Friday, January 23, 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.

Distribution Master Scheduling (DMS) software is the major component in the new rules.

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. How to determine where each order ships from. DMS defines dock schedules to minimize handling. As an example, it can schedule a shipment as the product is being made because it knows which production line it is on and places it 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. Provide insight to where there will be stock-outs or other failures in the system, for planners to start 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.

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

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. - 15275

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