Sunday, January 25, 2009

Supply Chain Management strategies for Beating your Rivals

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.

The key is coordinating production and distribution along with the timing of events. You have to be able to manage these. DMS is the process that helps achieve this. It understands the process. It will tell you:

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. DMS can maximize direct plant shipping. It determines when to bring product into each site. While most WMS systems determine where in the building each product should be stored, DMS determines where the product should be put (either in the plant or in an outside warehouse) as it comes off the line.

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

4. Maximize efficiency on pallet handling.

Procter & Gamble uses AutoScheduler - Distribution Master Scheduling software - from Transportation l Warehouse Optimization [www.TransportationOptimization.com] in its largest operation around the world to maximize supply chain management strategies. It is sophisticated software that manages the data and maximizes optimized scheduling.

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.

Tom Moore along with his associates have worked with the best of the best. Procter & Gamble, and other top Fortune 50 companies are among their client list - P & G is a long-term client since 1992. TlWO has saved P & G millions of dollars with transportation consulting solutions. Taking a long-term view, they understand the industry, the market place and like good consultants do, keep the client as the top priority. Contact them at www.TransportationOptimization.com for your free consultation today. Also TEST YOUR SKILLS and see how well you manage your costs. Load a truck and see how efficient you are. Transportation l Warehouse Optimization - Solutions that work. Solutions that save.

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