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IDII Software Newsletter Volume 2 No. 3 February 28th 2001 |
To assist the professional dealing with software in Warehousing Distribution, Logistics,
and the Supply Chain.
Subscribe to newsletter Now..
| Techniques, Vision, & Educational Thoughts "Computerized Shipping Systems - Return on Investment - Part 5" Let's review another two areas where labor savings can be realized. One of the greatest benefits of technology is that we can utilize it to eliminate time-consuming manual tasks that are also prone to errors. We discussed earlier how technology can eliminate the typing of redundant data. Here I am suggesting that you look for any and all manual processes in the shipping department. Many times you will find that you are hand writing bills of lading, COD tags, or carrier airbills. Perhaps you are keeping a logbook of every package shipped for reporting purposes. Possibly you are even handwriting data on each work order. By observing the shipping process, you will undoubtedly find a manual process that we can automate and save you money on. In our example, let's assume that you are spending an hour a day on a particular manual process. At an average warehouse labor rate of $20 per hour, we come to $440 a month or $5,280 a year that could, most likely, be eliminated. Another area where we can reduce labor costs is customer service. Find out how many times you receive inquiries about the status of shipments. How much time do you spend researching such inquiries? Let's say that 10% of your packages trigger a phone call and you get 20 per day. If you spend 10 minutes on each one, you are spending 200 minutes x 22 workdays or 4400 minutes/60, which comes to 73 hours a month. At $20/hr that equals $1,460 a month or $17,520 a year. Chapter 11, Leveraging Your Shipping Operation for Superior Customer Service and Profits, explains this further. Finally, we not only incur labor costs when answering customer inquiries; there is also the cost of the phone call. Chances are that you have a 1-800 number which costs about $.10 a minute. At 4400 minutes a month (see above), the phone bill comes to $440 or $5,280 a year. We've discussed 14 different ways that a computerized shipping system can provide a return on investment. In our sample case study, the total savings for your company would add up to close to a half a million dollars a year ($394,341.00). Of course, not every company will be able to gain savings in all of these areas; however, with a little research on your part and the guidance of a knowledgeable consultant, I am confident that you will find enough return to justify the investment for your company. 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 TIP from Phil Move forward to automatic printing & applying of shipping labels unto cartons, if your operation handles a large quantity of cartons on a conveyor. See Software Directory. |
FREE Educational Materials
- FREE CD-ROM - The most comprehensive library of Collaborative
Logistics information is now available on
a single reference CD. It has Dr. John Langley
and other writer's technical & professional
articles on it. See http://www.nistevo.com/CLRC/index.html to get your free CD.
- New Edition 3 of the IDII Warehouse & Logistics Software Directory is done. Click here to order..
- Consulting services are available for software selection, implementation, and enhancement. Business reviews and ROI studies are also done for both supply chain companies and software companies. Contact Phil Obal at 918-464-2222.
- BridgePoint (B2B, OMS, division of CSX Corporation). BridgePoint’s Expands Global Supply Chain
Solution to Include Order Management Functionality.
The new module enables both large and small
organizations to better manage the entry,
creation and management of orders across
multiple partners globally. This announcement
marks the addition of Order Management to
BridgePoint global supply chain solution.
The module provides clients the ability to
create, manage, monitor and modify orders
globally, directly through BridgePoint’s
standard browser interface. It also functions
as the conduit between existing internal
and external systems.
- Catalyst International, (WMS, TMS, NASDAQ:
CLYS) and Kewill Systems plc
(LSE:KWL) ,announced a strategic partnership. Catalyst will now include
Kewill.Net integrated e-fulfillment
applications
as a standard offering within its CatalystCompleteT Supply Chain
product line. In addition,
Catalyst will integrate Kewill's
Clippership
and Kewill.Ship manifesting
solutions as part of the Catalyst
Warehouse
Management SolutionÒ (WMS) along with contributing to the evolution
of these products. Kewill has acquired all of the rights to Catalyst-Exchange.com
technology to
enhance its Kewill.Net offering.
The companies also agreed to a joint development of applications for Knowledge Management and Vendor Quality Management (VQM), both of which are emerging as critical capabilities for disseminating information and making informed business decisions. More details in the press release.
- Cerqa Copyright has licensed VISUALSupply Chain from Lilly Software's (ERP, WMS, APS, MRP) comprehensive end-to-end supply chain management
software solution.
Cerqa Copyright, located in Austin, Texas, provides supply chain management solutions for domestic and international manufacturing facilities, distributors, retail outlets, and other customers that have specific procurement and distribution channel requirements. Offering expertise in inventory procurement, logistics, and freight management, Cerqa develops flexible, Just-in-Time (JIT) inventory delivery programs and offers kitting and packaging of sub-assemblies and finished goods.
- Industri-Matematik International Corp. (NASDAQ:
IMIC) today launched a new product initiative, VIVALDI Net Series(TM),
to deliver software that manages supply chain
processes across enterprise boundaries. The products will enable companies to coordinate
interdependent fulfillment activities and
create intelligent, multi-enterprise supply
chains that perform as a single entity in
satisfying customer demand, quickly and reliably.
The base for the VIVALDI Net Series is supply chain event management capabilities that provide a collaborative logistics framework so companies can manage fulfillment and replenishment processes beyond the four walls of their enterprise. Developed with a component architecture, VIVALDI Net Series will enable companies to visualize, coordinate, monitor, accelerate and measure the physical movement of products across the entire supply chain including suppliers, manufacturers, distributors and customers. VIVALDI Net Series supports the Open Applications Group Interface Specification (OAGIS)
- Kewill Systems plc (TMS, (London: KWL), announced it has added same-day shipping
service compliance functionality
to its Kewill.Net
solutions through a partnership agreement
with NowEx, a national network of
premier
same day delivery providers.
Under the terms of agreement, Kewill has
integrated NowEx’s compliance functionality
into its Kewill.Ship for Windows
and Clippership
shipping applications.
About NowEx.net - NowEx.net offers shippers a revolutionary means of delivering their products to customers by offering delivery services managed over the Internet via a national network of Same Day Courier Affiliates. The NowEx.net solution eliminates the headaches associated with traditional Same Day Delivery services by providing uniform pricing, nationwide service standards, and online customer access to real-time shipping information. NowEx is headquartered at 655 Menlo Drive, Suite A, Rocklin, CA 95765, USA, (866-888-8900).
- Interlink Technologies (WMS, AS/400) to Adopt Kewill’s Enterprise
Shipping Management Solution. Kewill’s technology
will give Interlink clients core functionality
for automating multi-carrier compliance,
including rating, routing, bar code labeling,
and electronic manifesting. Links to Kewill’s
business portal, Kewill.Net, also will provide
Interlink customers’ trading partners full
in-transit shipment visibility.
- Majure Data (WMS, MSS, APS) announced the introduction of its RF
Navigator enterprise materials management software suite. The RF Navigator EMMS, Majure Data's web-based suite of enterprise materials management applications, is designed to manage the flow of materials throughout the extended enterprise and improve operations, customer service, and supply chain visibility for manufacturers and distributors. Key components of this application suite are Majure Data's flagship warehouse management system (WMS), a manufacturing materials system (MMS), collaboration tools to improve visibility and control throughout the extended enterprise, and a management support system (MSS) for advanced management and reporting capabilities.
"RF Navigator EMMS responds to manufacturers and distributors' unique needs for advanced inventory tracking, quality management, fulfillment, and customer service capabilities due to the adoption of e-commerce and supply chain collaboration initiatives," says Patrick Majure, vice president of sales and marketing for Majure Data. "RF Navigator EMMS is a complete enterprise solution that optimizes operational performance throughout production and fulfillment. With RF Navigator EMMS, manufacturers and distributors can now get the real-time accuracy and control they need to improve productivity and throughput while providing visibility of detailed inventory data to enterprise systems and e-commerce applications. "
- McHugh Software International (WMS, TMS,
3PL), announced DigitaLogistix*, a new set of
web-centric applications for the extended enterprise that enable supply chain visibility, collaboration and optimization, tightly integrated with its core warehouse, transportation and labor management solutions.
Key new application modules include:
- * LENS, which provides real-time, end-to-end supply chain visibility
- * Commander*, a set of command and control applications that enable companies to take centralized action in response to logistics requirements and events.
- * DigitalApps*, a suite of role-based web applications for collaboration among multiple supply chain participants.
- * Digital TMS*, which provides a powerful set of web-based transportation execution applications, allowing shippers to easily automate core transportation processes and, if they choose, to build their own private carrier portals.
- * Logistix Scorecard*, a comprehensive logistics analytic and decision support tool used to measure actual performance at the facility, enterprise and supply chain levels.
- * Logistix Execution Optimizer*, which provides dynamic, streaming optimization of enterprise transportation and sourcing plans.
- * Dynamic Merge-in-Transit*, which enables companies to consolidate shipments from multiple sourcing points through merge centers, increasing velocity, reducing logistics costs and enabling realization of the dynamic virtual warehouse.
- Manhattan Associates, Inc. (WMS, LMS, YMS,
NT, UNIX, IBM, Nasdaq: MANH) announced participation in the Microsoft®
(Nasdaq: MSFT) Data Warehousing Alliance
(DWA). Manhattan Associates' best-of-breed
business intelligence tool SmartInfo™
qualified
for Microsoft's DWA by meeting the
"best
of breed" analytical application
criteria.
Microsoft's DWA is a coalition of
software
vendors focused on helping customers
build,
use and manage data warehousing solutions
that are fully integrated with Microsoft
SQL Server™ 2000, Microsoft Office
and Microsoft
Windows® 2000 platform. As a member
of the
alliance, Manhattan Associates has
committed
to achieving the highest level of
compatibility
and integration between SmartInfo
and Microsoft
SQL Server 2000.
SmartInfo was designed to meet evolving supply chain execution demands. The product enables quick and easy determination of trends, averages and activity profiling. Additional benefits of SmartInfo include warehouse and inventory management optimization and the ability to evaluate transportation costs. SmartInfo leverages Microsoft SQL Server 2000 to provide real-time and historical operational information. SmartInfo slices and dices this information to create meaningful, actionable analysis. Using Microsoft Digital Dashboard – a customizable desktop interface – SmartInfo provides several views of data on the screen simultaneously. The result is immediate access to key business information. "
- Pitney Bowes (TMS, Nasdaq: PBI) Invests & Form Strategic Alliance with
Vertex (WMS, Java, Nasdaq: VETX) with includes RenSoft (Previously Renaissance
Software (WMS, Java)). Pitney Bowes will transfer its Transportation
Management Software and certain engineering
assets to Vertex and receive in return an equity stake valued
at approximately 4.5% in Vertex,
the market-leading,
e-business supply chain and fulfillment
solutions
provider.
The companies will jointly develop, market and support a modular suite of integrated supply chain applications that leverage Vertex's leading-edge Renaissance Software for supply chain management and Pitney Bowes' distribution strength and shipping and transportation industry expertise. The transaction will marry Pitney Bowes' ConquestTM multi-carrier transportation management software with Vertex's JAVA-based order and warehouse management software (added through Vertex's recent acquisition of Renaissance Software) to provide mid-sized mid- to large-sized businesses with a complete, web-based, scaleable supply chain management solution that can be deployed quickly and cost-effectively.
The application suite, Pitney Bowes Supply Chain Solutions, powered by Renaissance Software, which will be marketed and serviced by Pitney Bowes, and will consist of three world-class modular components designed to work in concert. When used together, the modules form a comprehensive tool for managing supplies, finished goods, and warehouse inventory, from procurement to customer delivery. Modules may also be used individually or in a variety of combinations to fit specific user needs. The initial version of the suite will integrate transportation management and supply chain execution functions using a sophisticated mapping integration tool. Future versions of the software will offer built-in integration that allows components to be plugged together directly.
Scripture to Ponder
I can do all things through Christ which strengthens me.
Quotes to Ponder
- "There is no substitute for hard work."
--Thomas Edison
Previfor Consulting - Virtual Reality SIMULATION of Cranes and Forklifts - for operating training.
Good Book
| "Enterprise Resource Planning (ERP): The Dynamics of Operations Management" |
 |
| Shtub, Avraham | See reviews and more information on this book at Amazon.com |
Another 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
April 2-4, 2001 - Supply-Chain World North America Conference
and Exposition - Hilton New Orleans Riverside - New, Orleans,
Louisana, USA. Conference by the Supply-Chain
Council. For more information, call 412-781-4101
or visit www.supply-chain.org or www.supplychainworld.org.
MAY 9 TO 11, 2001 - E-LOGISTICS EXPO - The Logistics Institute at Georgia Tech, GFB, Announce an Educational Conference
and Team-focused Tradeshow in Atlanta, GA.
Responding to the need to bring leading-edge
education and world-class solutions providers
together in a "team environment,"
the e-Logistics Expo announced today the
creation of a new "knowledge tradeshow"
to be held next May in Atlanta. The Expo
will be held at the Georgia World Congress
Center. The Expo features a full three-day
educational conference led by The Logistics
Institute at Georgia Tech. Contact Carrolyn
Prescott at GFB at 404-524-7777, or e-mail
to cprescott@gfb-expo.com
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