Apptricity Supply Chain Management Automation

8/13/2019 Apptricity Supply Chain Management Automation

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SUPPLY CHAIN

MANAGEMENTAUTOMATION

5605 N. MacArthur Blvd., #900 Irving, TX 75038 USAMain: 214.596.0601 Fax: 214.596.0609 Toll Free: 800.693.2193

www.apptricity.com

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TABLE OF CONTENTS

Automating Supply Chain Operations..............................................................................Automating Warehouse Management..............................................................................Automating Inventory Management................................................................................

Automating Fleet/Transportation Management.............................................................

We have only to look around the world at any given moment to see the potential forsupply chain disruption that comes from unexpected weather, natural disasters, political up-heaval, economic crises and other black swan events that tend to keep businesses on theirtoes. Mitigating the negative outcomes of supply chain disruptions requires careful pre-plan-ning as much as the ability to react swiftly and decisively. With corporations, suppliers and

manufacturers frequently situated on different sides of the globe, there is a growing need fortechnology that can link them together in a way that provides consistency, streamlines pro-cesses, and enhances visibility so that businesses can meet these challenges head on. Abusiness is only as successful as its supply chain, so whether the issues lie with mismanagedwarehouse processes, inadequately tracked eets, scattered inventory, lackluster transporta-tion management, or some other supply chain conundrum, nding the right software solutioncan be game-changing in todays frantic, uncertain market.

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AUTOMATING SUPPLY CHAIN OPERATIONS

Faster, better, more accurate. No, Im not re-ferring to the Million Dollar Man (in fact, Im not evenreferring to million dollar software), but those quali-ties are what companies are looking for when they

choose to upgrade their supply chain managementprocesses. Finding a faster, more efcient means ofhandling products is important for supporting a suc-cessful organization, and a well-run supply chain isvital to the success of a business. For some, upgrad-ing their supply chain management system is provingto be a substantial boost to productivity thats movingthem ahead of the competition.

Many warehouses handle massive numbers of shipments every year, and in an economy that has seenless frequent hiring of additional help, much of the focus has been on maximizing the potential of the workforcecurrently in place. Having fewer hands to help receive and move shipments places an increased premium on

accuracy and speed. Most particularly for organizations that deal with perishable and time-sensitive products,such as foods, beverages or anything that involves the cold chain, careful tracking of shipments is essential forensuring that items reach store shelves and consumer homes in a safe, efcient manner. Automated trackingof shelf life and shipment status is invaluable for maximizing prot and business potential, and something bestleft to software.

In this era of RFID-enhanced warehouses, not leveraging newer technology can put you far behind thecompetition in relatively short order. Between the various tools and supply chain management applicationsavailable, and the ability to track each and every shipment through RFID tags, the level of visibility granted anautomated supply chain has never been greater. Mobile warehouse management and barcoding technologyadd another layer of information, enabling better (and paperless) oversight of when products arrive, when theyneed to be rotated and precisely where they are located. Many organizations still rely on tribal knowledge forthis sort of information, but even the best memories fail. Manual processes tend toward error, paper can getlost, but a system that centralizes information and helps automate the supply chain provides a level of supportand real-time access to information that can help a business reach its maximum potential with minimum invest-ment.

Todays fast-paced, interlinked world seems to be all but shrinking thanks to new technologies - but itsthose new technologies that are leaving some corporations in the dust as they delay transitioning away frommanual, paper-based business processes and sluggish supply chains. Companies that cling to the way itsalways been done are being left behind in an unforgiving economy shaped by speed, adaptability, and aboveall, efciency.

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Having fewer hands to help receive and more shipments place anincreased premium on accuracyand speed.


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AUTOMATING SUPPLY CHAIN OPERATIONS - CONTINUED

Innovation is the key, whether its through whipping your company eet into shape with eet manage-ment, keeping close tabs on product through inventory management software or maximizing every square footof space with improved warehouse management. Innovation is hitting the market as solutions that centralizedata and provide real-time access to what you need to know, whether youre in the ofce down the hall or seveal continents away. Technology is linking vendors to customers to shippers in an interlinked web that promotesthe sort of fast, adaptable response that sets a business ahead of its competitors. Todays logistics is mobile,connected and requires much more than the pencil-and-clipboard style of management from years past.

Where is it all leading? More than ever before,companies are turning to automated solutions and their ITdepartments to procure and manage new technologies that areproving vital to day-to-day business needs. Bar coding, radiofrequency identication (RFID) and GPS tracking are just someof the new innovations that are making the difference betweencompanies that can respond to the demands of a challengingmarketplace and companies that are folding under the pressure

Big data is being leveraged to maximize insight into every faceof business operations, meaning the company that can bestaccumulate, process and analyze their enterprise data will be ithe best position to lead their industry.

Google CEO Eric Schmidt has said the world now creates as much data in a span of 48 hours as all ofhuman civilization managed to produce from the beginning of history until 2003. Leveraging that data to betterunderstand and propel business is paving the way into the future. Technology is the key (and the deciding factoin which side of history todays businesses intend to stay), but the nancial impact of upgrading business pro-cesses and technology can be a concern in an uncertain economy.

While there is evidence of the business sectors growing condence in the economy, many companiesare still hesitant to throw a lot of cash behind a complete overhaul of their supply chain processes. Instead,warehouse and supply chain managers are looking for innovative ways to get their DCs up to speed withouthaving to invest too heavily. Currently, SaaS-based warehouse, inventory and transportation management software are garnering interest as alternatives to oor-to-ceiling overhauls or new construction.

Recently, there has been more discussion of the growing need to retrot distribution centers to make upfor a smaller labor pool as a generation of warehouse/DC workers hit retirement age. Businesses are still con-cerned with being scally conservative, which makes automation a good solution for those needing to increaseproductivity without posting too many hiring signs.


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Indisputably, warehouse operations are vital to theoverall health of a company and businesses that neglect theirsupply chain are nding it more difcult to compete againsttheir more efcient counterparts. With the right software solu-

tion in place, however, warehouse management can becomea source of savings rather than a source of stress. With thewarehouse representing the last link of the supply chain, its vi-tal to maintain a structured, error-free environment in the mostefcient manner possible.

Five of the most common challenges warehouses tend to encounter include:

Inventory accuracy Without an automated system, companies tend not to know exactly what theyhave on hand, making inaccuracies a common problem. Inadequate visibility frequently causes excess/

obsolete inventory to build up or, perhaps worse, creates demand for extra stock in case of shortage.Excess inventory can cause lack of cash ow, warehouse space issues, higher cost to house extramaterials and decient customer service. However, inventory shortage tends to be the greater problemas it can lead to orders being unfullled.

Inventory location Lack of inventory oversight can cause a buildup of inefciencies within the ware-house that slows operations and increases costs. Without adequate insight into location, pickers takelonger to nd the items to ship, which slows the loading process and creates a backup in labor alloca-tion and dock door scheduling.

Space utilization/warehouse layout- If you dont optimize storage systems, racking and pallet pat-terns, the amount of space necessary to house inventory increases. Inefcient warehouse layouts alsocause unnecessary labor. For instance, if you have high selling inventory in the back of the facility,youll drive further more often than would be required if the warehouse layout was better optimized.

Redundant processes Its common for warehouse workers to pass a pick ticket or other documenta-tion through multiple hands. The picker will pass it to the checker, who will pass it to the stager, who wilpass it to the loader, and so on. Using bar code technology, which is frequently found in todays auto-mated warehouse systems, eliminates multiple touches.

Picking optimization For warehouses that still have manual processes in place, there tends to beno common route taken to pick items for shipment, which adds unnecessary time to the process. Withsystem directed pick/putaway, the routing is easily automated, reducing wear and tear on both your

equipment and your labor force.

AUTOMATING WAREHOUSE MANAGEMENT - CONTINUED

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It all comes down to efciency and beating the competition every step of the way, from supply chain tosales, but to rise to that level, a warehouse needs to run like a nely-tuned machine. Every successful ware-house is so because of top tier management, processes and tools. Even though each may have a slightlydifferent approach to keeping their warehouses running efciently, managers tend to nd that there are three

important keys to effective management:

Automation of Inputs- One of the biggest challenges in running a warehouse is handling receivingand putaways. Being able to proactively manage receiving ensures that you know which dock spacesyou need open at what time, which staff members to have on site, and which areas of your warehousecan hold additional product. With an automated system supporting putaways, you can be sure thatincoming items end up where you want them for easier access later. This not only saves time in the re-ceiving process, but also increases warehouse efciency, as stock becomes much easier to locate withan automated warehouse solution providing backup.

At-A-Glance Reporting- Ultimately, warehouse management is about knowing what you have andwhere it is at any given moment. A good warehouse management system can track packages and pal-

lets while providing a 30,000-foot view of your warehouse. This makes it easier for you to gain visibilityinto what resources you have on hand, while enabling access to on-demand information and reportingfor complete, end-to-end warehouse management.

RFID-Powered Mobile Systems Doveryai, no proveryai is an old Russian proverb meaning Trust,but verify. Often quoted by President Reagan during arms control negotiations with Mikhail Gorbachev,it is also a good catchphrase for warehouse management. Just because you told your staff to put stockin a particular location and have a paper report indicating its in the right place, doesnt mean that itactually is in the right place. RFID systems allow you to query your warehouse to be sure of stocklocations.

Warehouses havent changed very drastically over theyears, save for one notable exception: if you look carefully at thewarehouses with the lowest loss rates and fastest receiving andshipping times, you will nd an automated system. Optimizing

the warehouse is essential, especially in an economic climatewhere businesses are working to improve every aspect of oper-ations that can either reduce costs or increase prots. Automat-ing and centralizing much of the daily tasks involved in ware-house management is unique in its dual approach: it reducescosts through speed and process improvements, while elevatinginventory management and warehouse visibility. Warehousemanagement software provides measurable gains in these ar-eas, from receiving shipments to order fulllment. With inventorybeing the single largest expense incurred in business operations, theres no room for mismanagement.



Optimizing the warehouse is essential, especially in an economicclimate where businesses are working to improve every aspect ofoperations that can either reduce costsor increase profts.


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Using spreadsheets and text documents to trackinventory ow is just not sufcient. These programs do notassist in efciency, consistency and quality control. In con-trast, warehouse management software helps companieskeep accurate, real-time inventory counts, monitors and

improves turnaround times, and automates daily tasks. Foincreased efciency, some advanced WMS solutions caneven be linked to accounting and information systems.

While the advantages provided by warehousemanagement software are numerous, there are three thatstand out as being especially important:

Mobility- Mobility is inherently part of the job, which is why its important to implement a solution thatcan move as freely as you require. Mobile WMS is a fairly recent technology that enables scanning anduploading of item information, and a massive reduction in the amount of data entry required to track

products, quantities and locations. In this way, mobile warehouse management software applicationsoffer huge strides in speed, accuracy and efciency.

a. On-the-y management

One of the great things about modern warehouse software is that you do not have to be sittingat your desk to use it. Mobile wireless systems can scan barcodes on boxes or use radio frequencyidentication (RFID) tags to let you manage your warehouse without sitting at your desk.

Tracking shipments - Organizing and trackingshipments becomes innitely easier when backedby a warehouse management system. Automat-

ing the assignment of drivers and warehouseworkers, tracking location, route and status duringshipment, and keeping close tabs on inbound,outbound and putaway are just some of the tasksthat cant be matched by paper-based manage-ment. Even better, with all information centralized,generating a report becomes an easy task.

a. Simplify receiving

Computerized asset solutions like WMS software assist with the entire process of putting inven-

tory into your warehouse. They track your delivery schedule, database what will be arriving, and caneven let you know how many staff to have on hand for unloading. This not only saves you managementtime but also makes it easier for you to ensure that you are getting complete and correct shipments.

b. Automate picking and shipping

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




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Inventory management- Its your choice: hours of paper shufing or the click of a mouse. Undoubted-ly, software makes inventory management and determining successful products a much faster, easierand efcient task. Warehouse management systems provide the sort of speedy, accurate feedbackthat enables companies to respond faster to the demands of their customers and the market as awhole. Wondering which items should be ordered in larger quantities? Which items should have ordernumbers reduced? Which month sees more/fewer orders? Its easier to nd out through software, withnumbers to back up the decision. Forecasting need is extremely important in terms of maximizing prot-ability, and not something that should require rummaging through le cabinets.

a. Find items in inventory

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

b. Schedule stock rotation

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

Todays supply chain is primarily driven by the effort to staylean, relevant and competitive in a sluggish economy. To meet thesestandards, companies are taking a hard look at their operations andwhich innovative options can keep them at the forefront of theirindustry.

A resurgence in devotion to core competencies and the desire

to shed costs and time associated with non-value added businessprocesses has played a large part in the rapid growth of Software-as-a-Service (SaaS) over the last decade. But what is driving the growingtrend in SaaS-based warehouse management and what should com-panies know before making the decision to deploy a SaaS solution fortheir own warehouse operations?



A resurgence in devotion to core competencies and the desire toshed costsand timeassociated with non-value added businessprocesses has played a large part in the rapid growth of

Software-as-a-Service (SaaS)over the last decade.


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A growing repository of best practices is available to companies looking to expand automation into thewarehouse, logistics and distribution sectors of their operations. Business drivers for SaaS deployments haveexpanded to include:

Reduced costs as responsibility for upgrades and hardware maintenance fall to the provider. Flexible nancial models with pay-as-you-go and pay-per-transaction options. Faster implementation due to ready availability and access anywhere that is capable of Internet con-

nectivity. Reduced impact on corporate IT, with the majority of the expertise requirement placed on the providers

side of the agreement. Ensuring that the newest version of the application is always at your ngertips. Encouraging an integrated business network; employees in different locations gain access to the same

business support no matter where they are.

Deployment options for business software are varied and dependent on the operational needs of thecompany, adding another layer of complexity to executive decision-making. The multi-tenant model seen in

SaaS allows for a single code-based architecture that not only eases the upgrade process, but lowers imple-mentation costs in comparison with hosted or on-premise options.

Despite the efciencies and cost savings inherent in SaaS, its not always the best solution for ware-house optimization. For companies that require mass customization to meet their operational needs, on-prem-ise deployment is still the better solution. Todd Wiegand, Apptricitys Warehouse Management System Ar-chitect, offered advice for warehouses working toward a SaaS-based overhaul of operations: Make sure thefunctionality meets all of your users needs. Ive had experiences where people have said This is how we runour business until we got to the 5th or 6th warehouse and then they said, No, we do it differently. That causesa lot of problems with delays and cost overruns.

Carefully consider the needs of each group that will be making use of the system, choose a delivery

model that is most appropriate for your organization and, nally, be sure to partner with a proven provider thatcan both simplify the process and meet your operational needs. A little due diligence is all it takes to ensureyour software deployment makes sense for your own warehouse operations.




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With warehouse and inventory processes upgraded, one ofthe nal links in the supply chain is eet and transportation manage-ment. The importance of moving product from Point A to Point Bquickly, safely and efciently cannot be overstated, nor should it beignored when the time comes to transition to a more software-driv-en supply chain. Transportation Management Systems (TMS) areintended to simplify supply chain management and maximize pro-ductivity by automating redundant tasks which otherwise require anunreasonable amount of resources to complete. Companies havefound that transportation management software streamlines com-plex processes industry-wide. Todays solutions have evolved tothe point where they can automate the entire transportation system.From transportation requests to route planning, shipment status todelivery conrmation, what used to take hours or days to compile isnow available in real-time with the click of a mouse.

The main question for transportation management soft-ware providers has been, How can we maximize this service?The answer: take what used to be managed via phone calls andpaper, and turn that clipboard-based style into something that canbe centralized, deployed enterprise-wide, and accessed on-de-mand, on-the-go, or in whatever capacity the client needs in orderto maximize their eet and transportation operations. The payoff?Businesses are more efcient, shipments and deliveries are moreaccurate, and productivity loss is reduced by 30 to 40 percent.

Superior transportation can be tough to achieve, but some helpful tools can boost a eet to a level ofefciency that can make a drastic difference in both productivity and prots. Food and beverage transportation

is fairly notorious for being one of the trickier segments of the industry, making it even more vital that compa-nies involved in it stay on top of trends and technology. Efcient routes, truck availability, timing of outgoingand incoming vehicles, maintenance, fuel costs these are just a few of the factors that dictate the success orfailure of a companys transportation management, and several reasons why automated software can make asurprising impact on operations.

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

AUTOMATING FLEET/TRANSPORTATION MANAGEMENT


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


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AUTOMATING FLEET/TRANSPORTATION MANAGEMENT- CONTINUED


According to Food Logistics, some of themost sought after capabilities in transportationmanagement software systems include:

Route visibility

Cargo tracking (particularly for perishablefood items)

Proof of delivery Fuel cost tracking

These tools enhance product quality,speed of delivery, efcient routing, cost reduc-tion and overall transportation and supply chainoperations. Expectations are that enhancedcommunication via social media and continuationof the cloud-based services trend are on the horizon for those at the cutting edge of transportation and logistics

technology.

Transportation needs change with time, as do a companys requirements for its eet and supply chainoperations. Transportation management software provides the exibility to adjust to the twists and turns of themarketplace and the visibility needed to avoid unpleasant surprises. Its tough to be competitive with pen-and-paper operations, which means its becoming increasingly important to adapt to and incorporate the technolo-gies that are making the difference between lackluster and industry leading operations.

Quality eet management requires much more than keeping track of where your vehicles are. In todaysworld, business managers want to keep track of everything from vehicle safety to energy efciency. Regulato-ry compliance alone demands a certain level of visibility that is difcult to obtain without software, but beyondthat, automated improvements made to eet management positively impact the entire supply chain.

Fortunately, there are plenty of ways to improve your eet operations with modern technology. GPS units canbe programmed to keep track of every vehicle in a eet and provide vital information regarding where theyneed to be. You can see which routes are being used and give recommendations for more efcient, time sav-ing travel methods with just one click.

With fuel costs on the rise, transportation hasbecome a daunting expense for businesses. Fleet man-agement software enables you to keep track of just howmany gallons of fuel your vehicles are using each year.This can help you learn which vehicles in your eet areworth keeping and which are becoming too expensive tomaintain.

Modern transportation management software canalso help track which vehicles are giving off high carbonemissions that exceed environmental standards. As newlaws further restrict the environmental impact of busi-nesses, it is essential to have this information on handso you can meet stricter standards. Its quite a publicrelations bonus when a company can increase eetefciency while making operations more environmentallyfriendly.


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Even government agencies arebecoming more invested in how eets arebeing managed by businesses. They wantto know who is operating the vehicles, what

they are carrying, where they are going and thats just the short list. Fleet manage-ment software can centralize all of these bitsof data so you can readily access any infor-mation about your eet, any time you need it.

To put it succinctly, transportationmanagement software keeps your businessmoving forward. Whether the material youneed to receive or send is on land, on thesea or in the air, TMS can help you track it,

ensure that it gets to its destination on time and provide the tools you need to tell managers, customers andvendors where items are at any point along the way.

One of the key benets of a transportation management system is its ability to assist in controllingcosts. The software tracks the movement of goods on the ground, making it easier to compare different car-riers cost structures and choose the lowest one for each step of the shipping process. The same capabilitiesalso make it possible to optimize in-air routing, reducing wear and tear on planes and saving fuel. Applyingsoftware to shipping via sea brings unique advantages in generating lading and customs documents, saving agreat deal of compliance cost.

All of the cost benets of TMS translate into more efciency. Keeping your shipments moving in themost cost effective way means minimizing the amount of time they spend sitting still. Transportation manage-ment software makes it easy for you to follow your shipments while they are en route. This increased level oftransparency means everyone involved in the shipping chain can be kept in the loop as to the status of ship-ments. Business begins and ends at the supply chain level - keeping tabs on shipment status is invaluable forgaining a total, transparent view of your company.

Whether a business is looking to automate one segment of its supply chain or all of the above, partner-ing with the right provider is essential to a smooth deployment that meets all needed criteria. Businesses thatrefuse to move forward with technology tend to be left behind, and in the current economic climate, that can bemuch more costly than implementing the tools to keep them competitive.

Apptricity is the provider of Jetstream, which includes e-Procurement, Financial Productivity and Supply ChainManagement solutions. Contact us, 800-693-2193 apptricity.com, for more information about Jetstream andwhat it can do for your business.

AUTOMATING FLEET/TRANSPORTATION MANAGEMENT- CONTINUED

Business begins and ends at the supply chain level- keeping tabs

on shipment status is invaluable for gaining a total, transparent viewof your company.

Apptricity Supply Chain Management Automation

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