Expediting

Expeditor

Expediting Runs Both Ways.!

 Objectives
• Adherence to the Expediting work process is required as
per Client’s requirements./TPL policy

• This course will help you to find solutions and initiate

actions to eliminate minimise the schedule
delays/Delivery delays associated with orders handled by
you
 Safety
• All ways take care of your safety during expediting
visits
• Follow safety Procedure
• Know about Emergency exit, Emergency meeting
point & Emergency contact Phone Nos. at the Supplier
works
• Use all required PPE
• Adhere to safe work practices
 Expediting

Expediting is the facilitation of the timely

processing and shipment of material,
equipment, and supplies ordered by
company for its clients
 Expeditor Role
The expeditor becomes involved directly after a
purchase order is awarded. They also expedite priority
requirements when instructed by Client.

• The expeditor’s role ends when the material is

physically received and accepted at final destination
site according to set procedures
 Expeditor-Skill requirement
• Strong Works Ethic.
• Positive Attitude.
• Good Communication Skills.
• Time Management Abilities.
• Problem-Solving Skills.
• Acting as a Team Player.
• Self-Confidence.
• Ability to Accept and Learn From Criticism.
• Flexibility/Adaptability.
• Working Well Under Pressure
 Expeditor Responsibilities
• Expeditors having the Responsibility to ensure
that suppliers meet the contractual dates
specified in the purchase orders
• This involves Monitoring Supplier progress
• Monitoring and Coordinating some project
activities
• Working close with other expediting personnel
–whether office or field who are supporting the
project
 Expediting is a Team Effort

The Ultimate goal is to foresee and avert problems in the shop rather
than simply react to them
Desk Expediting – Scope of Responsibility

An Desk Expediting Engineer Effectively participates

in procurement process and has responsibility to
expedite vendor to timely deliveries of materials to
site in line with contractual specification and project
execution schedule, Maintains professional and
healthy relationship with vendors and suppliers and
provide objective vendor appraisals
 Field Expeditor Responsibility

• Visiting Supplier/Subcontractor manufacturing

facility to Check the work progress

• Anticipating and assisting in the resolution of

potential and or actual problem

• Providing report to Client’s project department

• Communicating with Client’s projects during

expediting visits
 Field Expediting

Expediting visits to the Supplier works are as per Client

Requirements

1.Resident Expediting-This is the expediting activity on full time

basis at Supplier works/Subcontractor works
2.Weekly Visit-Weekly visit for verification of Mile stone events
and the manufacturing status progress
3.Fortnightly visit-Biweekly visit for verification of Mile stone
events and the manufacturing status progress
4.Monthly visit- Monthly visit for verification of Mile stone
events and the manufacturing status progress
5-As directed by Client- Specific Visits as per client
requirement to verify the manufacturing progress at supplier
works
 Review the Purchase Order
Review the PO attachments to ensure
understanding the requirements
including

1.Contractual delivery date

2. Material Ordered
3. Drawing and Document submittal
requirements
4. Expediting
5. Inspection stages
6.Logistics
7.Invoicing/payments
 Contractual delivery date/Committed Delivery date

• Is the Contractual delivery period/date

based on PO issue date or Based drawing
approval
•Find out the milestone dates matching with
Client’s project schedule
•What are the necessary steps to be taken to
ensure that milestone dates can be achieved
 Review of Purchase orders
• Expeditors should be aware that there are several ways
to familiarize with the equipments including

• Expediting check lists

• Project specifications/ Material Requests
• GA drawings
• Supplier write ups/drawings
• Interpersonal communication
• Asking questions to procurement/supplier/RE
 Documents transmittal Requirement

• Expeditor to be familiarize with project

Documents transmittal requirement
• Expeditor must understand drawing and
documentation requirements related to activities,
submission, turnaround cycle time,methods by
which drawings and documents transmitted etc
Contractual Requirements For Expediting
Ensure Contract is permitting for expediting/Client
Authorisation for Expediting
• Authorization to TPL for Expediting
• Providing unpriced PO Copies by Supplier
• Providing Manufacturing schedule/Milestone dates by
Supplier
• Authorisation to make expediting visits to sub supplier
works
Understanding Inspection Requirements
• If the equipment to be inspected and cleared by
Inspector, Expeditor should have interaction with the
assigned inspector
• Assist inspector by motivating the supplier to correct the
quality issues
• Remember While every effort must be made required
delivery dates “quality and conformance to the
specification cannot be sacrificed”
• Close coordination between expeditor and Inspector is
required. Expeditor to ensure the availability of inspector
At Supplier place when required so he has to foresee the
Inspector requirements based on the work progress and
ITP stage requirement
Understanding Inspection Requirements
• Occasionally it is possible to improve the shipping
schedule of certain critical item by waiving the inspection
stage
• Inspection waiver should be coordinated through Client
QA Authority
• Expeditor have no authority to waive any inspection
stage must never imply possession of such authority
 Familarisation with terms

• Delivery terms- who is responsible for carrier

selection and freight cost

• Delivery Instructions-If Shipping instructions are

unclear or hard to follow ensure that this potential
problem is cleared before shipping

• Estimated weight and dimensions should be

reviewed in case provision must be made for
special shipping clearances, Low bed vehicles etc
INCOTERMS : INternational COmmercial
TERMS
“INCOTERMS define the mutual obligations of
seller and buyer arising from the movement of
goods under an international contract from the
standpoint of risks, costs and documents”
UNCTAD, 1990
These are a Set of international rules for the
interpretation of the most commonly used
foreign trade terms
If INCOTERMS used in the Purchase Order,
youshould identify the appropriate INCOTERM
Rule [e.g. FCA, CPT, etc.]
INCOTERMS-The Categories
Incoterms Code
Ex works EXW E Terms
Free carrier FCA
Free alongside ship FAS F Terms
Free on board FOB
Cost & freight CFR
Cost, insurance & freight CIF
C Terms
Carriage paid to CPT
Carriage and insurance paid to CIP
Delivered at frontier DAF
Delivered ex ship DES
Delivered ex quay DEQ D Terms
Delivered duty unpaid DDU
Delivered duty paid DDP
 INCOTERMS-E Terms: Departure

 EXW (named place)

Under E-terms, the seller minimizes his
risk by only making the goods available
at his own premises.
Export Import
SELLER Clearance Clearance BUYER

Goods

PRE -CARRIAGE MAIN CARRIAGE ON-CARRIAGE

Seller’s Risk

Seller’s Cost
 EXW = Ex Works

The seller fulfills his obligation to deliver

when he has made the goods available at his
premises to the buyer.
The seller is not responsible for loading the
goods on the vehicle provided by the buyer
The seller is not responsible for clearing the
goods for export, unless agreed.
The buyer bears all costs and risks involved in
taking the goods from the seller’s premises to
the desired destination.
INCOTERMS
 Know about Invoicing
Invoice/Progress Payments; If Payment terms require
advance or Progress payments, review the PO provisions
carefully

You may be asked to verify that specified payment milestones

have been achieved prior to payment

Beware of Customs documentation or invoice certification requirements

 Progressive payments
• Expeditor should review the payment provisions carefully,
• Expeditor responsibility to verify that the specific payment milestones
have been achieved prior to payment. Expeditor should understood
All provisions are clear
• Any progress payment schedules tied to Firm activities or milestones
that can be accurately measured .Are definitions are clear?
• Does the title pass upon payment of the invoice?
• Is there an effect on warranty
• Who verifies supplier invoices
• Who approves payment of invoices

Invoice Instructions: Know What is required

Particularly for the material shipped to overseas
Expeditor should aware of customs documentation
or Invoice certification requirements
Supplier Schedule
Obtain a milestone schedule covering essential functions
that must be completed if the promised delivery date is to
be met. These include, but are not limited to

Order entry
Engineering
Material procurement &
Receipt
Fabrication
Assembly
Testing and Final Inspection
Packing & Shipping
Engineering Data
Take time to study documents submittal requirements to
determine effect on Scheduling and delivery
• A Supplier generally cannot start engineering or
make effective progress without sufficient data from
Schedules
Client. must include
• If datas required from client not reached supplier a time frame
in time than all schedules will get affected for drawing
• Maintain followup with Client for input datas transmittal
and Engg.
• Remain alert on delay caused by Engineering issues
Review and
• Any holds on drawings by client should be disposition
reviewed in detail with supplier to determine on the
effect on supplietr manufacuring schedule.Potential
delays due to drawing revisions should be identified
and expedited for prompt resolution
Follow up with client project contacts to ensure
drawing review and disposition in accordance
contracts requirement
 Milestone points

• Order Entry
• Engineering
• Material Procurement and receipt
• Fabrication
• Assembly
• Testing and Final Inspection
• Shipping preparation and shipment
 Manufacturing Schedule
•Many supplier do not understand that progress reports
alone are not adequate.

•It must be emphasised that a Manufacturing schedule

required if their progress report is meaningful.

•Fabrication schedule will help expeditor to track &

measure the Manufacturing Progress
Understanding Supplier schedule
Understanding Supplier Schedule
Understanding Supplier Capability
Supplier Material procurement
Obtain and review the Master bill of Materials(BOM)
To find out what materials from inventory what must be
procured
During subsequent visits Progress can only be
ensure that supplier sub measured in a
orders are issued as
meaningful way if
required and that the
Supplier expediting there is a plan against
the material which actual status can
be measured
 Bulk Materials
• A systematic expediting effort is essential to ensure
Adequate flow of materials in the proper sequence
To meet the project requirement
A bulk order
may consist
of thousands
of items,
making it
impractical to
check every
item
Information presented by the supplier at each visit should be
verified on an audit sample basis .Use this technique to fully
Investigate weak points in the supplier program
 Supplier Manufacturing

Manufacturing Generally consists of the following major steps

•Fabrication-Work done in manufacturing to change raw

materials into components that will later be assembled into
finished
goods(e.g.,Machining,forming,fitting,welding and machining)

•Assembly- Activity required to bring together all purchased

and fabricated components into a completed item

•Testing- Techniques used to show that the equipment, as

manufactured ,would perform the function for which it was
designed
 Supplier Manufacturing
• Coating:- Application of paint,galvanising,lining etc., as
required by technical specifications
• Packing and Shipping;- May require time after
completion of assembling,testing, for cleanup,disassemly
&Packing.
• It should not be granted that shipment will be made
immediately after testing

Visits should be
made to coincide
with planned
milestone activities
Eliminating delays
• Project Expeditor is responsible for formally protesting
the unacceptable schedule delays

• Don’t make unreasonable and unrealistic demands that

Only leads to unrealistic promises from supplier
Common Problems for Delays
The following issues can be common problems
for expediting

Drawing Approval Rework

Sub contracted Material Deficit

Material/Service

Fabrication Failure of Inspection or test

Assembly Painting/Coating

Packing & Transportation

 Bits of wistom
Do not be restricted by usual supplier contacts-Speak
to executives, the actual people doing the work, or any
one who can help you achieve your coal
 Common Problems-Supplier

•Frequently the supplier does not recognise the cause

of the delay may exist within the supplier organisation.
•Often expediting must convince the supplier there can
be done to correct the situation.
•In many cases the Expeditors normal contact has
limited authority to make decisions that might affect
overall shop operations.
•Therefore the supplier management should be made
aware of the unacceptability of certain delays and
convinced of the necessity for taking action to minimise
or eliminate the delays
 Common Problems
• The solution to time recovery may not be related to the
problem that caused the time loss
• Whether the problem is created by client or the supplier.
provide the same level of follow up and resolution.
If Engineering is causing a delay that cannot be
resolved, the problem should be escalated to Project
Management.
• The delivery requirements for material do not remain
constant. Expediting efforts to be modified according to
material delivery requirement at Site
 Drawing Approval
• Delayed drawing approval is often valid reason for
delivery Slippage

However

This can be the result of poor documentation control by either

supplier the client or both

Ascertain where the delay occurs and respond accordingly

Remember that documents submittal/turnaround should be
Included in the Manufacturing program and progress should be
Monitored
Sub contracted material/services
The prime supplier is responsible for the integrity of the sub
orders and must pass on all relevant specifications
And instructions

View sub supplier commitments and compare the dates

with overall production plan, highlighting any critical items
where delivery could be in doubt

It is not good to
blame sub supplier/
subcontractor for missing
delivery
 Fabrication
• Most slippages occur in Fabrication
• Usually as a result of inadequate or in effective
production control

Which is were you

come in

• Monitor this area closely and ensure that the supplier

adheres to the agreed schedule
• Encourage the supplier to work overtime at his own cost
Or to reschedule other work to recover any slippage
 Assembly
• The most common reason for schedule slippage in
assembly is a bottle neck and in one of the necessary
stages(eg., Machining ,Testing etc..,)

• Ensure that the supplier has scheduled assembly activity

and the capacity is available
 Rework
• Reworks hamper the progress, when rework happen
Request for a recovery plan and follow up it to get back
in the original schedule
• In situation when machining error occur and alteration
Or replacement is necessary, Review the proposed
recovery plan and assess the supplier capability to
Comply
• Encourage the supplier to work overtime at his own cost
Or reschedule other work to recover any slippage
 Material Deficiet
• This situation often happens because smaller items
Have been overlooked and not ordered but turnout to
Have long lead times
• Verify that all material has been ordered or can be
obtained to meet program requirements

PREVENTION is better than cure in this area

Inspection and test failures
If
Rectification
is possible
ensure that
all parties
agree on
procedures If Rectification is
not possible,
ensure that the
supplier is
expediting the
required
replacement
material

Overtime should be worked at the

supplier’s cost to pull back the slippages
Painting and Coating
• Identify whether coating/painting will be done indoor or
Outdoor, how plans might be affected by wheather
Conditions, other orders etc.,
• Includes adequate time in schedule for specified
painting/plating/coating- including the inter coat intervals

• Accounts for inspection time for coating as required

Packing and Transportation
• Delays can be experienced because adequate packing
And delivery arrangements have not been made(Eg.,
treated wood, lifting beam etc.,)

• Lost time can be recovered by using fast transportation

method
Expediting Report-Writing
• You must aware that Client is far away from the Supplier
and does not have the clear picture who the supplier is
or What is going on the shop

• Report should be a expediting report and not status

report
 Expediting Report-Writing
• Using Client’s format for reporting if applicable
Details required as per the reporting sections to filled up .If not familiar with
report format, Refer other expeditor report or get help from the inspection
coordinator

• If there is no client format then you can design the format according to
Requirements within TPL format

• In general the report should contain the below

Visit summary
Action areas /Area of Concern
Engineering status/Document submission & approval
status
Procurement status
Manufacturing status
Inspection and Test status
Logistic status
Expediting Report- Visit summary

• Should be brief on Critical points

• Other details to be mentioned in respective sections
Highlight current shop activity to create attention
Mention if the details provided in other sections
Expediting report- Action Area

• Identify all actions required by the Expeditor, Project

Personnel, Supplier or the Client. Date the action was
identified and expected completion dates

• Note that Client/Project may expedite between your

expediting visits
Engineering status
Engineering Status
Mention approximate percentage of completion of supplier
Documents submittal according PO/Project requirements
- Drawings
- Procedures
- Data Sheets

Comment on Supplier ability to provide engineering status and

provide opinion on expected dates of submittal by supplier

Highlight any document submittal causing delay

 Expediting Report-Procurement status
Know what is
on hand as well
as what is
needed to
fabricate the
final product.
This section of
the report
should provide
firm evidence
that you have
• Report the details based on Bill of material what material in hand and
what material ordered
• Collect un priced PO copies and mention the tracking progress of all
sub ordered items
• Physically ensure the receipt of components/materials and then report
Expediting Report-Manufacturing status
• Know what steps are required. This section of report
Should provide objective evidence that you have
√ Visually checked progress against planned
Schedule
√ Sought expose any barriers to the planned
schedule

• Do not hesitate to provide your opinion of the supplier

ability to achieve their stated objective
Expediting Report- Inspection & Test status

• Provide the details of current and impending inspections

• Record your efforts to ensure that the supplier provides

Proper notification or call letter for inspections

• Highlight areas where difficulties have occurred during

course of inspection
 Logistics
• List all information relative to the transportation
or forwarding the goods
Logistics
 Expediting
• Expediting involves keeping the product on schedule
with daily product reports
– If the schedule is broken, corrective action might
include:
• Overtime
• Retraining workers
• Changing operations to improve efficiency
• Holding a motivational meeting
Expediting-Tips
Be persistent
• The best expediter is the one who bugs the heck out of the
supplier.
• The best axiom for expediters is still: "The squeaky wheel,
gets the grease".
• A good expediter gets all the details and is continually
asking questions such as: Can you work overtime? How
many can you make in an hour? What operation are the
parts at? How many operations are left to complete? How
many pieces will be done by two this afternoon? How many
can you ship now? What is the bill of lading number of the
shipment that just went out? How can we help?
• A good expediter will stay on the line until an acceptable
answer is received. A persistent expediter calls each hour
to find out how many parts have been completed.
Go up the chain of command

• The good expediter will go up the supplier's chain of

command until he gets an acceptable answer.
• If the inside sales contact or the normal contact can't get
an acceptable answer, contact his boss.
• Its amazing the miracles the president of the company
can produce. You are the customer.
• As an expediter you can go up the supplier's chain of
command to get your parts shipped
Look for other options

• This is the area of expediting that requires the most

experience and creativity.
• The good expediter must look for other options to
relieve the shortage problem.
• Is there an alternative part that can be substituted?
Can another supplier produce the part quicker?
• Are parts available from a distributor, dealer, another
customer or from another division of the company?
• The buyer should be involved in this stage to look for
other options to fulfill the requirement.
It's not always the supplier fault

• We have all encountered suppliers who don't deliver

on time, but many times the problem is not the
suppliers.
• Some common internal problems that can cause the
need for expediting are:
– Poor inventory records
– Poor forecasting
– Frequent schedule change
 When expediting, make sure to know who caused
the problem. An overly aggressive, harsh approach,
when the supplier was not at fault, can make the
situation worse
If you don't measure it, you can't improve it

• It is important to measure how your suppliers are doing

• There are many ways that delivery can be measured
• Manual or mechanical tracking against the schedule
• Tracking of Supplier Procurement status
• Tracking of Supplier deliveries
• Measuring Delayed deliveries and short supplies
 Look beyond the fire fighting

• Look at the root causes of the shortage or problems that

• Makes hurdles for the scheduled delivery
• If the root cause is Supplier problem find the way to
come out of it,
• If the root cause is Client’s problem escalate the issue
to project Manager to clear the hurdles within shortest
period
• And try to foresee which will become hurdle and how to
get out of it
Thank you