Package Marking Packing List and Invoice Data Requirements
- Slides: 24
Package Marking, Packing List and Invoice Data Requirements for EB Receiving & Invoicing 1 Approved for Public Release
Introduction • Problem • EB Receiving Process • Package Marking / Packing List Data • Invoice Requirements • Action • Conclusion Shipments to Electric Boat 2 Approved for Public Release
The Problem Package marking and packing list / invoice data errors • Delays payment to our suppliers • Adds non-value project cost • Slows EB invoicing to the Navy Shipments to Electric Boat 3 Approved for Public Release
The Problem Why is this a serious problem? • EB is under pressure to reduce the cost of building submarines • EB suppliers depend on prompt payment • Every month millions of dollars of billing are delayed Shipments to Electric Boat 4 Approved for Public Release
The Problem EB has strong incentive to pay vendors promptly! • The Navy does not pay EB for material until we pay you • Non value-added project cost are incurred Shipments to Electric Boat 5 Approved for Public Release
Topics • Problem • EB Receiving Process • Package Marking / Packing List Data • Invoice Requirements • Action • Conclusion Shipments to Electric Boat 6 Approved for Public Release
EB Receiving Process • Requirements mandate that all material be positively identified throughout the shipbuilding process. • EB uses a structured system (MRP II) to order, track and pay for incoming material. • The EB supplier base includes thousands of suppliers. • EB receives hundreds of deliveries each day. • Our customer will only pay for material that is properly received and documented. Shipments to Electric Boat 7 Approved for Public Release
Topics • Problem • EB Receiving Process • Package Marking / Packing List Data • Invoice Requirements • Action • Conclusion Shipments to Electric Boat 8 Approved for Public Release
Package Marking / Packing List Data Package Marking • Required Data : – EB PO number and line item number – EB Part Number – Quantity and Unit of Measure • Same unit as shown within the P. O. – Carton number – Total number of cartons – The packing list Shipments to Electric Boat 9 Approved for Public Release
Package Marking / Packing List Data Shipments to Electric Boat 10 Approved for Public Release
Package Marking / Packing List Data Shipments to Electric Boat 11 Approved for Public Release
Package Marking / Packing List Data Shipments to Electric Boat 12 Approved for Public Release
Package Marking / Packing List Data • Mark each EB PO number 1” down from the top edge of the container : § Make sure the EB PO is marked § When multiple POs or PO line item (POLI) numbers are shipped in a single container: • Record each PO / POLI starting 1” from the top • Separate multiple PO line items shipped in same container Shipments to Electric Boat 13 Approved for Public Release
Package Marking / Packing List Data Packing Lists • Required Data : – EB PO number and line item number – EB part description – Quantity and unit of measure • Same unit as shown within the P. O. Shipments to Electric Boat 14 Approved for Public Release
Package Marking / Packing List Data Shipments to Electric Boat 15 Approved for Public Release
Issues • Packing slip is missing • PO incorrect or missing – Supplier / distributor PO number used instead of EB • Part number incorrect or missing – Supplier / distributor part number used instead of EB • Material not separated / identified when shipped in one container Shipments to Electric Boat 16 Approved for Public Release
Issues • Unit of measure does not match PO – For example, we order 1000 feet of pipe but supplier delivers 150 pieces – Cannot receive / issue payment until we call you to obtain units conversion 17 Approved for Public Release
Consequences: • Material can not be accepted • Material can not be located • Program incurs non value added cost • EB may return the material • Delays: ship’s construction; supplier payment Shipments to Electric Boat 18 Approved for Public Release
Topics • Problem • EB Receiving Process • Package Marking / Packing List Data • Invoice Requirements • Action • Conclusion Shipments to Electric Boat 19 Approved for Public Release
Invoice Requirements • • EB PO number EB PO line item number EB Part number Quantity (unit of measure used in the PO) Master Pricing Agreements • Delivery Request number • Delivery Request Item Number Units of measure must match the PO! Clarify all pricing issues before submitting an invoice Shipments to Electric Boat 20 Approved for Public Release
Topics • Problem • EB Receiving Process • Package Marking / Packing List Data • Invoice Requirements • Action • Conclusion Shipments to Electric Boat 21 Approved for Public Release
Action • Communicate these requirements to your shipping personnel • Verify proper marking • Assure that the packing slip & invoice are provided • If necessary, use checklists to make sure EB requirements are met • Emphasize correctly marking drop shipments Shipments to Electric Boat 22 Approved for Public Release
Checklist • Container Markings – Correct EB PO and item number marked – All POs listed – Correct EB part number – Quantity & unit of measure – Carton number – All markings legible • Multiple POs / container – All part numbers separated – All part numbers identified as an EB part number, quantity, unit of measure etc. • Packing Lists – Is attached to the carton – EB PO & line item – EB part number – Quantity, unit of measure matches PO • Invoice – EB PO & line item – EB Part number – Quantity (unit of measure used in the PO) • Master Pricing Agreements EB PO & line item – Delivery Request number & Item number Shipments to Electric Boat 23 Approved for Public Release
Conclusion Compliance: • Faster processing of incoming material • Fewer phone calls and faxes • Faster invoice turnaround • Lower cost to build submarine Non-compliance • Incoming material “onhold” • Production delays in shipyard • Labor spent resolving issues • Slower payment All correct packing slip / invoices can be paid within 30 days Shipments to Electric Boat 24 Approved for Public Release
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