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JUNE 2013

The European magazine promoting the effective use of IT in supply chain applications

Special Report: PLANNING/FORECASTING/S&OP Cover story special feature: WINTERBOTHAM DARBY (FOOD & BEVERAGE)

Also in this issue: Fast tracking the journey to Integrated Business Planning Boosting service and profits by segmenting the supply chain Taking mobility to the next level Serious businesses require serious business tools For the latest news and to subscribe to the Manufacturing and Logistics IT weekly newsletter visit

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the Visibility to

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If you aim to be a top competitor, an optimized supply chain is a mandate. Logility Voyager Solutions™ can help you leave the competition behind. With Logility’s proven three-pronged strategy, OUTPLAN, OUTPACE, OUTPERFORM, DPNQBOJFT DBO NPSF QSPåUBCMZ TBUJTGZ DVTUPNFS demand—and stay in the winner’s circle—by getting the right products at the right cost to the right place at the right time. Leading companies around the world rely on Logility to achieve dramatic JNQSPWFNFOUTJOHMPCBMTVQQMZDIBJOFGåDJFODJFT JODSFBTFEWJTJCJMJUZBOE substantial bottom-line results in record time. Compete like never before with Logility Voyager Solutions.

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Worldwide Headquarters: 800-762-5207 EMEA Headquarters: +44 (0) 121 629 7866


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A question of pedigree In this edition of Manufacturing & Logistics IT we have attempted to cover as many bases as possible within the field of planning-related software and associated processes. And with our extensive 9-page special technology report, followed by a generously sized planning section comprising many standalone articles, we trust we have succeeded in leaving very little out of the mix. As you might expect, a sizeable proportion of this month’s content focuses on plotting the development of some of the more recent concepts and technologies that have enhanced the planning space in recent times. Among these we include the growing importance of mobility, Big Data and the Software as a Service (SaaS)/Cloud deployment model. One other topic we thought we would put on the table while discussing various themes with our industry commentators was that of Best of Breed. We did this with a mild level of apprehension as this subject has, of course, been spoken and written about since many of us were considerably more youthful. And because of this you might think the debate revolving around Best of Breed versus the more functionally varied and integrated suites available has largely run its course. However, this would appear to be far from the case when giving planning-related solutions vendors the opportunity to argue the case for the more specialist offerings available in this technology space. For example, TXT e-solutions’ Patrizia Calvia believes that, while ERP systems have built their value proposition around integration and lower TCO – a scenario that she points out is changing with the uptake of Cloud – competitive advantage from Best of Breed typically comes from stronger process and vertical specialisation: solutions that are not only technologically advanced but designed around the specific needs of each sector and backed-up by strong consulting capabilities. “In many cases, specialisation also means strong ability to innovate, identify and respond quickly to emerging needs,” she added.

Ed Holden Editor

Specifically with reference to planning & scheduling systems, Preactor’s Mike Novels makes the point that, of course ERP and MES companies and others are constantly improving their scheduling capabilities; but so are the ‘Best of Breed’ companies. “Our experience is that end users do not want a ‘vanilla flavoured’ application for scheduling, they want one that can be tailored to meet their specific needs and ‘Best of Breed’ solutions are better able to offer this,” he remarked. For Logility’s Karin Bursa, Best of Breed planning & scheduling solutions will always offer a greater depth and breadth within their own functionality sphere than solutions from an ERP provider. And to provide a change management consultancy perspective, Hugh Williams of Hughenden Consulting believes the Best of Breed vendors are the ones who are going to be pushing the boundaries of expertise in the area of planning. However, his perception is that if some of the big ERP vendors are asked often enough for something then they often go and find that expertise by buying it and then incorporating it within their existing solutions. “The ERP vendors are not always the developers of the new planning-related technology, while the Best of Breed vendor’s are,” he said. Of course, because this is predominantly a planning-related systems and processes edition of MLIT, you could be easily forgiven for feeling that spokespeople for other core manufacturing systems, such as ERP and Supply Chain Management, have been rather shut out of the debate. This may be the case in this edition; however, we plan to invite the Supply Chain Management systems vendor community to discuss issues such as integrated functionality in our October report. And we’re sure another ERP report won’t be so far away either. Continue to watch this space.

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IT June 2013

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CONTENTS Manufacturing and Logistics IT June 2013 The European magazine promoting the effective use of IT in supply chain applications

Cover Story - Food & Beverage Special Feature 5

Editor: Ed Holden

Winterbotham Darby

Special Technology Report 8

Contributors:

Planning, Forecasting, S&OP

Hugh Williams, Hughenden Consulting Richard House, FuturMaster UK Matt Parker, Zebra Technologies Europe

Manufacturing 17

Ian Patterson, Box Technologies

Exel EFACS E/8 – a global solution for global supplier Nordson DAGE Gartner: Worldwide SCM software market grew 7.1 per cent to reach $8.3 billion in 2012 Gartner: Analytics will be central for business reinvention

Publisher: Dean Taylor

Feature-rich and user-friendly CMMS from Shire Systems

Designer: Ian Curtis, First Sight Graphics

Planning

24

Hughenden Consulting: Power to the people

Production: Carolyn Pither

Marc Cain goes live with TXT: one solution to integrate production and global suppliers

Circulation: Carole Chiesa

Ad van Geloven selects TXT for Sales & Operations Planning

Luggage brand Delsey adopts TXT’s PLM solution to improve global planning Quinteq: Fast tracking the journey to Integrated Business Planning Logility: Cutting edge supply chain thinking takes shape at Seco Tools

IT Manager: Peter West

FuturMaster: Making Integrated Business Planning a reality Sivaco leverages Preactor to improve production operations ToolsGroup: Demand sensing telemetry stirs up the supply chain at Costa Express

Accounts: Sarah Schofield

Broner's MES and Integrated scheduling solution goes live at Sahaviriya Steel Industries UK

Published by: B2B Publishing Ltd Latimer House 189 High Street, Potters Bar, Herts EN6 5DA, UK Tel: +44 (0) 1707 664200 Fax: +44 (0) 1707 664800 Email (publishing): info@logisticsit.com Email (editorial): editor@ibcpub.com

Supply Chain

41

Printing & Labelling

44

Printed by: The Magazine Printing Company plc, www.magprint.co.uk No part of this publication may be reproduced in any form without written permission from the publishers. No liability is accepted for any action arising from the contents of this publication; readers are advised to check any manufacturer’s or supplier’s claim for products. The publishers do not endorse opinions expressed in any article by an outside contributor. While every care is taken over photographs and illustrations, which are returned when requested, no liability can be assumed by the publishers for the loss of such materials.

JDA: Boosting service and profits by segmenting the supply chain

Zebra Technologies Europe: Taking mobility to the next level

Automatic Data Capture 46

Box: Serious businesses require serious business tools GS1 US introduces traceability readiness programmes for seafood and dairy, deli and bakery industries Arteria Technologies named ‘Cool Vendors in the SAP Eco System, 2013’ by Gartner

WMS 49

Vanderlande Industries integrates automated material handling system in new Reno e-commerce facility for Urban Outfitters

ISSN:1463-1172

BCP: Health Store picks the right solution

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Food & Beverage

Winterbotham Darby

An IT infrastructure to savour Manufacturing & Logistics IT spoke with Jim Browne, supply chain director at high-quality foods provider Winterbotham Darby, about the company’s wide-ranging IT infrastructure and how this ensures the company continues to provide its retail customers with a first-class product and delivery service.

interbotham Darby is an award winning, privately owned supplier of chilled and ambient products to the major supermarket chains in the UK. Working both in partnership with manufacturers across Europe and its own production facility in the UK, products are manufactured, packed and delivered 24/7 to meet the ever changing demands of the UK consumer. Supplying fresh products means that planning and logistics are key to ensure food reaches customers in the best possible condition. Developing consumer trends since 1962, Winterbotham Darby is

W

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based in Redhill, Surrey and its UK manufacturing site Deli Solutions is in Clitheroe, Lancashire. Approximately 60 per cent of the company’s warehousing and distribution activity is in-house, while the other 40 per cent is managed through third party service providers. Some 20 per cent of the company’s products are manufactured and packed at Deli Solutions, with the remaining 80 per cent manufactured by a number of specialist strategic partners across Europe. Product ranges include continental meats, pate, olives, antipasti, pasta and continental morning goods.

Supply chain management When Winterbotham Darby’s supply chain director, Jim Browne, first joined the company five years ago its manufacturing and supply chain activity predominantly relied on a Lakeview ERP system, a separate WMS and Excel spreadsheets. “Today, we still have our Lakeview ERP system, but have substantially replaced or enhanced the rest of our IT supply chain system portfolio,” he explained, adding: “Over 2 years ago the business recognised the need to further invest in our supply chain management systems. A solution was needed that would give us a solid platform to support future growth whilst

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Winterbotham Darby

Food & Beverage

2011 after a three-month implementation period. This was followed by FuturMaster supply and production planning , which both went live in May 2012 after an implementation period of five months. “FuturMaster provides us with all the modular functionality we need as a fast-paced quality foods business,” Browne remarked. “This functionality is also very rich and very flexible. For example, being able to incorporate date information within our supply planning calculations – i.e. data related to the life of individual products we have in stock – is very important for us. This is one of the key supply planning benefits we get from FuturMaster.”

Jim Browne: A focus on reliable and efficient customer service.

Today, a large amount of Winterbotham Darby’s demand planning activity revolves around product promotions. “Historically, our forecast has been largely based on historic sales data,” Browne pointed out. “However, in recent times UK weather has become more of key driver due to the greater unpredictability and sustainability of weather and temperature patterns. And this has a direct impact on consumers’ buying habits. If the sun is shining we are likely to sell more

Browne. “It automatically forecasts future promotions based on Promotional Mechanic & Feature Space. This has helped to greatly enhance the way our business manages promotions.”

Hands-on service and support Additionally, Browne sees the benefit of FuturMaster being a relatively small company. “This means they have been able to provide us with a very hands-on level of service and support,” he said. “They were very helpful when we were just a prospective customer, and proved to be particularly helpful during system implementation, customisation, go-live and beyond. FuturMaster staff were always visible on site, both at our Surrey and Lancashire locations, and were very tolerant to a number of further changes we wanted to make during and after implementation. They were also more than happy to make a number of last-minute adjustments to the systems just before we went live.”

enhancing our forecasting, inventory management, supply and production planning capability. Key areas we were targeting for improvement included; service level, forecast accuracy, production efficiency and inventory In order to best anticipate and plan for management (stock turns). Additional to this, demand, Browne explained that we were looking to create endWinterbotham Darby not only to-end visibility across our plots forecast against weather Over 2 years ago the business recognised the need to supply chain by linking the patterns within very short demand and supply planning further invest in our supply chain management systems. A timeframes, but also activities carried out at our collaborates closely with its solution was needed that would give us a solid platform to head office in Surrey to the customers in order to gauge production planning activities support future growth whilst enhancing our forecasting, inventory their anticipated demand for at our manufacturing site in different types of products. “It management, supply and production planning capability.” Lancashire. – Jim Browne, Winterbotham Darby. comes back to ensuring we have the capacity to fulfil orders After evaluating a number of within very short timeframes,” different solutions Winterbotham Darby made products. So, being able to react to he remarked. “A weather forecast is only the decision to go with FuturMaster. changing weather patterns as quickly as good for a maximum of five days and, in “FuturMaster offered us the end-to-end possible means we are better able to supply reality, probably considerably less. This visibility we were looking for through its goods faster and thereby capitalise on means having a big time window in which to demand planning, supply planning and periods of increased demand. Again, react to demand is something of an production planning modules,” explained FuturMaster provides us with the means to unattainable luxury. Over the past two years Browne, “but additional to this it offered do this more speedily and efficiently.” we have changed how we operate Deli some comprehensive reporting capability Solutions in terms of the people and system against key metrics that would enable us to Another benefit of FuturMaster for resources in place. Deli Solutions now meet some of our key objectives.” Winterbotham Darby is its promotional benefits from a greater level of automation management capability. “FuturMaster has and flexible capacity. Also, a considerably Winterbotham Darby initially went live with provided us with a platform to build a enhanced level of daily interaction takes FuturMaster demand planning in November comprehensive promotional database,” said place between Deli Solutions and

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Food & Beverage

Winterbotham Darby’s head office in Surrey. This helps us to maximise output when needed, often within very short time periods; all of which is underpinned by our the endto-end visibility from FuturMaster.”

Warehouse management Winterbotham Darby has been using Chess’s Empirica warehouse management system (WMS) for the past five years. And, as with FuturMaster, Browne pointed out that one of the reasons the company chose Chess was because it recognised that Chess was a small, reputable UK-based company which was able to provide on-going help, support and guidance whenever required, in order to adapt the solution’s functionality or integrate it with other newly acquired solutions. The latest news on the WMS front is that the company has just gone live with Empirica at Deli Solutions in order to manage raw material and packaging storage. “At Deli Solutions, the WMS has also been integrated with FuturMaster,” Browne pointed out. “This enables them on a daily basis to accurately manage raw material purchasing based on actual stock held use by dates.”

Production weighing control Accuracy and efficiency is key at Deli Solutions, which relies on a Marco weighing system to control deposit size. Browne explained that the nature of the company’s products demands careful manual assembly and Marco gives it this control. “The Marco Yield Control System oversees and controls our manual packing process, minimising give away whilst maintaining pack consistency and improving pack speed,” said Browne. “Our operators find the equipment very easy to use and minimal training is required.”

Solutions. This provides the company with realtime data to help drive the effectiveness of the business on a minute-to-minute basis. The system is fully integrated into the existing production lines and this allows Deli Solutions to monitor and demonstrate across the business how efficient and effective each production line is.

Voice-directed picking One major enhancement to Chess’s Empirica WMS approximately 18 months ago was the introduction of a Vocollect Voice-directed picking solution. “We implemented Vocollect because we had significant step change in one of our warehouse facilities when we moved to Pick by Branch for a particular retail customer,” explained Browne. “Part of the change involved moving from picking onto pallets to picking onto roll cages. And, of course, each roll cage represented one branch. So we were moving from picking bulk orders for 4 depots to picking for up to 300 stores on a daily basis. Because of this change, we moved from using barcode scanners to using Vocollect Voicedirected picking technology in order to improve productivity and make it a more efficient and accurate operation.” Browne added that the company still uses barcode scanners for receiving pallets in and for doing replenishments into pick locations; however, all the actual order picking tasks are now done using the Vocollect solution.

Electronic Point of Sale In order to have the best possible visibility of current buying trends, Browne points out that the company monitors sales information that its customers store on their electronic point of sale (EPoS) systems on a daily basis. It then feeds that data directly into FuturMaster in order to produce as accurate a forecast plan as possible.

Operational equipment effectiveness Human Resource Management Additionally, Deli Solutions benefits from an Overall Equipment Effectiveness (OEE) system, which was designed and installed by Gemba

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For Human Resource Management, Winterbotham Darby uses a standalone

Winterbotham Darby

system called Simply Personnel. This system stores all the personnel information which would be on an employee record and actively supports the people management processes such as absence and annual leave recording through its line manager and employee self-service capability. Other IT solutions in Winterbotham Darby’s armoury include WinDar IT systems comprising a single domain Microsoft Active Directory Client/Server environment running predominantly HP-based equipment using VMware’s vSphere hypervisor.

Future plans As for possible future deployment, Browne explains that the company is currently evaluating advanced promotions management (APM) from FuturMaster. “This functionality would link in very well to the level of promotional activity we are involved in at the moment,” he remarked. Another big step for Winterbotham Darby from a pure business perspective is its plans to take its successful business model in the UK and start to export to countries in Europe from the Deli Solutions site. “Currently, we are almost 100 per cent UK focused,” said Browne. “However, 80 per cent of our volume comes in from Germany, Belgium, the Netherlands, Spain, France and Italy. So because we have trucks coming into the UK from the Continent it makes sense that these trucks could be refilled within the UK and then sent back to their countries of origin in order to supply a select number of retail outlets in those territories. Our initial target export markets will be Belgium, the Netherlands and Spain.” “We’ve come a long way over the past few years in terms of IT infrastructure,” said Browne. “But the investments made have underpinned a platform for future growth and will deliver the returns targeted. The tangible benefits flow through to an improved customers set of solutions, and at the end of the day, it’s all about serving our customers in the most reliable and efficient manner possible.” n

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Special technology report

Planning, Forecasting, S&OP

The full view Manufacturing & Logistics IT spoke with a number of spokespeople from the supply chain planning vendor community about some of the key developments and innovations that are currently enhancing and broadening the planning, forecasting and S&OP landscape.

rom a technology perspective, as well

planning with more classical supply chain

capabilities. The ability to concurrently plan

as from a process standpoint,

planning processes: More than ever, the

and analyse the process through correlated

planning-related activities and

physical and financial supply chains need to

KPIs helps the timely identification of

methodologies within the worlds of

be tightly connected. Key processes such

possible issues; enables fact-based

manufacturing, logistics and retail

as Sales & Operations Planning (S&OP) and

decision-making and ultimately to have a

have done anything but freeze in time. Just some

supporting technologies are fast evolving to

clear understanding of the cause and effects

of the many key talking points over the past few

include financial planning, trade-off

at all levels, including impact on financial

months and years have included the interest in

evaluations and risk management best

metrics and the P&L.”

Software as a Service (SaaS)/Cloud computing,

practices. This can make a big difference to

the concept of Big Data, the influence of mobile

the company’s bottom line, for instance, by

Karin Bursa, vice president of Logility, is seeing

applications and the demand for more

making sure financial targets are met by

two main themes that are driving big supply

sophisticated graphical interfaces. Mike Novels,

knowing early on what will be the most

chain benefits: S&OP and multi-echelon

chairman & managing director of the Preactor

profitable scenarios.

inventory optimisation (MEIO). “Far too often

F

S&OP initiatives are still driven with

Group, believes many of these trends have been “The ability to extend planning solutions to

spreadsheets,” she said, “and companies are

designed for smartphones and tablet platforms.

actively support decision-making through

realising they cannot obtain the full benefits of

“Users want a similar level of sophistication in the

sophisticated Scenario Based Planning

S&OP until they turn to advanced solutions to

applications they use in their company,” he said.

capabilities. What-if/risk scenarios and

enable a closed loop, iterative process that will

assumption management capabilities are

instil greater accountability across the

So let’s survey some of the current discussion

strong innovation areas. Different functions

organisation.” Bursa added that, at the same

points in more detail, looking first at some of the

explore and compare different planning

time, she sees tremendous opportunity to

key developments from a process standpoint.

options, easily visualise impacts on other

leverage more effective inventory optimisation

Here, Patrizia Calvia, product marketing

levels including the financial realm (financial

techniques instead of the simple rules such as

manager at TXT e-solutions, highlights 3 main

‘what-if’), and ultimately ‘socialise’ those

days of supply that many companies use today.

innovation streams:

scenarios to find consensus.

“The benefits of MEIO are quickly being

“The convergence of analytical and planning

achieved by mid-sized and Fortune 500

driven by the increasing sophistication in Apps

“The Integration of strategic and financial

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Planning, Forecasting, S&OP

Patrizia Calvia, product marketing manager,

Special technology report

companies as they

UK, believes the changes within the planning

he observes that S&0P has moved into

identify ways to more

space are primarily technology-led. “Many

Integrated Business Planning (IBP). “It’s all about

profitably balance

customers now require significantly more

presenting information in ways that can pull out

cost and service,” she

analytics,” he said. “However it’s not just about

the key messages for decision-makers quicker

continued.

being able to do analysis on sales or on

and easier,” he said. “The capability of modern

financials that happened last month, it’s more

supply chain planning & forecasting software is

Bursa also observes

about having the right data available to make

increasingly able to do this within a single tool

that, today,

effective business decisions today. Customers

rather than spread the information across a

companies have the

want to be able to drive those analytics on a

series of spreadsheets. And in the consumer

opportunity to replace

more real-time basis. Therefore there are more

goods space, there is a shift towards the more

inventory with

conversations about analytics shifting to that

accurately managing the efficiency and

information. “In order

level rather than pulling data out of a warehouse

profitability of promotional activity. This is driven

to compete it is not

where it’s being aggregated up on a monthly or

partly by the economy, but also by the changing

just a matter of reducing costs, you must provide

weekly basis rather than a daily or minute-by-

nature of the retailers and their demands for

superior service that will drive future business,”

minute basis.”

more promotions to be run in store. This is putting more pressure on manufacturers that

she remarked. “The key is the ability to improve service while managing costs with more

Drummond also points out that many

supply the major retailers because when you run

precision. Supply chain solutions, such as

FuturMaster customers now want to build

a promotion it changes the dynamics of the

Logility Voyager Solutions, excel at this.”

scenarios in terms of the demand plan; for

whole sales & operations process; everything

Additionally, Bursa perceives that supply chains

example, analysis based around what the impact

from sales and finance to production planning

are growing increasingly more complex –

on sales might be if it turns out to be a hot, cold

and supply. Again, this is where IBP can prove

number of SKUs, global reach, increasing

or wet Easter period and what the difference

very effective.”

customer expectations – and the processes of

between these scenarios might be. “This need

the past cannot keep up with this change.

requires a responsive planning system that can

Danny Halim, vice president, industry strategy, at

turn around these types of scenarios within

JDA Software Group, believes there are two

David Williamson, country manager UK and

minutes and hours, and not relying on

main areas of development currently taking

Ireland at Transporeon, observes that one of the

spreadsheets that look at weekly buckets within

place. “First, there’s a lot of investment being

key current talking points within the

the context on each of these scenarios,” he said.

made by companies of all sizes around strategic alignment or Integrated Business Planning (IBP),

transportation planning space is track & trace. He points out that this is already a well-

Richard House, managing director of

which is an evolution of S&OP,” he said. “JDA

established concept, but there are lots of

FuturMaster UK, considers that the ability to

sponsors several workshops in the UK and

different ways that companies can seek to have

make better use of things such as EPoS data

across Europe where we are seeing that even

better visibility of their vehicles and vehicle loads;

from large numbers of stores is increasing. Also,

many the larger more sophisticated companies

and some are more effective than others. “For a transportation management company it’s almost like a badge of honour to say it has track & trace capability, but the question has to be asked how do they, and retailers, really benefit from this? Most retailers rely on a multitude of suppliers, all with their own systems. So the challenge at the moment is how to overcome this complexity.” The best solutions, according to Williamson, are Cloud-based Software as a Service (SaaS) interfaces that are able to take in and provide information from a multitude of suppliers. He also points out that with a SaaS interface the user doesn’t have to commit to upfront capital expenditure. “You’re only paying for what you need, so it has a massive benefit from a cost perspective too,” he said. Barry Drummond, sales director of FuturMaster

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Special technology report

Martin Woodward, managing director,

Planning, Forecasting, S&OP

are still missing that

an important concern – it is also more about

“Without people fully understanding why

strategic alignment

managing a company’s different operations. For

changes have been made to the company’s

and don’t fully realise

example, a company might operate five factories

operational process, why new IT systems or

that it’s not just about

with different logistics flows, supplying to

functionality have been brought in, and how to

sales consensus or

different goods. It may have two or three big

operate them efficiently, then the company isn’t

driving towards

customers that the company needs to connect

going to get the best value from its investment in

operational efficiency

with, so it would need more full business control.

change management. After all, it’s the people

– with today’s world of

“The company needs to know, for instance, what

who need to put new processes into action, and

ever more complex

the consequences would be if something

use the new software systems. And this is all a

supply chain planning

unforeseen happened somewhere within the

very relevant debate within the world of

it’s much bigger than

whole supply chain, and know how to react to

planning.” Williams also considers that these key

that.”

that in order to ensure the whole chain is quickly

elements of processes, systems and people

optimised again,” he said.

should revolve around not just individual IT systems, but also concentrate on important

Halim added that many companies are still using lots of different types of software for their

Bill Harrison, president of Demand Solutions,

overarching business and operational concepts,

planning and forecasting tasks, which means

reflects that supply chain planning is not a new

such as S&OP, which sets out to improve overall

they are often relying on a lot of approximations.

discipline, but for forward-thinking organisations

efficiencies for a company from both a

“This may be fine if these companies are in the

there is always the opportunity for innovation and

sales/business and an operational perspective.

right niche of the industry in terms of providing

performance differentiation. “We firmly believe

the best products for specific industries,” he

that organisations can differentiate themselves to

Martin Woodward, managing director of

remarked, “but the question I would put to them

their customers and their stakeholders by

ToolsGroup UK, points out that, for a lot of

is how sustainable is that going to be with all

improving their supply chain performance

people ToolsGroup talks to, forecast accuracy is

those disconnects in place? So I think IBP needs

compared to their peers,” he said, adding that

still top of the list; things such as what can be

to be carefully considered.” The next

two of the areas that Demand Solutions is in

done to improve their statistical forecast and how

development Halim is seeing is one that is

frequent discussions today with our customers

causal events could be incorporated into the

emerging as an effective extension of IBP;

are Social Supply Chain and Integrated Business

equation. “Because forecasting comes at the

supply chain segmentation. “But this concept is

Intelligence. “We believe there is an opportunity

beginning of the planning process it is

really much more than just further development

to leverage something we refer to as the Social

sometimes seen as the root of all evil for

of IBP,” he stressed, “it’s also about being able

Supply Chain to create a disruptive impact on

everything that happens subsequently,” he said.

to serve specific customers’ expectations as

the performance and efficiency of the supply

“But I think what is needed is more real-world

efficiently as possible while also optimising your

chain,” said Harrison. “The technology exists

information fed into their forecasting; such as

profit margins. Without the right structures to

today to create networked interaction among all

point of sales data from the end customer. In this

operate this segment supply chain it is difficult to

the key participants needed to investigate,

way, the forecast is likely to be more accurate,

determine how best to improve these service

evaluate and resolve issues within the supply

which, in turn, will ensure the planning process

levels and your own bottom line.”

chain – in real time. Companies no longer have

can run more smoothly.”

to rely on email but can create interactive social Arjen Heeres, chief operations officer at Quintiq,

environments for conducting business.

Woodward also observes that modern solutions

observes a number of developments, such as

Implementing a Social Supply Chain will result in

are enabling more players to take part in the

added functionality. “What we see as a growing

improved decision making in a shorter period of

planning process. “Because of increasing

market trend, and what Quintiq provides to its

time. Demand Solutions is a leader in this area,

planning and

customers, is a move from single solutions such

and has integrated Social capabilities into its

forecasting

as scheduling or capacity planning solutions to

DSX product suite.”

complexities, we are seeing more system-

more integrated systems – what we call a platform,” he said. “Here, the different business

Hugh Williams, managing director of Hughenden

enabled people; more

operations are collected; these could be different

Consulting, makes the point that within

people in contact with

operations in the supply chain, or different

manufacturing there are three critical elements –

each other, with better

functional operations such as sales, finance and

processes, systems and people – that work

planning visibility,” he

production. So there is more integration, which

together to execute an effective planning regime.

said. “However, the

means more and more business control is being

He adds that, while sourcing the right IT systems

scope of the planning

provided to the user.”

plays a key role, as does planning process

operation and the

Heeres added that, today, it is not just about

optimisation, one thing that sometimes receives

cycle time of the

generating the best schedule – which remains

less attention is the part people need to play.

planning itself has

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Karin Bursa, vice president,

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increased, so there’s a critical point at which if

and the science until now has looked at multi-

information. We find

you spend too much time planning by the time

regression analysis as the best way of collecting

many companies

you’ve concluded your plan the window of

data around all the things that are happening.

are still saddled by

opportunity for executing it and benefiting from it

But this has been limited by the ability to collect

legacy systems

has gone.”

that data and process it quickly and accurately.

which limit the

However, with Big Data companies are better

number of demand

able to analyse unstructured data and look for

signals that can be

significant correlations, which can help

considered. More

determine likely sales patterns.”

still rely on static

Big Data From a highly sophisticated data gathering and

and cumbersome

control perspective, the theme of Big Data has

Barry Drummond, sales director,

been receiving a lot of press lately. And,

Drummond also references the benefits Big Data

spreadsheets which

according to Calvia, Big Data is certainly

affords to product promotions activity. “More

cannot provide a

impacting the world of planning applications in

people now want to be able to do cross-

complete picture or

the same way it is having a positive effect

functional analysis just as quickly as more

tell you how demand is changing.”

elsewhere in the business environment.

traditional modes of analysis,” he said. “They

“Enterprises are becoming more and more

want to understand, for example, what the

To Williams, Big Data is a reflection of just how

information intensive,” she said. “The need is not

impact of advertising will be when they run a

complicated supply chains have become. “The

only to deal with high volumes, but with a large

promotion versus when they don’t run a

whole map has changed in the sense that there

variety of unstructured information, such as those

promotion. So they are linking up both marketing

are now more factories, more markets, more

deriving from social networks. Opportunities

and planning information and doing detailed

routes to market and more products,” he

come from the ability to sense, understand and

analysis between the two. They are also looking

remarked. “Because of this, the volume of data

translate all this into valuable information for new

at financial-related information. When they run a

available is now enormous compared with what it

used to be. But Big Data isn’t purely about

…for the moment at least, it seems to be very much more about people wanting to know if SaaS is available as an option so that if they later decide to go down that avenue they can.” – Barry Drummond, FuturMaster.

massive amounts of data, it’s about prioritisation of data; focusing on the information that is of most value to your planning-related processes.” Halim observes that companies can now obtain huge amounts of data from different sources,

product introduction, assortment and portfolio

promotion they want to know what the impact will

even internally. However, he believes the key

management decisions. A possible scenario is,

be on trade spend, where it’s being used most

question is how do they rationalise all of this data

for example, one where comments from social

efficiently, where it’s getting the biggest returns

and determine what is of true value and what

communities help identify how new products are

etc. So they are looking at bigger datasets

isn’t? “So they need a software platform that is

perceived and which ideas work best, so that

across different functions and then performing

able to optimise all of this information and actually

this information can be brought back into the

analysis on this data.”

make the most valuable data usable,” he said. “Most of the Big Data in the market is related to

process to refine the re-forecasting plan inseason. This is certainly placing increased

Novels maintains that the use of BI tools to

consumer market trends, and the end goal for

emphasis on analytics, such as sentiment and

analyse Big Data is becoming more common;

manufacturers, suppliers and retailers is to

behavioural ones.”

adding that Preactor has a standard application

understand what specific individuals are buying,

to convert scheduling data into data cubes for

what they might want to buy if a particular type of

Product promotions are a big focus in the world

use by BI tools. Bursa points out that, today,

product was in front of them, or what they have

of planning and forecasting, observes

companies can collect an enormous amount of

bought in the past. So, it’s about using Big Data

Woodward, and this is an area where Big Data

data through an ever-growing number of

to put in place a localised execution plan, and a

can play a constructive part: “With promotions

channels. “The abundance of demand signals,

supply chain planning strategy that can support

there is really only a limited amount about past

point-of-sale, for example, can be highly useful if

that localisation process.”

demand history that dictates what’s going to

a company has the capability to utilise this

happen in the future,” he said. “So if you have a

information,” she said. “Big Data is only good

Williamson remembered visiting a company that

promotion at a certain point in time and you’re

data if it can be transformed into meaningful

was expected to regularly produce 58 different

looking for a sales uplift it’s an indicator but not a

information and leveraged to improve forecast

KPI reports from different sources. He then

great indicator of what’s going to happen during

accuracy and supply planning. One of the

explained to the company that the same level of

the next planned period of promotion. There’s a

primary hurdles for companies is the ability to

information, if not more, could be provided by a

lot of things that need to be taken into account

make the leap from raw data to useable

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solutions model; however, the uptake has been rather low. “So, for the moment at least, it seems to be very much more about people wanting to know if SaaS is available as an option so that if they later decide to go down that avenue they can,” he said. House considers that a possible stumbling block to SaaS within the planning space is that most customers understandably want a solution that is very tailored and configured around their specific requirements. “Therefore, a Cloud-based model could be seen as being less effective,” he said. “Even though our own architecture is Cloudready, the Cloud model isn’t really what most customers want. Some users may be attracted to the subscription-based model where you manage the system for them in the Cloud, but there is still the question of customisation, and system in a single instance. “So, I think the

data. The challenge, he believes, is how to distil

also some continuing concerns around security

point about the Big Data concept is that there is

and act upon the insights that is held there. With

and reliability. They understandably want the

lots of data everywhere, so it’s all about how

this in mind, Demand Solutions has introduced

systems to be completely risk-averse.”

you get hold of the most valuable data quickly

the idea of Native Business Intelligence in its

and easily,” he said. “This isn’t a big concern

software, where sophisticated BI/Analytic tools

Novels comments that Preactor is not seeing

for us because this process of providing the

are made available to allow customers to have

substantial levels of interest in the SaaS/Cloud

most important information happens

visibility to core analytics pre-built for targeted

model. However, he believes it would be naïve to

automatically in our system.”

vertical industries, as well as empowering the

think end users will not demand a choice of ‘on

flexibility to mine the data with powerful, flexible

premise’ or ‘in the Cloud’ in the future.

For Heeres, Big Data in an important trend in the

tool. “Where things really start to get interesting is

“Increasingly, ERP companies are offering this

world of supply chain planning for a number of

when the insights from our supply chain data

and we are already seeing browser-based

reasons. “There is a massive amount of data

repositories are shared and operated upon in a

scheduling applications appearing in the

coming from many different sources. For

powerful Social network,” added Harrison.

market,” he said, adding that, certainly, a hybrid

example, there might be very large amounts of

Another example of leveraging Big Data,

model will be required in the future.

GPS coordinates coming from a company’s

according to Harrison, is a new capability

2000 or so truck drivers driving around the

Demand Solutions has added to its DSX

Williamson reflects that if you look at the

country. But what’s important is being able to

software, called Predictive Lead Time. “With

European market there is large uptake for

determine what the most critical information is for

Predictive Lead Time we can now capture every

Transporeon’s SaaS-based transportation

your planning operations, and be able to filter out

single order and receipt at the item and location

planning interface solutions in the retail sectors in

the data that isn’t so important. So Big Data is

level,” he said. “With this data we can analyse

Germany, France,

really about pulling out the right information from

delivery performance, and even forecast future

Poland, the Czech

the massive amount of data available.” Also,

lead times based on past experience, taking into

Republic and others.

added Heeres, an organisation’s collective

account seasonal influences.”

However, he observes that there is

workforce might execute thousands of tasks each day and the company might want to

considerably slower

analyse the workforce’s tasks and behavours in

Uptake of SaaS/Cloud

order to improve efficiencies. “Here, Big Data

And, within the planning-related software space,

“But we are gaining

can be a valuable way of capturing trends and

has the Software as a Service (SaaS) model,

traction in the UK as

then being able to analyse them for business

and the Cloud concept in general, had any

more and more

advantage,” he said.

notable level of impact on the market so far?

companies open their

Drummond points out that FuturMaster is often

minds to the concept,”

Harrison reflects that Demand Solutions

asked to offer the option of a SaaS subscription-

he said. “Then they

customers have access to huge amounts of

based alternative to the on-premise planning

will realise it has so

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deployment in the UK.

Richard House, managing director,

www.logisticsit.com


Planning, Forecasting, S&OP

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many benefits for so

connectivity and new collaborative models

data to a SaaS environment. As a result, within

little expenditure.

(inside and outside the organisation with

the Supply Chain Planning space, we believe it

More and more

customers and suppliers), speed of deployment,

likely that both SaaS and On Premise will

people are also

reduced operating costs, as well as scalability,”

continue to exist for many years.”

recognising the

she said. “In processes such as forecasting,

benefits of linking

where a strong collaboration is needed across

Woodward reflects that five years or so ago the

everyone in the supply

functions and geographies, the ability to

trend was very much that ToolsGroup customers

chain in real time and

physically distribute the application and to allow

purchased perpetual licences for on-site

providing complete

easy global access and visibility can have

installation. “Since then this has almost

visibility through the

positive impacts on the responsiveness and

completely changed to a SaaS model where, at

use of a single

quality of the process. Nevertheless I would not

least for the initial installation, nearly everything

modular integrated

consider the Cloud model to be a ‘threat’ to on-

we do is provided as a service,” he said, adding

solution assessable in

premise. Planning processes are not standard

that the reason for this change is agility.

ones. Solutions are typically sold and

“Companies can get set up very quickly, they

implemented in customer-specific ways. A Cloud

can then access the services very quickly, and it

Heeres also observes limited uptake, but thinks it

strategy needs to be a corporate strategy and

doesn’t dictate what where the final solution

will have a greater impact over time. “I think

be specific to each

uptake differs regarding what kind of market

business. The most likely

segment you’re looking at,” he added. “If you

scenario is probably the

focus on very small companies with very

one where hybrid Cloud

standardised solutions, then I think the market is

and on-premise

more open to SaaS because it is more logical to

approaches will co-exist,

run it in the Cloud. Many of the larger companies

with enterprises

have bigger projects and larger rollouts and they

leveraging the benefits

often have their own internal data centre servers.

that both models can

But many of these companies do ask us if we

bring – depending, of

are Cloud-enabled and Cloud-ready; which we

course, on their

are. They want to know if we can support Cloud

business, and the

in the future. That’s important to them.”

process specifics.”

Danny Halim, vice president, industry strategy,

the Cloud,” he said.

actually lies. So for the

Some mobility applications are being used by their own staff – smartphones, scanners, RFID etc., but they also need to ensure that there are applications that help their customers to shop. They need to further improve their customers’ in-store and online shopping experience.” – Danny Halim, JDA.

past few years, particularly over the past couple of years, we have focused mainly on getting people set up and running and using our Application as a Service. Then, we have sometimes migrated this back into their own data centre. So SaaS doesn’t constrain you from doing some things on premise; it can be a

Bursa points to SaaS and the concept of the

Harrison believes SaaS is coming to the Supply

hybrid very easily. Because of the agility and

Cloud as something that is continuing to grow,

Chain Planning market, but is not yet the

flexibility of the Cloud, SaaS is a very easy way

with some industry analysts anticipating that it

dominant or driving force. “There are many

for people to get started, to try the app out

will become a US$3.3 billion market for supply

potential drivers to SaaS, but it is not right for

before they decide to make a more major

chain over the next few years. “To meet our

everyone,” he believes. “At Demand Solutions,

investment.”

customers’ needs we offer a choice of

we want to offer our solution in the way that will

deployment options including SaaS, hosted or

offer the best value to our customer, so we have

Williams doesn’t notice many end users

on-premise,” she explains. “Every customer has

both on-premise and SaaS offerings.” Harrison

having the SaaS versus on-premise

unique challenges and for some a SaaS or

believes there are many different drivers to SaaS.

discussion about the planning process. “We

hosted deployment is preferable, whereas others

“For example, some companies look to SaaS for

know there are a

turn to on-premise implementations. It is not

an economic benefit, while others view SaaS as

number of vendors

about one method cannibalising

a technological decision,” he said. “SaaS,

who can provide

another…Logility offers the flexibility to deploy

however, is a valid option for some companies,

S&OP solutions in

our software how our customers want it – SaaS,

but not all. For one thing, SaaS is not always less

the Cloud as well as

hosted or in-house. We also provide a variety of

expensive on a 3-year or 5-year total cost of

continue to produce

services and training to help customers be more

ownership basis. Additionally, there have been

solutions for on-site

successful.”

noteworthy issues with the security of data stored

installation,” he said,

in the Cloud with some highly publicised security

adding that

Calvia observes that business volatility and the

breaches. The Supply Chain Planning function

Hughenden

strong call for slashed lead times are driving

works with very sensitive information – including

Consulting also

uptake of the Cloud for planning applications.

customer lists, sales, pricing, etc. Not every

hears the debates

“Opportunities are in terms of stronger

company is comfortable moving this sensitive

about the

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advantages and

Encouragingly, our Cloud business has doubled

from customer sites and in the field back to ERP

disadvantages of

over the past three years.”

and planning systems in order for companies to better anticipate current demand. Bursa also has

both deployment models within the

Arjen Heeres, chief operations officer

no doubt that supply chain mobility is an exciting

vendor and analyst

The impact of mobility

communities.

And are modern mobility solutions, such as

connected wherever key personnel might be.

“Nevertheless, we

mobile computers and tablet PCs, having an

“They’ll have access to key supply chain

don’t often hear this

impact or influence on planning-related systems?

information on their phones and tablets with

talked about very

Novels believes that being able to update and

quick access to alerts, current status, customer

much by customers.

view data in an APS application in graphical form

analytics, order information, etc.,” she said,

They may well be

and remotely using platforms such as smart

adding that employees will also be able to

having these

phones and tablets will become the norm in the

update information, resolve issues and drill into

discussions directly

coming years. “We had this capability many

more detail, all at their fingertips.

opportunity that will keep the enterprise

with system suppliers, but because

years ago, but there was little take-up until

Hughenden Consulting is mainly concerned

phones became smarter and the tablet arrived,”

Williamson maintains that, from a mobility

with change management related to people

he added.

perspective, the key to real-time updates in the field is, of course, the driver. “If you link the drive

within the workplace, they may not see SaaS as a directly relevant topic to discuss with

Drummond considers that over the past few

in probably that is where you get the best

us.”

years there has been a mobility evolution. “It

visibility of the vehicle and the vehicle load,” he

wasn’t so very long ago that we connected to the

said. “You can have GPS tracking etc. on an

Compared with the on-premise model, Halim

network, downloaded data, went off-line to do

individual load, but what you really need is to be

believes that Cloud will be the way to go in the

some work and used dial-up to get back on the

able to capture that type of information from

future. “JDA is committed to delivering our

network,” he said. “We have now reached the

multiple suppliers in multiple ways in the most

solution in the Cloud,” he said, “and all of our

point where we are online and connected almost

efficient way possible. This can be a challenge if

solutions – especially the ones that have been

all the time, and we can work in a more real-time

you and your partners rely on multiple systems.”

released as part of our JDA 8 solution – are all

collaborative way. For example, field-based

Williamson added that with Transporeon,

Cloud-ready. So the Cloud concept has a real

people can visit customers and have

companies can track a driver’s smartphone on

influence and impact on many of the innovation

conversations about what’s actually happening

the transportation management system our

strategies for many software solutions at the moment.” Halim adds that it also has an impact on the way many users are determining their goforward strategy in

What we see as a growing market trend…is a move from single solutions such as scheduling or capacity planning solutions to more integrated systems.” – Arjen Heeres, Quintiq.

terms of IT infrastructure

more in real time. A

system and have real-time visibility of that

customer service person

particular vehicle and its load. Companies can

or a key account manager

then start looking at ways of building in a route

can sit down with the

planner or calculator so they can see where the

customer and say ‘let’s

driver is and compare this with his intended

have a look at this week’s

destination, and then calculate time differences

forecast’, or ‘let’s have a

and address any potential delivery delays or

look at stock versus what

other issues.

your forecast looks like’,

requirements. “But it’s a change management

and actually make the changes in the system at

Woodward has seen that the Bring Your Own

issue, it’s not just about the IT infrastructure but

that moment. This then goes into the whole

Device (BYOD) trend is changing the way

there are also a lot of organisational

supply chain planning process almost

people are accessing

considerations to take into account,” remarked

immediately, so things can happen quickly.

all kinds of

Halim. “Many users are currently not ready to just

Therefore, people can have a view on the most

applications.

move everything to the Cloud; particularly the

up-to-date information and can engage in a

“Specifically within our

more mission-critical company-sensitive

dialogue about that, which can result in

domain, the

information they rely on. And this could include

immediate changes or results to the supply

accessibility of point

planning functionality. So I think going forward

chain planning process.”

of sale (POS) data – being able to feed that

companies will increasingly have a roadmap in place in terms of what applications they want to

Williams believes the area of demand sensing is

back through the

move to the Cloud and what they want to keep

going to grow, and mobile solutions – such as

supply chain – is

on premise. JDA is ready to accommodate them

smartphones, tablet PCs and other handheld

enormously

in whatever model they require; whether that’s

devices – will increasingly become a facilitator of

important,” he said.

on-premise, SaaS or a hybrid model.

this in terms of providing real-time data wirelessly

“We recently finished

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an installation at Costa Coffee where, for us, one

opportunities; not to mention conduct

activity. So yes,

of the most exciting aspects of the project was

assortment planning in-store.”

mobile solutions are an important

that Costa can now sense demand every four minutes. The company now benefits from

Heeres also believes mobile solutions are very

component of

wireless connectivity which is able to feed sales

important as an extension of the core planning

planning systems – so

information back to the head office; providing a

functionality. He explains that a lot of Quintiq’s

much so that Demand

continuous feed of information as to what people

work is concerned with planning optimisation; for

Solutions even offers

are purchasing. This isn’t quite mobile

example, planning people activity at airports and

an iPod APP to

computing, but it is valuable distributed data

security companies. Heeres maintains that

support its forecast

coming from Costa’s 2600 machines telling head

knowing where people are and what tasks they

collaboration.”

office what people are buying. The company is

are performing is critical, therefore smartphones

then using that information to provision its

or other handheld devices are invaluable in order

Halim observes that

replenishment and optimise the frequency to

for staff to relay automatic identification data to

retail is one area that

make sure the machines don’t run out. So it’s not

the back office, and to provide GPS coordinates

is taking mobility very seriously because it is

just information being relayed wirelessly from

so companies know where individuals are

impacting on demand. “Some mobility

Bill Harrison, president,

applications are being used by their own staff –

A large part of the ‘processes, systems, people’ piece will need to focus more on people to a greater degree.” – Hugh Williams, Hughenden Consulting.

smartphones, scanners, RFID etc., but they also need to ensure that there are applications that help their customers to shop,” he said. “They need to further improve their customers’ in-store and online shopping experience.” There

mobile computers and smartphones, it’s also

currently located at any one time. “The more

is also the workflow aspect of mobility solutions

about this type of remote connectivity that is

real-time information you have from these

to consider, says Halim. “JDA has an initiative we

making such a big change in the retail space.”

devices the better you can plan and manage

call customer engagement,” he explained. “This

everyday tasks as well as disruptions etc.,” he

empowers retail staff to make quicker decisions

Calvia believes mobility is unquestionably

said. “For example, if information flows into the

around, for example, discounting. It can also

changing applications and how information is

planning system in real time from a user’s

help them not to promise an order to consumers

shared and consumed. She comments:

smartphone or other handheld device pointing

without waiting for a response from the manager

“Planning processes can now be extended

out that a task was completed six minutes

or someone else with knowledge of the status of

through mobile to new non-traditional users;

behind schedule, this could help to determine

the supply chain.”

productivity is kept high while on the move;

that the late completion was due to the worker’s

and even more importantly, relevant data is

regular scheduled break around that time. The

Planning ahead

made available for decision-making, wherever

planning system might then suggest that if the

What might be the next key developments in the

that might be. TXT has recently launched its

worker’s break was re-scheduled for a slightly

planning-related software solutions space over

TXTMobile platform which is a powerful

later time for the next day this could have an

the next year or two? Halim anticipates continued

example of how the frontiers of innovation can

impact on the chain of consequences that follow.

enhancement of the segmented supply chain

be extended to new processes and

So new tasks or new sequences of tasks to be

concept. “This will continue to look at how to

functionality. In Fashion & Retail, a sector

executed can be sent to these mobile workers

better strategise and measure different supply

which TXT already serves with an end-to-end

and drivers on a regular basis in order to

chain segments within the context of a single

planning solution, TXTMobile adds new

improve operational efficiencies.”

supply chain,” he said. “It will also continue to

important features

Hugh Williams, managing director,

look at how to eventually tune the segments;

including the ability

Harrison considers that forecast collaboration is

maybe in terms of different inventory policies or

to manage collection

an important part of the supply chain process of

different logistics routes etc. The aim is to do this

books while on the

many mature planning organisations. He adds

in an agile manner without the need for big IT

go, collect orders

that this collaborative effort can be either within

projects to reconfigure each of the segments.”

and access planning

the organisation, typically with the sales force, or

data right from the

between organisations. “In either case, offering

Novels observes that the market for APS tools is

buying conference;

access to the planning systems wherever the

expanding in existing markets, while, for

support offsite

collaborator may be is important,” said Harrison.

companies such as Preactor, there remain new

meetings with

Additionally, we have learned that it is desirable

markets to penetrate. “ If we look at the

suppliers and

to deploy a very easy to use interface for the

penetration of Preactor in the UK, for example,

manage

sales team, since planning is not their primary

based on the number of sites compared to

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Manufacturing GDP then we can see huge

substantially in the UK,” he said.

supply chain segmentation techniques, as well

opportunities in continental Europe, North

For Bursa, the ability to better manage new

as integrated planning models that can support

America and Asia in the coming years,” he said.

product introductions is a key area of focus in

full business orchestration.

“In my opinion the constraint to a successful

the supply chain world. “The pace of new

penetration of those markets is the dearth in the

product introductions continues to quicken, and

In Heeres’ view, there will be further evolution in

availability of well-trained APS system

companies need to accurately forecast demand,

terms of more power in optimisation, as well as

implementers around the world.”

clearly understand the impact on production and

more mobility development and more uptake of

distribution and optimise inventory investments,”

SaaS and Cloud. He also anticipates more

Halim also sees greater update and

she said. Another area of continued investment

integration, providing fuller business control;

development of planning and supply chain

highlighted by Bursa is performance

having a system in place that provides support

workflows within mobility, which will further

management and supply chain analytics. “As

throughout all functions, as well as looking ahead

empower planners and sales personnel, and

end-users become increasingly mobile we are

and making decisions on how to run the

even managers and board-level executives to

going to see the need for more powerful and

business. Heeres points out that this is

access and share information in a more

actionable analytics to be available regardless of

essentially IBP, which Gartner talks about. “I

seamless, real-time manner within the four walls

where one is,” she remarked.

don’t think you could call this a revolution; it’s more an evolution – continuing to develop the

or in the field. Additionally, Halim believes another area of ongoing development will be the

House believes collaboration in conjunction with

positive changes that have occurred over the

logistics control tower concept. He explains that

mobile technology is going to continue to be a

past few years,” he said.

there are transportation management,

key area of development. He also anticipates

warehouse management and manufacturing

increased awareness of Big Data demand

What Williams currently sees happening, and

execution solutions. But, from a planning

sensing, and how companies can read signals

therefore believes will continue to develop, is the

standpoint, the question is how do users best

from consumers and integrate these into their

awareness by top-level management of change

combine all of this information; how do they

more short-term forecast. He points out that there

management based on the idea of supply chain

connect transportation, warehousing etc. and

is a lot of scope for improving planning and

transformation. “And, as mentioned earlier, a

then loop it back all the way to integrated

forecasting performance in that area; for

large part of the ‘processes, systems, people’

business planning, monitor it and be able to

example, around promotional activity. “The aim is

piece will need to focus more on people to a

respond quickly to change? “So this is all about

to respond as quickly as possible to what you

greater degree,” he said. Williams adds that

creating better, more agile response,” said

expect the impact of the promotional activity to

another part of process change management will

Halim, who added that the future will also see an

increasingly look at the type of tools needed in

be,” he said.

order to ensure companies have all the

ongoing focus on continuous improvement, which will include delivering solutions better,

Harrison sees ongoing

information required to support S&OP. “I think

faster and more efficiently in the Cloud.

development in the direction of

this going to be an area where there will be a lot

Social Supply Chain Management

more focus on the whole planning space,” he

Williamson points out that Cloud-based SaaS

and Social Sales & Operations

said. Additionally, Williams believes mobility

transportation planning solutions are in their

Planning, while Calvia believes

solutions will continue to be effectively deployed

infancy in terms of adoption in the UK;

Cloud, mobile and the strategic use

for use within the planning space.

while the continent has seen

of Big Data will continue to drive Woodward sees the continuing opportunities

considerably greater

research and development.

uptake. However, he

She adds that, from a

around Big Data to be huge. He also foresees

believes there will be a

process point of view,

the continuing expansion of the S&OP process to

considerable increase in

what is driving innovation

reach further into IBP. “I don’t really see it as just

deployment within the UK

is a management

supply & demand balancing; I see it more in

in the near future. “Once

approach which is ever

terms of its planning, and the more players and

more people come to

more ‘value-driven’.

dimensions you can get into that planning

realise the benefits in

Calvia maintains this is

process,” he said, “and the more you can model

being able to track real-

determining the

the behaviour of the business and project it

time information from the

evolution of S&OP

going forward, the more effective it will be.

driver, and manage multiple suppliers through our kind of SaaSbased interface, then the popularity

applications to the full integration of business planning, but also the

of this type of transportation

development trade-off,

planning model will increase

cost-to-serve analysis,

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Woodward adds that the key word is agility. “So it’s about being fast, but not necessarily being big. It’s about the ability to respond quickly and effectively to demand.” n

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Success story

\\\ Manufacturing \\\

EFACS E/8 – a global solution for global supplier Nordson DAGE ordson DAGE, a division of

N

Nordson Corporation, is a supplier in the Semiconductor and PCBA electronics markets with its award winning portfolio

of Bondtester and X-ray inspection systems for destructive and non-destructive mechanical testing and inspection of electronic components. Headquartered in Aylesbury, UK, the company has a wholly owned distribution and support network of seven offices covering Europe, Japan, China, Singapore and the USA with manufacturing/assembly facilities in China and the UK. Nordson DAGE exports over 90 per cent of its product outside of Europe. While Bondtester products have many hundreds of potential configuration possibilities, X-ray systems are predominantly standard with fewer custom configurations. Given the hundreds of individual components in each product, subassemblies are built to forecast with final systems being assembled to order. The Chinese facility also happens to be the company’s biggest supplier, providing primarily low intellectual property components and sub-assemblies. High intellectual property components are sourced in the UK, which is also where all final assembly and product testing takes place. Nordson DAGE also services and supports its products in all geographic areas.

Continuous innovation The electronics industry is renowned for its insistence on speed. It therefore comes as no than many typical global enterprises.”

surprise that president of Nordson DAGE, Phil

of the industry, we must also be continually

Vere, commented: “driving down inventory

innovating both our hardware and software.

while managing the company’s supply chain

And because we operate in every market with

For the past 15 years, Nordson DAGE had

and keeping it tight has a direct bearing on

over half our regional staff being in front of

been relying on an earlier version of the

the shortness of our delivery times.” He

customers, we have all the complexity of

EFACS ERP system from Exel Computer

continued: “Because of the fast-moving nature

being a global company while being smaller

Systems, based in its UK facility. China had its

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\\\ Manufacturing \\\

Success story

own basic, spreadsheet-based system which

undertook the implementation itself, going live

and to thoroughly clean and refine its data.

could not link with the UK. Considerable

in the UK in December 2011 after only 6 to 7

“By cleaning our data and getting rid of

growth combined with the increasing

months. China went live in June 2012 after

obsolete parts we reduced our part count by

requirement to tighten up the supply chain by

ensuring that everything and everyone was

70 per cent – this is a huge reduction and

having the UK and Chinese facilities linked by

happy with the system in the UK.

speeds up the use of the system,” remarked

a common ERP system put greater demands

Remembering the slickness and speed of the

Sachania. Vere added: “EFACS E/8 also

on the existing systems, as Satyam Sachania,

implementation, Vere said: “We didn’t lose a

enabled us to improve individual company

visibility as well as intercompany visibility and our supply chain is now much tighter.”

We liked the fact that Exel is a UK company and that it also has a number of installations in China with people that we know. Exel also has experience of successfully linking UK and Chinese operations. From a user perspective, by investing in EFACS E/8 there is a degree of continuity in terms of familiarity and ease of use. At a business level, we also felt that we could do a faster, less disruptive implementation.” – Satyam Sachania, Nordson DAGE.

EFACS E/8 has also brought a number of group wide benefits. It allows the Chinese facility to interact with other divisions within the group, something that is crucial given that it is increasingly supplying direct to other divisions and not just DAGE. The ability to interact with the group’s SAP system has brought improvements in group wide

ERP systems administrator, explained: “In

single business day during the entire

management visibility as well as corporate

China, the existing system was simply unable

implementation.” Sachania added: “And it

accounting. Vere concluded: “EFACS E/8 has

to cope despite many spreadsheet-based

only took one Saturday to migrate all live data

given us the stability and a platform to build

workarounds while the UK EFACS system had

– it went very smoothly.”

on for the future, including the improved interconnectivity and visibility that we need for

become so highly customised it was clear we had to move to a new system.”

Nordson DAGE used the implementation

our corporate requirements.” n

period to re-evaluate its business processes Instead of treating this as an upgrade from EFACS, the company investigated a number of other systems which would meet its strict criteria, according to a cost benefit analysis. In addition to this, any system chosen would also have to be able to link with SAP ERP, used by the rest of the group for corporate accounting and reporting. Sachania explained why after a thorough consideration of a variety of systems, Nordson DAGE decided to stay with Exel and EFACS E/8. “We liked the fact that Exel is a UK company and that it also has a number of installations in China with people that we know. Exel also has experience of successfully linking UK and Chinese operations. From a user perspective, by investing in EFACS E/8 there is a degree of continuity in terms of familiarity and ease of use. At a business level, we also felt that we could do a faster, less disruptive implementation. Both of these were important in helping to get buy-in from key users in the company.”

Slick operation After initial help from Exel in terms of preparation and planning, Nordson DAGE

18

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ERP

CRM

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\\\ Manufacturing \\\

Market analysis

Gartner says worldwide SCM software market grew 7.1 per cent to reach $8.3 billion in 2012 Key issues facing the SCM market were discussed at Gartner Supply Chain Executive Conference last month (May) in Phoenix. These issues will also be discussed from 12-13 August in Melbourne, and 23-24 September in London. espite economic challenges, the

D

average sales price through most of the year.

acquisition took place in December 2012 between RedPrairie and JDA Software, creating

worldwide supply chain management (SCM) software

Gartner's methodology, which converts US

the largest supply-chain-focused vendor and

market grew 7.1 per cent to

Dollars from euro-based income statements for

further consolidating the top of the market.

US$8.3 billion in 2012. During

software sold during 2012 globally, has

2012, IT budget decision makers remained

reduced 2012 growth for vendors reporting in

Software as a service (SaaS) SCM offerings

highly cautious overall, but supply chain

non-US Dollars.

showed above-market growth (13 per cent in 2012), while perpetual new licenses

investments kept their priority status and moved Source: Gartner (May 2013)

experienced slower growth of 3.5 per cent, as

In a highly fragmented market, the top five SCM

organisations focused on fast implementation at

"While IT budget scrutiny and global economic

software vendors maintained their status quo

a lower upfront cost.

conditions are moving cost reduction back to

over smaller competitors in 2012, accounting

a main business driver, supply chain remains

for nearly 50 per cent of revenue. This

Additional information is available in the Gartner

a key source of competitive advantage in

consistency in share occurred, despite the

report "Market Share Analysis: Supply Chain

driving business growth objectives," said Chad

market consolidations that happened in 2012

Management Software, Worldwide, 2012." The

Eschinger, research vice president at Gartner.

— the most significant of which was SAP

report is available on Gartner's website at:

"North America and Western Europe continue

acquiring Ariba in October. The other major

www.gartner.com/resId=2482418 n

forward.

to be the prime consumers of SCM software, with nearly 77 per cent of market revenue. However, Western European growth slowed and Asia/Pacific continued to experience robust growth, reflecting a shift toward investment in technology in emerging-market manufacturing centres." SAP retained its No. 1 market share position in SCM in 2012, with an 11.6 per cent increase in US Dollars (see Table 1). SAP held 20.8 per cent of the market and reached $1.7 billion in software revenue. SAP has been the market share leader within the aggregated supply chain market for more than a decade. Second-place Oracle had another good year in its supply chain business, growing 12.1 per cent and reaching $1.5 billion in revenue during 2012. JDA Software retained the third spot in 2012,

Company SAP Oracle JDA Software Ariba Manhattan Ass. Others Total

2012 Revenue 1721.2 1453.3 426.0 319.2 160.1 4216.0 8295.8

2012 Market Share 20.8 17.5 5.1 3.8 1.9 50.9 100.0

2011 Revenue 1542.8 1296.9 430.4 366.9 141.5 3114.5 6893.0

2011 Market Share 19.9 16.7 5.6 4.7 1.8 51.3 100.0

2011-2012 Growth 11.6 12.1 -1.0 -13.0 13.2 20.4 7.1

Top Five SCM Software Vendors by Total Software Revenue, Worldwide 2012 (Millions of Dollars)

Gartner Supply Chain Executive Conference at a glance Analysts are discussing the future direction of the supply chain industry at the Gartner Supply Chain Executive Conference. The US event took place from 21-23 May at the JW Marriott Desert Ridge Resort and Spa in Phoenix. For more information about the conference, visit http://www.gartner.com/technology/summits/na/supply-chain/ The Gartner Supply Chain Executive Conference 2013 will also be held from 12-13 August at the Grand Hyatt Melbourne. For additional information about this conference, visit http://www.gartner.com/technology/summits/apac/supply-chain/ The Gartner Supply Chain Executive Conference 2013 will also be held from 23-24 September at the Lancaster London. For additional information about this conference, visit http://www.gartner.com/technology/summits/emea/supply-chain/

exhibiting strong new sales and increased

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\\\ Manufacturing \\\

Market analysis

Gartner says Analytics will be central for business reinvention T must continue to lay the foundations for a world in which business intelligence (BI) and analytics will play an increasingly important role in reinventing business models, according to Gartner, Inc. Up until now, analytics has largely been about IT projects, however, as digital technologies – what Gartner refers to as the Nexus of Forces – dominate CIO technology priorities, the influence of analytics is set increase dramatically. Gartner analysts examined the key issues facing the BI market during the Gartner Business Intelligence and Information Management Summit, which took place this month in Mumbai, India.

I

“We are rapidly heading towards a world of analytics everywhere,” said Dan Sommer, principal research analyst at Gartner. “Gartner predicts that analytics will reach 50 per cent of potential users by 2014. By 2020, that figure will be 75 per cent, and we will be in a world where systems of record, systems of differentiation and systems of innovation are enabling IT, business and individuals to analyse data in a much denser fashion than before. Post 2020 we’ll be heading toward 100 per cent of potential users and into the realms of the Internet of Everything.” Gartner states that there are three factors that can discourage the sustained adoption of BI and analytics by its intended users – ease of use, performance and relevance. Many disruptive technologies – Facebook and web browsers being just two examples – have displayed significant improvements in those factors. Now, says Gartner, there is a vast array of new technologies addressing ease of use, performance and relevance that unlocks new opportunities for business users. The playing field is opening up to include a wider range of vendors, from the large software vendors such as SAS, Oracle and FICO, to service providers including IBM, Accenture and Deloitte who aim to use packaged analytics as a way to go in and sell solutions. At the opposite end, there are the SaaS and data-as-a-service providers, selling data, and the small independents specialising in one vertical, or one horizontal context. This is also opening new pricing models, not just license/maintenance, but also subscription and sometimes value-based pricing. Gartner predicts that despite ongoing consolidation and acquisitions by the ‘megavendors’, new categories of analytic applications will continue to emerge, as the innovation keeps coming from small vendors in the fringes, resulting in more, not less, market fragmentation. Existing categories of analytic applications are certainly consolidating and changes are occurring within each category, as vendors are acquired or merge, and certain categories are disappearing as they are superseded or integrated into other categories. However, the variety of data, channels and business issues that are open to analysis is also continuing to grow, resulting in continual fragmentation of the market. Gartner adds that these trends will be accentuated further beyond 2014, with Cloud, social, mobile and information/Big Data as new channels for bringing analytics to new audiences. n

23-24 September 2013 London, U.K. gartner.com/eu/supplychain

The World’s Most Important Gathering

of Supply Chain Leaders Reimagine Supply Chain: Fast, Forward, Focus Brand new research, new guest speakers and more networking opportunities with over 300 senior supply chain peers, Gartner analysts, visionary industry leaders and solution providers. Content for every executive on the supply chain leadership team across all industries — View this year’s all-new agenda at gartner.com/eu/supplychain. GUEST KEYNOTE SPEAKERS

DAVID GOSNELL President, Global Supply and Procurement, Diageo plc

ALEXANDER SCHOLZ Head of Project Management in Sourcing & Supplier Network, BMW Group

Special Offer – Save €400 Register with code GPSCC2 and save €400 on the standard conference price*. Visit www.gartner.com/eu/supplychain

© 2013 Gartner, Inc. and/or its affi liates.

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All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. For more information, email info@gartner.com or visit gartner.com. *Discount applies to new registrations only and cannot be used retrospectively or in conjunction with any other offer.


\\\ Manufacturing \\\

Product news

Feature-rich and user-friendly CMMS from Shire Systems aintenance software solutions

M

provider Shire Systems has introduced the latest edition to its feature-rich Pirana suite of products. The company’s

new Pirana CMMS features a slick new interface, making the solution even easier to operate. Users are able to get started straightaway, which can result in major operational time savings. The new release also comprises what Shire Systems describes as ‘an Aladdin’s cave’ of extra functionality and new productivity aids. Compatible with major browsers including the latest Chrome, Pirana CMMS can be presented in different languages and terminologies and offers a broad choice of security set-ups including a read-only profile. There is now a Quick Work Order Sign-off and the well-established Dashboard and KPI Scoreboard control tools have been refreshed. Powerful search & filter utilities

Pirana CMMS can substantially improve work order, stock inventory, & purchasing operations while allowing organisations to make the most of their technical and maintenance resources.

have been further advanced and reports can competitive. Quick payback on control of

needs to do without cluttered screens and

management & facilities costs and durability

technical annoyances.

Shire Systems reports that Pirana CMMS is

of assets.

Secure: The entire system has full location

highly affordable and is being adopted by

Easy to use: Users can enjoy tangible

security and user access can be configured

many major players in the manufacturing,

results without a steep learning curve. The

for each user.

food and services arena. Sold in modules,

intuitive interface means features are very

Flexible: Users can configure the system to

including the popular Mobile Solution, Pirana

easy to locate.

reflect their own terminology or language.

CMMS can substantially improve work order,

Accessible: Internet & mobile phone

Supports decision making: Pirana presents

stock inventory and purchasing operations

deployment means users can access their

a powerful, instant reporting capability in

while allowing organisations to make the most

system just about anywhere.

addition to advanced filter and search. Full

of their technical and maintenance resources.

Hosted option: For this option Shire

asset and work history is available for

Systems hosts the system in a secure data

analysis, leading to better planning and

Pirana CMMS can be installed on the user’s

centre, managing the whole service, thereby

standard operating processes. The

own server (on-premise) or deployed as a

securing data preservation and disaster

Dashboard facilitates on the spot reporting &

fully hosted option. Shire Systems offers full

avoidance. Users just need a PC, notebook,

trending.

support for both options.

laptop or mobile with a web browser. If

Expert advice: Shire Systems offers an

users talk to Shire Systems in the morning

experienced, friendly support service.

easily be exported to Excel.

they could be using their system later that

Benefits summary

same day.

Shire Systems summarises the key benefits

to any number of users. In his way, the

of the solution as the following:

system can grow with the user organisation.

Shire Systems summarises the key features of

Affordable: The system is highly price-

Functional quality: Pirana does what it

the solution as the following:

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Scalable: Pirana is designed for use by one

Features summary

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Product news

\\\ Manufacturing \\\

Shire Systems’ Pirana solutions portfolio •

Asset register.

Work scheduling.

PM & corrective tasks.

Stock control.

Parts catalogue.

Purchasing management.

Management KPIs.

Detailed reports.

Documents & pictures.

Fault types.

Meter readings.

Mobile deployment.

Over 10,000 organisations use Shire Systems’ maintenance management software. Shire Systems has a full schedule of free CMMS road shows and also offers a free, no-obligation, fully functional demonstration system. n

Pirana can be setup in two ways: Option 1: Hosted. Set up and run on Shire Systems' remote servers. Option 2: On Premise. Installed and run on your own organisation's network. Internet, intranet and mobile phone deployment means users can access their system from anywhere.

Pirana MobIle Pirana Mobile enables quick processing of Pirana CMMS work orders on mobile devices such as the iPhone, IPad, HTC, Samsung etc. Simply set up users, issue them with a pin number and then the workforce is ready to process work orders on the move. Users can readily access work orders in accordance with the security settings you choose to put in place.

Pirana Stock & Inventory (Materials Management) Pirana Stock & Inventory Control (Materials Management) is designed to facilitate the management of stock, enable you to specify your stock items, then organise, monitor and control their movement at each stage of the receipt/storage/issue and return cycle. The system provides you with the means to maintain quality compliance of your stock throughout the cycle.

Pirana Purchasing Pirana Purchasing (Purchase Orders) is designed to facilitate both internal requisitions and external purchase orders placed with a supplier.

Pirana Work Requester Pirana Work Requester is an efficient, cost-effective module which allows a user to send a work request to the maintenance team, and keep track of any requests they have raised.

Pirana Hosted A Hosted Pirana CMMS system is fully web-enabled, delivering all the capabilities of Pirana CMMS with all the flexibility that the web has to offer. Full Pirana functionality is ready to use ‘on demand’, enabling users to benefit from a low-cost-per-user pricing model.


P

lanning Opinion

Power to the people Many supply chain solutions vendors rightly promote the benefits that today’s state-of-theart IT solutions, together with an effective process management regime, can provide to manufacturers. However, one part of the jigsaw that is often put to one side is that of empowering the workforce to get the very best out of these systems and processes, writes Hugh Williams, managing director, Hughenden Consulting. systems and people – should revolve

forecasting software vendors explaining to

around not just individual IT systems, but

you how effective their solutions’ S&OP

also concentrate on important overarching

functionality is; it is not just about ensuring

business and operational concepts. One of

that your internal business & operational

these key concepts is sales & operations

processes are adjusted to get the very best

planning (S&OP). Some companies

out of such a system. Who operates and

recognise the need for systems that can

manages both the software and processes?

facilitate this type of methodology, and so

– Again, it comes down to the competence,

source what they consider to be a suitable

knowledge and training of the people, and

software package fit for the task. However,

giving them the opportunity to understand

they then give it to their planning team to implement and manage, and that’s where it stays. Its true potential isn’t realised Hugh Williams: Strong focus on the workforce.

from a full organisational process

n order to have the best supply chain

change management

methodology manufacturers need to

perspective; it just

consider three key elements; processes,

remains in the

systems and people. However, when you

planning environment.

attend conferences and seminars run by IT

In this way, it is in

I

what all the changes

Modern S&OP systems – with their advanced analytics and demand sensing functionality – are critically important for today’s manufacturers serving a range of different vertical market sectors. However, change management is the vital component to get the very best out of the systems, the process and the workforce.”

mean to them, as individuals. Supply chain transformation is the phrase that is very commonly used. What is needed is a change management process that looks at the whole equation; everything from the manufacturer’s

system vendors you will often find very little

danger of becoming

attention given to the people element. Maybe

the personal toy of the planning team, with

relationship with suppliers, its end

this is because many vendors’ primary focus is

little or no connection with other critical

customers’ requirements and expectations,

on selling technology. And on the consultancy

parts of the business; such as sales &

the need for better more seamless internal

side of the fence, many will sell the definition of

marketing or finance.

communication over different departments – such as sales and operations – and people

the process, the organisational structure and job roles, but they often won’t actually address

training in order for all personnel to fully

the need for change management, and the

Optimisation

need for people to fully understand and

This can be a serious issue because the

them and the reasons why these process

embrace the new process changes that are

ultimate goal for any company should be to

have been put in place.

needed. Without commitment from the

optimise and pull together both the

workforce, any organisation is never going to

business/finance/sales element and the

get the best out of the systems they deploy.

operations, planning and forecasting

Top-down support

After all, these systems are operated by

elements in order to have the very best

And it is not just sales staff and supply

people. They may be automated to some

means to serve the end customer while also

chain teams that need to embrace new,

extent but, ultimately, without people

protecting its own profitability. Everybody

improved processes and systems.

involvement they simply don’t work.

within the organisation needs to see the

Management and board-level personnel also

value from their own angle in order for the

must take this concept to heart. Arguably, it

overall S&OP process to be a major benefit

is even more important for people in the

to the company as a whole. And, here

upper echelons to buy into the idea of

again, it is not just about the planning &

process change management, because it is

Realising the potential Also, all these key elements – processes,

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understand the new processes, how to run

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P

lanning Opinion

transformation strategy which, whatever the financial desires of a business, will take time.

The end game Modern S&OP systems – with their advanced analytics and demand sensing functionality – are critically important for today’s manufacturers serving a range of different vertical market sectors. However, change management is the vital component to get the very best out of the systems, the process and the workforce. By focusing on people, your internal business and operational infrastructure will run more efficiently and more cost-effectively, while your customers will see the benefits in enhanced levels of service. n

Everything Hughenden Consulting does is based on getting the best from people, processes and systems through deploying valuable principles based on continuous improvement and action.

this group that needs to evangelise the rest

applying Cause and Effect

of the organisation. Without top-level

Analysis and then work

commitment –without top-to-bottom

closely with all

involvement and action –change

those involved –

management will never achieve what it sets

from senior

out to.

executives to the planners and

The right consultancy service

everyone in between – to ensure they have

Everything we do at Hughenden Consulting

the understanding,

is based on getting the best from people,

the knowledge and

processes and systems through deploying

the skills to implement

valuable principles based on continuous

the strategy is properly

improvement and action. We work with our

and therefore to drive

clients from strategy and execution through

towards and optimised supply

to measurement, and help them achieve

chain. This approach is based

their business and operational improvement

on the following principles:

goals. The ultimate aim is to help clients

analyse; assess; coach; guide;

achieve a level of S&OP excellence through

and implement. We always

one or more of the following steps: Predict

ensure that our clients’

demand more accurately; optimise

strategic planning is

inventory; plan resources; schedule

implemented effectively, as

resources; align supply; integrate planning

well as measured and made

processes; and adopt supply chain culture.

scalable for growth, by

But the biggest weapon is to focus on

focusing on the teams that

people.

make it happen. Each stage can be performed as a standalone

Following our ‘Triple H’ methodology

service but the biggest impact is

(Hughenden Helping Hand), we start by

as part of an organisation-wide

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P

lanning Success story

Marc Cain

goes live with TXT: one

solution to integrate production and global XT e-solutions, provider of

T

integrated and collaborative planning solutions, has announced that premium womenswear brand, Marc Cain,

has gone live with TXT’s Supplier Relationship Management and Supply Chain Planning & Execution solutions. Seamlessly integrated, the two solutions allow Marc Cain and its suppliers to act as a single enterprise benefiting from visibility, coordinated production and supply schedules, better use of resources and slashed lead times. Marc Cain produces high-quality and fashionable casual wear in Bodelshausen and

single corporate platform for in-house

e-solutions, added: “We are excited by this

distributes globally. With over 800 employees

production, external CMT (Cutting Making

successful go-live at Marc Cain and we

and sales volumes of 210 Million Euros in

Trimming), trade goods and purchasing.”

congratulate their team; synergies among our groups were strong and global

2011, the company features a vertically integrated business model, from the design

implementation was seamless. Marc Cain is a

and production processes, to the

Supporting fast innovation

management of a selective distribution

TXT’s solutions provide Marc Cain with one

across the extended supply chain and the

network characterised by 146 Marc Cain

system and one planning environment for

sensitive results this can bring.” n

stores, 258 shop-in-stores in 59 countries and

internal and external production planning and

more than 1470 specialised shops worldwide.

control, purchase and production order

best in class example of business integration

TXT at a glance

creation, advanced supplier relationship Matthias Behr, managing director purchase &

management including timelines, order

production at Marc Cain, commented: “We

confirmation and progress management

approached TXT with

the objective to establish a more effective production planning system and further increase transparency over operations; We soon decided to extend the project to the whole Supply Chain by

through KPIs.

In a highly dynamic sector such as Fashion, the ability to integrate the end-to-end process from design to production to supply and establish a common frame for communication across our partner ecosystem is absolutely key.” – Matthias Behr, Marc Cain.

integrating into one

Furthermore, the solution supports fast innovation with the effective management of special orders resulting from the design process including prototype and test orders. Behr continued: “In a

system and one process not only our own

highly dynamic sector such as Fashion, the

factory but our suppliers and service

ability to integrate the end-to-end process

providers operations, as well as the

from design to production to supply and

management of raw materials and inventories.

establish a common frame for communication

In particular, material management is fully

across our partner ecosystem is absolutely

supported: the purchasing process, goods

key. With TXT we now integrate over 150

receipt and quality control, as well as the

internal users and 80 global suppliers; the

supply of materials to subcontractors

whole process is streamlined.”

including the management of missing materials. With TXT we have established a

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TXT e-solutions is a provider of integrated and collaborative planning solutions for the Retail, Fashion and Consumer sectors. The product suite combines planning and intelligence supporting all strategic business processes; including Integrated Retail Planning, Product Lifecycle Management (PLM), Sales & Operations Planning and Supplier Collaboration. The company is listed on the Italian Stock Exchange (TXT.MI) and has over 500 employees and more than 450 customers worldwide. These represent many of the leading global retailers and consumer-driven organisations; including: Aeropostale, Arcadia, Auchan, Columbia, Desigual, Findus, Galderma, Geox, Guess, Levi Strauss & Co., Louis Vuitton Malletier, Steve Madden and Tesco. Headquartered in Milan, with offices throughout Italy, France, Spain, Germany, the UK, Canada and Australia, TXT also has several partners worldwide.

Holger Klappstein, sales director SRM at TXT

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lanning Success story

Luggage brand Delsey

adopts TXT’s PLM solution to improve global planning elsey, the French luggage brand

between merchandisers, designers, and buyers

sold in over 6000 stores around

– for instance, on timelines, perception of the

the world, is about to implement

product, business targets – right from the

TXT’s Product Lifecycle

earliest phases.

D

Management (PLM) technology

to help streamline the design and planning

“Delsey sells premium ranges of luggage and

process. PLM systems help companies cope

design-led bags, but what sells well in France

with the increasing complexity of developing

tends to be quite different to what’s popular in

new products for global competitive markets.

North America or China,” said Catherine De

With Delsey present in more than 130 countries

Bleeker, Group marketing director. “Being

and a Delsey bag sold every 10 seconds, the

able to plan more accurately and strengthen

company needed software to help orchestrate

the connection between planning and design

and error and make the design, production and

and monitor its global activities using a single,

- as well as monitor every step of the

supply process more efficient,” added Simone

end-to-end PLM solution.

collection lifecycle across all products and

Pozzi, VP sales & marketing at TXT.

localities - will be strategic to our growing The TXT PLM software – also used by over 150

Sylvie Maillard, Group CIO at Delsey, said the

international business.”

company chose TXT over other software

other apparel brands and retailers, including Auchan, Artsana and Louis Vuitton Malletier –

With the new PLM systems in place, everyone

vendors because of its strong pedigree in

will support all phases of collection planning,

will have access to the same data – a central

fashion, retail and luxury goods; as well as its

design, development, sourcing and

repository of information including details on

range of supply chain, forecasting and

collaboration and is expected to lead to shorter

product designs, costs of materials, overseas

replenishment solutions. It also wanted software

time-to-market and more targeted ranges. It will

suppliers, and lead times. “It’s all about having

that would integrate easily with its existing

also improve the sharing of information

a single version of the truth, to avoid duplication

Microsoft ERP system. n

Ad van Geloven

selects TXT for Sales & Operations Planning level, allowing closer collaboration internally

A

encompassing retail and foodservice.

understand our business and the direction

reduced inventory holding and more efficient

platform to manage the whole spectrum of its

we are taking to drive customer excellence.

production planning.

Planning processes – including: Sales &

We particularly valued the ability to integrate

Operations Planning, Demand Management,

all of our functional requirements in one

Wolfgang Amann, sales & operations

Network Planning, Inventory Planning,

single solution, which is backed up with

planning director at TXT, said: “Many leading

Production Planning and Factory Scheduling

strong consulting capabilities in the S&OP

food companies are revisiting their

– with a strong focus on increased customer

space. The solution will support concurrent

processes and tools to support demand

service levels.

planning and performance management

volatility, supply chain responsiveness,

with advanced what-if and integrated

product quality, variety and faster

Ad van Geloven Group (AvG) owns six

analytic capabilities. This will lead to

introduction rates. TXT has invested strongly

brands with leading positions in several food

improved visibility, better identification of

in the industry and I am extremely pleased

categories, including Mora snacks – which is

cause and effects, as well as supporting

about the partnership and synergies we

the largest growing consuming brand in the

fact based decision making at all levels

have established with AvG. I am sure that

Netherlands – Welten Snacks, Van Lieshout

along the value chain.”

our experience in S&OP, coupled with the

d van Geloven Group, the

and externally. The project will in parallel help

Dutch producer of frozen snacks and meal components,

Peter Doodeman, CEO at Ad van Geloven,

design the most effective network planning

is to implement the TXT’s Sales

commented: “We chose TXT as they really

process, leading to increased service levels,

& Operations Planning (S&OP)

advanced planning and analytic functionality

and Hebro. AvG operates across 5 production sites in the Benelux region and

TXT will provide AvG with an S&OP platform

of the solution, will be instrumental in

has an extended supply chain

that will improve planning from the demand

supporting their strategic goals.” n

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P

lanning Quintiq management briefing

Fast tracking

the journey to Integrated Business Planning Expresses plans in financial terms and

ingredient – the technology needed to make

compares them with budget.

it all happen. Rather than simply adding

Is KPI-driven to ensure alignment

value, technology is essential to exploiting

Business Planning (IBP),

between constantly changing plans and

the process. Of course, small companies

over 30 years ago Oliver

corporate strategy.

can achieve their goals with something like

Takes an integrated view of the business

Excel and most companies begin with

for informed decision making.

Excel-type spread sheets. But the demands

Uses assumption-based scenario

of large companies with multiple divisions,

modelling and analysis.

business units and plants go beyond the

hether you call it Sales &

W

Operational Planning (S&OP) or Integrated

Wight started a revolution that transformed

business planning. He launched a formal operational approach where demand for

products is balanced and synchronised with the ability to deliver – all built around a

Operates based on real-time information.

capabilities of basic spreadsheet solutions.

monthly process for aligning company plans

Is aimed at closing gaps and building

Large organisations have an additional

realistic, feasible plans.

need to align plans and the cross-flow of

and actions. Nowadays, IBP is a synonym to

activities from different plants.

an integrated set of processes, tools and competencies that link corporate strategy to

(See diagram on page 30). A high degree of integration is needed to

operations. The product management review is where

deliver information that is always current

decisions around the product portfolio and

and accessible to all, as well as available

the funnel are made. The demand review

on demand at multiple locations. In large,

combines forecast demand with input from

complex organisations, planners need to be

sales and marketing to create a balanced

alerted when decisions aimed at solving

Sales & Operational Planning started in the

demand plan.In the supply review, decisions

one issue create others further down the

1980s as an enhanced production planning

about sourcing, production, inventory and

line or further across the organization. They

process. It has since evolved into a means of

distribution are made. The management

want solutions where KPIs are built in;

integrated decision making – a well-trodden

business review is performed after

solutions that compare plans to budgets

route to improved business performance.

stakeholders have reconciled the plans,

and constantly monitor planning decisions

identified gaps and developed alternative

against corporate goals. Furthermore, they

Today, mature IBP incorporates financial

scenarios developed for discussion. At this

want to see their IBP process supported by

integration, scenario planning, comparative

point, the company is ready to create a

a workflow management system that

strategies and supply chain collaboration. It

realistic plan – one expressed in financial

ensures tasks are executed in a timely

focuses on strategic objectives and how

terms, supported by KPIs. It is at this point

manner by the right people.

decisions contribute to the business, rather

that gaps between plan and corporate

than focusing on raw numbers. A strategic

strategy become apparent. Each month, as

And today’s multinational organizations are

perspective that integrates all the key

the process continues, plans and decisions

looking for a technical platform that

processes.

are constantly being refined.

provides consolidation – a top-level view

IBP has come a long way

The mechanics of the The essential process ingredient – enabling technology

across plants and business units, even when they operate autonomously. Finally, planners need the security of knowing that wherever they are on their journey to IBP maturity, the tools they are using will evolve in parallel with the business and will still be

IBP has become one of the defining characteristics of today’s successful

There is no shortage of information

appropriate when they achieve a fully

companies. In its mature form, IBP is a

describing the process. What the reports

mature IBP environment.

continuous management process that:

tend to overlook is that all important

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lanning Quintiq management briefing

is working towards achieving corporate goals.

Single solution at all planning levels While mature IBP planning is dedicated to strategic tactical control and decision making, it makes good sense to ensure that any enabling technology will work at all levels – a single toolset that is strategic, Integrated Business Planning is a monthly cycle in four stages: product management, demand management, supply management, and the business review.

tactical and operational.

Defining an ideal technology platform

What does Quintiq offer bring to the table?

Displaying interdependencies in real time makes sure that islands of decision making are eliminated and corporate strategy is

When selecting a suitable platform to

executed. It also makes sure that gap-

support a mature IBP strategy across a

closing actions are aligned across the

Quintiq is one of very few software vendors

large organisation, what are the essential

organisation.

able to meet all the criteria we have

characteristics companies should be looking for?

described. Not only does Quintiq's software support true cross-functional IBP, it is also

Collaboration

capable of supporting a broad range of

Mature IBP is all about collaboration.

planning processes, from workforce planning

Enabling technology needs to support

to distribution and transport planning, from

The technology should be able to maintain

collaboration right across the supply chain.

strategic long-term planning to detailed

everyone's focus on the company's business

This level of supply chain integration aids

scheduling. Moreover, the Quintiq software is

goals by keeping KPIs visible throughout the

outsourcing decisions, shared resource

designed to evolve with companies in their

enterprise and updated in real time as

planning and alternative sourcing decisions.

journey to IBP excellence. Quintiq is based

Business focus

on a unique three-layer architecture,

decisions are made. It should support the top-down and bottom-up nature of the IBP

designed to give you best practice and is

process. Input, such as budgets from

Scenario modelling

corporate management, is translated into

One of the key steps to a mature IBP

detailed decisions whose financial

process is the development of scenarios.

implications are then aggregated back to

Enabling technology has to be strong on

At the base of Quintiq's software, is a

corporate management.

assumption-based scenario modelling and

versatile supply chain planning platform with

analysis. This might include alternative

a powerful propagation engine to take care

supply plans, demand plans, price and cost

of real-time distribution of information. Above

contingencies, the closing or commissioning

this level, is an industry solution that

of production lines and plants.

provides generic best practices for supply

Integration Clearly, integration is a key element for IBP

tailored precisely to your own organisation's needs.

chain planning. At the final layer, the solution

and it can be useful to think in terms of both ‘horizontal’ and ‘vertical’ integration. By

can be configured to incorporate company-

horizontal integration, we are referring to

Workflow management

cross-functional integration of product

IBP is a process that involves many people.

a 100 per cent fit. The Quintiq concept has

management, demand planning and supply

Companywide, standardised workflows

one extra key strength. Its ability to be

planning. It also means horizontal integration

ensure that people know what is expected

adapted quickly and cost effectively to

between plants, divisions, suppliers and

from them and all tasks are completed by

address your company needs. As your

customers.

the right person, in the right order and in a

company develops and as your commercial

and sector-specific logic and knowledge for

timely manner. The technology has to be

landscape changes, your Quintiq solution

Vertical integration refers to the linking of

capable of supporting company workflows

will evolve with you. Corporate decisions are

planning levels, converting strategy into

and must make sure that relevant information

always aligned with your ever-changing

tactical and operational plans and reporting

is available to everyone with a need. This is

business environment. n

these plans all the way back to the

the way to ensure that individual

corporate level.

responsibilities are clear and that everyone

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We challenge you to challenge us with your supply chain planning puzzle.

Quintiq’s supply chain planning & optimization platform is built to solve your planning puzzle. The Quintiq platform transforms complicated processes into an agile, consumer-centric supply chain. It addresses all constraints and requirements towards delivering optimal efficiency across all horizons.

E: info@quintiq.com | I: www.quintiq.com

What’s your planning puzzle? We love a good challenge. Visit us or browse www.quintiq.com.


P

lanning Success story

Cutting edge supply chain thinking takes shape at Seco Tools or more than 80 years, Seco Tools

it is very easy for the customer to secure a

has delivered a diverse portfolio of

new supplier. The burden is now on Seco

tools and services around the

Tools to deliver any of its 50,000 SKUs

world. Best known for milling

anywhere in the world within 24 to 48 hours.

F

cutters for the general machining

industry, the pressure the company faces to

Historically, customers held their own

maintain high service levels continually grows.

inventory. They kept a supply of products on

To complicate matters, they must be able to

hand at every site. This became an expensive

provide the right consumable products at the

proposition for the industry, which gave way

right time to customers on all four corners of

to placing the responsibility (and cost) back

the globe.

on the manufacturer to hold inventory and

The implementation was on time and the visibility we now have gives us new understanding. We’re asking questions we never would have thought to consider before Logility.” – Lars Liljeqvist, Seco Tools.

Seco Tools manufactures cutting tools made

deliver it when needed. At first, manufacturers

of steel, tungsten carbide and cobalt. The

held stock in-country. This created a vast and

tools are based on industry standards, which

costly distribution network for manufacturers

allows each customer to select their supplier.

such as Seco Tools. As competition increased

If a tool cannot be supplied when it is needed

and margins thinned, manufacturers had to

turn to a more streamlined distribution approach that would still ensure quick delivery of each item. As part of this shift, Seco Tools now operates four distribution centers around the world (Netherlands, US, Singapore and Shanghai). From these four locations the company serves approximately 60 countries. The key is the Seco Tools manufactures cutting tools made of steel, tungsten carbide and cobalt. The burden is now on Seco Tools to deliver any of its 50,000 SKUs anywhere in the world within 24 to 48 hours.

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ability for Seco Tools to provide the same level of service through fewer distribution points.

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P

lanning Success story

was on time and the visibility we now have gives us new understanding. We’re asking questions we never would have thought to consider before Logility. The combination of an excellent supply chain team, improved processes and new software has shown us just how much potential there is for improvement. It is quite remarkable.” n

Supply Chain Planning overhaul

Moving forward

Three years ago Seco Tools investigated

operated at a very high level (for example the

solutions for stock optimisation. During this

product/family). To be truly efficient, Seco

process, the company realised it needed

Tools needed to forecast at the item level by

more than stock optimization – it required a

stock location to help its 12 production

complete supply chain planning overhaul.

facilities better plan their manufacturing

Lars Liljeqvist, VP logistics, purchasing and

requirements. “We must make sure we

quality at Seco Tools, commented: “We saw

produce and stock only what we need,” said

an opportunity to improve our stock

Liljeqvist.

Previously the company’s forecasting

availability and lower our inventory value at the same time. We also realised this would be

Seco Tools recently completed the first phase

more than a software implementation. In order

of its implementation of its new processes

to succeed, we needed to change our

and Logility Voyager Solutions. Within the first

processes and way of working.”

week, a couple of days in fact, the team noticed a drastic improvement in visibility

Seco Tools required new software to support

across the global business which will help

the new processes and they started to

further improve forecast accuracy. “We have a

evaluate potential partners. Many of the

target to achieve a 97 per cent net stock

vendors only offered software. Seco Tools

availability and we can already see with

recognised they also needed help with their

Logility we will be able to achieve this

process change. Liljeqvist continued: “Logility

number,” said Liljeqvist. Seco Tools is also

was unique. The team met with us and started

aiming to reduce inventory up to 20 per cent

to discuss how we could improve – the supply

due to the greater forecast accuracy. In a

chain processes and organisation. We walked

competitive industry manufacturing precisely

through the process and covered both the

machined tools, a reduction like this can add

tangible and intangible benefits. Then we

up quickly.

talked about how software could help enable this transformation.”

www.logisticsit.com

Logility at a glance With more than 1250 customers worldwide, Logility is a provider of collaborative, Best of Breed supply chain solutions that help small, medium, large and Fortune 1000 companies realise substantial bottomline results in record time. Logility Voyager Solutions is a complete supply chain management solution that features a performance monitoring architecture and provides supply chain visibility; demand, inventory and replenishment planning; Sales & Operations Planning (S&OP); supply and inventory optimisation; manufacturing planning and scheduling; transportation planning and management; and warehouse management. Logility customers include: Fender Musical Instruments, Hewlett-Packard, Parker Hannifin, Sigma-Aldrich, Verizon Wireless, and VF Corporation. Logility is a wholly owned subsidiary of American Software, Inc.

Liljeqvist concluded: “The implementation

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lanning Opinion

Making Integrated Business Planning a

reality

By Richard House, managing director, FuturMaster UK.

contributes to effective business risk

collaboration, but politics and self-orientation

management.

may restrict the information provided and potentially undermine the process.

Considerations

IBP is a high-level process. Strategic

So, if the benefits of IBP are so intuitively

decisions with business impact are not made

clear, then why does it remain a distant dream

at an item code, production line or shift level.

rather than a current reality? Why do

They are made at a high level, affecting many

organisations struggle to put together a multi-

elements in a single decision. Enabling senior

functional decision-making process that goes

management to make well-informed decisions

beyond the conventional Board Room review

at a family level generally requires software

of past financial results and variances to

support to present the data accurately and in

budget? In order to understand this

a format that can be shared between Sales

conundrum more, we need to consider some

(who like to talk in cases) and Production

of the practicalities of IBP.

(who like to talk in hours). IBP is a financial process.

Richard House: “Implementing IBP is a topdown process.”

IBP is a multi-functional process. Typically, organisations have struggled to implement

A key feature of IBP is the extension of

processes that cut across the functional silos

conventional Sales and Operations Planning

or a select few companies,

of Finance, Sales, Operations etc.

beyond volume and stock level information

Integrated Business Planning (IBP)

Implementing a multi-functional process

into key financials such as gross margin,

is a reality in which all business

challenges the organisation to work in

working capital, trade spend etc. This

functions are involved in making

different ways and to business level

increases the complexity of the information

business decisions based on a

objectives. Successful

F

collaborative future view of business activity.

implementations of this

For the majority, IBP is currently a distant

nature often require the

dream which stretches them well beyond the

intervention of 3rd parties

Sales and Operations Planning (S&OP)

or consultants to

processes they are currently struggling to

coordinate the functions

master.

and to make the total process happen.

For the select few, the benefits of regular,

being presented and

As companies have discovered from their own implementations of Sales and Operations Planning, it is not necessary to have everything right before the organisation sees benefits. In fact, many will testify that the journey of implementation is itself a key benefit of IBP.”

may include data which is not normally shared across different functional groups. IBP is a scenario-driven process. Executives make better decisions when they are presented with alternative scenarios

multi-functional meetings to consider the profit

IBP is a people process.

impact of anticipated demand and supply

The ability to foresee

scenarios are clear. Resources are aligned to

alternative demand

demand, activities are planned to maximise

scenarios and assess

profit generation opportunities,

upsides, downsides and

responsiveness improves. In short, the

business risk lies in the people of the sales

impact of the decision is known at the time of

business is ready and able to handle

and marketing organisation. A collaborative

making the decision. The ability to generate

changes to demand in the optimal way and to

forecast is weakened if the participants are

scenarios of different demand situations and

maximise profitability as a result. Not only

not willing or able to provide the information

then to process these alternatives (often

does this joined up decision-making process

needed by others for effective decision

multiple times) through alternative supply

make organisations more adaptive to the

making. Technology can play a valuable role

scenarios is a major challenge for many

volatile business environment, it also

in providing the systems to allow

companies.

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to evaluate and decide upon. Each scenario has a financial result with it, so that the financial

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P

lanning Opinion

Setting up for success Implementing IBP is a top-down process, driven by a board seeking better quality, more up-to-date information to inform their strategic and business level decisions. Supporting this objective is the need for software solutions with the capability to rapidly process collaborative, scenariobased demand forecasts through the organisation’s production and supply network. In addition, the translation of the volume demand and supply scenarios into financial forecasts and plans suited to decision making requires levels of data integration which are now available for those organisations keen to move forward in IBP. Regular, multi-functional meetings to consider the profit impact of anticipated demand and supply scenarios can ensure the business is able to handle changes to demand in the optimal way and to maximise profitability as a result.

A final word As companies have discovered from their own implementations of Sales and Operations

benefits. In fact, many will testify that the

highest place, it is no disgrace to stop at the

Planning, it is not necessary to have

journey of implementation is itself a key

second or even the third place.” – Cicero

everything right before the organisation sees

benefit of IBP. Remember; “If you aspire to the

(106-43BC). n

Accurate

Forecast...

The When the competition becomes more intense... ...the Right Solution is decisive

Key to Business

Survival

For every Supply Chain Challenge... …there is a

answer

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lanning Success story

Sivaco leverages Preactor to

improve production operations t the forefront of wire production

A

subsequent processes in production. The

different manufacturing processes across

in North America, Canadian

Wire Drawing process is the main bottleneck

multiple orders that need to be put in line in

company Sivaco designs,

department in the plant and the objective is to

such a way as to balance the number of

manufactures and delivers

select the best machine for each in order to

setups.

high-quality wire products.

meet due dates and minimise set-up times.

of Sivaco’s proven make-to-order

The Galvanisation process involves two lines

manufacturing capabilities.

and each one has its own characteristics,

Specific planning and scheduling difficulties

which allow different wire types to be

Essentially, one of the main difficulties is the

handled. Changing from one wire type to the

ability to provide customers a realistic date

next (number of strands) involves a significant

and to meet it with the high level of quality the

changeover typically done over the week-end.

customer deserves. Because Sivaco

Customers order wire in terms of either weight

The Annealing-Normalisation process

manufactures to order, the forecasting,

or length. All recipes are developed based on

normalises the structure of steel wires and is

planning and scheduling processes are

very specific customer requirements in a way

accomplished by heating the strands of wires

critical: When an order is scheduled, the raw

to ensure consistency. An order is typically

in an oven and then in a lead bath.

material must be in inventory when the job

Many of Sivaco’s customers take advantage

The production process and constraints

starts. One of the goals for Preactor was to

translated in a number of rod coils. These coils will go through different manufacturing

The Annealing – Heat Treatment process

schedule the order only when the material

process steps to obtain the desired diameter,

heats spools of raw material wires in ovens in

would be in stock, which provided better

finishing and ductility.

order to facilitate subsequent wire drawing

inventory visibility.

steps. There are a total of 6 closed ovens and The Pickling line has a maximum capacity of

the annealing process is done by batches,

In the past, scheduling was done in a module

coils, which can be cleaned at one time with

grouping spools of wire requiring similar heat

of an internally developed ERP system

the objective to maximise throughput and

treatment profiles together which could vary

programmed by Sivaco that could not

prioritise each order to feed the other

from 7 to 62 hours. There are hundreds of

properly represent all the complexity of the manufacturing operations as the process was primarily manual, only a very experienced scheduler with knowledge of all of the different rules could do it and often had difficulties keeping up with the demand.

Preactor APS P400 as the solution In 2002 when Sivaco was looking for a new scheduling program, there were two finalists including Preactor. Both provided a good scheduling model, proving they understood the challenges. Preactor was chosen due to its similar approach but more effective pricing. Pascal Breuleux, director of IT at Sivaco, commented: “The decision proved us

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lanning Success story

• •

production process.

spectacular: We went from one hour of

Reduce setup-up time while maintaining

processing to less than five minutes (and

high due date compliance.

many rules added in the system since then).

Have the ability to simulate impact on

The schedule time for the drawing

order insertions and due date changes.

department (core business) has been reduced by half, and Sivaco does not

Sivaco decided to pursue configuration and

depend anymore on tribal knowledge to

implementation on its own with initial training

establish its schedule. If the scheduler is

We went from one hour of processing to less than five minutes (and many rules added in the system since then). The schedule time for the drawing department has been reduced by half, and Sivaco does not depend anymore on tribal knowledge to establish its schedule.” – Pascal Breuleux, Sivaco.

right, since the other vendor did not last.” By and ad-hoc guidance provided by Preactor

absent for one day for instance, Preactor can

partner, West Monroe Partners (WMP). Yanick

issue a schedule that can be put in

Eliminate non-value-added tasks and

Thibault from WMP commented: “The key

production with no manipulation. The setup

streamline the scheduling process.

success factor in the redesign resided in the

times have also been reduced, although it is

Provide a central repository of knowledge

right balance between advanced tailored

difficult to evaluate the gain precisely as we

and rules for scheduling.

scheduling heuristics, the incorporation of

have not measured it. We also now have a

Improve inventory visibility and enable

Sivaco’s knowhow and adequate training of

better control on raw material inventory

material constraints to start a job.

key users.”

availability when launching a new job on the

installing Preactor, the primary goals were to: • • • •

shop floor.” Preactor has been live at Sivaco

Create a realistic production schedule that considers all major constraints in the

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Breuleux said of the process: “The result was

for nearly 5 years. n

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P

lanning Success story

Demand sensing telemetry

stirs

up the supply chain at Costa Express osta Express are now using

C

machine telemetry to drive the replenishment of their 2600 self-serve coffee bars using ToolsGroup’s demand driven

auto-replenishment solution, Service Optimizer 99+

Project and objectives Costa Express, part of Whitbread PLC, offers airports and railway stations, hospitals and universities, convenience stores, forecourts and serviced buildings the opportunity to profit from the growing demand for high-quality coffee on the go and the strong Costa brand. It provides partners with the latest self-serve coffee machines, and regular replenishment of coffee and supplies. After initial success, Costa Express hatched ambitious plans in 2011 to grow its estate of machines in operation from 900 to 3000 by 2016 and expand into new countries. In order for Costa Express to sustain its unique revenue sharing model as it grows, it needs control over and visibility into its supply chain. A key part of this is being able to calculate accurately and replenish stocks at the orderline level for all its partners. To support this, Costa Express’ unmanned coffee bars use integrated telemetry that provides real-time reporting on machine performance and drink

ToolsGroup’s S099+ software is now able to use the actual sales data provided by the self-service coffee stations to forecast demand, optimise inventory and generate replenishment proposals for Costa Express’ distribution and procurement operations. This enables Costa Express to optimally manage the supply of ingredients from the central warehouse in Andover out to the 2500+ Costa Express sites.

sales. This is not only to prevent waste and theft, but to improve service by ensuring that

spreadsheet-based replenishment system that

could be deployed immediately and scale with

the machines are always stocked to meet

worked fine for a business with a few hundred

the business.

demand. ‘Brand Guardians’ were employed to

machines, but was not able to scale with the

train partners, replenish stock and give advice

business. Indeed the company was adding

ToolsGroup’s consultants started work with

on how to maximise sales and improve the

major blue chip partners and locations much

Costa Express on the system design and data

coffee experience.

faster than its ambitious plans called for and

analysis. At the same time, Clowes analysed

Clowes wanted to make sure that growth

the company’s broader supply chain

remained profitable.

operations to review the need for further

Shortly after Chris Clowes joined Costa

changes as many partners and processes,

Express in April 2012 as supply chain manager, he discovered opportunities to

The first priority was overhauling the

including its logistics provider, had been in

improve the supply chain. Although the coffee

replenishment system. Clowes’ team evaluated

place for 12 years.

machines had potential to provide real-time

different supply chain planning software

sales data, it wasn’t being used because there

providers and selected ToolsGroup’s S099+

was no system in place to consolidate and

software in July 2012. Costa Express chose the

...day to day

present the data. His team relied on a manual,

hosted SaaS version of the software, so it

Costa Express’ implementation of SO99+ went

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lanning Success story

live on 21 January 2013 following a six-month

proposals for Costa Express’ distribution and

period of major supply chain transformation

procurement operations. This enables Costa

that included changing its logistics and

Express to optimally manage the supply of

warehousing partner and starting to purchase

ingredients from the central warehouse in

stock directly from suppliers for the first time.

Andover out to the 2500+ Costa Express sites.

At the same time, the role of the Brand Guardians, whose responsibilities included

Outcomes

analysing data and inventory replenishment,

Before implementing SO99+, Costa Express

changed into Brand Excellence Advisors,

used to estimate how much stock to supply

whose sole focus today is helping partners sell

each site with at the end of each month using

and deliver a great customer experience. All

current stock holding figures and average

these changes took place while the company’s

cup sales. Now, Costa Express can compare

estate of self-serve coffee machines grew to

the actual sales data to the levels of stock

2600. According to Clowes, “The flexibility of

declared in the sites to give far better visibility

ToolsGroup’s consultants during all this change

and control. Clowes commented, “In some

was world-class. The original model they

countries that we’re entering, like Poland,

developed needed to be adapted several

we’re legally required to make month-end

times during the implementation, but they

declarations, so this new level of forecasting

didn’t blink - just got on with it.”

accuracy is extremely helpful.”

ToolsGroup’s S099+ software is now able to

In the first month, the visibility that S099+

gone far better than we ever could have

use the actual sales data provided by the self-

provides has already enabled Costa Express

imagined. As it is, we’ve actually managed to

service coffee stations to forecast demand,

to review the amount of stock it sends to its

grow our revenue and reduce our inventory

optimise inventory and generate replenishment

partners, however a longer evaluation period

costs so I’m very pleased.” n

is needed to draw any firm conclusions. Clowes concluded, “So far this project has


P

lanning Success story

: MANUAL WORK TRANSPOREON

Broner's MES and Integrated scheduling solution goes live at Sahaviriya Steel Industries UK Broner Metals Solutions, worldwide specialist provider of integrated MES, supply chain and scheduling solutions for metals, has announced that its MES and Scheduling modules have been put in production at the Teesside steel operations of Sahaviriya Steel Industries UK (SSI UK). he new solution replaces SSI's original in-house developed system. Broner's MES and Caster Scheduling functionality is now fully integrated with SAP, providing improved scheduling and reporting mechanisms across the plant.

T

Broner has developed and implemented interfaces between their MES and scheduling solutions allowing SSI to receive production and quality information as the slabs are cast in real-time. This allows the planners at Teesside to re-route and re-schedule giving them greater control over their manufacturing orders and specifications.

The objective of the project was to deliver modern, scalable solutions that could be expended to meet future SSI UK and international requirements. Stephen Duncan, IT development manager of SSI, said: "I am very pleased with the delivery of the project and I am looking forward to SSI achieving valuable business benefits from Broner's solution.”

Broner's CEO, David Mushin, commented: "We expect SSI Teesside to receive significant productivity and cost reduction benefits and I look forward to maintaining a strong, valued business relationship with them.” n

Broner Metals Solutions at a glance Broner Metals Solutions provides packaged, configurable products that are designed specifically to manage the complexities and variability of metals production. The company’s solutions range from: business optimisation & order promising; through production and material planning, integrated / through-scheduling, production scheduling; to MES production, quality, inventory and equipment management and warehouse management. Its MES solutions are designed to the ISA95 standards and include tracking and data management & analysis. The Broner Metals Solutions team has 30 years’ experience in improving the performance of metals production worldwide. Broner solutions are used by some of the world’s top metals companies, such as: ArcelorMittal; Gerdau Group; Nippon Steel; Norandal, Tata Steel; TMK; ThyssenKrupp Steel and Usiminas.

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TRANSPOREON, THE PILLAR OF YOUR LOGISTICS!

TRANSPOREON Contact: David Williamson | Phone: + 44 (0) 1527 908757 williamson@mercareon.com | www.transporeon.com


Interview

Supply Chain

Boosting service and profits by segmenting the supply chain

Manufacturing & Logistics IT spoke with Danny Halim, vice president, industry strategy at JDA Software, about the new concept of supply chain segmentation. What exactly does it mean, and what benefits can it offer to manufacturers and suppliers? argely because of the increasing use of social media, today’s customers are becoming even more demanding. They’re placing orders through multiple channels and expecting ever shorter delivery times. And because of their growing expectations, manufacturers and suppliers need to make their supply chains more agile, while boosting

L

profitability at the same time. One emerging concept is focused on doing just this, and its name is supply chain segmentation.

An extension to integrated business planning, supply chain segmentation doesn’t just optimise a company’s existing IBP methodology. It also helps the company get

closer to its customers and meet their specific needs in a more efficient, cost-effective way. “People often associate greater supply chain flexibility with higher overall cost,” said JDA’s Danny Halim. “But supply chain segmentation sets out not only to ensure the optimum service to the customer, but also to deliver maximum profit to the supplier.”

Benefitting customers as well as suppliers Halim explained that, because of this doubleedged benefit, supply chain segmentation will be of interest to a wide range of manufacturing sectors. “Every day, companies need to take into account a wide range of considerations like product characteristics, customer service expectations and delivery costs,” he said. “Sectors such as automotive and industrial are constrained by capacity and lead-times while those in consumer products and retail focus on total delivered costs. Many companies tend to segment their service levels to different customers, but with their capacity and lead-time issues they don’t always have the luxury of being able to ‘over promise’ to customers.

Building success on a solid platform So what type of technology solution is

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Supply Chain

Interview

solutions that make the system more complex.”

End-to-end involvement

Danny Halim: “…supply chain segmentation sets out not only to ensure the optimum service to the customer, but also to deliver maximum profit to the supplier.”

required to put this methodology in place? “I think you definitely need a single reliable integrated platform,” said Halim. “Otherwise you may not be able to manage a number of segments for different customers or customer groups. If you use four or five different types of technology you’ll struggle to know how efficient each one is from an ‘IBP standpoint’.

In Halim’s view, supply chain segmentation is not just about planning, but involves everyone in the organisation. “Because of this, it’s the functionality that’s critical - especially in B2B or manufacturing environments, where it can provide an enhanced view on how to promise orders more profitably and more accurately,” he said. “That, of course, is the ultimate goal.”

According to Halim, the system’s functionality must also extend all the way from forecasting, replenishment and manufacturing through to promising orders and logistics execution. “Because the end Segmentation, not fragmentation game is customer satisfaction as well as profitability, you should be able to look at the In summing up, Halim doesn’t believe that supply chain customer by customer or order supply chain segmentation means companies by order, and then fulfil every order you’ve have to fragment themselves into, say, five ensured is feasible,” he said. Halim different businesses. “It just means you explained that one JDA should structure your customer in the supply chain so that you The beauty of supply chain automotive sector have five different ways segmentation is that you’re still one of servicing your benefits from the business – it’s just that now you’re customer channels,” he system’s profitable order promising managing all your customers more explained. “The beauty of capability, which supply chain efficiently and cost-effectively.” matches incoming segmentation is that orders against available you’re still one business and future supply as well as customer it’s just that now you’re managing all your segmentation hierarchy. This allows the customers more efficiently and costcompany to increase responsiveness and effectively. In short, it’s about optimising your fulfil delivery promises without the cost of integrated business plan.” n disrupting production or logistics.

Halim also believes configurability is key. “You need to manage different sourcing networks, inventory policies and service level policies. So, from a reporting and analytics standpoint, you need a high level of configurability,” he commented. “Within an integrated platform you must be able to adjust different supply chains in different ways by using re-configurations rather than code development. Configurability is also about agility, because you have to make changes quickly in line with your changing business requirements. Halim added that the functionality of the supply chain solution needs to be wideranging to meet the needs of specific channels, customers and product profiles. “If the functionality doesn’t have this breadth, you’ll need to customise the software further at some point, and maybe add third-party

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(

(

PLANNING FOR PROFIT How do you stay aligned with corporate goals and continue to make a profit? It’s critical that core business functions are in sync, that plans and budgets are reviewed monthly instead of annually and gaps are identified. Using an Integrated Business Planning tool will not only mitigate risk but drive revenue growth. Can you run your business profitably without it?

Visit jda.com/sop-emea Tel: +44 (0)1344 829 753

For further information about Integrated Business Planning and our S&OP Workshops, please contact: Chris Galvin christopher.galvin@jda.com


Printing & Labelling

Opinion

Taking mobility to the next level Matt Parker, head of market development, Zebra Technologies Europe, provides his vision of a mobility world that is set to extend much further than the use of mobile computers and into the realm of smart objects. systems in place to make other things and of the zone in question, its Wi-Fi n the world of mobility, leading events that take place in the work enablement and RFID tag will prompt the solutions vendor are increasingly environment more efficient. ERP system to take action. This may looking at going beyond the obvious in involve stopping the tool from working if it terms of the practical applications for In any manufacturing sector one of the key moves from one zone to another, or it might mobile devices. From an innovation goals naturally remains cost efficiency. mean changing the setting on that tool perspective, they are now looking at more However, another key focus is on creating automatically so that it is made fit for than just handheld computers and the perfect order; an order that is on time purpose in the new zone. In being auto-ID smartphones and are thinking more in and delivered to accurate specification to enabled in this way, the tool has in effect terms of smart objects. For example, a tool the customer. Indeed, we are increasingly become an intelligent mobile device. in the workplace could itself be thought of seeing a desire to build to order as a smart mobile device with the potential to improve …we are increasingly seeing a desire to build and place the customer at the heart of the operation. That in efficiency and effectiveness to order and place the customer at the heart itself drives a need for greater within the four walls of the warehouse or on manufacturing of the operation. That in itself drives a need control of inbound materials and resources, together with more shop floor. So, we now need to for greater control of inbound materials and appropriate and effective use of look at mobility as a term that resources, together with more appropriate and plant and equipment and defines much more than just machinery within the production mobile computing. effective use of plant and equipment and environment. Also to be taken into machinery within the production environment.” consideration is the need for a Mobility tools seamless transition to the downstream elements from an outbound perspective, and then the need to monitor To date, auto-ID components such as A drill, for example, is a useful and that flow down the supply chain so you barcodes and passive or active RFID tags commonly understood industrial tool. From know customers will receive exactly what have been constrained to just being a a mobility standpoint, this drill could they want when they want it. means to interrogate or locate an object. connect to an auto-ID infrastructure through being Wi-Fi-enabled and having an However, auto-ID technology can now be used effectively as the platform on which active RFID tag attached to it; thereby Brand protection tools are more efficiently controlled and giving it applied context within a particular monitored. By knowing the whereabouts of working environment. By enabling the tool a particular object, or by engaging with in this way you can more effectively tie it to And it’s here that the true brand value lies. that object through auto-ID, users can put a specific location. If that tool goes outside Brands can be very easily damaged if

I

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Printing & Labelling

Modern auto-ID technology can allow a company to gain real-time information about the location, status and associated contextual information around an object. suppliers are not able to deliver to order on time to correct specification. So adjusting your production outputs and values around those needs is vital, and auto-ID technology has a huge part to play here. One important thing to consider is that this process requires real-time visibility, and that’s what the various auto-ID layers we have been discussing provide. They allow a company to gain information about the location, status and associated contextual information around an object. And if we are looking forward and saying that this much higher level of engineering to order and building to order is taking place in manufacturing, this then mandates the ability to harmonise and supervise coordinated activities across multiple manufacturing sites upstream and downstream suppliers. In this way, companies then have much greater visibility of information specific to particular materials and component parts and their flow throughout the value chain. And this level of supply chain sophistication shouldn’t be the reserve of the more high-

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value product manufacturers. FMCG goods manufacturers, for example, may be producing lower-cost goods, but when you think of the volume of products that is going out and therefore the volume of materials that is coming in, the need to accurately control and monitor every stage of the production process – including the use of tools and the people that use them – is critical.

Safety By thinking of tools as mobility solutions, companies can even put in place a better health & safety regime. In many working environments an individual is required to carry around a form of ID, such as an access control pass. If this card were fitted with an RFID tag this could potentially be used to automatically authorise the operator to use certain types of equipment and not others. So, if the individual doesn’t possess the required certification to use a particular tool that has been mobility-

enabled, then the access control system could put measures in place to ensure that tool cannot be used by that person – either in all circumstances, or within certain zones or for only for certain uses. Solutions developers have sought to turn the efficiency screw ever tighter over the past few years. There were some very wellestablished and well-understood lean initiatives that were widely adopted in the ‘80s and ‘90s. But now, through major leaps in technological advancement, we can turn that screw even tighter in terms of optimising efficiency gains within zoned environments by using intelligent mobile devices. So, the mobile device is no longer necessarily just a handheld computer or smartphone; it could be any device that has contextual awareness and intelligence and that is linked to a system which can prompt other events to happen based on that contextual information and driven by auto-ID. n

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AUTOMATIC DATA CAPTURE

Opinion

Serious businesses require serious business tools By Ian Patterson, head of retail, Box Technologies.

n challenging economic times,

Howard Basford Accident Repair specialists

highly functional, reliable and flexible tree

streamlining processes, improving

and Poundland, the discount retailer of the

data collection and management system at an

customer service, reducing costs and

year 2011.

affordable price. Box Technologies

I

understood our needs completely and

increasing productivity are critical With regard to the benefits of the Motion

provided us with a mapping, database and

Motion Computing tablet PCs in the UK, which

Tablet to its mobile workforce, Andrew

reporting tool all rolled into one highly mobile

bring a range of benefits to many verticals

Branch, trees & woodlands officer at St

and ruggedised mobile package.”

including retail, local government and

Albans City and District Council, said:

insurance.

“Productivity, mobility and security go hand in

Box provided St Albans City and District

hand and are paramount to the technology

Council with the J3500 from the J-Series of

Having supplied tablet PC's to the public

decisions St Albans City and District Council

Motion Tablet PC's. The J3500 allowed St

sector, retail and insurance markets for over

makes. So we focused on integrating the right

Albans City and District Council to perform

10 years, Box has worked with end users

technologies to support our clients’ truly

on-site surveys and data capture, analyse,

such as St Albans City and District Council,

mobile workflows. We needed an easy to use,

monitor and forecast data from every angle

strategies for UK businesses. We provide

more effectively and achieve maximum ROI by reducing time and effort spent on these tasks in the past. Poundland required a solution which allowed the Quality Assurance Team to check and record stock being delivered to its warehouse quickly and effectively. Having been a longtime customer of Box, Poundland approached Box to supply a truly mobile solution which would increase accuracy and productivity. Mick Corbett, IT solutions leader, confirmed that the Motion F5 revolutionised the task. He commented: “The quality assurance team has a mission critical task to perform. Our expansion and increasing range of goods that we offer our customers means that the task will continue to expand and evolve. The introduction of the Motion F5 tablet has brought huge benefits in our abilities to check the quality of goods, and the speed with which we do that. Finally we have eliminated the need for a bulky and multi-faceted approach to one that brings the best of state of the art technology together in one lightweight and portable device.” The cielo U-Dock U-Dock integrates EpoS connectivity with the Motion CL910, creating a versatile and powerful mobile EPoS solution.

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Each tablet is uniquely designed for use in the field, but is also adaptable for office use.

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Opinion

AUTOMATIC DATA CAPTURE

increase functionality for a variety different

such as field service, healthcare and

vertical markets. Ideal for use in retail

construction. Powered by third-generation

environments, the Motion CL910, is available

Intel Core processors, up to eight hours of

with the optional SlateMate which offers the

battery life and hot-swap battery feature for

user a magnetic stripe reader and barcode

extended, uninterrupted productivity and

scanner – transforming the tablet PC into a

operating within a Windows environment for

point of sale terminal and data collection unit.

ease of integration, the F5t and C5t tablet PCs offer seamless business integration and

In April 2013, Box launched the cielo UMotion’s CL910 has been designed to maximise mobility and portability.

virtually unlimited usability.

Dock, a multi-platform station specifically designed for retail. The U-Dock integrates EpoS connectivity with the Motion CL910,

Motion J3600

creating a versatile and powerful mobile EPoS

The Motion J3600, runs on Microsoft Windows

Motion CL910

solution. There is no doubting the importance

and supports business critical tasks

The CL910 has been designed to maximise

of the tablet as a customer engagement tool

throughout the day. With an Intel processor,

mobility and portability. This lightweight tablet

in today's retail environment. With the U-Dock,

hot-swap batteries and a Corning Gorilla

PC weighs around a kilogram, [ 2.1 pounds]

we set out to turn the tablet into a serious

Glass screen this rugged tablet offers a wide

and is less than 16mm thick. The unit

business tool to ensure it has dual purpose.

screen display for superior outdoor visibility and up to 4 times improvement in breakage

functions for over 8 hours on a single battery

Motion C5t and F5t

resistance. The J3600 is tested and proven to

With a Windows 7 platform, and powered by

These field-ready tablets were designed to

has been ested to meet MIL-STD 810G

the Intel Atom N2600 processor, the CL910

enhance productivity for mobile workers

specifications and also IP52-rated for

offers multiple optional features and ports to

across a broad range of vertical markets,

protection against dust and moisture. n

charge allowing a the operator to use the CL910 for a full day’s work, uninterruptedly.

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withstand harsh working environments and

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Company news

GS1 US introduces traceability readiness programmes for seafood and dairy, deli and bakery industries S1 US has introduced two

325,000 hospitalisations, and

new readiness programs to

5000 deaths occur annually in

help companies in the food

the United States as a result

industry implement and

of foodborne illness. These

improve product traceability

readiness programmes

G

processes by leveraging GS1 Standards: the

provide the education,

Seafood Traceability Readiness Programme

resources, and community

and Dairy, Deli, Bakery Traceability Readiness

support necessary to

Programme.

implement traceability processes that help

Companies that subscribe to these

companies meet customer

programmes can learn how to establish or

expectations for safe,

enhance an effective traceability programme;

authentic, nutritious foods and

identify, capture, and share product data

differentiate their brand in the

along the supply chain with GS1 Standards;

marketplace.”

rapid identification, location, and withdrawal of potentially harmful products from stores

improve business efficiencies and gain

and restaurants.

visibility into their supply chains. They will also

Subscribers in these self-paced, online

understand how they can comply with

programmes will have access to educational

traceability-related requirements of the

webinars, interactive tools and resources, and

Benefits to companies that implement an

Bioterrorism Act and the Food Safety

a community of industry peers and standards

effective traceability process include:

Modernisation Act; and make informed

experts with whom they can share industry

decisions about technology requirements and

best practices and discuss implementation

Streamlining business processes.

solution providers.

challenges.

Improving food safety.

Many trading partners in the fresh food

Enabling supply chain visibility.

“Companies in the seafood and dairy, deli

supply chain are already using GS1

Meeting regulatory requirements.

and bakery industries are working hard to

Standards, giving them a head start in

Reducing costs.

improve traceability processes,” said Angela

establishing traceability processes. The

Boosting consumer confidence.

Fernandez, vice president, grocery retail and

Seafood and Dairy, Deli, Bakery Traceability

consumer packaged goods at GS1 US. “A

Readiness Programmes will help companies

study by the Centres for Disease Control and

leverage these investments, allowing for

Prevention estimates that 76 million illnesses,

product sustainability and integrity, and the

Strengthening trading partner relationships.

For more information visit www.gs1us.org

Arteria Technologies named ‘Cool Vendors in the SAP Eco System, 2013’ by Gartner rteria Technologies, provider of

A

“We consider our inclusion in the Cool Vendor

enhance our market position. Our strength is

mobility and portal solutions on

report by Gartner a confirmation of our

our capabilities to build solutions with quick

SAP technology and a part of

mission to enable customers to leverage the

ROI and help customers extend their SAP

All World Network @ Harvard

power of enterprise systems using mobility

ERP processes to business partners and

Business School, has been

and portal technologies thereby improving

employees while staying invested on the SAP

included in the list of ‘Cool Vendors’ in the

business performance,” said Sriram Kanuri,

technology platform.” n

report titled ‘Cool Vendors in the SAP Eco

CEO of Arteria Technologies.

System, 2013’ by Gartner, Inc. Arteria provides solutions that tackle recurring

He continued: “We continue to innovate with

SAP customer challenges and help customers

our product roadmap; the upcoming launch of

to maximise their SAP ROI.

Cloud version of our products will further

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n

Success story

Vanderlande Industries integrates automated material handling system in new Reno e-commerce facility for Urban Outfitters -commerce has become a booming business with sustained 20 to 30 per cent growth each year. The fashion industry is expected to become the largest subsection of this ecommerce market growth. Within the Fashion industry, Urban Outfitters Inc. is a well-known specialty retailer that offers a variety of lifestyle merchandise to highly defined customer niches. Headquartered in Philadelphia, Pennsylvania, it operates in the USA, Canada and Europe through various sales channels, such as stores, catalogs and online store fronts. The company’s brands Urban Outfitters, Anthropologie, Free People, Terrain and BHLDN are experiencing strong growth in its Direct-to-Consumer business. Urban Outfitters’ logistics processes needed to adapt to meet the increase in orders from their growth in ecommerce sales. Therefore Urban Outfitters reached out to Vanderlande Industries to design and install their new e-commerce distribution system located in Reno, Nevada. Vanderlande brings years of knowledge and experience to designing and implementing automated order fulfilment systems.

E

The challenges 1) Urban Outfitters operates a distribution centre in Trenton, South Carolina, which was primarily responsible for serving its expanding Direct-to-Consumer market. The Trenton warehouse logistics flow was not originally designed to handle the modern day order profiles. Urban was faced with either renovating an outdated facility or investing in an entirely new facility. The warehouse also needed to account for unique processes, which other legacy distribution centres may not face on a regular basis, such as short delivery times for a wide range of customers, high accuracy, efficient returns handling and significant peaks during the year.

2) The e-commerce, on-line shopper is increasingly demanding. Shoppers expect multiple product choices, good pricing and fast delivery of their selected products. To compete in this demanding market Urban Outfitters offers its customers a wide variety of goods with drastically different product characteristics at competitive prices. Internally, the Urban logistics group requires a high level of attention in order to support this business model. Therefore, its distribution channels must operate not only in a way to support the vast array of products with unique characteristics, but must also allow for the necessary valueadded logistics processes required to remain competitive. 3) Another important aspect of serving the Direct-to-Consumer market is the footprint of the customer base and how it matches against small package carriers’ capabilities. Since Direct-to-Consumer orders go to many more destinations than one might see in a traditional retail

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distribution network, a successful ecommerce distribution centre is strategically located close enough to its targeted customer base as to optimise next-day or 2-day small package carrier delivery footprints.

Why Vanderlande Industries? Urban turned to Vanderlande Industries to develop a solution for its challenging logistics model. Urban chose Vanderlande on this project, primarily because of the company’s extensive experience in designing and implementing order fulfilment systems for other Direct-to-Consumer businesses, such as Tesco. Urban also chose Vanderlande because of its previous success on two other new Urban facilities in the UK. These two other facilities were a Direct-to-Consumer order fulfilment centre, one being a retail fashion DC. Both facilities exceeded expectations and went operational in 2011. Ken McKinney, executive director of Logistics

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Warehouse Management

n

Success story

Urban Outfitters operates a distribution centre in Trenton, South Carolina.

for Urban Outfitters, Inc., commented: “We preferred Vanderlande because they demonstrated that they clearly understand complex logistics challenges, are able to design appropriate solutions through mixing and matching their proven sub-systems, and are able to provide full scope integration.” He continued: “Vanderlande used a very flexible approach and demonstrated a desire to understand our business needs and culture and to provide us with the appropriate end-toend automated material handling solution that meets our needs. Their engineers took our preliminary conceptual design and substantially improved it, providing increased performance levels and aligning the different elements of the system with our strategic business objectives.”

The solution Urban Outfitters and Vanderlande developed a new distribution centre that is strategically located in Reno, Nevada and utilises state-ofthe-art picking and sortation technologies, specifically designed and optimised for the Direct-to-Consumer market. The new system takes care of all warehouse processes, from

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receiving to shipping. It is a tote based picking and transport system with unique features allowing for high operator performance and maximum efficiency. It allows for maximum flexibility while accommodating all of the unique products that Urban Outfitters sells. Both single piece and multi piece orders can be sorted, consolidated and shipped in the most cost effective, streamlined method possible. The system is based on a batch picking concept optimised for Urban Outfitters. Picking is done in totes, which are subsequently transported to infeed workstations at a packing sorter where the products are manually placed on the sorter. The sorter then sorts pieces to the corresponding order chute. Once all the pieces for a batch have been sorted, the pieces are packed per order by an operator into poly bags or cartons. Value added services, such as inserting promotional flyers can be done here as well. A conveyor system transports the packages to a shipping sorter. The material handling system is managed by Vanderlande’s Vision Warehouse Control System, which is integrated into Urban Outfitters’ Manhattan Associates WMS system. Vision dynamically assigns orders to chutes and directs orders to the appropriate areas for consolidation.

The benefits Urban Outfitters is aiming to see significant benefits from the new project. Compared with previous design iterations, the Vanderlande solution offers a faster Return on Investment. The new facility also has commonality with another system in Urban’s network (a Direct-toConsumer order fulfilment centre in Rushden, UK which went into operation fall of 2011), enabling the company to compare and benchmark logistics performance indicators. Vanderlande’s worldwide presence allows companies to achieve synergies that are not possible with regional providers. The new warehouse process also brings significantly improved performance in terms of operating costs, efficiency and customer service levels. The new Reno facility went live in September 2012 but this is not the end of the partnership between Urban and Vanderlande. “Their life cycle management approach is very appealing to customers like us, looking for a one-stop shop,” said McKinney. n

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LEADING IN WAREHOUSE AUTOMATION YOUR CHALLENGE, OUR SOLUTIONS

LET US HELP YOU TO: Reduce operational costs - Optimise space utilisation - Improve accuracy Reduce through put time - Provide ergonomic working conditions for employees

Find out what we can do for you at: www.vanderlande.com


Warehouse Management

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Success story

Health Store picks the right solution “Accord transformed our business” – That is what Health Store’s managing director, Tim Ryan, said about the company’s implementation of BCP’s Accord ERP solution and Voice WMS.

he Health Store is one of the UK’s leading wholesalers of natural and organic products to the independent health food trade. Founded as a co-operative in 1932, the company now operates from a 75,000 sq ft warehouse in Nottingham, supplying retailers across the UK mainland, Ireland, Europe and into the Far East with over 9000 products, ranging from organic seeds, nuts and pulses through to natural body care, vitamins and supplements.

T

Tim Ryan: “[BCP’s Accord] is improving efficiency throughout the business, both in the offices and in the warehouse, making our business – and those of our customers – much more competitive.”

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BCP (Business Computer Projects Ltd.) is the UK supply chain software provider to the food and drink wholesale industry and has been one of the leaders in introducing Voicedirected WMS to the UK market, installing the first wall-to-wall Voice WMS in the UK food and drink sector in 2002. Clients include BWG, Musgrave, SPAR, ADM Londis, T Quality and Creed Catering. Aware that it needed to improve pick accuracy, The Health Store had been considering investing in Voice technology for some time, initially looking at either a middleware solution or a full Voice WMS. As investigations progressed, however, it became clear that the company’s incumbent wholesale solution was no longer adequate for its needs and that the project should be extended to include replacement of that. BCP’s Accord emerged as being most suitable for the business as Tim Ryan, Health Store’s managing director, explained: “We realised that as a fully integrated warehouse management and ERP solution we could replace all of our systems with one integrated system from BCP which would make running the whole business far more straightforward.” The decision to invest in Accord was sealed by two factors – the introduction of a new Accord manufacturing module and seeing the Accord solution and fully integrated Voice WMS live in action at another BCP client. Ryan said: “Accord Voice WMS outclassed specialist standalone warehouse offerings and it was incredibly impressive seeing how the system operated as part of a fully

integrated Accord solution and the benefits that that company had seen from its implementation.”

Implementation The 60 user system encompasses the complete Accord software suite from Purchasing through Sales Order Processing to Financials, Manufacturing and Voice WMS and was implemented in two main phases. The first phase was the main Accord system where the company wanted to ensure continuous operation, switching the old system off and Accord on in a single day. “It was the most seamless implementation of an ERP system I have ever seen,” said Ryan. “When we switched the old system off Accord came up live and we went straight into stocktake.” Once everyone was familiar with the Accord system the company moved to the second phase of the implementation – Voice WMS. This was done over the period of one week, starting in the goods receiving area and then working through the warehouse, finishing up with Picking.

Results “Accord has really transformed our business,” said Ryan. “It’s brought us into the 21st Century. The key benefits are data accuracy, visibility, scheduling and efficiency.” Accord has improved accuracy throughout the business from goods receiving, to stock through to picking where accuracy is now

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Warehouse Management

above 99 per cent. Ryan commented: “Those errors which do occur are usually simple human ones which are often unavoidable.�

people to the best effective use of their time,� said Ryan.

Members (customers) have commented upon how much more accurate orders are since the implementation of voice, claims have dropped massively – by over 60 per cent – and levels of trust have skyrocketed. Visibility of data within the business is now much better. For instance, in Telesales there is now confidence in the information in front of the operator to be able to guarantee that stock is available and also to upsell product or to sell substitutes or alternatives.

One of the biggest efficiency gains has been in Picking, where “we are now picking more orders with fewer pickers than we were before we implemented Accord,� explained Ryan. The Health Store has developed a very close working relationship with BCP, who’ve shown they’re very interested in developing the system to meet the needs of their customers. Through special interest groups the Health Store has been able to input into future developments of Accord, a good example of this being the Kitting module where BCP worked very closely with the Health Store to develop the module to meet its exact needs.

Accord has also transformed reporting in the business, “giving us fantastic ability to slice and dice data to show us exactly what we need to know about the business,� Ryan remarked. With the previous paper-based system people had to manually decide which pieces of work should be done in which order. Accord now does this, scheduling work in the most effective order for the business. “By being able to see the exact quantities of work in each area, we are able to move

n

Success story

with the results and absolutely convinced we made the right decision. The investment was substantial, but it paid for itself within just 9 months. It’s improving efficiency throughout the business, both in the offices and in the warehouse, making our business – and those of our customers – much more competitive. Plus, it’s scalable, so we’re already seeing other opportunities to use it to further improve our business.� n

Ryan concluded: “Now that Accord is fully implemented in our business we are delighted

Visionary Solutions Wall-to-Wall Voice Directed Warehouse Computing Typical Benefits:‡ ,PSURYH3URGXFWLYLW\E\XSWR ‡ 5HGXFHHUURUVE\ ‡ 5DSLGSD\EDFNLQPRQWKV

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Manufacturing and Logistics IT - June 2013  

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The European magazine promoting the effective use of IT in supply chain applications

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