IDII Software Newsletter
To assist the professional dealing with software in Warehousing Distribution, Logistics, and the Supply Chain.
December 7th 2001 - Vol 2 No 19

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Techniques, Vision, & Educational Thoughts


"The New Challenges of Retail Logistics Management"

The Council of Logistics Management defines logistics as "that part of the supply chain process that plans, implements and controls the efficient, effective flow and storage of goods, services and related information from the point of origin to the point of consumption in order to meet customers' requirements." To make this happen, retailers, transportation, distribution, warehousing and order management organizations must execute together. This is no small task, especially in an environment that is becoming increasingly demanding and disparate.

Most experts talk about inventory and shipment visibility-the ability to see data throughout the four walls and beyond-as the key to successful logistics execution. But, in reality, this "visibility" provides only the status of "in-transit" shipments or inventory. The reality is that knowing the status of something once it is already in-transit adds little value to the retail supply chain.

There are four conditions that are changing the way retailers are thinking about the logistics operation as they struggle to meet the ever-increasing demands of their customers:

  • The Internet B2B Economy. A dramatic transformation in the use of the Internet for business transactions between retailers, suppliers and distributors

  • Reverse Logistics. The management of returned products to distributors, manufacturers or retailers

  • Real-time Logistics Event Management. The need for accurate and timely management of information in order to maintain on-time deliveries, reduce inventory levels and ensure that the right product is in the right place at the right time

  • Logistics Technology Solutions. New logistics event management technologies provide real-time visibility into logistics operations; ensure a more accurate, efficient and effective flow of goods; reduce costs and increase customer satisfaction

The four conditions outlined above have significantly changed the role and expectations of the logistician. Companies must radically adapt their logistics management strategy in order to compete in today's tumultuous marketplace, marked with ever-decreasing turnaround times, increased competition and lower profit margins.

There are numerous companies in the marketplace that offer technology solutions claiming real-time visibility into inventory levels and logistics; unfortunately, what most offer does not match up with what businesses really need to improve costs and customer satisfaction. In today's volatile economic climate, logistics management is becoming more important than ever before. Getting the right amount of goods to the right place at the right time is critical.

In the best of times, logistics managers only execute 80% of the time. However, in tougher economic times, this margin for error is too high. Logistics management is evolving in significant ways to address these problems. Internet utilization, combined with the proliferation of reverse logistics and the impact of technology advancements in real-time logistics event management and visibility, are fundamentally changing the role of logistics management in organizations. In order to succeed in today's global marketplace, companies must be ever cognizant of these trends and develop a logistics management strategy that capitalizes on the best-of-breed technology solutions available today, so that they can meet the demands of their customers today and be well prepared for the future.

Editor's Note:
This is a short version of a white paper with diagrams and interesting facts & perceptions. Click here for the full white paper. We thank Tilion for the permission to use their white paper.

About the Author

Christopher Stone, is founder, president and Chief Executive Officer of Tilion. He founded the company to address the unmet business requirement for an on-demand, unified view of the supply chain. Prior to Tilion, he served as executive vice president of corporate strategy and development at Novell, where he played a key role in the turnaround and resurgence of the company. Previously, he was the founder of the Object Management Group (OMG), the largest software development standardization group of its kind. Stone began his technology career at Data General Corporation, where he spent ten years in various roles leading up to his role as the director of software products.


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Software Company News

  • Cambar Software (1981, WMS,, TMS) Announces Hosted Warehouse Solution. Customers who choose to use CSI’s Axis Warehouse Management solution in a secure, hosted environment can now select from three levels of service – basic, standard and enhanced – to address their unique business requirements and IT environments:
    1. Basic – includes non-managed application services with basic hardware monitoring;
    2. Standard – provides detailed hardware, database and application monitoring between 8 a.m. and 5 p.m. EST; and
    3. Enhanced – expands coverage under the standard hosting service level to 24x7.

      The deployment of the Axis Warehouse Management at a secure CSI hosting facility using encryption technology allows CSI customers to respond to their clients more quickly and accurately by managing the flow of goods and information in the supply chain efficiently and cost-effectively. The solution also achieves a single point of accountability for the management of hardware and software infrastructures.

  • Microlistics Pty Ltd (WMS, SCE, Austrailia, Asia, UK) delivers one of the fastest implementations of a warehouse management system during implementation for e-fill (an Australian 3PL). ISIS Express, with a stated feature of 30 day implementations, was up and running in the e-fill Fairfield site in less than 22 days. "In WMS projects, that is the equivalent of running the 100 meters in 6.8 seconds," expressed Stan Bearder, Project Manager, Microlistics.

    Microlistics stepped up to the challenge with ISIS Express, the pre-configured WMS package with sophisticated warehouse functionality built in, and set an aggressive time table for delivery: Within 9 working days the customer was ready to receive stock into ISIS, at day 15 the customer was ready for processing picks and by day 22 a fully operational system was in place and ready to roll. "The reason we were able to deliver this project so efficiently was the teamwork between both e-fill and ourselves" states Mr. Bearder. "Right from the start we had the key people involved and with a blank sheet in front of us, we literally created the procedures together". In addition to fast process design, the team approach also helped prevent common WMS implementation problems from occurring, i.e. unnecessary scope and costs spiraling out of control.


  • ServiceWare Technologies, Inc. (Nasdaq:SVCW), a provider of Web-based knowledge management solutions for customer service and support, today announced that Fourth Shift (ERP, MRP), a SoftBrands Company, successfully implemented eService Suite 4.0. ServiceWare enables Fourth Shift to reduce the overall number of incoming calls into the support center while providing customers with an easy-to-use, 24x7 self-service option.

    ServiceWare is a leading provider of intelligent service applications that enable companies to provide enhanced customer service capabilities. ServiceWare's eService Suite(TM) software empowers organizations to deliver superior service and support, while reducing expenses. Powered by MindSync(TM), a patented self-learning search technology, eService Suite enables businesses to develop and manage a repository of knowledge to effectively answer inquiries over the Web and in the call center.



  • TALPX Inc. (B2B, E-Commerce) and NxTrend Technology Inc. (ERP, WMS) form alliance to deliver integrated e-commerce solutions to the building products industry. NxTrend’s SX.enterprise distribution software will be integrated with the industry-leading TALPXâ eMarketplace Solutions.

    TALPX will use NxTrend’s bizLinx Commerce Connect technology to enable real-time XML integration. Commerce Connect supports EDI, e-mail and flat file integration for dealers and distributors who don’t support XML. Once a transaction is completed in the TALPX marketplace, purchase orders, invoices and transportation documents will be automatically generated from, and input into, our partners’ systems.

  • Tilion, Inc., (TMS) unveiled its new Solutions for Inbound Freight, a Web-based logistics solution that arms enterprises with intelligence to drastically cut inbound freight costs while streamlining the inbound logistics processes. . Inbound freight is one of the most difficult areas for logisticians to maintain financial control, but it offers the greatest potential for cost savings. Tilion Solutions for Inbound Freight use data collected from existing enterprise systems throughout the supply chain to provide greater level of control over inbound shipments. This consolidated information eliminates the use of non-preferred lanes, reduces expedited shipments, and streamlines the entire inbound freight process by minimizing the number of less-than-full truckloads (LTLs). Tilion projects that the solution will slash premium freight costs by 30 percent and total inbound freight costs by 15 percent in just 90 days.

    Tilion Solutions for Inbound Freight reconciles documents, including purchase orders, ship notices, and carrier status, to generate a real-time picture of inbound shipments to the enterprise. The Tilion Service is unique because it tracks shipments before they leave the supplier’s dock until the moment they arrive at the enterprise. When expedited shipments are scheduled or a non-preferred carrier is selected, the Tilion Service notifies the enterprise logistics manager so that corrective action can be taken before the costly error is made.

    Tilion Solutions for Inbound Freight collects critical information and delivers detailed analysis about inbound shipments in a variety of formats, including Web-based reports and proactive alerting to e-mail, pagers, and wireless PDAs. Data can also be fed directly to existing ERP, TMS, and SCM systems. Available shipment critical reports include:

    * Supplier Inventory Availability, which compares purchase orders with inventory levels at the supplier to proactively identify short shipments.

    * Ship Variance, which matches purchase orders with ship notice data to identify misguided shipments and the use of non-preferred carriers and lanes.

    * Shipment Analysis, which sorts all incoming shipments by destination and estimated time of arrival to enable consolidation and improve receiving efficiencies.


  • V3 Systems (WMS, TMS) - V3 Systems adds THIRD PARTY LOGISTICS Billing Component. V3 Systems Billing advances any 3PLs’ ability to effectively manage billing of simple or complex contracts with multiple customers, especially those implementing a zero inventory strategy requiring Supplier Owned Inventory (SOI) or Vendor Managed Inventory (VMI).

    Through a simple, intuitive interface, V3 System Billing users can correlate highly complex contracts down to system transaction levels, and ensure that all revenue-generating events are captured and presented for invoicing. Additionally, V3 Systems Billing enables users to assign a billing function to any system- or process-driven event or document. Billing can be based upon storage, transaction, assessorial, frequency, price, unit of measure, or any formulaic combination of these categories.

    V3 Systems Billing features highly flexible customer-specific billing configuration capabilities. V3 System Billing also automatically logs billable events and facilitates proper invoicing by allowing modifications to the billing log at any point in the logistics execution process. There is complete visibility to the billing log change history, so 3PLs or their customers can see logged billing events, past invoices, and past billing logs, as V3 Systems Billing uses this data to compile and print detailed, accurate customer invoices. V3 Systems Billing also assigns an ID to each billing transaction, for the purposes of interfacing with any of the more popular Enterprise Resource Planning (ERP) packages (e.g. SAP, Oracle, PeopleSoft, Great Plains, etc.) or custom ERP applications.




Quotes to Ponder - List of Quotes to Ponder from prior issues.
  • " Success is a marathon, not a sprint. Never give up." - IBD November 30, 2001.


Scripture to Ponder - List of Quotes to Ponder from prior issues.

  • "Prove ALL things - hold fast that which is good." 1 Thess 5:21..

Websites to Check Out

Many Business Forms & Agreements - from AllBusiness - http://www.allbusiness.com/cmt/information/generic.jsp?fname=24701


Good Book

Software Directory - Released August 2001

"Warehouse & Logistics Software Directory"


Order From
Amazon
or IDII
Obal, Philip See reviews and more information on this book at Amazon.com


WMS Standard Search Bundle

"Standard WMS RFI Search Bundle"


Order From
Amazon
or IDII
Obal, Philip See reviews and more information on this book at Amazon.com

WMS Advanced Search Bundle

"ADVANCED WMS RFI Search Bundle"
Available from IDII only
Advanced Version is available from IDII


Valuable Future Events

NA2002 - April 8 to April 11, 2002 - Cobo Hall, Detroit, MI, USA - 800-232-1537 or visit http://www.na2002.com.

DC Expo - May 21 to May 23, 2002 - Navy Pier, Chicago, IL, USA - 800-338-4112 or visithttp://www.logistar2.com


About This Newsletter - ISSN 1533-435X

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. Feel free to forward this newsletter to others that you know. One may quickly subscribe, view past issues, view FAQ, & our rate card by accessing www.idii.com/esn/index.htm.

© 2001 Industrial Data & Information Inc. All Rights Reserved.. Trademarks belong to respective trademark holders. Information accuracy is not guaranteed due to variety of sources.

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