Wednesday, January 28, 2009

Beating your rivals through supply chain management strategies

By Larry Emsweller

Jack Welch, retired CEO of General Electric and management guru, made it clear, "You can't beat your rivals by [following] the old rules." Yet many supply chain managers continue to use the rules of the past. These rules require an enterprise system to determine where orders should load from, where stock should be transferred to and when, and then hand-off to TMS (Transportation Management System) and WMS (Warehouse Management System) to make it happen. It is just like throwing information over the wall. Where is the coordination between production and distribution? The old rules don't optimize distribution.

What's the major component that makes up the new rules - distribution scheduling software.

Distribution Master Scheduling (DMS) is a process that determines how to best coordinate production and distribution, and manage the timing of events. DMS understands the production schedule, which orders are due over the next weeks, and where inventory is located. It uses this data to:

1. Determine where every order should be shipped from. It establishes dock schedules to minimize handling. For example, schedule shipments when product is being made on the line and can be put directly into a truck or when it can be cross-docked

2. Determine when to bring product into each site - maximize Direct Plant Shipping (DPS). If a plant has multiple outside warehouses, DMS determines where product should be put as it comes off the line (most WMS only determine where in the building each product should be stored)

3. By offering a proactive approach and anticipating potential stock-outs or other failures, this software will provide remedial action.

4. Minimize pallet handling

Distribution Master Scheduling systems manage all the data and create an optimized distribution schedule. This requires a sophisticated scheduling system. One such system - AutoScheduler from Transportation l Warehouse Optimization [www.TransportationOptimization.com] is used by Procter & Gamble in its largest operations around the world maximizing supply chain management strategies.

This rule-based optimizer has been effective in reducing supply chain management effort and costs while increasing customer service. One P & G site reported a 33% reduction in WMS transactions after installing AutoScheduler.

You have to play by the new rules to beat your rivals. Using the new Distribution Master Scheduling software makes this task much easier.

When you consider a Transportation consultant, Thomas Moore and his associates at Transportation | Warehouse Optimization have been working with some of the top companies in America finding practical solutions that have resulted in saving millions of dollars. They take a long-term view, know the market place and keep the client as top priority. Contact www.TransportationOptimization.com for transportation cost reductions or solutions to warehouse challenges. Ask for a free consultation. While visiting their website, TEST YOUR SKILLS and see how well you can load a truck or manage cost savings. Transportation l Warehouse Optimization - Solutions that work. Solutions that save. - 15432

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