This document discusses measuring data effectiveness in logistics. It outlines an approach to 1) define opportunities to improve visibility, 2) detail the elements needed to enable those opportunities, and 3) understand how the elements are related. It also discusses measuring partners' ability to provide timely, complete, and correct data at each stage of transportation. Finally, it addresses measuring one's own ability to execute based on the data received.

1. Data Effectiveness
Presented By:
Frank Sokol
September 27, 2007

2. 2© 2007 Caterpillar Logistics Services, Inc.
Approach
 Define areas of opportunity
 Detail elements that enable opportunity
 Understand how those elements are related
 Measure partners ability to provide detail
 Measure your ability to execute

3. 3© 2007 Caterpillar Logistics Services, Inc.
Define Areas of Opportunity
 What will visibility help me improve:
– Decrease idle time (decrease in-transit inventory)
– Reduce detention (reduce cost)
– Notify customer of changes to expected delivery date (improve quality)

4. 4© 2007 Caterpillar Logistics Services, Inc.
Detail Elements that Enable Opportunity
Decrease idle time
(decrease in-transit inventory)
Reduce detention
(reduce cost)
Notify customer of changes to
expected delivery date
Projected factory completion date Projected factory completion date
Empty out gate
Estimated sailing / cutoff date Estimated sailing / cutoff date Estimated sailing / cutoff date
Actual factory completion date Actual factory completion date
Departure from factory
Arrival at port of load / Full in gate Arrival at port of load / Full in gate Arrival at port of load / Full in gate
Loaded on vessel Loaded on vessel Loaded on vessel
Vessel departed Vessel departed
Vessel arrival Vessel arrival
Full out gate
Empty returned

5. 5© 2007 Caterpillar Logistics Services, Inc.
Order to inland B/L
Understand Relationship of Elements
 To track something it must have commonality through the lifecycle:
– Order entered
– Order produced
– Order moved through various modes of transportation
 Questions to consider:
– Does the data support bridging the modes?
DealerManufacturing Plant Carrier Port of Origin Vessel Port of
Destination
Overseas Carrier
Inland B/L to Ocean B/L Ocean B/L to inland B/L

6. 6© 2007 Caterpillar Logistics Services, Inc.
Measure Partners’ Ability to Provide Detail
 Data is sourced from internal and external partners
 Measure partners’ ability
– To provide data
• Are they sending specific messages?
– Complete
• Are all required elements being sent?
– Timely
• How long after each event do they get deliver data?
– Correct
• Is it the right data?
• Very difficult to measure on a continual basis

7. 7© 2007 Caterpillar Logistics Services, Inc.
Measure Partners’ Ability to Provide Detail
Carrier
Empty Out
Gate
Loaded Departed Arrived Discharged Out Gate
Empty
Returned
Steamship Line 1       
Steamship Line 2       
Steamship Line 3       
Steamship Line 4       
Steamship Line 5       
Steamship Line 6       
Plant
Estimated
completion
Start
Production
Ready
to Ship
Loaded for
shipment
Decatur    
Aurora    
East Peoria    
Sanford    
Lafayette    
 Not just a mechanism to
beat up carriers
 Includes internal partners

8. 8© 2007 Caterpillar Logistics Services, Inc.
Measure Your Ability to Execute
 Gage your ability to execute to original opportunity
 Have you reached stated goals:
– Do you need more data
– Did this expose additional issues

9. Data Effectiveness

10. Data Effectiveness