SUPPLY CHAIN MANAGEMENT

AUTOMATION

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TABLE OF CONTENTS
Automating Supply Chain Operations.............................................................................. 3 Automating Warehouse Management.............................................................................. 5 Automating Inventory Management................................................................................ 11 Automating Fleet/Transportation Management............................................................. 12

We have only to look around the world at any given moment to see the potential for supply chain disruption that comes from unexpected weather, natural disasters, political upheaval, economic crises and other black swan events that tend to keep businesses on their toes. Mitigating the negative outcomes of supply chain disruptions requires careful pre-planning as much as the ability to react swiftly and decisively. With corporations, suppliers and manufacturers frequently situated on different sides of the globe, there is a growing need for technology that can link them together in a way that provides consistency, streamlines processes, and enhances visibility so that businesses can meet these challenges head on. A business is only as successful as its supply chain, so whether the issues lie with mismanaged warehouse processes, inadequately tracked fleets, scattered inventory, lackluster transportation management, or some other supply chain conundrum, finding the right software solution can be game-changing in todays frantic, uncertain market.

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AUTOMATING SUPPLY CHAIN OPERATIONS

Faster, better, more accurate. No, Im not referring to the Million Dollar Man (in fact, Im not even referring to million dollar software), but those qualities are what companies are looking for when they choose to upgrade their supply chain management processes. Finding a faster, more efficient means of handling products is important for supporting a successful organization, and a well-run supply chain is vital to the success of a business. For some, upgrading their supply chain management system is proving to be a substantial boost to productivity thats moving them ahead of the competition. Many warehouses handle massive numbers of shipments every year, and in an economy that has seen less frequent hiring of additional help, much of the focus has been on maximizing the potential of the workforce currently in place. Having fewer hands to help receive and move shipments places an increased premium on accuracy and speed. Most particularly for organizations that deal with perishable and time-sensitive products, such as foods, beverages or anything that involves the cold chain, careful tracking of shipments is essential for ensuring that items reach store shelves and consumer homes in a safe, efficient manner. Automated tracking of shelf life and shipment status is invaluable for maximizing profit and business potential, and something best left to software.

Having fewer hands to help receive and more shipments place an increased premium on accuracy and speed.

In this era of RFID-enhanced warehouses, not leveraging newer technology can put you far behind the competition in relatively short order. Between the various tools and supply chain management applications available, and the ability to track each and every shipment through RFID tags, the level of visibility granted an automated supply chain has never been greater. Mobile warehouse management and barcoding technology add another layer of information, enabling better (and paperless) oversight of when products arrive, when they need to be rotated and precisely where they are located. Many organizations still rely on tribal knowledge for this sort of information, but even the best memories fail. Manual processes tend toward error, paper can get lost, but a system that centralizes information and helps automate the supply chain provides a level of support and real-time access to information that can help a business reach its maximum potential with minimum investment. Todays fast-paced, interlinked world seems to be all but shrinking thanks to new technologies - but its those new technologies that are leaving some corporations in the dust as they delay transitioning away from manual, paper-based business processes and sluggish supply chains. Companies that cling to the way its always been done are being left behind in an unforgiving economy shaped by speed, adaptability, and above all, efficiency.

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Innovation is the key, whether its through whipping your company fleet into shape with fleet management, keeping close tabs on product through inventory management software or maximizing every square foot of space with improved warehouse management. Innovation is hitting the market as solutions that centralize data and provide real-time access to what you need to know, whether youre in the office down the hall or several continents away. Technology is linking vendors to customers to shippers in an interlinked web that promotes the sort of fast, adaptable response that sets a business ahead of its competitors. Todays logistics is mobile, connected and requires much more than the pencil-and-clipboard style of management from years past. Where is it all leading? More than ever before, companies are turning to automated solutions and their IT departments to procure and manage new technologies that are proving vital to day-to-day business needs. Bar coding, radio frequency identification (RFID) and GPS tracking are just some of the new innovations that are making the difference between companies that can respond to the demands of a challenging marketplace and companies that are folding under the pressure. Big data is being leveraged to maximize insight into every facet of business operations, meaning the company that can best accumulate, process and analyze their enterprise data will be in the best position to lead their industry. Google CEO Eric Schmidt has said the world now creates as much data in a span of 48 hours as all of human civilization managed to produce from the beginning of history until 2003. Leveraging that data to better understand and propel business is paving the way into the future. Technology is the key (and the deciding factor in which side of history todays businesses intend to stay), but the financial impact of upgrading business processes and technology can be a concern in an uncertain economy. While there is evidence of the business sectors growing confidence in the economy, many companies are still hesitant to throw a lot of cash behind a complete overhaul of their supply chain processes. Instead, warehouse and supply chain managers are looking for innovative ways to get their DCs up to speed without having to invest too heavily. Currently, SaaS-based warehouse, inventory and transportation management software are garnering interest as alternatives to floor-to-ceiling overhauls or new construction. Recently, there has been more discussion of the growing need to retrofit distribution centers to make up for a smaller labor pool as a generation of warehouse/DC workers hit retirement age. Businesses are still concerned with being fiscally conservative, which makes automation a good solution for those needing to increase productivity without posting too many hiring signs.

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AUTOMATING WAREHOUSE MANAGEMENT

You may think your products are sitting safely in your warehouse, but how do you know for certain without effective warehouse management protocol? Warehouses are vast spaces where a great deal of product and money are lost every year. Stock can be rerouted accidentally, discarded, misplaced or otherwise eliminated without proper warehouse management. Losing control of your warehouse makes for slowed business, which is why effective warehouse management can mean the difference between saved cash and lost revenue. The need to maximize resources and savings within the warehouse is why companies are turning to WMS software. Warehouses tend to be large, busy and crowded, so its no wonder that sometimes products go missing. Workers might offload something in the wrong place, which means lost productivity when its time to set everyone on a manual search. Advanced WMS software helps warehouse managers track products to be shipped through advanced technologies such as RFID and barcodes, allowing them to manage every item in the warehouse within a system that lacks the human capacity to misplace and forget.

The newer SaaS warehouse solutions are able to provide a repository of information that keeps the warehouse running smoothly at a lower cost when compared to on-premise solutions.

Relying on manual processes and tribal knowledge to run your warehouse can lead to problems when trying to gain an accurate item count. The clipboard management style of a manually run warehouse means records are frequently rife with errors. Some of the tools offered by warehouse management systems help ensure accurate tallies as well as location tracking that can pinpoint exact item locations without wasting time on a search. The increases in efficiency, lowering of costs and maximized productivity are benefits that are tough to achieve at the same level without software to back up operations. Accurate information is key to running an efficient warehouse. Creating a centralized repository for data, one that can be accessed across the organization, can serve to interlink a distribution network in ways that only technology can fully support. The newer SaaS warehouse solutions are able to provide a repository of information that keeps the warehouse running smoothly at a lower cost when compared to on-premise solutions. Either method of deployment can provide a great benefit to a business operations, but for those who dont have a large IT department in place to handle installation and management of servers, databases and operating systems, SaaS is quickly becoming the solution of choice.

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Indisputably, warehouse operations are vital to the overall health of a company and businesses that neglect their supply chain are finding it more difficult to compete against their more efficient counterparts. With the right software solution in place, however, warehouse management can become a source of savings rather than a source of stress. With the warehouse representing the last link of the supply chain, its vital to maintain a structured, error-free environment in the most efficient manner possible.

Five of the most common challenges warehouses tend to encounter include: Inventory accuracy Without an automated system, companies tend not to know exactly what they have on hand, making inaccuracies a common problem. Inadequate visibility frequently causes excess/ obsolete inventory to build up or, perhaps worse, creates demand for extra stock in case of shortage. Excess inventory can cause lack of cash flow, warehouse space issues, higher cost to house extra materials and deficient customer service. However, inventory shortage tends to be the greater problem as it can lead to orders being unfulfilled. Inventory location Lack of inventory oversight can cause a buildup of inefficiencies within the warehouse that slows operations and increases costs. Without adequate insight into location, pickers take longer to find the items to ship, which slows the loading process and creates a backup in labor allocation and dock door scheduling. Space utilization/warehouse layout - If you dont optimize storage systems, racking and pallet patterns, the amount of space necessary to house inventory increases. Inefficient warehouse layouts also cause unnecessary labor. For instance, if you have high selling inventory in the back of the facility, youll drive further more often than would be required if the warehouse layout was better optimized. Redundant processes Its common for warehouse workers to pass a pick ticket or other documentation through multiple hands. The picker will pass it to the checker, who will pass it to the stager, who will pass it to the loader, and so on. Using bar code technology, which is frequently found in todays automated warehouse systems, eliminates multiple touches. Picking optimization For warehouses that still have manual processes in place, there tends to be no common route taken to pick items for shipment, which adds unnecessary time to the process. With system directed pick/putaway, the routing is easily automated, reducing wear and tear on both your equipment and your labor force.

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It all comes down to efficiency and beating the competition every step of the way, from supply chain to sales, but to rise to that level, a warehouse needs to run like a finely-tuned machine. Every successful warehouse is so because of top tier management, processes and tools. Even though each may have a slightly different approach to keeping their warehouses running efficiently, managers tend to find that there are three important keys to effective management: Automation of Inputs - One of the biggest challenges in running a warehouse is handling receiving and putaways. Being able to proactively manage receiving ensures that you know which dock spaces you need open at what time, which staff members to have on site, and which areas of your warehouse can hold additional product. With an automated system supporting putaways, you can be sure that incoming items end up where you want them for easier access later. This not only saves time in the receiving process, but also increases warehouse efficiency, as stock becomes much easier to locate with an automated warehouse solution providing backup. At-A-Glance Reporting - Ultimately, warehouse management is about knowing what you have and where it is at any given moment. A good warehouse management system can track packages and pallets while providing a 30,000-foot view of your warehouse. This makes it easier for you to gain visibility into what resources you have on hand, while enabling access to on-demand information and reporting for complete, end-to-end warehouse management. RFID-Powered Mobile Systems Doveryai, no proveryai is an old Russian proverb meaning Trust, but verify. Often quoted by President Reagan during arms control negotiations with Mikhail Gorbachev, it is also a good catchphrase for warehouse management. Just because you told your staff to put stock in a particular location and have a paper report indicating its in the right place, doesnt mean that it actually is in the right place. RFID systems allow you to query your warehouse to be sure of stock locations.

Optimizing the warehouse is essential, especially in an economic climate where businesses are working to improve every aspect of operations that can either reduce costs or increase profits.

Warehouses havent changed very drastically over the years, save for one notable exception: if you look carefully at the warehouses with the lowest loss rates and fastest receiving and shipping times, you will find an automated system. Optimizing the warehouse is essential, especially in an economic climate where businesses are working to improve every aspect of operations that can either reduce costs or increase profits. Automating and centralizing much of the daily tasks involved in warehouse management is unique in its dual approach: it reduces costs through speed and process improvements, while elevating inventory management and warehouse visibility. Warehouse management software provides measurable gains in these areas, from receiving shipments to order fulfillment. With inventory being the single largest expense incurred in business operations, theres no room for mismanagement.

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Using spreadsheets and text documents to track inventory flow is just not sufficient. These programs do not assist in efficiency, consistency and quality control. In contrast, warehouse management software helps companies keep accurate, real-time inventory counts, monitors and improves turnaround times, and automates daily tasks. For increased efficiency, some advanced WMS solutions can even be linked to accounting and information systems. While the advantages provided by warehouse management software are numerous, there are three that stand out as being especially important: Mobility - Mobility is inherently part of the job, which is why its important to implement a solution that can move as freely as you require. Mobile WMS is a fairly recent technology that enables scanning and uploading of item information, and a massive reduction in the amount of data entry required to track products, quantities and locations. In this way, mobile warehouse management software applications offer huge strides in speed, accuracy and efficiency. a. On-the-fly management

One of the great things about modern warehouse software is that you do not have to be sitting at your desk to use it. Mobile wireless systems can scan barcodes on boxes or use radio frequency identification (RFID) tags to let you manage your warehouse without sitting at your desk. Tracking shipments - Organizing and tracking shipments becomes infinitely easier when backed by a warehouse management system. Automating the assignment of drivers and warehouse workers, tracking location, route and status during shipment, and keeping close tabs on inbound, outbound and putaway are just some of the tasks that cant be matched by paper-based management. Even better, with all information centralized, generating a report becomes an easy task. a. Simplify receiving

Computerized asset solutions like WMS software assist with the entire process of putting inventory into your warehouse. They track your delivery schedule, database what will be arriving, and can even let you know how many staff to have on hand for unloading. This not only saves you management time but also makes it easier for you to ensure that you are getting complete and correct shipments. b. Automate picking and shipping

A WMS package does more than help you put stock in your warehouse and keep it there. It also automates the process of picking stock and shipping it, saving your staff time so that they can fill more orders.

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Inventory management - Its your choice: hours of paper shuffling or the click of a mouse. Undoubtedly, software makes inventory management and determining successful products a much faster, easier and efficient task. Warehouse management systems provide the sort of speedy, accurate feedback that enables companies to respond faster to the demands of their customers and the market as a whole. Wondering which items should be ordered in larger quantities? Which items should have order numbers reduced? Which month sees more/fewer orders? Its easier to find out through software, with numbers to back up the decision. Forecasting need is extremely important in terms of maximizing profitability, and not something that should require rummaging through file cabinets. a. Find items in inventory

Do you remember where you put your last box of that item? The one that the temp worker unloaded at the last second? Your warehouse management system stored its barcode or RFID tag, remembers where it was placed, and can guide you right to it. If the item is RFID tagged, the WMS system can even find it if it was mislaid. b. Schedule stock rotation

In a large warehouse, it can be almost impossible to remember what items need to be rotated and when. WMS software keeps track of everything in the warehouse and lets you know when stock needs to be moved and where it needs to go. This capability is especially useful when warehouses store perishable items, such as in cold storage facilities or FDA-regulated warehouses.

A resurgence in devotion to core competencies and the desire to shed costs and time associated with non-value added business processes has played a large part in the rapid growth of Software-as-a-Service (SaaS) over the last decade.
Todays supply chain is primarily driven by the effort to stay lean, relevant and competitive in a sluggish economy. To meet these standards, companies are taking a hard look at their operations and which innovative options can keep them at the forefront of their industry. A resurgence in devotion to core competencies and the desire to shed costs and time associated with non-value added business processes has played a large part in the rapid growth of Software-asa-Service (SaaS) over the last decade. But what is driving the growing trend in SaaS-based warehouse management and what should companies know before making the decision to deploy a SaaS solution for their own warehouse operations?

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A growing repository of best practices is available to companies looking to expand automation into the warehouse, logistics and distribution sectors of their operations. Business drivers for SaaS deployments have expanded to include: Reduced costs as responsibility for upgrades and hardware maintenance fall to the provider. Flexible financial models with pay-as-you-go and pay-per-transaction options. Faster implementation due to ready availability and access anywhere that is capable of Internet connectivity. Reduced impact on corporate IT, with the majority of the expertise requirement placed on the providers side of the agreement. Ensuring that the newest version of the application is always at your fingertips. Encouraging an integrated business network; employees in different locations gain access to the same business support no matter where they are.

Deployment options for business software are varied and dependent on the operational needs of the company, adding another layer of complexity to executive decision-making. The multi-tenant model seen in SaaS allows for a single code-based architecture that not only eases the upgrade process, but lowers implementation costs in comparison with hosted or on-premise options. Despite the efficiencies and cost savings inherent in SaaS, its not always the best solution for warehouse optimization. For companies that require mass customization to meet their operational needs, on-premise deployment is still the better solution. Todd Wiegand, Apptricitys Warehouse Management System Architect, offered advice for warehouses working toward a SaaS-based overhaul of operations: Make sure the functionality meets all of your users needs. Ive had experiences where people have said This is how we run our business until we got to the 5th or 6th warehouse and then they said, No, we do it differently. That causes a lot of problems with delays and cost overruns. Carefully consider the needs of each group that will be making use of the system, choose a delivery model that is most appropriate for your organization and, finally, be sure to partner with a proven provider that can both simplify the process and meet your operational needs. A little due diligence is all it takes to ensure your software deployment makes sense for your own warehouse operations.

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AUTOMATING INVENTORY MANAGEMENT

An overhaul of warehouse processes and technology would be incomplete without the tools necessary to help control inventory. Automated inventory systems play a major role in business by processing and organizing data in a quick, efficient manner and to a level that is typically unachievable with manual processes in place. Inventory control software, which is used to manage a companys purchases, payment processes, sales and stock, is experiencing an escalation in adoption due to its inherent business value. Without automated assistance, tasks such as inventory check and product sales can quickly become overwhelming for businesses. Whether its a small retail store or a large warehouse facility, the use of an automated inventory system is essential for streamlined, efficient operations. The alternative, manual inventory management, has several built-in challenges that are initiating a trend toward automation. Prone to errors Errors resulting from manual inventory counts often lead to over or under stocking, which can be financially disruptive for business. Inventory control software ensures these processes are handled more accurately and with greater oversight. Reduced turnaround time - Manual inventory control takes a large amount of time and resources to conduct. Besides being tedious, slow and inefficient, it can easily lead to errors and additional labor costs. An automated inventory control solution enables timely accounts of inventory. Slowed business processes - Manual inventory processes frequently cause sluggish operations and delays in production or purchase of new stock. Perhaps worse, without adequate oversight, unauthorized or slow moving products may be inadvertently purchased. Management challenges Without an automated solution, data for purchasing, stores, production, accounts and sales tends to be kept separately, making management and control of inventory more difficult. Inventory control software allows for amalgamated data, which simplifies and speeds up the entire process and lowers Vendor Managed Inventory (VMI) costs. Customer dissatisfaction Agility in the supply chain is vital in order to meet customer expectations and demand. Manual inventory processes make it more difficult to adequately track which products are flying off shelves and which are just taking up shelf space. Slow processing can delay deliveries, lead to stock outs and keep you permanently behind the trends of the marketplace. Without automation to track and report the vital data you need to make good purchasing and inventory decisions, you run the risk of dissatisfying your customer base.

Keeping tabs on your inventory is vital to the health of your business, especially in todays economy where the real battle is taking place between company supply chains. If inventory is causing your company to lag behind, maybe its time to start looking into updating operations with an automated solution.

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AUTOMATING FLEET/TRANSPORTATION MANAGEMENT

With warehouse and inventory processes upgraded, one of the final links in the supply chain is fleet and transportation management. The importance of moving product from Point A to Point B quickly, safely and efficiently cannot be overstated, nor should it be ignored when the time comes to transition to a more software-driven supply chain. Transportation Management Systems (TMS) are intended to simplify supply chain management and maximize productivity by automating redundant tasks which otherwise require an unreasonable amount of resources to complete. Companies have found that transportation management software streamlines complex processes industry-wide. Todays solutions have evolved to the point where they can automate the entire transportation system. From transportation requests to route planning, shipment status to delivery confirmation, what used to take hours or days to compile is now available in real-time with the click of a mouse. The main question for transportation management software providers has been, How can we maximize this service? The answer: take what used to be managed via phone calls and paper, and turn that clipboard-based style into something that can be centralized, deployed enterprise-wide, and accessed on-demand, on-the-go, or in whatever capacity the client needs in order to maximize their fleet and transportation operations. The payoff? Businesses are more efficient, shipments and deliveries are more accurate, and productivity loss is reduced by 30 to 40 percent. Superior transportation can be tough to achieve, but some helpful tools can boost a fleet to a level of efficiency that can make a drastic difference in both productivity and profits. Food and beverage transportation is fairly notorious for being one of the trickier segments of the industry, making it even more vital that companies involved in it stay on top of trends and technology. Efficient routes, truck availability, timing of outgoing and incoming vehicles, maintenance, fuel costs these are just a few of the factors that dictate the success or failure of a companys transportation management, and several reasons why automated software can make a surprising impact on operations.

The payoff? Businesses are more efficient, shipments and deliveries are more accurate, and productivity loss is reduced by 30 to 40 percent.

Business intelligence, scalability and total visibility transportation management software is tough to beat when it comes to gaining total control of a fleet. With software-as-a-service (SaaS) and on-premise being the two primary modes of deployment (SaaS maintains a lead due to the relatively cheap cost, speed of deployment and out-of-the-box functionality), businesses have their choice as to the where, when and how of TMS implementation.

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According to Food Logistics, some of the most sought after capabilities in transportation management software systems include: Route visibility Cargo tracking (particularly for perishable food items) Proof of delivery Fuel cost tracking

These tools enhance product quality, speed of delivery, efficient routing, cost reduction and overall transportation and supply chain operations. Expectations are that enhanced communication via social media and continuation of the cloud-based services trend are on the horizon for those at the cutting edge of transportation and logistics technology. Transportation needs change with time, as do a companys requirements for its fleet and supply chain operations. Transportation management software provides the flexibility to adjust to the twists and turns of the marketplace and the visibility needed to avoid unpleasant surprises. Its tough to be competitive with pen-andpaper operations, which means its becoming increasingly important to adapt to and incorporate the technologies that are making the difference between lackluster and industry leading operations. Quality fleet management requires much more than keeping track of where your vehicles are. In todays world, business managers want to keep track of everything from vehicle safety to energy efficiency. Regulatory compliance alone demands a certain level of visibility that is difficult to obtain without software, but beyond that, automated improvements made to fleet management positively impact the entire supply chain. Fortunately, there are plenty of ways to improve your fleet operations with modern technology. GPS units can be programmed to keep track of every vehicle in a fleet and provide vital information regarding where they need to be. You can see which routes are being used and give recommendations for more efficient, time saving travel methods with just one click. With fuel costs on the rise, transportation has become a daunting expense for businesses. Fleet management software enables you to keep track of just how many gallons of fuel your vehicles are using each year. This can help you learn which vehicles in your fleet are worth keeping and which are becoming too expensive to maintain. Modern transportation management software can also help track which vehicles are giving off high carbon emissions that exceed environmental standards. As new laws further restrict the environmental impact of businesses, it is essential to have this information on hand so you can meet stricter standards. Its quite a public relations bonus when a company can increase fleet efficiency while making operations more environmentally friendly.

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Even government agencies are becoming more invested in how fleets are being managed by businesses. They want to know who is operating the vehicles, what they are carrying, where they are going and thats just the short list. Fleet management software can centralize all of these bits of data so you can readily access any information about your fleet, any time you need it. To put it succinctly, transportation management software keeps your business moving forward. Whether the material you need to receive or send is on land, on the sea or in the air, TMS can help you track it, ensure that it gets to its destination on time and provide the tools you need to tell managers, customers and vendors where items are at any point along the way. One of the key benefits of a transportation management system is its ability to assist in controlling costs. The software tracks the movement of goods on the ground, making it easier to compare different carriers cost structures and choose the lowest one for each step of the shipping process. The same capabilities also make it possible to optimize in-air routing, reducing wear and tear on planes and saving fuel. Applying software to shipping via sea brings unique advantages in generating lading and customs documents, saving a great deal of compliance cost.

Business begins and ends at the supply chain level - keeping tabs on shipment status is invaluable for gaining a total, transparent view of your company.
All of the cost benefits of TMS translate into more efficiency. Keeping your shipments moving in the most cost effective way means minimizing the amount of time they spend sitting still. Transportation management software makes it easy for you to follow your shipments while they are en route. This increased level of transparency means everyone involved in the shipping chain can be kept in the loop as to the status of shipments. Business begins and ends at the supply chain level - keeping tabs on shipment status is invaluable for gaining a total, transparent view of your company. Whether a business is looking to automate one segment of its supply chain or all of the above, partnering with the right provider is essential to a smooth deployment that meets all needed criteria. Businesses that refuse to move forward with technology tend to be left behind, and in the current economic climate, that can be much more costly than implementing the tools to keep them competitive. Apptricity is the provider of Jetstream, which includes e-Procurement, Financial Productivity and Supply Chain Management solutions. Contact us, 800-693-2193 apptricity.com, for more information about Jetstream and what it can do for your business.
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