Audit Logistics makes every effort to save money for our clients, reduce damages, and reduce transit time of goods. Consolidating shipments can help accomplish all three of these goals.

Careful planning is a key factor in successfully consolidating shipments as there are a few ways it can be done. For the larger rollout projects where multiple hotels are being renovated at the same time, the client may be starting more than 60 projects at once. This requires that the goods from the vendor for each project be ready at the same time. Rather than sending each shipment as LTL for each individual project, we can coordinate with the vendors to ship as many of the project’s goods on one full truckload. This requires explicit communication with the carriers and vendors since there will be more than one delivery stop for the truck. Trucks must be loaded precisely and delivered in a specific order. Consolidating shipments is not limited to goods from just one vendor. There are many times when goods from multiple vendors are ready at the same time, and are in close proximity to one another. Audit Logistics can coordinate a full truckload by having the goods picked up from each vendor rather than shipping them individually.

Consolidating shipments not only saves the client money, but it can also reduce the risk of damages and result in faster transit time. When shipping goods through LTL carriers, the shipment could be loaded and unloaded multiple times increasing the risk of damage to the goods. By shipping full truckloads we ensure that the goods are loaded on air ride trucks taking them all the way to the final destination. LTL shipments may take 4-5 days in transit as they have to flow through multiple terminals while the full truckloads are point to point transit.

Taking the time to carefully consolidate shipments is one of the many ways Audit Logistics is working to benefit our clients.

We’ve all experienced the drudgery of going through airport security. Like you, your airfreight also goes through similar checkpoints and screenings in order to board the plane. Also like you, your airfreight may be flagged for more intense security screening.

Ensuring that your freight is expedited to the correct screening line requires you to give it proper attention before it gets picked up. The Bill of Lading must provide the correct ship-to address, shipper’s address, and accurate weight, dimensions, and descriptions of the goods. This is necessary for your freight to arrive at the correct destination, and that the appropriate amount of space is reserved-which will help avoid delays.

The transportation and delivery of your freight depends on the information supplied to the airline. For example, leaving out pertinent details about air freighting carpet can cause major delays in the shipping process. If the airline does not know how long the carpet is, or how much it weighs, it may not have the correct space allotted for the shipment. The air freight dock could also be ill-equipped to move the carpet from the trailer to the plane. By omitting something as simple as carpet width from the Bill of Lading, your shipment could be denied for the flight simply because the airline doesn’t have room to accommodate the carpet, or may not have a carpet pole extension for the forklift to load the carpet.

Only about 25 percent of air shipments will travel on planes carrying regular ticketed passengers. Most airfreight is placed on cargo planes and is screened by both the TSA and the airfreight companies. Since the attacks on the World Trade Center and The Pentagon on 9/11, the TSA has worked closely with Congress to mandate the screening of air cargo on both passenger flights and cargo planes. These new regulations apply not only to your freight, but to the people handling the freight as well. The TSA has increased the scrutiny of employee background checks, and has eliminated all cargo screening exemptions in the interest of national security.

Just as you would do prior to boarding a plane yourself, take care to follow the correct procedures and you and your air freight will get through the screening process smoothly. 

Colorado based Audit Logistics, LLC has been selected to provide freight and warehouse management services for the 81 guestroom renovation for the Hampton Inn & Suites, Texarkana, TX.  The property is owned by Apple Nine SPE Texarkana, Inc.  Hampton Inn & Suites, Texarkana is located on the state lines of both Texas and Arkansas proudly securing the only US Post Office to straddle two states.  Guests enjoy the complimentary beverage and breakfast area, clean rooms, comfortable beds, free internet and 32” flat-screen HD Televisions.
Audit Logistics, LLC is a Denver based freight and warehouse management company that mainly services the hospitality industry.  The company benefits hotel owners by offering web-based reporting, low costs, and green programs for both freight and warehousing. For more information please contact Dannelle Whatley at dwhatley@auditlogistics.com.
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The Inn at the Presidio will be located in Pershing Hall, a historic bachelor officers’ quarters building originally constructed in 1903.  The Presidio Trust is leading the rehabilitation of the building in partnership with the Architectural Resources Group. The project includes 22 guest suites, a reception/lounge in the historic officers’ lounge, and a dining room in the historic officers’ mess hall.  The interior design and furnishing highlight historic elements, while integrating new elements that embrace the modest character of the building.  The project is targeting a LEED Gold rating.  FF&E is being purchased through Ramsey Purchasing.

About Ownership: The Presidio Trust was established by the United States Congress in 1996 to administer the Presidio of San Francisco, an urban national park site located at the base of the Golden Gate Bridge. The Presidio is one of the largest and most ambitious historic preservation projects underway in the United States. For more information: http://www.presidio.gov

About Purchasing: Ramsey Purchasing is a San Francisco based firm, specializing in Furniture, Fixture and Equipment (FF&E) purchasing management services and related consulting for the hospitality industry. Since 1987, they have developed a reputation as a reliable, on-time and savvy purchasing firm.  For more information, visit http://www.ramseypurchasing.com

About Audit Logistics, LLC:  a Denver based freight and warehouse management company that mainly services the hospitality industry.  The company benefits hotel owners by offering web-based reporting, low costs, and green programs for both freight and warehousing. For more information please contact Matt Sysko at msysko@auditlogistics.com.
 

Westin Long Beach is located one mile from the beach with many of the 469 guestrooms and suites facing beautiful harbor views.  Guests take comfort in the Westin Heavenly Bed® and enjoy Starbucks® coffee.  Local attractions include the new Aquarium of the Pacific, many top restaurants and a lively night life.
 

Audit Logistics, LLC is a Denver based freight and warehouse management company that mainly services the hospitality industry.  The company benefits hotel owners by offering web-based reporting, low costs, and green programs for both freight and warehousing. For more information please contact Danñelle Whatley at dwhatley@auditlogistics.com.
 

By Andre Esteves – Project Manager

The US Customs and Border Protection Agency (CBP) have officially begun full enforcement of the new Importer Security Filing regulation on January 26, 2010, and non-compliance could cost you quite a bit in fines. The new customs regulation, commonly known as the “10+2” initiative, requires importers and carriers to provide additional advance trade data to CBP as part of the Security and Accountability For Every Port (SAFE Port) Act of 2006, for non-bulk cargo shipments arriving into the United States by vessel. It is important to know that the purchaser could be held ultimately responsible for timely filing of the ISF and not even know it.

The CBP, for the purposes of ISF filing, defines an importer of record as the party causing the goods to enter the limits of a port in the United States. In other words, when you issue a Purchase Order to a foreign entity you are in fact causing the goods to enter the US. Regardless if you are acting on behalf of a client, you are the importer of record responsible for filing the ISF and any fines due for late filing or incorrect data. The penalty imposed by the CBP is $5,000.00 in liquidated damages for a late filing, or $5,000.00 per error on an improperly filed ISF. There is no statute of limitation on these penalties and you could potentially be held liable for fines years after the fact.

So what is the Importer Security Filing?

The reason the ISF is known as the “10+2” initiative is because it consists of 12 data elements; 10 from the importer + 2 from the carrier. The data elements the importer is responsible for are as follows:

1. Importer of Record Tax ID Number
2. Consignee Tax ID Number
3. Seller Name and Address
4. Buyer Name and Address
5. Ship to Party
6. Manufacturer Name and Address (per line item)
7. Country of Origin (per line item)
8. Commodity HTS-6 Code (per line item)
9. Container Stuffing Location
10. Consolidator Name and Address

The ISF must be filed electronically at least 24 hours prior to vessel loading. It must be filed via the Automated
Broker Interface (ABI) and therefore the actual filing task is typically assigned to a representative of the importer
who is in the ABI system, such as a customs broker.

Navigating Around the ISF

The ISF regulation is not as scary as it may seem and can be easily managed by working with a good US customs broker and cooperative vendors. However, some purchasing firms do not want the added responsibility and risk. Thankfully there are options, albeit limited and perhaps not very cost effective.

According to the ISF regulation, the PO issuer is the ultimate responsible party and importer of record. One way to effectively transfer the importer responsibility of the ISF regulation is to issue PO’s to domestic entities and use domestic terms of sale. If that entity brings the merchandise into the United States from their offshore plant then they are considered the importer of record and will be responsible for customs compliance.

Another option would be to bring in goods to the United States via air or ground freight since the ISF only applies to Ocean cargo. These are viable options for product imported from Canada or Mexico for ground freight and smaller purchase orders for air freight. In any event, these options will drive up costs while reducing risk and now more than ever purchasing firms should carefully consider their options and plan ahead to avoid unexpected cost exposure for years to come.

By Matt Sysko

Freight claims can be a bit scary at times. Admit it, it’s a nightmare! Who damaged it? How did it get damaged? Was it the carrier’s fault? Concealed damage?How do I get it replaced? Will I be compensated for it?

Hi, I’m Matt Sysko, Audit Logistics Freight Claims and Research Manager. I’m here to explain the claims process and some exciting new updates within ALOT©, our online tracking inventory tool.

As you already know there is potential for damage in any shipment. Despite everyone’s best efforts to avoid accidents, they do happen. The contents of apackage can become damaged for a variety of reasons, such as inadequate packaging, weather, a traffic accident, or improper handling by the carrier.

Freight Claim Processing in ALOT©

Processing claims involves several steps, including, gathering documentation, and entering the claim in a tracking environment, submitting the claim,generating follow‐up to the carrier’s letters, generating claim forms and entering claim updates throughout the “life” of the claim. There are numerousfeatures within ALOT© that assist me with freight claim processing.

Freight Claim Reporting in ALOT©

ALOT© provides a number of management reports that assist me with tracking claims and determining the efficiency of our carriers. It also includes reportsbased on claim status, reason for closure, and amount recovered. There are also accounting reports, including specific details and performance charting.These reports will be sent out quarterly or when a close out is requested by the purchasing agent. The reports have several different delivery formats: AdobeAcrobat PDF (*.pdf), Microsoft Excel (*.xls), Internet HTML (*.htm), and Rich Text Format (*.rtf).

Life of a Claim

As you can tell, a very specific claims process has to be followed with the carrier to ensure that full compensation is received for the damaged items under theterms of the carrier’s insurance. Each claim process will be specific to the item(s) damaged and whether or not it can be repaired.Contacting your Audit Logistics Project Manager immediately to notify them of the damage is the first thing that must be done. To be safe, it is important tocall as soon as possible, preferably within 15 days. You then will be informed of the next steps in the claims process. Missing a deadline can cause the claim tobe delayed or immediately dismissed without further consideration.

Claim Filing Checklist

Prior to submitting your claim, please ensure it includes the following information:

• Description of the damage and an explanation of how it happened
• Complete original invoice, showing all discounts
• Repair invoice (if applicable)
• Inspection report (if applicable)
• Pictures clearly showing the damage

Important Terms

Cargo Claim: A “Cargo Claim” is a demand made upon a transportation company for payment, due to freight loss or damage alleged to have occurred while shipment was inthe possession of carrier. Pursuant to the National Motor Freight Classification (NMFC) Uniform Bill of Lading, all cargo claims must be filed within 9 months.

Concealed Damage Freight Claim: Internal damage not apparent until the package has been opened, you only have 15 days after delivery of the shipment to report any concealed damage. Ifyou do not report within this 15­day period, the carrier may decline the claim.