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IDII Software Newsletter Volume 1 No. 13 September 30th 2000 |
To assist the professional dealing with software in Warehousing Distribution, Logistics,
and the Supply Chain.
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| Techniques, Vision, & Educational Thoughts "Computerized Shipping Systems - Return on Investment - Part 1" Many executives are unaware of how a computerized shipping system can increase profit within their organization more often than not. They view an investment in shipping technology as an expense; failing to see the potential return on investment (ROI). This paper provides a summary of 14 different ways a computerized shipping system can save an organization money or increase revenue. Most of the points are further elaborated and explained in my book, Computerized Shipping Systems: Increasing Profit & Productivity Through Technology. I will point out the specific chapters where appropriate, for those of you who want to learn more. This paper is not intended to be a comprehensive analysis. It will hopefully provide a provocation for executives to become more aware of how shipping means and practices can impact the bottom line. In order to do a complete ROI study, one would have to do some upfront research. You would need to know what the current payments are for the present system. This could be a carrier provided system or it could be a system provided by a third party. You should find out what the lease payments are. What amounts do you pay for maintenance costs, rate change insurance or fees, and label, ribbon and other form costs. You should also find out the total amount that is annually paid for freight. For the purpose of our example, we will assume that a company is shipping 200 packages a day, pays an average of $10 per package for freight, and has labor costs of $20 an hour. The largest single savings that can be generated from a computerized shipping system are from the elimination of errors; however, most people do not like to admit that they are making mistakes. I think the best way to discover how many errors may be occurring in your organization is to observe the shipping clerk process a package or two. Have the clerk go slowly, and simply count the number of keystrokes necessary to complete the process. Then follow the paperwork to the accounting department, and count the keystrokes needed to add the freight charges and complete the order. It typically takes 100 keystrokes to ship a package and update the host computer. If we multiply that by 200 packages a day, that comes to 20,000 keystrokes a day, multiplied by 22 working days a month, equals an astounding 440,000 keystrokes! A Department of Defense study states that "there will be one error in 300 keystrokes". If we do the math, we would find 1,466 errors per month, or, about 66 per day. (In our next issue - we will discuss the costs of these errors.) Mark A. Taylor, President of Taylor Systems Engineering Corp.) |
Impact In Software Design Software designers in ERP, WMS, OMS should decide which path to take. Path #1: Partner with an existing SMS solution. See Software Directory. Path #2: Build your own SMS - realizing that twice a year rate changes WITH new forms of rates & new addons from each carrier could be required. Phil Obal |
Software Company FOR SALE
"WMS Company is For Sale"
An established WMS vendor is selling the company and their WMS solution. Current solution uses object orientated programming (Latest Technology) and has a good installation base. If interested, contact Philip Obal of IDII at 918-464-2222 and we will provide more details & put you into contact with the seller's representative.. Serious inquiries only.
IDII News
- Searching for new logistics or warehouse
software? New and improved version of our ADVANCED WAREHOUSE & LOGISTICS RFI. New questions have been added. New feature
added where each question asks for planned release and
enhancement cost approximations, when the current production release does
not "fully" perform the
requested
function.
- Contains approximately 770 detailed questions that are detailed with a pop-up text box, color coded answers, validation of answers. RFI questions are ready to send out to software vendors. One may modify existing questions and add their own questions. Available in electronic format (CD-ROM). Requires Excel 97 or above. See press release for latest information. Price $995.00 US.
-
Descartes (NASDAQ:DSGX ; TSE:DSG, TMS, Web-Enabled) - Ryder (Largest 3PL) Selects Descartes DeliveryNet
Technology. Descartes' DeliveryNet technology supports
the minute-by-minute management of
logistics
activity taking place. The DeliveryNet
technology
also builds a store of logistics
transaction
information used to evaluate supply
chain
designs, trading partner collaboration
and
emerging trends. This detailed logistics
information is used to continuously
bring
added value to these logistics services.
This includes expanded track &
trace,
dynamically optimized routing and
scheduling,
distribution center optimization
and proactive
alerts and notifications when delays
are
expected anywhere along supply chains.
Descartes
products are in 850 companies in
35 vertical
industries in over 50 countries worldwide.
- EXE Technologies (NASDAQ: EXEE, WMS, 3PL) and i2 Technologies, Inc. (NASDAQ: ITWO,
TMS) extend strategic partnership to provide
a combined fulfillment solution for e-tailers
and click and mortar Internet marketplaces.
EXE Technologies is interfacing its EXceed(TM)
eFulfillment System (eFS) into i2's TradeMatrix(TM)
Fulfill solution. This will provide an integrated solution
to B2B marketplaces for optimal inventory
positioning, intelligent order promising,
and fulfillment execution.
- HotStatus Enterprises, Inc. releases its Internet-enabled warehouse management system
(WMS), called HotStock*. "The single focus of HotStatus is to
provide "out-of-box" Supply Chain
software solutions at affordable transactional-based costs", explains Luc Ringuette, founder and
CEO of HotStatus Enterprises. HotStock is
ASP and this new software eliminates costly
WMS license fees and server hardware costs.
- * HotConnect* is a real-time user-driven interface system that dynamically connects HotStock to host applications, manifesting systems, and material handling equipment.
- * HotSearch* is a consolidated inventory database service that will help meet the order commitments of suppliers and retailers.*
- * HotInquiry* is a service that provides real-time visibility to orders and inventory.
- Intek Integration Technologies (1987, WMS,
NT) - New WMS Release Warehouse Librarian 4.0. New functionality includes:
- Conveyor Director - coordinates the efforts of Warehouse Librarian and the company's conveyor system to efficiently manage tote routing. Configurable and designed to host any configuration of make and model of conveyor..
- Support of a 40 character part number and over 1000 warehouse zones..
- Supports Oracle, Microsoft SQL, Pervasive's Btrieve databases. Written in Microsoft Visual C++ (object orientated).
- Manhattan Associates (Nasdaq: MANH, WMS,
TMS, Slotting Optimization) launches infolink(TM). Internet Solution Links Retailers and Suppliers
to Provide Real-Time Retail Supply Chain
Visibility for retail suppliers - including
retail customers, suppliers, transportation
companies and the newly emerging exchanges.
infolink solution ensures compliance with
evolving industry standards and XML integration
with major retailers, exchanges and portals,
including GNX(SM), WWRS and UCCNet.
Manhattan also announces partnership with UCCnet. UCCnet, a not-for-profit subsidiary of the Uniform Code Council (UCC), serves multiple industries, including the consumer packaged goods and retail markets, through its universal platform for electronic commerce. UCCnet users employ the technology-neutral eXtensible Markup Language (XML) to communicate synchronized item content culled from retailers' and suppliers' existing enterprise systems.
-
Manhattan Associates (Nasdaq: MANH, WMS,
TMS, Slotting Optimization) and QRS (Nasdaq: QRSI, B2B e-commerce) form alliance to provide complete integration of Manhattan
Associates' supply chain execution solutions
with QRS' Application Services.
Once this new level of integration is developed between PkMS(R), Manhattan Associates' warehouse management system, and QRS' RockBlocks(R), a global sourcing and supply software solution, customers can increase their level of global supply chain visibility (such as shipment status) that often occur when goods move from off-shore manufacturers' facilities to retailers' domestic facilities. With this improved visibility, users can improve their planning, yard management, inventory management and merchandising. Retail customers already using the PkMS and QRS RockBlocks solutions include American Eagle Outfitters, Staples, Inc., The StrideRite Corporation, The Timberland Company and The Limited.
This new alliance calls for Manhattan Associates to resell RockBlocks and develop an associated implementation practice. Manhattan Associates and QRS will also develop a standard integration between infolink(TM), Manhattan Associates' new Business Community Integration solution that addresses the dynamic needs of collaborative commerce by providing real-time connectivity in the retail supply chain, and Tradeweave(SM), a QRS global on-line marketplace where retail buyers and sellers can manage trading relationships. Infolink is designed to support qXML(TM), .
- McHugh Software (WMS, TMS, Labor Mgmt) announces alliance with CarrierPoint (TMS, B2B) for Advanced TMS for Web-Based Carrier Rating,
Selection and Real-Time Negotiations. Carrier Point is a multi-variant B2B e-commerce
marketplace for LTL and full truckload
shipments. Integration between McHugh's software suite
and CarrierPoint is already done.
McHugh's suite provides detailed metrics to track carrier performance. Similarly, CarrierPoint's multi-variant marketplace allows shippers to select from an open marketplace of carriers based on a number of attributes, including service levels, pick-up and delivery dates, and past performance metrics.
"There are three scenarios to use the electronic link to the CarrierPoint marketplace," said Greg Aimi, McHugh VP of product strategy. "First, after planning and optimizing loads using Logistics Suite - Transportation, clients can tender loads to their core carriers using McHugh's EDI or web-based tendering capabilities. They can then use CarrierPoint to cover any shortfalls in core carrier capacity on the open market. The second scenario is when clients need increased capacity for seasonal or geographical fluctuations. They could use CarrierPoint's marketplace to handle known capacity constraints, proactively. The third scenario would involve clients who do not have a set of core carriers. They may use the CarrierPoint marketplace for tendering all loads."
- Renaissance Software Inc. (WMS, OMS, ERP,
Java) ACQUIRED by Vertex Interactive, Inc.(Nasdaq: VETX, WMS,
70million in revenues) provider of Enterprise Application Integration
(EAI), Pick-to-Light Productivity Tools,
Stradivari (WMS) , and Development Tools
for Hand Held Devices. The transaction valued
at approximately $50 million.
- Robocom (WMS) Partners with Viewlocity - Viewlocity's integration broker will enhance Robocom's warehouse management
and inventory solutions framework
by providing
standard connectors between Robocom applications and leading
enterprise resource planning (ERP) and legacy
applications. By adding Viewlocity's integration
layer, Robocom's customers will now be able
to integrate the RIMS application to other
internal applications thus leveraging any
existing IT investments in ERP and supply
chain management systems.
"The enterprise connectivity that Robocom and Viewlocity now offer can assist organizations as they move to extend their enterprises and further embrace the world of e-business," said Viewlocity CEO Greg Cronin. "Companies need more effective interoperability between manufacturing plants, distributors' systems and regional and corporate applications as they build a solid foundation for e-business." "This alliance with Viewlocity will help our customers with highly complex environments simplify integration internally and with their trading partners," said Ken Morrelly, president and CEO of Robocom. "Viewlocity's strong supply chain experience, third party application functionality and library of standard, rapidly deployable connectors for SAP, Oracle and other ERP applications, truly adds to the Robocom / RIMS solution.".
Editors's Note: VIEWLOCITY has been doing very well in bringing on both WMS and ERP players very recently, including TECSYS (WMS, ERP), JD Edwards (ERP), DHL, Ryder, QAD (ERP, MRP), many more, plus online exchanges. Tecsys also announced their relationship with ViewLocity - a good move.
- TranScape (SMS, Web Enabled), a division
of Pitney Bowes Inc. (NYSE: PBI) launches Desktop Express, a new desktop software product that allows variety of shipping functions
through a common browser,such as MS Internet Explorer(TM) or Netscape
Navigator(TM). Desktop Express software allows
users to rate, ship and track shipments by
logging onto their corporate intranet. Users
first select a recipient from the integrated
address book or type in a new entry. The
software's unique Street Smart(TM) address
correction feature confirms that the recipient's
street address, city, state and ZIP code
are valid, reducing inaccurate deliveries
and address correction fees.
Desktop Express also integrates Pitney Bowes exclusive Smart Shop(TM) capability to allow users to quickly identify the most appropriate services from carriers, including Federal Express, United Parcel Service, Airborne, DHL and the United States Postal Service. After identifying the day and time the package needs to be delivered, Smart Shop returns a list of services that can meet the delivery deadline along with their costs. Allocation of shipping charges is also improved by ensuring that a valid cost center is identified for all transactions, eliminating time consuming, manual post shipment audits.
Barcode Software / RF Technology News
- Acsis Inc.(Barcode) - Introduces Web-based Vendor Compliance Labeling (VCL)
solution. The service will allow a customer’s vendors
to print barcode labels and tags through
a simple, low-cost Internet connection. The
solution allows suppliers of all sizes to
comply with General Motors 1724 shipping
label mandate. Now developing enhancements
to this service including Advanced Shipping
Notice (ASN) and lot tracking capabilities.”
- Stratix Corporation (Bar Code)- GM selected Stratix to certify bar code
labels provided to GM by its vendors follow
the label format described in the new GM1724A
specification document. Stratix will use
its Xaminer MD bar code verifier to verify and grade the print quality of
each label
General Motors has required its manufacturing supplier partners to utilize its new labeling format - GM1724A. GM took the lead in this effort early in 2000 and is the first major automotive manufacturer to require the use of 2D (PDF417) bar codes as part of their Common Global Shipping Label. The PDF417 symbology allows for much more information storage, when compared to a typical linear bar code.
- Unibar's e-BARZ ( Bar Code, http://www.unibar.com) - Bar code web server software for UNIX,
NT and Linux enables you to add bar codes
to HTML pages that can be printed through
a browser from any web application. e-BARZ
software enables you to print dynamic bar
codes on documents printed from your web
applications. e-BARZ offers graphics output
that can be added to HTML documents, then
viewed or printed from a browser on the client
system. e-BARZ supports most 1D and 2D symbologies.
Compliance labels - Unibar's e-BARCODE 2000 web server software lets suppliers print your compliance label from your web site. New suppliers are up and running immediately. They just access your web site and print out the shipping label, and any bar code labels you wish, and they're ready to ship to your specifications. Now with Unibar's e-BARCODE 2000, the new GM 1724 series, Sears, KMart, and any custom labels are easy to print via a browser. And e-BARCODE 2000 supports popular 1D and 2D bar code symbologies.
Quotes to Ponder
- Eleanor Roosevelt wrote:
"Many people will walk in and out of your life,
But only true friends will leave footprints in your heart.
To handle yourself, use your head;
To handle others, use your heart.
Anger is only one letter short of danger.
If someone betrays you once, it is his fault;
If he betrays you twice, it is your fault.
Great minds discuss ideas;
Average minds discuss events;
Small minds discuss people.
He who loses money, loses much;
He, who loses a friend, loses much more;
He, who loses faith, loses all.
Beautiful young people are accidents of nature,
But beautiful old people are works of art.
Learn from the mistakes of others.
You can't live long enough to make them all yourself.
Friends, you and me....
You brought another friend....
And then there were 3.
We started our group....
Our circle of friends....
And like that circle....
There is no beginning or end..
Yesterday is history.
Tomorrow is mystery.
Today is a gift.
www.npassage.com - B2B web-based transportation management system (e-TMS). nPassage provides a collaborative community for shippers, consignees and transportation service providers. The nPassage service helps transportation community members prepare, implement and resolve freight shipment transactions securely via the web.
www.rfid.org - RF/ID Information with an educational thrust.
Scripture to Ponder
"As a bird that wanders from her nest, so is a man that wanders from his place." - Proverbs 27:8
Good Book
| "Computerized Shipping Systems: Increasing
Profit & Productivity Through Technology (New Millennium Edition)" |
 |
| Taylor, Mark A. | See reviews and more information on this book at Amazon.com |
Another Good Book
| "What To Look For In Warehouse Management System Software" |  |
| Obal, Philip | See reviews and more information on this book at Amazon.com |
Valuable Future Events - October
October 3-5--Frontline Solutions Expo. Rosemont
Convention Center, Chicago.
Sponsored by: Frontline Solutions magazine.
Contact:
http://www.frontlineonline.net
October 3-5--Parcel Logistics Expo. Rosemont
Convention Center, Chicago.
Sponsored by/contact: Advanstar Communications,
Contact 800-331-5706 or
http://www.parcelexpo.com.
October 11, Wednesday, 10:30 AM CDT / 11:30
AM EDT / 8:30 AM PDT - "Using Advanced Labor Management to Drive
New Productivity Gains in Logistics" - FREE Webcast session from McHugh
- Insights on Advanced Labor Management.
Must register in advanced via http://www.mchugh.com/webinars/labor_webinar_intro.htm Or Call 1-262-317-2704
About This Newsletter
We educate and share news on software for warehousing, transportation, shipping, packing, slotting, loading, optimization, and enterprise wide software solutions. This free newsletter is published twice a month and is targeted toward supply chain professionals involved in software. Currently, it is only available electronically. Feel free to forward this newsletter to others that you know. One may quickly subscribe by accessing our website at www.idii.com. To submit information to be considered for inclusion in our newsletter, send any news, events, press releases, research, and newsletters to editor@idii.com. The current and back issues of our E-Software Newsletters can be accessed at www.idii.com/esn
© 2000 Industrial Data & Information Inc. All Rights Reserved.. Trademarks belong to respective trademark holders. Information accuracy is not guaranteed due to variety of sources.
