Archive for the ‘Distribution’ Category:
New solution from Oracle to help shippers expedite their invoicing
Oracle has come out with a new solution designed to expedite financial settlement and billing which will help the shippers gain more speed and transparency in invoicing. This is being termed as the industry’s ‘first comprehensive” approach to managing Enterprise Application Documents. This announcement was made at “Oracle OpenWorld” and aims at helping the shippers expedite business processes constrained by critical information tied up in paper forms and electronic documents.
“When your employees can’t see critical enterprise documents like invoices, customer agreements and product specifications while they are working in their CRM and ERP applications, they can feel like they are flying blind,” said Andy MacMillan, Oracle’s vice president, product management. “We realized that we needed to take a comprehensive approach to managing Enterprise Application Documents that would work both in the context of CRM applications that require flexible, ad hoc access to customer and product documents and with ERP applications that have high volume, transactional requirements.”
“We realized that just providing ad hoc or transactional support wouldn’t let our customers empower all their users and reap the productivity gains possible through a truly unified approach to Enterprise Application Documents,” added MacMillan.
Oracle’s Enterprise Application Documents approach is enabled by the integration of Oracle content management products, part of the Oracle Fusion Middleware product family, and Oracle Applications. With this integration, Oracle is providing its Applications’ customers with a set of content management services that makes all paper-based and electronic documents — including invoices, HR forms, product specifications and customer contracts — directly visible, searchable and manageable from within Oracle Applications.
Subscribe to the comments for this postWhy inventory is held by companies?
Inventory is a list of goods and materials, or those goods and materials themselves, held available in stock by a business. There are various reasons for which the companies hold inventory. For example, suppliers hold the inventory so that the customers may not be affected by manufacture/supply delay. Again, manufacturers keep inventory because there may be lower production efficiencies if production capacity stands idle for lack of materials. Some other reasons for keeping stock include:
1. Buffer stock is held in individual workstations to handle situations when the upstream workstation may be a little delayed in providing the next item for processing.
Sometimes, overproduction stock is there when the forecast does not match with actual sales.
2. Safety stock is held against process or machine failure in the hope that the failure can be repaired before the stock runs out.
3. Lot delay stock is held because a part of the process is designed to work on a batch basis whilst only processing items individually. Therefore each item of the lot must wait for the whole lot to be processed before moving to the next workstation.
4. Demand fluctuation stock is kept if the production is not flexible enough to keep up with the changes in demand. So, this stock is utilized when demand exceeds production capacity.
5. Changeover stock is held after a sub-process that has a long setup or change-over time. This stock is then used while that change-over is happening.
Whatever be the reason for holding these stocks, inventory management is very essential for any company. Also, stocks should be kept at minimum so that capital does not remain stuck up with excess inventory.
LG aiming to globalize its Supply Chain network
Last month, at the Council of Supply Chain Management Professionals conference, LG’s Chief Supply Chain Officer Didier Chenneveau revealed the fact LG had been making dramatic supply chain strides with the goal of becoming a top three company in each of its markets. Some of the broader supply chain steps taken by LG include:
* An increase in outsourced manufacturing .
* Improved cost visibility across the organization
* Globalization of its supply chain.
* A move to a more demand-driven supply model with more accurate forecasting.
Among the specific strategies taken up by LG’s supply chain team are:
* Creation of 10 metrics across various areas to track progress and report to the CEO on them twice a year
* Standardize on one ERP system (Oracle)
* Standardize on one financial system
* Consolidate the various WMS/TMS instances
* Standardize RFPs and contract terms and conditions across the company
* Improve sales forecast accuracy from 30% in 2008 to its current level of 40% with the goal of 60%
* Make English the standard language across the company’s supply chain to facilitate better communication
* Standardize job titles in the supply chain
* Rationalize the more than 41,000 SKUs LG carried in 2008.
LG Electronics has been taking these steps with a goal of outsourcing more manufacturing as it moves from a mostly Asian manufacturer to a global consumer electronics giant.
Plug Power announces its strategy to achieve profitability
Plug Power Inc. is an established leader in the development and deployment of clean, reliable energy solutions, integrates fuel cell technology into motive and continuous power products. Now the company, during its analyst and investor meeting held on Thursday, October 8, 2009, announced its strategy for achieving profitability and generating a positive cash flow for the first time in the Company’s history.
For this, Plug Power will focus resources on its two commercial products, GenDrive(TM), a superior alternative to lead-acid batteries in the material handling market, and GenSys(R), a continuous-run prime power system that replaces diesel generators at remote telecommunication sites where the grid is non-existent or unreliable.
The Company’s presentation highlighted its plans to double shipments of their products each year from 2010 to 2012, equating to approximately 7,200 to 9,400 shipments at the end of 3 years which in turn would double the revenue over the same period.
In an attempt to attain its goal of profitability, Plug Power will try to lower product costs by leveraging the supply chain, lowering manufacturing costs and improving system reliability for both product lines. Key success factors include product expansion, starting with the release of the class-2 stand-up reach truck product for electric lift trucks in the fourth quarter of 2009.
“Plug Power has established a strategy to bring the Company to profitability,” said Plug Power’s CEO, Andy Marsh. “We have surveyed what it will take to sustain Plug Power into the future and have developed a thoughtful plan to engender success.”
How to increase your Supply Chain Velocity?
Supply Chain Velocity can be defined as the capability of the firm, both internally and in conjunction with its key suppliers and customers, to adapt or respond in a speedy manner to marketplace changes as well as to potential and actual disruptions, contributing to the agility of the extended supply chain.
With the increasing pressure from markets, companies now need to accomplish greater results with fewer resources in less time. While honesty, integrity, timeliness and quality are still the basic pillars for any business, some principles can be outlined for accelerating Supply Chain Velocity.
1. Besides the unit price of materials and services, also consider factors such as the proximity of a provider to key locations, quality assurance processes, demonstrated past performance, contracted performance penalties, consistency of quality or reject rates, provisions for turnaround times, expediting fees and service-level standards. This will give you the benefit of total value instead of unit price.
2. When deciding to replace or enhance systems, instead of large and time taking implementations opt for quick-hit projects or low-hanging fruit. For larger projects, follow a plan which allows increment step by step instead of trying to do everything at once.
3. Increase Fulfillment Flexibility and Reduce Cycle Times by establishing fulfillment operations that are flexible and adaptable to meet changing market demands.
4. Manage your inventory wisely because stockouts represent lost opportunities, and excess inventory robs capital from productive possibilities.
5. Seek Out Smaller or Niche Vendors because smaller, lesser known suppliers can be more nimble and may be more willing to creatively meet your needs in a short timeframe.
These tips, though simple and basic, go a long run in increasing supply chain velocity, if followed and put into effect religiously.
SCOPE West elaborates on best supply chain practices
SCOPE West, a conference and exposition for senior logistics and supply chain executives focused on supply chain best practices during its two-day event. The event saw presenters from leading manufacturers, retailers, and distributors who spoke about supply chain challenges they had faced and how they overcame them.
Some of the main excerpts from the conference include:
H.J. Heinz Co. has developed a performance management program that links quality control practices like Lean and Six Sigma with best practices in manufacturing, supply chain management, and customer service. The worldwide initiative uses a formal communication methodology that’s customizable for different languages and cultures.
Lennox International, a manufacturer of heating and cooling systems, dealt with highly seasonal demand by using software to analyze the impact of inventory availability on customer service. The company achieved its goal of providing specified service levels at the lowest inventory cost, optimized by SKU for individual service locations.
To encourage continuous improvement, manufacturing conglomerate United Technologies has developed the “Achieving Competitive Excellence” (ACE) program, which certifies and rewards its own business units and its suppliers for excellence in service, supply chain management, and more. The company estimates that ACE adds more than $2 billion annually to its bottom line.
TMW Systems expands its fuel SCM applications
TMW Systems Inc., is one of the largest developer and integrator of customer-driven solutions that help companies in the transportation services while improving profitability and gaining a better return on information. TMW customers include 3PLs and shippers, private and for-hire trucking, brokerage, construction, ready-mix concrete, municipal fleet, heavy-duty repair and waste management operations.
Now, TMW Systems, has announced a growing portfolio of fuel supply chain management applications designed to meet the unique needs of fuel supply chain operations for convenience stores and other retail gasoline and diesel outlets. The fuel supply chain applications from TMW manage more than 11,000 tanker trucks delivering fuel across North America.
TMW Fuel Supply Chain Transport Management System now offers eight powerful modules that can be purchased separately or as an integrated system which will serve the needs of diversified petroleum marketers, convenience store chains, vertically integrated oil companies and fleets dedicated to fuel transport.
“We brought TMW’s enterprise-class asset utilization technologies and their proven efficiencies to this high-touch, high-value service industry with several new applications designed to streamline fuel order management, improve order and replenishment forecasting and optimize driver shift-based scheduling for added productivity,” David Mook, COO and CTO of TMW Systems, said. “We knew that petroleum marketers and jobbers as well as oil companies could really benefit from these smart, cost-effective applications to manage inventory at dozens or even thousands of locations and to efficiently manage company trucks or contracted carriers in fulfilling orders in the very dynamic world of retail fuel supply.”
ELSC offers two prestigious awards to Safexpress
The Express, Logistics and Supply Chain Conclave 2009, held on 17-18th September at Taj Lands End in Mumbai has honored Safexpress with two highly prestigious Awards for the ‘Best Supply Chain Company of the year’ and the ‘Best Logistics Provider of the year’.
These Awards were decided on the basis of a Research conducted by A.C. Nielsen and were put forth to the ELSC Advisory Council comprising luminaries from Top Supply Chain & Logistics companies across Asia, who eventually chose the winners from the nominated finalists on the basis of specific performance parameters.
This prestigious event of the Supply Chain & Logistics industry in India aims to bring together all the top Industry Leaders at a common meeting point so that they can share their knowledge about the emerging trends in the Asian Supply Chain, issues that are affecting the industry and understanding the Supply Chain opportunities and efficiencies at the time of Global Economic slowdown.
Speaking on this occasion, Mr. Vineet Kanaujia, GM – Marketing, Safexpress, who was also awarded with the ‘professional of the year award, said, “It’s a matter of immense pride and honor for us to have received these Awards. We are working very hard to provide the best Supply Chain practices to our esteemed customers who have shown their loyalty towards our services over the last decade. Our company has built and nurtured customers’ trust as well as loyalty through its customized solutions and dedicated services. The business model of the company and the way it operates is what distinguishes Safexpress from its competitors.”
Mr. Kanaujia explained the journey of the success of Safexpress saying, “Our strategy for growth revolves around adding maximum value to its customers at every level, right from providing world-class Warehousing support to managing Time-definite Express Deliveries. Over the years, Safexpress has been relentlessly working towards carving its own niche in the Supply Chain & Logistic space, which has made the company stand out in a league of its own”.
BuBuGao to deploy Manhattan Associates’ WMS to improve its SC efficiency
Acknowledged as one of China’s top 100 ChainGlobal supply, TBetter Life Commercial Chain Share Co Ltd (BuBuGao) is a leading operator of supermarkets and department stores in China operating more than 100 stores in Hunan and Jiangxi Province and employing over 30,000 staffs. Manhattan Associates(R) excels in providing global supply chain excellence to more than 1,200 customers worldwide that consider supply chain optimization core to their strategic market leadership.
Now Manhattan Associates, Inc. has announced that Hunan-based BuBuGao has chosen Manhattan Associates to improve supply chain efficiency and data integrity through the deployment of Manhattan Associates’ Warehouse Management Solution (WMS).
This solution will be implemented in BuBuGao’s warehouses across the Hunan and Jiangxi Provinces enabling the company to streamline operations, reduce costs and
most importantly ensure data integrity throughout its supply chain. Manhattan Associates will enable BuBuGao to optimize its entire replenishment process by automating time-consuming steps such as order preparation, stock checking and data analysis.
Peng Xiong, IT director of Better Life Commercial Chain Share Co Ltd said, “Data accuracy and integrity is essential and must not be compromised. Manhattan Associates’ system will give us centralized control over our operations and significantly improved data visibility and accuracy. With its complete inventory management capabilities, we will be able to track data on every unit and improve the accuracy of every order we fulfill. In addition, the rock-solid stability and rich functionality of the WMS will enable us to reduce the man-hours and costs associated with distribution planning, improve our retail operations and ultimately increase overall customer satisfaction levels.”
“We provide our customers with proven, value-added distribution management and warehouse optimization technologies that support mission-critical business needs,” said Jeff Baum, Manhattan Associates’ senior vice president, International (Asia Pacific). “With our WMS, BuBuGao will be able to replace its legacy systems with a centralized platform that enables warehouses to share information and allows workflows to be integrated across the company.”
Boeing and Damco sign MOU for development of global SCM tools
Boeing, a unit of the US-based the Boeing Company, and Danish logistics company Damco, part of the A.P. Moller - Maersk Group, have joined hands for the development of industrial and technological logistics tools to assist global supply chain management.
The two companies have signed a Memorandum of Understanding and have released a joint statement saying that this MOU will help them improve efficiency and effectiveness in the multi-billion dollar supply chain optimisation market.
The statement said, “The two companies will explore opportunities to use the Boeing-developed Joint Logistics Command and Control Environment (JLC2E) modelling and simulation tool to expand into commercial markets and incorporate Damco’s expertise in supply chain management.”
It was also explained in the statement that Boeing’s state-of-the-art JLC2E tool allowed defence customers to “experiment and evaluate supply chain tactics, processes and technologies to support current and future complex defence missions”. Also that Damco could benefit from Boeing’s status as the largest exporter in the US through future freight forwarding opportunities as Boeing had shipped more than $350m in aerospace goods and services globally in 2008.