One of the most ideal requirements in trading reusable assets is that every party involved is able to track the movement with full visibility. In a typical scenario, as shown in Figure 1, the flow of information follows a closed-loop system where the reusable asset manufacturer can track the assets between its primary trading partners the customer and depot. In this setting, assets are either recorded as inventory or balance. For example, when the manufacturer ships 100 pallets from its own warehouse to the customer, those assets can be recorded as inventory at the customers warehouse, or incurred as owing 100 pallets to the manufacturer. Depending on the type of shipment selection, masLogic is designed to handle both requirements.
Oftentimes, situations are far more complicated. A manufacturer may require tracking asset movements beyond its primary trading affiliates. This type of movement is a transaction that occurs between customer and end user, which is outside the course of 2-party scope. To combat challenges like this, masLogic offers two solutions: Group Modeling: Organize Trading Partners as Own Groups
In the Group Modeling approach, masLogic supports powerful internal movement tracking capabilities. This model as depicted in Figure 2, the top- most group or the pallet manufacturer has centralized control of data on all reusable asset movements shared within its network. The parties with which the assets are traded are arranged by sub-categories. With this Customer
End User Depot Reusable Asset Manufacturer Figure 1: Typical 4-Party Movement Scenario Reusable Asset Manufacturers Circle Customer End User Depot Reusable Asset Manufacturer Warehouse Warehouse Warehouse Warehouse Figure 2: Group Modeling Scenario masLogic - Tracking Reusable Assets with Multiple Parties using masLogic 1
level of organization, the tracking of information can be registered as internal transactions, where the data is entered into the system by the manufacturer of pallets and received by Groups consisting of customers, end users, and depots. These Group partners have two options of involvement to take part in the reusable asset management system or opt out. If the former is chosen, the user must first attain the pallet manufacturers consent and approval prior to logging in to the masLogic system and registered as one of the customer group members. This option offers a unique systematic method of tracking movements of reusable assets where both the shipper and receiver are given the options of electronically documenting shipment quantity for inventory by location along with balances with trading partners, and assigning liability to a specific party in the shipment flow. On the other hand, when parties decide to opt out of the system, the pallet manufacturer is wholly responsible for all transactional information that takes place amongst its network of trading partners without losing visibility. Independent Company Model: Trading Partners as Independent Entities
The second option provides companies with complete control of their own data, in contrast from Group Model that has control of all the movement of assets. In this model, every stakeholder is set up as an independent company profile with its own linear structure. The flow of transaction begins with Groups as administrators linked to their respective assigned Shipping Account users comprised of warehouses, trading partners, and internal departments. Each Group can authorize login accounts to Shipping Accounts and handle all data on behalf of the parties with which they trade reusable assets (Figure 3).
Customer End User Depot Pallet Manufacturer Warehouse Warehouse Warehouse Warehouse Figure 3: Independent Company Profile masLogic - Tracking Reusable Assets with Multiple Parties using masLogic 2
Under extenuating circumstances, both solutions can be combined to create a Hybrid Model that features both capabilities of the Group and Independent Company models.
To determine which solution is better suited for your company, consider whether managing reusable assets requires full control, then, scenario 1 or Group Model is a more viable option. Whereas, Independent grouping is geared more to companies needing their own system structure. Table 1 succinctly summarizes the capabilities of both models:
Capabilities Group Modeling Independent Company Model Control Centralized Decentralized Tracking Levels Inter-network transactions between: Group vs. Group Group vs. Shipping Account Shipping Account vs. Shipping Account One Group can be represented as the Customer, or one of its internal departments. In this case, masLogic supports balance reports at these various levels: o Company vs. Company o Department vs. Company o Department vs. Department o Shipping Account vs. Department o Shipping Account vs. Company o Shipping Account vs. Shipping Account From one companys perspective only: Company vs. Trading Partner Group vs. Trading Partner Shipping Account vs. Trading Partner
Shipment Shipper and Receiver are the same: Users from the same company play both roles Shipper and Receiver are different. However, in an external movement: Users from different companies play the roles of the Shipper and Receiver Set-up Complexity Setup per group: Initialize forwarding balance at group level Compared with Independent Company Profile: It requires additional steps: extra group level (e.g. Pallet Manufacturers circle) Fewer steps: Trading Partner, asset type, asset condition, role setup per company Setup per company: Initialize forwarding balance at company level Table 1: Comparison of Group vs. Independent Company Profiles masLogic - Tracking Reusable Assets with Multiple Parties using masLogic 3
However, the tracking levels and capabilities of these two approaches vary. Group Model, for example, can provide balance reports at departmental levels between the Pallet Manufacturer and Customer. With the Independent Company Model, the amount of information is limited to delivery address, contact, and company name, plus the company structure information is unknown to other stakeholders.
Aside from the capabilities and tracking levels, the adoption of either model could pose a challenge to many companies in accommodating many of their Group partners varying reusable asset management requirements. Oftentimes, the best practice is to set up the whole system by selecting one approach, yet in reality, certain procedures are more complicated. Suppose a pallet manufacturer chooses the Group Model as a platform, with organizational structure as reflected in Figure 2 where it is linked to its Groups. When one of these Groups decides to take itself out of the system, the Group Model chain structure breaks, thus limiting the amount of information collected on reusable assets as a result. In order to resolve this issue, it is imperative to carefully determine all the factors that could affect the efficiency of the selected model solution before choosing the ultimate model. Closing Remarks
Managing reusable assets can be a daunting and time-consuming task. masLogic offers viable solutions to alleviate key pain points. The Group Model approach is applicable to conditions where the requirements of tracking asset movement need a centralized control of data, while the Independent Company Model offers discrete, independent structure. Both platforms offer varying capabilities that allow tracking of reusable asset movements beyond 2-party transaction with features that can be scaled and configured, creating a unique solution that best satisfies supply chain industries existing procedures.
masLogic - Tracking Reusable Assets with Multiple Parties using masLogic 4