THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Monday, December 18, 1995 TAG: 9512160174
SECTION: BUSINESS WEEKLY PAGE: 05 EDITION: FINAL
SOURCE: BY KRISTEN DE DEYN KIRK, SPECIAL TO BUSINESS WEEKLY
LENGTH: Medium: 92 lines
Whoever though of the slogan ``when it absolutely, positively has to be there on time'' probably had no idea how those words would change the world - especially for people in the shipping business.
Once a company promises quick, reliable delivery, every other company in the industry had better provide the same or better service, or close their doors for good. Fortunately, technology has come to the rescue.
From small freight forwarding companies to large railroads, shippers have been looking for ways to cut down on the paperwork, time and effort needed to move everything from chemicals and auto parts. William Burke, vice president of sales and marketing at Nelson International in Norfolk, has seen his company make many changes to meet customers' demands during the six years it has been in business.
``One set of electronic standards designed by a group of steamship companies several years ago is already obsolete,'' explains Burke, whose company uses a variety of electronic systems to streamline shipments. ``We've had three system updates in five years. You can't do enough to keep up.''
The Automatic Broker Interface is a huge time saver for Nelson.
Where it used to take up to a week to receive clearance from international customs representatives when working with paper forms, an automated system now makes it possible to receive an approval in one or two hours for shipments meeting the country's entry requirements.
All the necessary information is entered into the computer by Nelson employees and is immediately available in the intended country of entry. According to Burke, all that is needed after that point are a few quick clicks of the keyboard keys and a scroll down a page or two by the customs agent before approval is given.
Nelson also relies on the General Electric Information Service, an electronic data interchange system. It's available in more than 750 cities worldwide 24 hours a day, 365 days a year.
Shippers can send bookings to Nelson through the mailbox feature, and Nelson can confirm it at their leisure. Because it is available around the clock and accepts both European and United States shipping standards, the system is ideal for Nelson, who concentrates on imports and exports.
Clients in Europe don't need to worry about the time when they send us an order, and it's much better than a fax,'' says Burke. All the vital information is sent and permanently recorded immediately, saving the time and extra manpower needed to re-enter faxed orders.
Spending less time completing paperwork and processing orders allows shipping companies to spend more time helping customers with better informations and new projects.
``Businesses are cutting back on their staff and they turn to us for more. We used to just concentrate on having a vessel ready for a shipment on the west coast. Now we need to see if they can produce the product, have it ready at the warehouse on time to make the real connection, in time to make this ship,'' says Burke.
Larry Estep, assistant vice president of national customer service at Norfolk Southern, faces the same challenge on a larger scale at the Norfolk-based railroad. ``It's more cost effective for businesses to have just-in-time delivery, and we work to make it possible,'' said Estep.
Norfolk Southern's lines extend over 14,500 miles in 20 states. With such a large area to cover and thousands of customers, over 35,000 calls are received monthly at the national customer service center in Atlanta. And there wait 85 employees and Norfolk Southern's newest weapon designed to fight late delivery - the Integrated Transportation Management System (ITMS).
Introduced in late 1993, the computer system includes customer profiles, train schedules and copies of all relevant documents (which are scanned into the computer through electronic data imaging).
ITMS has three main components: Pathfinder, a proposed travel schedule for a shipment; pro-active Monitoring, which compares the trip plan to the actual route taken, and Alert Management, designed to determine the appropriate time to advise management of a service problem.
A customer can call Norfolk Southern and an AT&T G34 switch will automatically route his call to a team of representatives familiar with his type of business.
As the representative answers the call, the customer's company profile will appear on the ITMS computer screen. The representative can immediately track any current shipments, checking for estimated times of arrival and delays. If alternative routes must be investigated to meet the agreed upon service, the system provides a ``what if'' function that allows the representative to compare different route alternatives through Norfolk Southern and other rails.
Access to the other schedules is possible through a link to the American Association of Railroads' main frame in Washington. Shipments for large companies such as Ford are monitored regularly, and delivery delays are often solved without notifying the customer because the original deadlines are met.
``Customers don't want to hear about problems. We solve them and get shipments back on schedule so all the customers know is that their shipment made it on time,'' Estep said. by CNB