SCO Logistics' Shipment Planning and Execution (SP&E) solution is an operating service that utilizes our web-based technology in conjunction with our experienced operations personnel to execute the transportation requirements of our customers.
SCO's SP&E processes include:
Systems Integration
SCO Logistics will facilitate an electronic integration between our customer’s system and our Transportation Execution Center. This integration will have multiple interfaces that will enable the transfer of information between both companies for order information, load plans, freight accruals and proof of delivery.
Shipment Optimization
Shipment optimization is an integrated application within SCO’s Transportation Execution Center, performing the following value-added tasks:
- Direct rates all shipments to the lowest cost provider
- Aggregates lower weight LTL shipments into higher weight LTL shipments
- Builds multi-stop truck load routes
- Builds round trip / continuous move routes
- Returns successful optimizations as master bills with sub-bills to SCO's transportation management system
Costs savings on every shipment optimized are recorded and presented daily, weekly or monthly. Typically savings range between 4-12%.
Shipment Rating
Shipment Rating is an integrated application within SCO's TEC . All Origin/Destination pairs (including optimized orders) are automatically sent to SCO's rating engine. The rating engine pre-rates the shipments based on the shipment criteria. The shipment criteria includes: ship from, ship to, pieces, weight, dimensions, pickup and delivery dates.
The rating engine interfaces to SMC's CZAR DLL rating program for LTL base tariff rating. All other tariffs are loaded directly into the rating application. Interfaces are setup to access Rand McNally's MileMaker, and ALK PC*MILER mileage packages. RGI's GeoMaster geography data is loaded directly into the rating application for geography cross-reference. Commodities are loaded directly into the application and support the NMFC published standards or customer specific commodities.
The rating engine then returns all available carrier rates for the OD pair . The rates are returned stack ranked from lowest cost to highest cost. The returned rates include applicable accessorial charges. Rates from more than one mode may be returned; for example, a high weight LTL shipment (15,000 lbs) would return both LTL and TL rates.
Shipment Cascade Tender
Once the rating engine returns the rates for a given OD pair, the TEC automatically tenders the shipment to the lowest cost provider. SCO's system automatically forwards to the carrier the tender notice via email, fax, or electronically (depending on the carrier's ability to support). The carrier also can view all of its tenders via SCO's carrier web portal.
The carrier then must either accept or reject the tender within the time allowed pursuant to our customer's business rules. If the tender is accepted, the carrier has committed to cover the shipment pursuant to the applicable pick up and delivery requirements (including order specific special instructions).
The carrier can use SCO's carrier portal to confirm pick up appointments, delivery appointments, proof of delivery (POD) and en-route status messaging. If the carrier either rejects the tender or fails to act within the prescribed time frame, SCO's system will automatically cancel the tender to the first carrier and tender the shipment to the second lowest cost provider. The cascade tender process repeats until the shipment is either covered or the entire tender process exhausts.
In the event that a cascade tender exhausts, SCO's system automatically forwards an "exhausted tender" email to SCO's operations personnel (an email can also be sent to our Customer's Customer Service and/or Plant Personnel).
Upon receipt of the "exhausted tender" email, SCO's operations personnel communicate with Customer Service to determine whether the pick up and delivery requirements can be modified to permit a "core" carrier to handle the shipment. If yes, SCO's personnel coordinate the order revision with the applicable (lowest cost) provider. If not, SCO brokers the shipment to a carrier that can meet the original pick up and delivery requirements.
Exception Management
SCO's goal is to automate most processes in an effort to eliminate mistakes, remove human intervention, and lower costs. With the SP&E service offering SCO's operations team manage to conclusion all of the exceptions that can occur throughout the shipment process including:
- Exhausted tenders
- Rush orders
- Carrier turn backs
- Post-tender order changes
- En-route changes
- Eleventh-hour mode changes (for example, rail to truck)
Shipment Visibility
SCO's shipment visibility capability strategically tracks and manages shipments across multiple carriers and modes. The TEC provides a single Web-based system for all shipment, product, and carrier information for every key milestone of the shipment life cycle.
- It provides a single Web-based system for all shipment, product, and carrier information
- It uses a comprehensive list of tactical and strategic reports
- It generates service standards to provide accurate and dynamic ETAs
Business Reporting
Critical to any business process improvement is the availability of accurate and timely information. SCO's Data warehouse captures the data necessary to measure carrier, financial and operating performance. Examples of SCO's current performance reports include the following
- Carrier Performance Detail
- Ship From/To Performance Detail
- Delivery Performance Scorecard
- Lane Analysis Summary
- Lead Time Summary
- Delivery Reason Code Summary
- Ship To Performance Detail
- Lane Analysis Detail
- Carrier Lane Analysis Detail
- Tender Performance
- Cost Savings
- Carrier Utilization Summary
- Carrier Utilization Detail
- Core Carrier Compliance Summary
- Financial Baseline Summary
- Operations Activity Summary
- Sourcing Lane Rate/Cost Detail
SCO's system also supports ad hoc reporting.
