July 2014

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Case Study:

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How to:

From the Editor

In the Works

New Way to Summarize Items in Sales Orders

If your business resells items, the 9.7 version of Magaya software will have the option to add items to a Sales Order and then make changes to a group of the same items and view the group instead of many separate lines.

How it Will Work

Items in Sales Orders are displayed on separate lines if the status is different. For example, if you add 20 items and 10 are on hand, 5 are arriving and 5 are on backorder, then you will see all this in-formation on separate lines. To simplify the view, you will have the option to check the new box “Summarize entries.” This will group them by part number regardless of their status.

You will also be able to see the image and other information by clicking the new “Show Statistics” button on the Commodity tab. Then you can double-click a line item and edit the information for all the items with the same part number, instead of one at a time. You will be able to change the description, price, unit of measure, or the promise date for all the items at once, instead of one by one.

This setting will be available per Sales Order or system-wide in Configuration > Sales.

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Landed Cost Management

June 2014

SGK Global

the new Landed Costs feature to account for all the transportation costs, duties and other fees that add to the price of inventory items.

SGK Global Shipping Services arranges air

shipments of urgent cargo to West Africa for the oil and gas industry. Find out in this case study how they use the Magaya Cargo System to keep track of shipments and cargo so they can answer customer questions quickly.

Welcome to July Magaya Insider. This month’s how-to article shows you how to use

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Introduction

This how-to article explains a new feature in Magaya software version 9.5, landed costs.

Landed Costs are all the costs of items such as transportation costs, duties and taxes, in addition to the cost of the item itself. This is ideal for wholesalers and others who pur-chase inventory and resell it. Learn how to set up your Magaya system to use this new feature so you can know how costs are prorated across items and then included in your Inventory Asset Account. Landed costs are available in the Magaya Supply Chain Solu-tion and Magaya Commerce System.

Configure Your Magaya System for Landed Costs

Go to Maintenance > Configuration > Accounting. Click the “Cost” tab.

Click the checkbox to activate the Landed Cost options. When you check this option, also decide how to prorate the charges, by cost or by pieces.

The Landed Cost setting automatically prorates the costs and creates the asset adjust-ments for additional charges found in Purchase Orders (PO) when the bill is created from the PO. If you bill a third party, instead of the main vendor, the landed costs are also updated. If items are added or removed, the system updates the landed costs.

Save the configuration.

Landed Costs in “Items & Services”

To use landed costs, you must tell the system which item in the Items & Services list will calculate landed costs:

• Go to the “Items & Services” list.

• Select the service charge such as Inland Freight Cost, and double-click to open it.

• On the tab “Landed Cost,” check the box to include this non-inventory charge in Landed Cost. (Note: This tab only appears when configured to activate it.)

What will happen: When a PO is created with this Inland Freight charge, the charge will be distributed (prorated) across the items in the list. See the PO dialog box to view how the costs are prorated. Tip: Right-click in the Commodities screen of the PO to choose the columns if needed to view them. The column “Other Costs” means costs non-inven-tory costs.

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Remember: Only costs that are defined as Landed will be included as Landed. Be sure the services or items in your Items & Services list are marked as Landed.

When a PO with charges for landed costs is billed, the Bill for the other charges will also contain an asset adjustment. The charges for landed costs will be added to the inventory asset account. When selling, the landed cost charges will be deducted from the inven-tory asset account (in addition to the inventory items).

View the details in the Inventory Item Definitions List (choose the columns for average landed cost, total landed cost, and average additional cost).

This will also affect your Balance Sheet and Trial Balance in your Magaya system.

Fulfilling a Dream by Fulfilling Promises

SGK Global Shipping Services arranges air shipments of urgent cargo to West Africa for the oil and gas industry. They use the Magaya Cargo System to keep track of shipments and cargo so they can answer customer questions quickly.

,,,,We compete with others in this market by fulfilling our promises to our customers.

Mr. Uche Mozie, owner, SGK Global Shipping Services

CASE STUDY:

SGK Global Shipping Services Freight Forwarder

SGK Global Shipping Services is based in Houston with an office in Lagos, Nigeria. They specialize in air freight for the oil and gas industry. Other services include ocean freight, RORO, and shipping small packages. SGK also arranges destination Customs clearance, storage, and delivery via ground transportation in Nigeria.

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New CustomersMagayaInsider

1. Apex Logistics Int. (JFK) Inc. Rosedale, NY

2. Core One Logistics, Pembroke Park, FL

3. Courier Internacional, S.A. de C.V., San

Salvador, El Salvador

4. Despachos Rapidos de Costa Rica SA –

DERCO, Heredia, Costa Rica

5. Doral Ocean Freight, Miami, FL

6. Dualtec (Colon), Colon, Panama

7. Expert Log (NYC), Miami, FL

8. Goodrich Americas Inc., Piscataway, NJ

9. Grupo Tical, San Jose, Costa Rica

10. Interload Forwarding, El Paso, TX

11. LightSpeed Shipping, Nassau, The Bahamas

12. Movis Ghana Ltd., Accra, Ghana

13. Posey Intl. Mexico, Mexico City, Mexico

14. Rentafrio S.A.S (MDE), Medellin, Colombia

15. RMT Logistics, Inc., Miami, FL

16. Shanghai Sunivo Supply Chain Management

Co., Ltd., Shanghai, China

17. SSL Logistics, Miami, FL

18. Sunivo America, LLC, Houston, TX

19. Valley Cargo, Cali, Colombia

20. X-press It, Eleuthera, Governor's Harbor, The

Bahamas

Welcome to 20 new customers who signed in June 2014 and joined the Magaya Network:(Roll your mouse over the names to see their location in the map)

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• Posey Intl. Mexico, Mexico City, Mexico

In Mexico

• Rentafrio S.A.S (MDE), Medellin, Colombia• Valley Cargo, Cali, Colombia

In South America

In Texas

• Interload Forwarding, El Paso

• Sunivo America, LLC, Houston

In Florida

• Core One Logistics, Pembroke Park

• Doral Ocean Freight, Miami

• Expert Log (NYC), Miami

• RMT Logistics, Inc., Miami

• SSL Logistics, Miami

In New York

• Apex Logistics Int. (JFK) Inc.

Rosedale

In New Jersey

• Goodrich Americas Inc., Piscataway

In the United States

• Courier Internacional, S.A. de C.V., San Salvador, El Salvador• Despachos Rapidos de Costa Rica SA – DERCO, Heredia, Costa Rica • Dualtec (Colon), Colon, Panama• Grupo Tical, San Jose, Costa Rica

In Central America

• LightSpeed Shipping, Nassau, The Bahamas

• X-press It, Eleuthera, Governor's Harbor, The Bahamas

In the Caribbean

• Movis Ghana Ltd., Accra, Ghana

In Africa

• Shanghai Sunivo Supply Chain Management Co., Ltd., Shanghai, China

In China

Fulfilling a Dream by Fulfilling Promises

SGK Global Shipping Services arranges air shipments of urgent cargo to West Africa for the oil and gas industry. They use the Magaya Cargo System to keep track of shipments and cargo so they can answer customer questions quickly.

,,,,We compete with others in this market by fulfilling our promises to our customers.

Mr. Uche Mozie, owner, SGK Global Shipping Services

CASE STUDY:

SGK Global Shipping Services Freight Forwarder

ChallengesWhen getting started and working with only a few customers, it’s

easy to find information about their transactions. But as a business

grows, it not only gets more difficult to keep track of data but more

expensive. Back in 2008 when Mr. Uche Mozie, owner of SGK Global

Shipping Services, imagined the future of his business, he knew the

manual processes he was using would not “last the test of time,” as he

described it.

“I had big dreams of where I wanted to take the business,” Mr. Mozie

said. “I also wanted to keep things under control. For example, when

a customer would ask about a shipment from three months ago, it

would take me an hour to sort through papers to find the information,”

he said. “Even though I had a small business, it took a lot of work to find

the information I needed. Phone calls from Nigeria are expensive, so

I thought how wonderful it would be to give my customers tracking.

I wanted to be proactive and let them know about the status of their

shipments so they didn’t have the expense of calling me every week.”

Getting StartedWhen Mr. Mozie started his freight forwarding business in Houston in

2008, he said many people thought he was crazy because the industry

is very competitive there. “But I believed that if I did things differently,

I’d get a different response,” he explained. He started from his home,

doing everything himself.

He drew on what he learned about the shipping business from his

father who owned a fleet of trucks in Nigeria and also worked in the

construction industry. Mr. Mozie had a degree in civil engineering

when he moved to the U.S. in 2001. He has since earned an MBA from

the University of Maryland.

SGK has expanded and will be moving into a larger office and

warehouse space in the second half of 2014. In October 2013, Mr.

Mozie added ocean freight shipping to his services. SGK’s certifications

include an NVOCC license and TSA certification as an Indirect Air Carrier

(IAC).

Envisioning the Future When Mr. Mozie first started his business, he handled all the

transactions manually on paper and fax. He said he didn’t have any

money to spend on software, but he had confidence in what he was

doing. “I knew it would only be a matter of time before the business

would grow,” he said. “I knew I would have employees and have to

train them how to do the work. I didn’t want to start with a paper

process then switch to software, so I wanted to learn to use software

before we got too busy. I wanted to be more organized, and I knew the

manual process would not last the test of time.”

At a GlanceSGK Global Shipping Services http://www.sgkglobal.com

IndustryFreight Forwarder

SolutionMagaya Cargo System, AES

SGK Global Shipping Services is based in Houston with an office in Lagos, Nigeria. They

specialize in air freight for the oil and gas industry. Other services include ocean freight,

RORO, and shipping small packages. SGK also arranges destination Customs clearance,

storage, and delivery via ground transportation in Nigeria.

SGK Global Shipping Services

All rights reserved. Magaya, the Magaya logo and all products

are all trademarked unless specifically specified as of a third party.

© Copyright 2014, Magaya Corporation. 786. 845. 9150 info@magaya.com magaya.com

Quality Customer Service Creates a Competitive Advantage“We compete with others in this market by fulfilling our promises,”

he said. “We don’t tell a customer anything that we’re not sure about.

With the help of the software, we’re pretty efficient. People who use

our service talk to other people and tell them how we operate and

how we keep them updated during the entire process. We send them

personalized emails from the Magaya system to let them know when

their shipment has arrived and they can pick it up. They like that a

lot. We let them know ahead of time if any delays will occur with the

airline carrier. We are proactive because air freight is urgent. Good

communication via the Magaya system has helped our customers have

confidence in what we do. They are our best advertisers.”

“Our company is a work in progress. The best is yet to come. We like

taking advantage of every technology and innovation in the industry

to get to the next level.”

Envisioning the future of his business, Mr. Mozie selected the Magaya

software. “Even at the beginning when there wasn’t much income, I

could see the need to achieve my goals outweighed the need to save

some money,” he said. One of the features that has helped him achieve

his goal of keeping customers informed is the online tracking that is

included with the software.

“While talking to Magaya, I saw features I wanted and I also learned

about things that would help me in the future but I wasn’t even

thinking about yet such as tracking.”

SGK offers online tracking on their website so their customers can

just enter the warehouse receipt number for their cargo and see the

status. SGK sends an email from their Magaya system to each customer

with a link to open the status update link on a PC or a mobile phone.

“The ability to track put us on the same page as DHL and FedEx,” he

said. “Our customers feel as sure with us and they would with DHL or

FedEx.”

“I actually save money because as the business has grown and we have

added many customers, I don’t have to hire more staff to answer the

phone. Now we can focus on the next shipment.”

Serving customers across time zones is challenging. Mr. Mozie gave an

example: When a customer comes to the Lagos office at 9 am in the

morning, it’s 3 a.m. in Houston. In that case, the Lagos office manager

can log in to the Magaya system verify that if a customer paid in

Houston so the customers don’t have to wait.”

Mr. Mozie is evaluating how Cloud technology can help him

communicate with his Lagos office better. Since many of SGK’s

customers pay at destination in Nigeria, Cloud technology will help

SGK coordinate the two offices. “They send me a weekly report of what

is paid, but a Cloud system will put us both on the same page every

day.”

He also uses reporting features in the software, including weekly

income, expenses such as what he pays airlines, and the profit margin.

He also looks at customer history. “I also look at the types of business

my customers are doing so I can communicate with them and market

special offers that are specific to them and to thank them,” he said.

“It works well as a marketing tool because I get a snapshot of my

customers.”

SGK Global Shipping Services