1 Package Marking, Packing List and Invoice Data Requirements for EB Receiving & Invoicing Approved for Public Release

Shipments to Electric Boat2 Introduction Problem EB Receiving Process Package Marking / Packing List Data Invoice Requirements Action Conclusion Approved for Public Release

Shipments to Electric Boat3 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 Approved for Public Release

Shipments to Electric Boat4 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 Approved for Public Release

Shipments to Electric Boat5 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! Approved for Public Release

Shipments to Electric Boat6 Topics Problem EB Receiving Process Package Marking / Packing List Data Invoice Requirements Action Conclusion Approved for Public Release

Shipments to Electric Boat7 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. Approved for Public Release

Shipments to Electric Boat8 Topics Problem EB Receiving Process Package Marking / Packing List Data Invoice Requirements Action Conclusion Approved for Public Release

Shipments to Electric Boat9 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 Approved for Public Release

Shipments to Electric Boat10 Package Marking / Packing List Data Approved for Public Release

Shipments to Electric Boat11 Package Marking / Packing List Data 11Shipments to Electric Boat Approved for Public Release

Shipments to Electric Boat12 Package Marking / Packing List Data Approved for Public Release

Shipments to Electric Boat13 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 Approved for Public Release

Shipments to Electric Boat14 Package Marking / Packing List Data 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. Approved for Public Release

Shipments to Electric Boat15 Package Marking / Packing List Data Approved for Public Release

Shipments to Electric Boat16 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 Approved for Public Release

Shipments to Electric Boat17 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 Approved for Public Release

Shipments to Electric Boat18 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 Approved for Public Release

Shipments to Electric Boat19 Topics Problem EB Receiving Process Package Marking / Packing List Data Invoice Requirements Action Conclusion Approved for Public Release

Shipments to Electric Boat20 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 Approved for Public Release

Shipments to Electric Boat21 Topics Problem EB Receiving Process Package Marking / Packing List Data Invoice Requirements Action Conclusion Approved for Public Release

Shipments to Electric Boat22 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 Approved for Public Release

Shipments to Electric Boat23 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 Approved for Public Release

Shipments to Electric Boat24 Conclusion Compliance: 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 Approved for Public Release