions to the warehouse management system (WMS) that contained some of the required information.
Fortunately, a collaborative effort involving the shipper, the 3PL, and a software developer led to a simpler solution: an easy-to-use "app" for the WMS that allows anyone to create accurate filings—no special programming or export management expertise required.
ON TIME BUT ERROR-PRONE
The Groveport DC exports Xerox-brand printers, cartridges, and other printer supplies worldwide, much of it destined for Asia and South America as well as Canada and Europe. The facility ships approximately 4,000 order lines per month in full and partial containers, according to Xerox's Ron Tegner, manager, indirect channel strategic partnerships and supply chain support. In the past, those shipments often were delayed because the export information submitted to U.S. Customs and Border Protection (CBP) contained errors.
The U.S. government requires exporters to file certain pieces of information via the Automated Export System (AES) operated by CBP. AES enables exporters to electronically submit data that used to be included on the paper Shippers Export Declaration, such as shipper, destination, Harmonized Tariff System identification number, export carrier, transportation mode, and voyage or flight number. As soon as AES receives that information, the system validates its accuracy and completeness; it also confirms that the information meets the requirements of other federal agencies, such as the Bureau of the Census and the departments of State and Commerce. If all is correct, AES then generates a confirmation message. If not, the system sends an error message to the party that filed the data.
Xerox was initiating timely AES filings, which Genco prepared and ADSI, a third-party shipping system, transmitted to AES. But the method used for creating the reports frequently led to mistakes. The problem was that the operation was relying on a particular screen in Genco's proprietary D-Log Plus warehouse management system to capture the necessary information.
"The screen didn't have enough checks and balances to tell whether the data was correct and complete," recalls Jim Rubino, Genco's senior vice president of systems. "We were relying on people to remember certain things and to enter them correctly. It required someone who was very knowledgeable about export declarations and processes sitting at the screen. That wasn't a reality for this operation." Not to mention that any process that relies on manual intervention is likely to introduce errors and omissions, he adds.
And that's exactly what happened. "We were seeing spelling errors and incomplete or missing data being sent to AES," Tegner says. "For example, air shipments did not always include flight numbers." Consequently, AES kicked back error messages, and shipments were delayed while Genco's staff addressed the errors and resubmitted the filings. This also left the shipper vulnerable to possible fines.
That could not continue, of course, so Genco's information system experts called in DMLogic, a software developer and systems integrator, to help find a solution. Although Genco had developed D-Log Plus in-house, it collaborates with DMLogic on installations and integration—the "care and feeding" of the WMS, as Rubino puts it.
FOLLOW THE WIZARD
The solution was to automate and integrate the collection of export shipment information, the validation of that information, and the creation of the AES filing. Initially, the Genco and DMLogic systems experts planned to build new functionality into D-Log Plus. But, Rubino says, "We very quickly saw that was going to become a bit invasive into the WMS and that it would require a lot of changes to user interfaces and to background logic." Such changes would also make it more difficult and costly to implement upgrades and do other maintenance tasks down the road. Was there another way to achieve the same objectives, but without making major modifications to the WMS?
The DMLogic team thought there was. They suggested using stepLogic, a tool for software developers that interfaces with a WMS but does not change it. Instead, it replaces development tasks with configuration steps. "StepLogic is comparable to a software 'wizard.' It leads you through the various steps to set up a screen and to query a database," explains LeeAnn Dawson, director of information technology for DMLogic.
Genco's Rubino describes stepLogic as a "software accelerator tool" that enables the rapid implementation of changes with little or no programming. "That was the beauty of it. It didn't require a programmer to figure this out," he says. What it did require was a "superuser"—someone with a thorough knowledge of Xerox's export operations—to define the rules for retrieving the appropriate information for each input field and then put those rules into stepLogic in the right sequence so the program would guide the user through the process without missing any steps. "It asks the user question 1, and then based on that answer, it asks the next question," he explains. "It makes sure that all questions are answered and that all questions that need to be asked are asked."
But it doesn't require export expertise to answer those questions. The WMS alerts users—Genco employees at the distribution center—when an export shipment is ready and thus requires an AES submission. To input the information used by AES, users choose from options on drop-down menus. "The screen provides lists of legitimate values, instead of the former process of manually typing data into text boxes," Tegner explains. That change has completely eliminated spelling and other errors, such as incorrect spacing and place names that differ from the format required by AES.
Exactly which questions are asked depends on the nature of the shipment. "You're almost following a script," Dawson says. "If you have an air shipment to Puerto Rico, then you need to be prompted for certain information. That query will follow a different path than it would for an ocean shipment to China."
When all questions have been satisfactorily answered, the data flows to ADSI's system, which electronically submits the AES filing to customs. ADSI also uses the data as well as some additional information it pulls from D-Log Plus to create export documentation, such as shipping labels and customs invoices, Dawson says.
NEW AND DIFFERENT APPLICATIONS
Since implementing the new system, AES filing errors have essentially been eliminated. "We went from getting daily calls to I can't tell you the last time I had a call about an AES issue," Dawson says. Xerox and Genco were also pleased with the flexibility the software tool offers, including the ability for superusers to reconfigure screens and menus in a matter of minutes, without incurring programming costs.
The shipper and 3PL have worked on developing new applications of the stepLogic platform, including an app that allows multiple countries of origin to be entered and tracked for a single stock-keeping unit (SKU), Tegner says. Just last month, the distribution center deployed a stepLogic app in a completely different area: managing the divert lanes for an automated print-and-apply system.
Rubino believes this type of software tool has many potential applications. "From a user standpoint, it's intriguing because it's very configurable and anyone can do it. It's an interesting concept, and we're looking at where else we might use it."
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
Serious inland flooding and widespread power outages are likely to sweep across Florida and other Southeast states in coming days with the arrival of Hurricane Helene, which is now predicted to make landfall Thursday evening along Florida’s northwest coast as a major hurricane, according to the National Oceanic and Atmospheric Administration (NOAA).
While the most catastrophic landfall impact is expected in the sparsely-population Big Bend area of Florida, it’s not only sea-front cities that are at risk. Since Helene is an “unusually large storm,” its flooding, rainfall, and high winds won’t be limited only to the Gulf Coast, but are expected to travel hundreds of miles inland, the weather service said. Heavy rainfall is expected to begin in the region even before the storm comes ashore, and the wet conditions will continue to move northward into the southern Appalachians region through Friday, dumping storm total rainfall amounts of up to 18 inches. Specifically, the major flood risk includes the urban areas around Tallahassee, metro Atlanta, and western North Carolina.
In addition to its human toll, the storm could exert serious business impacts, according to the supply chain mapping and monitoring firm Resilinc. Those will be largely triggered by significant flooding, which could halt oil operations, force mandatory evacuations, restrict ports, and disrupt air traffic.
While the storm’s track is currently forecast to miss the critical ports of Miami and New Orleans, it could still hurt operations throughout the Southeast agricultural belt, which produces products like soybeans, cotton, peanuts, corn, and tobacco, according to Everstream Analytics.
That widespread footprint could also hinder supply chain and logistics flows along stretches of interstate highways I-10 and I-75 and on regional rail lines operated by Norfolk Southern and CSX. And Hurricane Helene could also likely impact business operations by unleashing power outages, deep flooding, and wind damage in northern Florida portions of Georgia, Everstream Analytics said.
Before the storm had even touched Florida soil, recovery efforts were already being launched by humanitarian aid group the American Logistics Aid Network (ALAN). In a statement on Wednesday, the group said it is urging residents in the storm's path across the Southeast to heed evacuation notices and safety advisories, and reminding members of the logistics community that their post-storm help could be needed soon. The group will continue to update its Disaster Micro-Site with Hurricane Helene resources and with requests for donated logistics assistance, most of which will start arriving within 24 to 72 hours after the storm’s initial landfall, ALAN said.