What are EFM and CEFM?

The Electronic Freight Management (EFM) initiative is a USDOT-sponsored project that applies Web technologies that improve data and message transmissions between supply chain partners. The CEFM (Columbus EFM) project is a test currently underway with an existing supply chain.

The goal is to provide a mechanism for sharing supply chain freight information that is simpler, cheaper, and more efficient than traditional EDI, allows for all supply chain partners to access the information, and makes it easier to customize the flow of information between partners.

What will EFM do for me?

Provide comprehensive shipment information visibility

The key is to provide comprehensive shipment visibility information to authorized supply chain partners without requiring them to replace or overhaul their existing information systems. The CEFM provides complete visibility of the shipment (from the time the purchase order is issued, through manufacturing, transport and delivery to the distribution centers) to all authorized partners in the supply chain. CEFM partners are already seeing visibility benefits. For example, the customs broker sees shipment information sooner which allows them to begin the preparation of their documentation earlier cutting the overall clearance time. The container freight station has better visibility into the number and size of shipments coming to them and is better able to plan their personnel resources to handle them.

Provide a common electronic communication platform

Rather than creating large databases for each partner to collect and maintain shipment related information, the web services approach used with EFM allows partners to maintain only the data they “create” and then share that data with other authorized users through a common web interface. This reduces the amount of duplicate data entry and the associated data quality problems. This has the potential to greatly reduce the cost of providing daily status reports to shippers and to reduce the time required to complete these tasks (from 4-6 person-hours down to less than a minute). Implementation of digital certificates and “XML signatures” provides the data integrity and security necessary to insure protection of their information.

Implement data standards in a transportation logistics environment

The CEFM Deployment Test has been designed to standardize data exchange between trading partners and government agencies. The data messaging used in the deployment test were based on the Universal Business Language (UBL) version 2.0 data standards and then extended for use within the chosen supply chain. In addition, EFM allows users to reliably and uniquely identify each transaction for all authorized supply chain partners. This unique consignment reference (UCR) was developed based on the approach favored by the World Customs Organization (WCO).

How much does it cost?

The EFM web services and architecture developed as part of the EFM initiative are being made available by USDOT at no cost to industry. A key benefit of implementing EFM is the ease of implementation and deployment, especially compared to a typical EDI implementation. Rick DeShone, President of Codeworks (Codeworks did the software development for ODW, Inc. which provides container freight station services for Limited Brands in Columbus, Ohio) has indicated
“…The system setup cost is between a third and one-half the cost of traditional EDI systems and is easy to setup and connect.”

Will my customers use it?

The reduced cost and complexity associated with implementing this technology will make it easier for small- and medium-sized carriers and transportation service providers to establish reliable interfaces with shippers and other customers. The CEFM test is already demonstrating the ability to provide shippers with better quality data, more efficiently and more quickly. Reduction in duplicate data entry allows participants to enter data once but use it many times.