IDII Software Newsletter
November 15th 2002 - Volume 3 Number 21
For professionals dealing with software in Warehousing, Distribution, Logistics, and Supply Chain.
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Techniques, Vision, & Educational Thoughts


Software Implementation FAILURE AVOIDANCE Guidelines - Part Two

4. Hire a 3rd Party. No one can be as objective as a Third Party acting as an Integrator, Umpire, Translator, or Consultant. An Integrator can help weave together potential interdepartmental rivalries, synthesize possible multiple software solutions with disparate architectures and/or platforms, and distill all anticipated benefits from your software implementation across all business units and standardize across the enterprise. The Umpire will match your very different agendas--the software vendor is looking for your money and your signature on the dotted line. If you have this person acting as a Translator, you will understand what the software peddlers are telling you, and the software peddlers will understand your needs. You are looking for a solution and often bleeding edge technology. A Consultant by definition gives expert or professional advice. This contract employee will keep you from redesigning a wheel or keep you out of harm’s way. You really need an objective 3rd Party.

Your Third Party Hired Gun will also know the right questions to ask.
This is worth his or her weight in gold. Mr. or Ms. Third Party and Seymour (Seymour always wants to see more will weed out your unfavorable vendors with ruthless efficiency.

5. Know the ROI. There is always a Return On Investment (ROI). You should have a general ROI expectation in place before you begin your project. Let your hired gun help determine this very important calculation. Do not bother to let your potential vendors perform the ROI analysis. They usually arrive at a calculation that easily and generously endorses their product and all of its associated costs. Keep in mind your firm’s Economic Valued Added (EVA) in mind to make up an ROI’s incomparability among divisions. EVA is net operating profit minus an appropriate charge for the opportunity cost of all capital invested in an enterprise. As such, EVA is an estimate of true economic profit, or the amount by which earnings exceed or fall short of a required minimum rate of return. It is difficult to capture all costs and payoffs of any large project, especially one as unpredictable and often terrifying as a major software implementation. Albert Einstein once said that many times things that can be counted do not always count, things that cannot be counted often count. Go back and read that last sentence again. Keep this in mind while evaluating your ROI. You will have to make some assumptions. Use the ROI as a budgetary variance tool. During your reviews you need to keep track of budgeted and actual costs. This is critical in keeping a project within budget, monitoring for adjustments, and knowing how well your team and / or the vendor is performing.

6. Budget for all foreseen costs. This is easier said than done. You will need to look at additional seat costs associated with your operating system, database management system, reporting and label producing applications, and technology such as wireless applications. Cost-Creep will produce Budget Creep, which often spells D-I-S-A-S-T-E-R. The aforementioned 3rd party can come in handy here.

7. Document your processes. If you have not done this, do it now. Let the Third Party help you. If your processes are being documented at different sites, sit back and get ready to discover the multitude of process variations for the same, well, process. You may get a lot of bang for your buck here. Let the Third Party help you distill the best processes and merge them all together in a “Best Practices” process manual. Now you have a documented methodology to present to the software vendors.

8. Document their processes (and functionality). Their functionality needs to match your process as closely as possible. Avoid customization as much as you can. The very best vendors know the very best way to do things because they have the very best customers. They have taken the collective wisdom of their customer base and programmed it into the software. Consider changing your process to fit the software if it makes sense. Remember how much you can learn from the vendor’s customer site visits.

Author: Ray Scipioni - Next issue - Part Three of Failure Avoidance

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IDII News - New Website Features

  • New WMS Research Report Study. IDII is now researching WMS solutions that are capable of 25 RF Users & Above. To be included in this study, please contact Phil Obal of IDII at philobal@idii.com. This study will be completed in February 2003. IDII will announce an exiting new research report with our detailed findings at that time!
  • NEW ADVANCED WMS RFI - Edition 7 Released November 1 - Includes new sections and contains 1000 detailed questions - resulting in RFP's with greater detail in a WMS software selection project. If your company want to do a software search for a new WMS then this will greatly benefit! It will save you a solid week of time or more!
  • New Book Sections! - RFP Development - Proposal Writing - Software Project Management - IT Management - Software Testing - Plus our other book catalog sections.
Keep Learning - Free Books - White Paper Index (Over 100) - Books - Suggest A White Paper

Software Company News

  • AquiTec (WMS, LMS, TMS) introduces its web-enabled warehouse management software product, eWMS, that will provide customers with real-time visibility of warehouse operations, at Softworld 2003. Its web-enabled architecture offers enhanced availability of information and greater flexibility in management reporting, enabling retailers and wholesalers to respond more effectively to the demands of the supply chain.

    eWMS is the third product in AquiTec's SCM/e suite of web-enabled supply chain products and is a direct response to customer and market demand for flexibility of platform choice. eWMS combines all the superior functionality of AquiTec's existing iSeries-based warehouse and labour management products, SCM/400, with additional functionality developed to increase warehouse productivity and the enhanced flexibility, scalability and user-friendliness provided by a web-based architecture.

  • Cambar Software Inc. (1981, WMS, TMS, CSI) has been acquired by Supply Chain Holdings LLC (SCH), a Southeast investment firm, for an undisclosed amount. CSI plans to leverage the new ownership group and funding to accelerate the growth of its supply chain execution software in target vertical markets. Supply Chain Holdings, LLC is a Southeastern investment firm that acquires and invests in growing and established supply chain management software and consulting firms.

  • Catalyst International (WMS, NASDAQ: CLYS) to acquire Catalyst Consulting Services, a Provider of Implementation Services for SAP LES. Catalyst has signed a letter of intent to acquire Philadelphia area-based Catalyst Consulting Services, Inc., a leading independent provider of consulting, implementation and support services for the SAP Logistics Execution System (SAP LES). Catalyst Consulting Services is a US-based, certified SAP Services Partner focusing on the implementation of SAP LES.

    Editor's Note: IMHO, Looks like Catalyst is continuing to focus on services - consulting - integration dollars to keep it a profitable company. Services is a very profitable item.

  • EXE Technologies, Inc. (WMS, 3PL, Nasdaq:EXEE) announced that its board of directors has authorized a reverse stock split, to be effected at a ratio of between one-for-five (1:5) and one-for-fifteen (1:15), subject to approval by the Company's stockholders at a special stockholders' meeting, which will be held in late December 2002 or early January 2003.

    Editor's note: A year ago, EXE & Manhattan were tied for 1st place in the largest WMS provider. EXE still has a large install base with a low stock price ( EXEE has been trading for 41 cents to 75 cents per share during the last month). IF EXE can get out of it's slump, it will be an interesting 2003 story. On the other hand, Manhattan has executed well during the last year & a half - in both sales & financial health - and has been a Wall Street favorite in the SCE space.

  • ICS, Inc. (WMS, 3PL) announced LogiMation, the newest module for ICS's third-party warehouse and logistics management (3PL) solution, LogiMax. Delivering complete wireless (RF) automation for 3PL warehouses, the LogiMation module enables dynamic and paperless management of all warehouse tasks and processes in order to optimize efficiency, maximize profitability and increase competitiveness.

    A fully-integrated LogiMax module, LogiMation provides real-time, total task visibility for all warehouse processes and activities - from receiving through delivery - based upon pre-defined rules, priorities and associated tasks. Leveraging this data, LogiMation paperlessly automates tasks and optimizes efficiency by combining transactions and delivering advanced task logic that enables warehouses to:

    - receive and put away inbound goods in a single, seamless transaction;
    - match fulfillment orders with appointments from carriers and automatically queue them for review by supervisors;
    - receive unexpected shipments on the fly and more quickly react to time-critical deliveries that require special attention;
    - direct put-aways to optimize product consolidation and rotation with enhanced logic that recognizes item velocity, stack-ability and product date mixing - rules;
    - assign order priorities and release to full pallet, case and split-case task queues based on user equipment;
    - generate consignee compliant labels for ready-to-stage pallets and have them waiting at the stage location;
    - replenish interleaved forward pick locations;

  • Lilly Software Announces Additional Theory of Constraints / Drum-Buffer-Rope Training Offering. Lilly Software Associates announces the availability of the Throughput Improvement Primer (TIP) package. Leveraging the success that it has had with the VISUAL DBR(tm) and VISUAL Power Boost(tm) solutions, Lilly Software developed this offering to help VISUAL customers and prospects rapidly realize the value of implementing Theory of Constraints (TOC)/Drum-Buffer-Rope (DBR) management techniques, while minimizing the cost of their initial investment.

    The TIP package includes four days of TOC expertise and training, where companies develop high-level implementation plans for using DBR disciplines and strategies to manage production. During this training, top management and production teams work together to identify their bottleneck resources, discuss how to apply the DBR methodology against these resources, and recognize the impact of these changes on their financial bottom line. As part of the high-level plan, teams also create a time table for achieving their financial goals.

  • Logistics Management Solutions (LMS) introduces TOTALVision, a Web-enabled program that combines rate management, Internet tracking & tracing and freight payment management into one, easy-to-use system. By consolidating these fundamental shipping functions, TOTALVision offers complete online shipment visibility – from order entry to carrier payment – enabling shippers to gain tighter control of their freight operations. TOTALVision becomes an online logistics data warehouse, coordinating the following tasks:

    · Rate Management
    • Carrier inquiries
    • Rate maintenance
    • Batch rating
    • Core carrier compliance reporting
    • On-time delivery performance reporting
    • Electronic route guides
    • Shipment accruals

    · Internet Shipment Tracking & Tracing
    • Up-to-the-minute shipment status
    • Final delivery notification

    · Freight Payment Management
    • Carrier payments
    • Carrier inquiries – handled by LMS
    • Reject resolution – handled by LMS

  • Manhattan Associates has 2 announcements.
    1. Forms strategic alliance with Tokyo-based Site Design, a leading provider of Web-based order management and fulfillment solutions.
    2. Signs letter of intent to acquire Logistics.com. Manhattan Associates to Augment Offering with Premier Transportation Execution Capability, Adding Transportation Planning, Carrier Product Portfolio and Large Blue-Chip Customer Base.

  • Prophet 21, Inc. (Nasdaq:PXXI) has entered into a merger with an entity formed by Thomas Cressey Equity Partners Inc. ("TCEP") and LLR Partners Inc. ("LLR"). Under the Merger Agreement, all of the issued and outstanding shares of common stock and in the money options of Prophet 21 will be acquired for cash in the amount of $16.30 per share. Prophet 21 management will continue to operate the business under its current name and operating structure.

  • RedPrairie has released a new version of its best of breed warehouse management system, DLx® Warehouse, containing the specific processing requirements food and beverage companies require. The DLx® Warehouse/D 6.0 release runs on the Microsoft® WIN 2000 platform using either Oracle or SQL Server databases. It is available with industry-specific deployment packages for Consumer Goods, Food & Beverage, and other environments. For food and beverage companies, the system has extensive functionality to manage multi-level holds, time holds, catch weights, shelf life, expiration dates, quality assurance, recall processing and many other distribution functions.

  • Richer Systems Group (RSG) has added new capabilities to the Enrich Transportation Management System (TMS) including dispatch, freight billing, driver settlement, and warehouse management through an OEM licensing arrangement with SCORE Corporation of Canton, Michigan.

    Enrich TMS is a modular software package that can be deployed progressively and extends functionality to every part of the business: freight and truck operations, asset management and maintenance, fuel management, compliance, accounting and financial reporting, payroll and HR, customer service.It is unique in its abilities to support multi-mode service offerings within a single management system: truckload, LTL, dedicated, specialty, brokerage, air freight, warehousing, leasing and contract maintenance, rentals, retail maintenance.



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

  • "Kind words can be short and easy to speak, but their echoes are truly endless."
    - Mother Theresa of Calcuta
  • "Don't walk in front of me; I may not follow. Don't walk behind me; I may not lead. Just walk beside me and be my friend."
    - Albert Camus

Scripture to Ponder - List of Quotes to Ponder from prior issues.
  • "Let no unwholesome word proceed from your mouth, but only such a word as is good for edification according to the need of the moment, that it may give grace to those who hear."
    - Ephesians 4:29

Websites to Check Out

Online Book Catalog - Intuitive Categories

Books on Shipping, Warehousing, Distribution, Operations, WMS, ERP, MRP, CRM, Supply Chain, Customer Service, Logistics, Facility Layout & Design
, Metrics & Measurements, and books on software solution providers SAP, Peoplesoft. Need help in RFP Development or Proposal Writing. IT Management Issues: Software Project Management - IT Management - Software Testing

New Software Directory - October 2002 -

"Warehouse & Logistics Software Directory"


Order From
Amazon
or IDII

Manufacturing
"Value Stream Management"


Order From
Amazon


Manufacturing - Supply Chain - ERP
"Lean Performance ERP Project Management" - Implementing the Virtual Supply Chain"


Order From
Amazon


SAP & Supply Chain
"Supply Chain Management
Based on SAP Systems
"


Order From
Amazon

SEARCHING FOR A NEW WMS - SAVE TIME !!!

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

Valuable Future Events in 2003 - List Your Event or Convention

ProMat 2003 - February 10 - 13, 2003. ProMat 2003 will provide business, IT and operations professionals with a comprehensive solutions showcase of 700 exhibitors and nearly 80 educational sessions. Focus is Material Handling and Software. See http://www.promat2003.com

National Conference on Operations & Fulfillment (NCOF) - April 13 - 16, 2003 - Orlando, FL. The Walt Disney World Dolphin Hotel, Exhibits: April 14 and 15 The Conference Exclusively for Direct-to-Customer Operations and Fulfillment Management.

Distribution/Computer EXPO 2003 - May 20 - 22, 2003 - Navy Pier - Chicago, IL. The largest Exposition for logistics and supply chain technology including; distribution, transportation, and warehousing. Held in conjunction is the D/C EXPO seminars focusing on the latest trends and advances in logistics and supply chain technologies. Visit our website at www.logistar.com or call our toll free number - 800-338-4112.


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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. One may quickly subscribe, view past issues, view FAQ, & our rate card by accessing www.idii.com/esn/index.htm.


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