IDII Software Newsletter on supply chain management warehousing transportation logistics inventory purchasing execution and planning.

How about running a robust business that sells products, without inventory, and without warehouses?

We focus so hard on "traditional" inventory, warehousing, and transportation - and forget that there are valid business models that fully rely on other companies to fulfill the order from their warehouses.

A. Shipments. Retailer works with wholesalers and manufacturers that are willing to:

In this manner, the retailer can take an order and have the supplier ship it. The shipment is a "blind shipment" - so the customer only sees the retailers name & address on the carton and likewise on the shipping documents.

B. Data Feeds. Retailer has data feeds from wholesalers and manufacturers on a daily basis, indicating which products have availability, so that his database can show product is available, backordered, or discontinued.

C. Billing & Payment. Retailer charges customer immediately for products sold and shipping charges. This can be done via EFT, credit card, or other payment type (I.E., Paypal). Retailer is on a Net 30 days with the suppliers and leverages the free float period.

Customers do not need to know that you are "virtual" warehousing and by training the customer service reps correctly, the customer will not know and can still enjoy good service by the retailer.

With e-commerce and the web playing a large presence for buying & selling - there are times where traditional and virtual inventory models fit well. To do the virtual well - one must look at the vertical market, what wholesalers & manufacturers are available, what services are offered, and verify if the supplier(s) can perform A and B above.

Virtual inventory is very much liked by the accounting pros. The business process optimization gurus should stamp their approval on this - as many processes are fully eliminated, such as receiving, shipping, counting, as well as the staff associated with such. No need to build a building for a warehouse and pay for the upkeep & utilitiies. You see the picture now.

One issue that needs to be discussed between the retailer and suppliers is returns. Process flows needs to be agreed upon, whether the goods are damaged or in resalable shape. Whether the goods are low cost or high cost is another factor, in order to land on return policies. Each supplier could vary in the agreed upon return procedures.

White Papers

Useful & Interesting Sites

Technology & Software Product News

FootPrint new features for this new release are container tracking, BOL signature capture, image capture, voice recognition, yard management system and ad hoc reporting. Additionally, the systems standard features include lot control, pallet tracking, catch weight, system-directed tasks, complete inbound and outbound operations, EDI capabilities, multiple stock rotations, and full reporting capabilities.

*** Four Soft (4S) (NSE: "FOURSOFT", BSE: 532521), announced the successful deployment of its warehouse management software application - 4S elog at Rohlig Poland, a highly reputed freight forwarder and integrated logistics company in Poland.

The implementation at Rohlig Poland has yielded positive results and they have started using the software in live environment from the second week of January 2009. Rohlig Poland, in its Poznan warehouse, is using 4S eLog to support two of its customers now and target to automate the processes of its other warehouse customers by end of February 2009. The implementation of the new warehouse management software will trigger dramatic improvements for Rohlig Poland, including real time processing of orders, streamlined procedures, enhanced warehouse management capabilities, reduced errors and increased productivity.
*** ...

IBM looking to buy Sun... Interesting... Sun stock is up... Some speculate that the IBM & SUN server might have antitrust issues ... See the NY Times article

*** Manhattan Associates, Inc. (NASDAQ: MANH) today announced the release of Labor Schedule Optimization, the first labor optimization solution developed for the unique and complex needs of companies with distribution operations.

Labor Schedule Optimization can determine the number of employees required to complete each task and also create a schedule that lists the individual employees needed and the order in which each of them should be assigned specific work. This innovative process greatly reduces the amount of manual work that managers must do to create schedules, and it produces a much more accurate schedule that can meet one of two objectives as determined by the manager: reducing overall labor costs, or assigning work based upon seniority of the employees. See Labor Scheduling web page.

*** Oracle announces first ever dividend. A nickel each quarter x 4 quarters = 20 cents. Hmmm, 20 cents over the current stock price of $16.00 (3/18/2009), gives a 1.25% dividend. In our humble opinion, we would buy shares of ORCL, for potential stock appreciation alone, hoping to see 25 to 30 a share within 18 monhts. Oracle stock has been climbing to $18.00 as of 3/23/2009. See article

*** RedPrairie enhances Enterprise Visibility solution with updated sourcing and recall capabilities. Software will now provide freight cost consideration, automatic re-sourcing, expanded detail visibility.

Updates to Enterprise Visibility will also allow automatic re-sourcing of shorted orders, meaning the system will now fulfill shipment from alternate locations in case the original source becomes unviable.

In addition, the new updates include functionality to expand the number of details available to effectively recall products at market. The solution will now allow component and finished goods tracking through the use of serial numbers, as well as kit and component-level inventory sales, enabling customers to perform and act on recall requests with minimal time and expense. The updates also allow finished goods tracking through RFID. All of this data can be easily accessed and organized using the solution’s updated visibility screen.

*** RedPrairie introduces Workload Planner for optimal workforce analysis and management. New solution leverages labor standards to drive non-service labor scheduling, ensures priority business execution

In the past, store operations planners had no ability to calculate the impact of various labor options from a bottom-up perspective. Workload Planner allows power users within a company’s workload planning group to optimize the return on labor for each store by calculating actual effort required to complete each project. The system provides what-if scenario analysis on project timing, content, priority, and phasing. As a result, organizations can use Workload Planner to phase and prioritize projects over time, while comparing demand for labor to capacity by store, by week.

As a whole, Workload Planner provides sales associates with more time on the sales floor with customers by optimizing process planning across each retail organization’s entire chain. Tying in labor standards with calculated activity requirements produces a more efficient store, and a more efficient business overall. See Red Prairie

Glossary of Supply Chain Terminology

Glossary of Supply Chain Terminology spans warehousing, transportation, purchasing, manufacturing, RFID, EDI, EDIFACT, computers, business, standards, organizations, government, Incoterms, and more! Learn the many languages of the supply chain! Order from Amazon.com

Scripture to Ponder

Whatever your hand finds to do, do it with all your might, for in the grave, where you are going, there is neither working nor planning nor knowledge nor wisdom. Eccliastes 9:10

Famous Quotes For Business & A Better Life!

"Formula for success: rise early, work hard, strike oil." J. Paul Getty

"Action is the foundational key to all success." Pablo Picasso

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