Dynamics AX 2012 architecture for carton, packages and pallets


When shipping goods, there are many requirements that needs to be fulfilled. You have the ability to have correct addresses, customer requirements, freight forwarder requirements and legal requirements. To solve this we have many different “systems” in Dynamics AX 2012 (and earlier versions) to solve each of these requirements. Some of these systems are:
  • Sales Shipping Stats – Print the std. AX delivery label, and get volumetric information on the packingslip/invocie.
  • Bill of Lading – A document used with the freight forwarder to keep track of where to deliver the goods.
  • Packing material – A system to keep track of fees related to packing material
  • Ship carrier integration – A system for integrating to shipping software, like UPS Worldship og Clipper ship. Can also be used in „test mode“ if you don’t have such a shipping software.
I have gone as deep as possible into the subject to understand, and my judgment is “The data model for storing and maintaining package information in Dynamics AX 2012 is a mess!” In reality we have more than 4 different systems for maintaining package information. In reality this means we could have 4 versions of the truth. And to cover all eventualities and requirements of a advanced distribution company we need to make sure that we update all the necessary information in all 4 different systems. If Microsoft is reading this post, my suggestion for the next release is to combine these systems into one.
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But it can take several years before our customers could benefit from such a change. So this blog post is about how we can make this work with what we have. First I will go deep on each of these 4 “systems”.

Sales shipping stats

The first “system” is the Shipping Specification. These are fields you register when you do packing slips.
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Here you can also select to print out the standard AX delivery label.
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The design is not very impressive and it clearly needs some customizations to make this acceptable for any customer of freight forwarder. But I guess that the idea from Microsoft is that shipment labels is not printed from Dynamics AX, but from a shipping software.
There also exists an inquiry form, where you can reprint the standard Dynamics AX 2012 delivery labels. I have found this menuitem available in the main manu under sales –> inqueries –> distribution –> Shipments. (Quite confusing since this is a terminology used for WMSShipments)
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After the packingslip is posted, the user cannot change the data here.
The information of this is stored in a table called SalesShippingStat.
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The “filling” of this information is manually done before doing a packing slip update, but it gets “marked” with Packingslip ID in the following code.
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We see from this code, that the Sales Shipping Stat system does not have any uniqueness on the data or cartons. This code just related to get the summary of weight and cartons on the packingslip. Also see that the SalesParameters.useShippingStatOnPackingslip must be enabled for it to work.

Bill of Lading

The bill of lading is a receipt for goods that the carrier agrees to transport and to deliver to a designated person. It shows the list of goods delivered for transportation. In case of loss, damage, or delay, the bill of lading is the basis for filing freight claims. The bill of lading includes information about:
  • The customer order.
  • The carrier.
  • The origin and destination of the shipment.
  • The number of units in the shipment.
  • Freight charge terms.
  • Special instructions.
The bill of lading system is originating from the shipping module, and do not share any information with the SalesShippingStat system. It makes it possible to create a formletter like this :
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The bill of lading can be both automatically and manually created,
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The Bill of lading system is much more comprehensive than the sales shipping stat system, because it is possible to have some kind of unique ness.
The tables and fields used in this system is the following:
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As seen here, the tables are missing the WMSPickPalletId or any SSCC-capable fields.
The tables refers to the following :
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The automatic creation of BOL’s are done in the WMSShipment.ship method:
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What I would expect from the BOL, is that the uniqueness of each package/pallet would be more clear. In a consolidated picking scenario we do have the WMSPickPalletID, that could provide this uniqueness, but this information is never passed into the bill of lading tables.
There is therefore no way to pass information like SSCC etc, or to use the BOL system as a basis for ASN/EDI processes. It is all about creating the Bill-Of-Lading document.

Packing material

The third way of dealing with packing material is the Packing material tables
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The packing material is primarily for calculating a packing material fee. The table is normally filled in when a sales invoice is posted.
The tables look like this:
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The packing material system therefore seems to only have one single function. To keep track of packing material fees, and not for logistical purposes.

Shipping carrier integration tables.

The shipping carrier interface feature allows Microsoft Dynamics AX customers to integrate with shipping software. The shipping software packages can pull information from Microsoft Dynamics AX, process packages, and then move their information into Microsoft Dynamics AX, eliminating manual entry and improving tracking visibility.
In the Shipping Carrier Interface for Dynamics AX 2009, Microsoft described this feature as this in the following whitepaper.
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It is intended that the packing is handled in an external shipping, and then later transferred to Dynamics AX. This is described as a process that happens between packing slip and invoicing.
It is possible to manually fill in the information, by placing the carrier integration in “test-mode”. When posting the packing slip update, then the following screen will appear:
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If we look deeper into the implementation of this ship carrier system, we see that it is interesting, because it does contain much what is needed. I would say that it is the best “survival candidate” of the 4 different systems.
What happens, when the packingslip is posted is the following:
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PS! Check out the calculation of the ShipCarrierCODPackage.codAmount. It does not cover discounts!
The fields in the requester table contains the following:
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It is a bit sad, that it does not transfer any information about already created pick pallets intothe ShipCarrierShippingRequest. In a consolidated picking scenario often these pick pallets have already been created, and it would simply the process of that was available for the shipping software.
It is in the process made so that the shipping software will return data into a staging table, that contains the following fields.
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What is interesting here, is that the PackageId field, that is actually extended from WMSPickPalletId. So this means that pallet ID can be returned back. What is missing is information about width, height, length and volume. But Microsoft have placed this information in the table ShipCarrierCODPackage:
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But this volumetric information is never filled in by standard AX. The table is only created from AX if there is a COD(Cash On Delivery). 

A solution suggestion

There are some facts. We have AX 2012 and AX 2014 is not here yet. Our customers hate large footprint customizations, because they make upgrades more difficult. And there is already many dependencies in AX 2012 that we need to take care of. So what do I do for my customers ? I cheat the system.
  1. When picking all picking transactions will be marked with a pick pallet ID.
  2. When Packing I have a new table, that is quite large and „flat“, but contains almost all I need to fiels for my labels, freight charges, weight, volumetric information ++++
  3. After packing is done per shipment, then I will generate information’s into all the 4 systems from the „New architecture“ system, and prevent the standard AX to generate this information.
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This gives me much more control, and also the ability to have uniqueness on all outbound cargos, tracking +++. And my footprint is ZERO in standard AX, and compatible with my PDA and label printing system (BTI)
Posted in Dynamics AX 2012Warehouse ManagementX++ | 3 Comments

Shipping Container Labeling guide

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Major retailers have identified incorrect logistic unit (pallet) labeling as a major emerging supply chain issue. A recent sample audit found that approximately 44% of pallet labels are not meeting agreed upon industry requirements. The issues they face include:
  • No label has been applied
  • Label is in the wrong location
  • Information on the label does not match what is on the pallet
  • Multiple labels with different Serial Shipping Container Codes (SSCC) been applied
  • Pallet label will not scan
  • Stretch-wrap has been applied over the pallet label so it doesn’t scan
The following information contains guidelines and general information on how to create and apply good quality logistic (pallet) labels as per the standard requirements of the Retail Industry.
As the Retail Industry adopts the key principles of Efficient Consumer Response (ECR) there is increased demand for high quality data capture at all points in the supply chain. Although the industry has been numbering and bar coding trade items for a number of years, the biggest emerging problem in the supply chain is logistic unit labeling.
With the migration to more and more automated scanning in warehouses and distribution centres, it is imperative that suppliers and their logistics providers ensure 100% scannability of all bar codes which will bring mutual benefits to all trading partners. Printing and applying a good quality bar code label that complies to industry standards and which is scannable by all trading partners’ costs no more than printing and applying a bar code label that doesn’t scan.
This document and its recommendation should be read in conjunction with other GS1 technical guidelines as well as retailer specific documentation all of which can be accessed and downloaded from their respective websites. 

The Importance of Logistic (Pallet) Labels

The use of the logistic label incorporating the Serial Shipping Container Code (SSCC) by all parties in the supply chain, from manufacturers to transporters, distributors and retailers, is seen to be inevitable for the identification and tracking of pallets and other forms of logistic units. The purpose of the GS1 logistics label is to uniquely identify specific information about the pallet clearly and concisely in a standard format, to facilitate the process of moving products through the supply chain quickly and efficiently.
Industry Business Benefits of GS1 Logistics Label
  • Logistics Units are identified with a number that is unique worldwide
  • GS1 standards are global and apply through the entire supply chain, from raw materials supplier to manufacturer to distributor/wholesaler to end user/retailer.
  • Provides a link with bar coded information on a logistics unit and the information that is communicated between trading partners via electronic business transactions.
  • Use to identify contents of pallets, including stock data, use-by-dates etc
  • Contributes to efficient management of stock rotation at a glance
  • Saves costs by doing it once
  • Avoids multiple label types (industry standard)
  • Faster receiving, quick turnaround
  • Improves data integrity – use by date and quantity fields
  • Stock rotation based on use by date
  • Pallet tracking from vendor to retailer can assist product recalls
  • Works in conjunction with a Dispatch Advice – Advanced Shipping Notice (ASN)
  • SSCC can be used for both inter and intra-company transactions.
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Fig 1: Example of Numbering & Bar coding Labelling Hierarchy 

Logistic (Pallet) Label Requirements for the Retail Industry

The GS1 Logistics Label can typically have many different formats. The SSCC is the only mandatory piece of information that must be contained on the label itself as ideally the information flow, which accompanies the physical flow of goods, is communicated between trading partners by EDI.
In practice, however, fully automated communication channels, which make it possible to rely exclusively on electronic files for retrieving information on the movements of goods, are not always available. In this situation there may be a requirement to add additional information to the logistics label to facilitate the process of the logistic units through the supply chain.
The purpose of the GS1 logistics label is to provide information about the unit to which it is fixed, clearly and concisely. The core information on the label should be represented both in machine (bar code) and human readable form. There may be other information, which is represented in human readable form only. 

What can go wrong? – Common Pitfalls

It is imperative that suppliers and logistics providers ensure 100% scannability of all barcodes. There are many reasons as to why pallet labels may not meet industry requirements. Here are some examples:
  • Label position incorrect
  • No pallet label applied
  • Multiple or mismatching SSCCs on the same pallet
  • Duplicated SSCCs
  • Damaged label such as creases and folds.
  • Will not scan due to incorrect bar code symbology or poor print quality
  • Label applied underneath stretch wrap
  • Pallet label applied to only one side of the pallet
  • Product information applied in the bar code does not match the product on the pallet
  • Pallet label bar codes not scanning
    • Ribbon wrinkle with thermal transfer application
    • Print-head element failure leading to a line through a black bar (split bar) within the bar code
    • Poor print quality – faint print due to the label print-head heat being too low or the print speed too high
    • Poor print quality – bleeding print due to the label printer print-head heat being too high with the print speed too low
  • Handwritten changes are not reflected in the bar code and are therefore not permitted on pallet labels
  • Label applied over carton joins/seams causing tearing
  • Label Dimensions
The business requirements for most users of GS1 Logistic Labels are met by using one of following:
  • A6 (105 mm x 148 mm) – 4 x 6 inch, which is particularly suitable when only the SSCC, or the SSCC and limited additional data, is encoded
  • A5 (148 mm x 210 mm) – 6 x 8 inch
However, the label can be any size that suits the labeller’s requirements, but it must be  large enough to carry all the information required together with the GS1-128 bar codes.
Factors influencing label sizes include the amount and a type of data required the content and X-dimensions of the bar code symbols used, and the dimensions of the logistic unit to be labeled.
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Example label used for single product parcels and pallets, with GTIN information.
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Example label used for parcels and pallets with AI 403 – Routing code without GTIN and product information. 

Logistics Label Requirements


Label Size

  • The minimum label size is A6, 105mm x 148mm, however larger label sizes such as A5 or A4 are permitted

Label Format

  • The label layout can be either portrait or landscape
  • Information contained in the top bar code can be broken down into more multiple bar codes if required, in order to maintain a larger magnification (bar width)

Label Location

  • Two identical labels, one placed on each fork entry side
  • Label should be placed between 50mm – 100mm from the right hand vertical edge
  • Label should be placed between 400mm – 800mm from the base of the pallet
  • The target placement of the label (top of SSCC bar code) is 600mm from ground level

Label Data and Application Identifiers

  • · SSCC (Serial Shipping Container Code) – AI (00)
    • It is recommended that additional information not be included in the SSCC (00) bar code unless feasible
  • GTIN of the product – AI (02)
    • The data format for AI (02) is that it has to be numeric and 14 digits in length. Note: that if your carton barcode number is 13 digits, you need to include an additional zero at the beginning to increase it to 14 digits
  • Quantity of trade units on the pallet – AI (37)
  • Date Information YYMMDD – Mandatory if this information is on consumer unit
    • Use By Date – AI (17)
    • Best Before Date – AI (15)
    • Packed on Date – AI (13)
  • Batch Number, if on consumer unit – AI (10)
  • Total Net Weight (excluding wooden pallet weight – A1 (310n) where n = number of decimal places eg. 3102 = x.xxkg, 3101 = xx.xkg, 3100 = xxxkg

What is a Serial Shipping Container Code (SSCC)

The Serial Shipping Container Code (SSCC) is a reference number or license plate used to uniquely identify logistic units (pallets). In Dynamics AX the Pallet ID is most used for this.
The SSCC acts as a “reference key” which can be stored in a computer system to which information can be added and shared amongst trading partners as the logistic unit moves throughout the supply chain. This unique “license plate” provides the opportunity to track and trace logistic units in the supply chain.
Scanning the SSCC marked on each logistic unit allows the physical movement of units to be individually tracked and traced by providing an information flow. It also opens up the opportunity to implement a wide range of applications such as cross docking, shipment routing, automated receiving etc.
The SSCC is used to uniquely identify goods on the way from sender to final recipient, and can be used by all participants in the transport and distribution chain.
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Figure 3: The Use of the SSCC throughout the supply chain. 

Allocating an SSCC

The SSCC is a unique, non-significant, eighteen-digit number which is assigned by the company constructing the logistic unit. It remains the same for the life of the logistic unit. The SSCC is encoded in a GS1-128 Bar Code and is represented by the Application Identifier (AI) 00.
When assigning an SSCC, an individual SSCC must not be reallocated within one year of the shipment date from the SSCC assignor to a trading partner.
How you allocate an SSCC depends on the length of your assigned GS1 Company Prefix. Your company cab ne allocated a seven- to nine-digit GS1 Company Prefix.
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Application Identifier (00)
Used in the GS1-128 Bar Code to identify that the data following is an eighteen-digit Serial Shipping Container Code (SSCC)
Extension Digit
A digit (0-9) used to increase the capacity of the Serial Reference within the SSCC. The company that constructs the SSCC assigns the Extension digit to the logistic unit.
GS1 Company Prefix:
The GS1 Company Prefix is allocated by GS1 Member Organisations. GS1 allocates nine- or seven-digit GS1 Company Prefixes. It makes the SSCC unique worldwide but does not identify the country of origin of the unit.
Serial Reference:
A Serial Reference usually comprises seven digits (nine digits if the GS1 Company Prefix is seven digits) and uniquely identifies each transport package or logistic unit. The method used to allocate a Serial Reference is at the discretion of the company coding the package. In Dynamics AX this can be the number sequence of a WMS pallet
Check Digit:
Calculated using a mathematical formula.

Logistic Label Location on parcels

For parcels, symbol placement will vary slightly in practice; however the target placement for the bottom of the bar code symbol is 32 mm (1.25 inches) from the natural base of the item. The symbol including, its quiet zones, should be at least 19 mm (0.75 inches) from any vertical edge to avoid damage.
For smaller packages, which may be sorted automatically on a conveyor, the label should be placed on the largest surface.
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Logistic Label Location on pallet

Industry Requirements is a GS1 Logistics Label to be placed on each fork entry side.
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If the pallet height does not permit the pallet labels to be at least 400mm from the ground, then the pallet labels should be placed as high as possible on the right hand side on each of the fork entry sides of the pallet.
If the pallet needs to be stretch wrapped for stability, the pallet labels must be applied to theoutside of the stretch wrap as shown above in order to achieve optimum scan rates.
Where there is only one layer high of the trade unit on a pallet and the trade unit height is less than the height of the pallet labels. Please ensure that the bar codes of the labels are on the vertical face of the trade unit with the human readable portion of the labels folded over onto the horizontal surface of the trade unit as shown below. 

Typical Retailer Receival Processes

  • On arrival, a receiving checker will key the purchase order number or appointment number (for a multiple PO truck) into the PDA/Radio Frequency (RF) receiving unit.
  • The receiver will then proceed to the first pallet on the truck and scan all of the bar codes on the pallet label.
  • The RF scanner will send the information back to the WMS that will verify the quantities on that pallet against the order quantity on the PO. The WMS also verifies the pallet information is correct and checks that the date code on the item is suitable against the minimum and maximum dates set in the WMS.
  • If the pallet is accepted then the receiver moves along to the next pallet and repeats the process. If the pallet is not accepted the checker will conduct an investigation to identify the issue and will re label with a generic label if required.
  • Once all pallets are received, the checker will confirm the total quantity against the invoiced quantity and then close the load ready for the pallets to be put away by forklifts using RF scanners. The WMS determines the final location in the warehouse during the receival process.

Typical B2B ASN Receival Processes

  • On delivery into any receiving location, a receive checker will count the logistics units, (eg: number of pallets) and compare them to the driver’s consignment note and stamp the document accordingly. This is the initial proof of delivery.
  • The merchandise is then electronically scan receipted once it arrives at receiving locations. The Advanced Shipping Notice (ASN) must have been transmitted to the receiving company before the goods arrive in order for it to be validated (and rectified if necessary).
  • Receiving staff will validate that all SSCCsas noted in the ASNare physically received by scanning each Logistics label at the receiving dock.
  • When all SSCCs are accounted for, this will trigger the internal processing to update the stock and PO records and provides information to payment systems.
  • Logistic unit contents will be checked to ensure contents exactly match ASN details.

Manufacturer/Supplier Considerations

Pallet Label Quality Standards

Controlling label quality variation requires an integrated quality process incorporating people, processes, procedures and equipment.
Typically there are two options for the application of the pallet label:
  • At the point of manufacture, or
  • At the point of dispatch
The decision on when to apply the pallet label is dependent on individual organizations practices, including manufacturing, warehousing, order assembly or third party service providers.
The SSCC label standards should be incorporated into internal standards and available (electronically) to all factories and warehouses. The same standards are communicated to third party providers both at contract time and by the use of training packages, if necessary. Visual aids are encouraged in factories, warehouses etc to impart SSCC label standards, especially positioning of the labels.
With many automated and manual labeling systems check scanning controls can be purchased as part of the system, providing a level of automated bar code quality checking and control. These systems incorporate a check scanner at the front of the label printer so that as each label is printed the bar code is scanned to check quality. If a fail to read occurs the printer can print void on the erroneous label and re-print. After multiple failures i.e. 2 or 3, the unit will stop and raise an alarm. 

Considerations

  • Automate the data sources to simplify printing and reduce the need for data entry.
  • Label design tested and sent to GS1 testing service for its verification report
  • Document processes
  • Train staff to visually
    • check the pallet label and position applied
    • scan label barcodes to ensure readability
Incorporate checks for
  • Correct Bar code symbology (GS1-128)
  • Label placement
  • Label verification
  • Label Defects

Visual Checklist

Does the data encoded in the pallet label bar codes match the product on the pallet eg
  • GTIN
  • Batch number (if applicable)
  • Quantity
  • Date code information, eg. best before or use by date
The pallet labels applied to the pallet must contain the same SSCC. Pallet labels should not be placed over two separate cartons. Pallet labels should be placed on the outside of the stretch-wrap. Determine if any white lines running vertically through the black lines of the bar code that may hinder the bar code from scanning are evident. 

Audits

It is recommended to perform a compliance audit of the labels coming from each factory, warehouse and third party provider every quarter. Results should be reported back as percentage compliance and the issues found highlighted, together with photos, if necessary. 

Training

It is imperative that anyone that is required to print or apply pallet labels understand
the industry requirements. Training and documentation is widely available. 

Use of KPIs

Establish performance metrics as part of the pallet quality checking procedures. This could be plotted graphically by warehouse upon feedback from trading partners.
The data should be circulated to all factories and warehouses including third party logistics providers, each week with any relevant comments. Provide all of the raw data obtained to help find solutions to particular issues. Include the overall trend of performance for the last twelve months
Communicate progress to factory and warehouse managers at regular operations meetings to ensure the focus is maintained on the importance of achieving this and other key supply chain standards. 

Third Party (3PL) Logistic Service Providers

  • What role/service are they providing
  • Are they applying labels
  • Have you incorporated them into your logistic unit labeling requirements
  • What label application and quality control process do they have in place
  • Are they scanning any part of the label prior to dispatching goods
  • What is their label printer cleaning and maintenance process

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