Package Marking, Packing List and Invoice Data Requirements for EB Receiving & Invoicing

1

Package Marking, Packing List and

Invoice Data Requirements for EB Receiving & Invoicing

Approved for Public Release

Shipments to Electric Boat 2

Introduction

• Problem

• EB Receiving Process

• Package Marking / Packing List Data

• Invoice Requirements

• Action

• Conclusion



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



The ProblemWhy 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



The Problem

• The Navy does not pay EB for material until we pay you

• Non value-added project cost are incurred

EB has strong incentive to pay vendors promptly!



Topics

• Problem

• EB Receiving Process• Package Marking / Packing List Data


• Action

• Conclusion



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.



Topics

• Problem




• Action

• ConclusionApproved 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







11 Shipments to Electric BoatApproved for Public Release






• 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




Packing Lists

• Required Data :

– EB PO number and line item number

– EB part number

– EB part description

– Quantity and unit of measure• Same unit as shown within the P.O.






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



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



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



Topics

• Problem



• Invoice Requirements• Action

• Conclusion



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



Topics

• Problem




• Action• Conclusion



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



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



ConclusionCompliance:• Faster processing of

incoming material• Fewer phone calls and

faxes• Faster invoice turnaround• Lower cost to build

submarine

Non-compliance• Incoming material “on-

hold”• Production delays in

shipyard• Labor spent resolving

issues• Slower payment

All correct packing slip / invoices can be paid within 30 days


Documents

Package Marking, Packing List and Invoice Data Requirements for EB Receiving & Invoicing