Before, during and after a transport assignment the transport buyer and supplier of transport services need to communicate with each other, for example, to book the assignment, track a shipment and settle the assignment economically. Using Transport Management, the parties can exchange this information electronically.
Transport Management also provides the possibility to exchange forecasts of future transport requirements. The business process includes electronic business documents for capacity planning, transport booking, transport instruction, status enquiry and invoice.
Bilden visar de affärsdokument som ingår i den kompletta affärsprocessen.
The invoice is based on the concept used for an ESAP. Other electronic business documents are in accordance with LIM (Logistics Interoperability Model).
Here is a short description of Transport Management:
Partners exchange basic information
The first thing the partners need to do is to enter basic information into their business systems. Basic information includes:
- Agreements on delivery and payment for transport services.
- Basic information about the partners such as name, address and company registration number.
- Information about transport services and prices.
Both partners having the same, accurate basic information in their business systems is a prerequisite for being able to plan, order, execute and invoice goods transports in a secure and efficient manner. Correct basic information also allows the transport buyer to administer and reconcile invoices automatically.
Partners exchange information on upcoming transports
When both partners’ business systems have basic information, they can start to exchange information on upcoming transports. This information can be split into three groups depending on if it is to be used for long-term planning, short-term planning or to advise that goods are ready for transport.
- Forecasts are used for long-term planning. The buyer prepares forecasts of the estimated need for transport services several months up to a year ahead. The forecasts make it easier for the supplier of transport services to plan his transports in the long term.
Example: 50 refrigerated trucks will be needed during the next six months.
- Booking is used for short-term planning. The buyer makes a booking for the estimated need for transport services a few days up to a few weeks ahead. With a booking, the buyer of transport services reserves space on a means of transport.
Example: 3 refrigerated trucks will be needed on Thursday.
- Transport instruction is used when the actual need for transport services is known, that is, when the goods are ready for transport. With a transport instruction the buyer gives the supplier an assignment to transport the goods.
Example: Pallet 373000152000023055 and pallet 373000152000023086 are to be transported by refrigerated truck.
It is up to the partners to agree which of the three groups of transport information will be exchanged between them.
If the partners have agreed to exchange forecasts, the buyer sends the forecast business message, Transport capacity requirements, to the suppler. The supplier responds with a Transport capacity plan, which states to what extent the supplier can meet the buyer’s estimated need of transport services.
If the partners have agreed to exchange the booking business message, Transport capacity booking, the buyer sends this. The booking is normally made less than a week before the actual transport will take place and is thus sent at a later stage than forecasts. The supplier of transport services responds with a Transport capacity booking response, to confirm or refuse the buyer’s booking.
When the shipment is packed and ready for transport, the transport buyer sends a Transport instruction to the supplier of transport services. The business document can be compared to an electronic waybill and contains information about the goods to be transported, for example the SSCC, for all pallets included in the shipment. The message is used as the basis for the invoice and contains details such as a reference to the booking (if a booking was made), other references, sender, recipient, payer and details of the goods. The supplier can confirm receipt of the Transport instruction with a Transport instruction response.
Status reports provide information about the shipment during transport
During transport the transport buyer can send a Transport status request to the transporter who responds with a Transport status notification which provides information about the shipment such as where it is currently located or if it has been delivered. The goods recipient can also get status reports. The partners can also agree that status reports will be sent at predefined times or for given events such as delivery to a warehouse.
Invoicing and payment complete the process
In order to claim payment for the completed transport assignment, the supplier sends a Transport invoice to the transport buyer. In order for invoice reconciliation to be automatic, all information in the invoice must be referred back to basic information and information in the Transport instruction.
The process ends with the transport buyer paying the invoice. If the invoice was incorrect, payment is regulated with a Credit note.