K Company Ocean Freight Management Based On The Push-pull Strategy

Export freight management is a one of the most important management tasks.In this article,the export freight management mentioned is about how to improve the accuracy of the freight on bill of lading as well as avoid the bill freight correction.If the bill freight is accurate after bill issuance,it will be subsequently consolidated to be accurate revenue and profit data which will facilitate the net contribution analysis of the carriers.Meanwhile high ratio of bill freight accuracy will also support micro-management of space based on net contribution evaluation.Hence,export freight management is the prerequisite for bill freight related analysis tasks.A reliable bill freight information must be created from the well-managed export freight management task.The status quo of K company has been analyzed by means of qualitative research in this article.In recent years,freight rate in rate agreement frequently changed because of unstable market situation.The original working process of rate and service contract creation cannot be keep up with the situation that K company requires a timely rate creation process to avoid non-rate or incorrect rate cases.Moreover,because of some steps in original work flow being out of operation,some redundant rate without actual shipments goes to the rate and service contract creation process and that leads to over workload of the team who may delay the normal process with the rate with actual shipments.Further,the original process has no feedback and control mechanism to achieve the continuous improvement.The theory of supply chain management is used for reference especially the theory of push-and-pull which helps to understand information flow as a retail goods circulation flow.In rate agreement creation stage,the marketing user needs to design the rate structure instruction.The rate creator must strictly follow that instruction to proceed.In documentation stage,documentation users link the rate to the bill and issue the bill of lading to the customers.After that,accounting users issue invoices to the customers for freight collection.From the overall point of view,the root cause of frequent freight changes attribute to customer requirements and rate structure together with trade or service lane specifics.The customers are classified into two groups in terms of the freight change frequency and apply different approaches.The frequency of freight change is lower for non-logistic-focused customers whose main business income does not come from logistic service while the frequency of freight change is higher for logistic-focused customers whose main business income from their logistic service.It is suggested to prioritize the pull system for customers whose main business income does not come from logistic service.And for the other,it is suggested to adopt an integrated push-and-pull counter measure to improve the bill freight accuracy being supported by control system and process standardization.To setup a production board in documentation process and delay-to-pull strategy will encourage the users to complete the rating process promptly.Meanwhile it is important to create a new monitoring and control process to replace the previous one.That will help to get feedback and promote continuous improvement.Finally,the processes are changed with efficiency and freight accuracy increasing.In export freight management process,if we adopt different push-and-pull measures to different type of customers,it will help us to improve the bill freight accuracy.It is also a new thought for further delicacy management based on trade and service lane.