|
100 Great Supply Chain Partners
Readers Recognize Providers Who Improve Efficiency
By Robert J. Bowman
August 25, 2004
With the 2004 Olympic games upon us,
the whole world is celebrating those athletes showing individual
excellence, an enduring will to succeed and the ability to bring out the
best in their teammates. This second annual Global Logistics & Supply
Chain Strategies 100 Great Supply Chain Partners report follows the same
themes. Manufacturers, retailers and all other businesses competing in
today’s demand global marketplace recognize partners that possess the
skills they need and which have the customer commitment to help them
achieve supply-chain success.
Like the Olympic games, the 100 Great Supply Chain Partners
report is a worldwide event including competitors from small and large
organizations with skills of many types. We received more than 2,000
nominations from five continents for more than 500 vendors of every
conceivable type of supply-chain activity — from enterprise-wide
planning systems, to global third-party logistics providers to highly
specialized transportation services. The largest and most-widely known 3PLs
and technology vendors were among the nominees, but so were regional
transportation companies and small, boutique consulting firms. The
recognition was for achievement — not for size or scope.
For those not yet familiar with the GL&SCS 100 Great
Supply Chain Partners program, it is the result of a six-month poll of
readers in which we asked logistics and supply-chain professionals to
nominate vendors and service providers whose technology, logistics,
transportation or consulting solutions have made a significant impact on
their company’s efficiency, customer service and overall supply-chain
performance. The purpose of the list in this report is to recognize those
vendors that have so impressed our readers that they deserve to be singled out
and to be held up as examples for others in the industry. In one sense, it
is an opportunity to thank those providers who have helped our readers
achieve better results, and to let the industry know who is making a
genuine effort to be a supply-chain partner — not just another
vendor. On a higher plane, the commentary in this report is intended to
emphasize which services, technology, expertise and support our entire
industry needs for all of us to be more successful.
We received nominations for carriers in every mode of transportation. Most
are represented on our final list, as are various outsourced logistics
services and a wide range of supply-chain technologies. Today’s
supply chains clearly require tremendous teamwork from many disciplines to
bring home the gold.
Regardless of what type of vendor a reader nominated, there
are clear themes within the commentaries that accompanied most of the
ballots. As with our first report last year — and probably forever
— the most common 10 qualities that users looked for in their vendors
were as follows:
1. Cost savings and identifiable ROI — Most readers are being
measured on their ability to cut costs and show returns on supply chain
investments, so they appreciate vendors that help them in that regard.
2. Reliability and ability to meet commitments —
Particularly in the case of carriers and other outsourced services, on-time
performance, every time with no surprises was the key performance metric.
3. Inventory reductions and cycle time improvement —
Supply-chain improvement is primarily measured by lowering inventories and
increasing their velocity, so software and services that support this
effort are winners.
4. Flexibility and problem solving ability — Few supply
chains run smoothly, so the ability to adapt quickly to change without
missing a step is highly prized, along with the ability to customize
solutions to meet evolving needs.
5. Visibility — Whether it’s shipments, orders or
inventory, companies want technology and service providers that can provide
real-time information.
6. Continuous improvement — Companies want help
improving their own processes, and they expect vendors to constantly
improve their own.
7. Ease of use — Both technology and service providers
have to make their offerings intuitive so users anywhere can gain full
benefits with no training.
8. Can-do attitude — The greatest accolades were
bestowed on those vendors that took on any challenge and found a way to
accomplish a goal without complaints or excuses.
9. Global coverage — While not a universal requirement
among carriers and 3PLs, the ability to provide service backed by local
knowledge anywhere in the world is important to large and small companies.
10. Comprehensive service — Particularly in the case of
3PLs and other logistics providers, companies appreciate vendors whose
range of services covers as many needs as possible.
Five additional themes were prominent among the justifications that users
provided in their nominations, no doubt indicating new priorities within
today’s supply chains:
1. Security orientation — Especially for ocean
carriers, forwarders and 3PLs, shippers expect their vendors to meet or
exceed international security guidelines and participate in voluntary
programs such as Customs-Trade Partnership Against Terrorism (C-TPAT).
2. Collaborative capabilities — Technology and service
vendors that can help extend the supply chain and make it as seamless as
possible to internal and external users.
3. Customer knowledge and expertise — Consultants are
paid specifically for their wisdom, but companies also expect their
technology and service providers to offer ongoing support, integration
assistance and special expertise.
4. Process orientation — Companies need to implement
best practices and efficient processes into their business operations. They
are turning to their vendors to help them.
5. Focus on execution — While innovation and good
communications are important, there is no substitute for getting the job
done right, every time.
Finally, before presenting the reader nominations and their
comments, please consider the following housekeeping points:
• The methodology
for exactly how the Supply Chain Partners program was conducted is
presented below. Very simply, the companies listed here are entirely based
on voluntary responses from readers. No one at GL&SCS had anything to
do with which companies were nominated.
• We have included
100 vendors just because it is a manageable number. We actually received
nominations for more than 500. The companies included just had more, and
more in-depth nominations than the others. The comments offered for these
unmentioned companies clearly reflect their customers’ appreciation,
but we had to draw the line somewhere. For better or for worse, the number
100 has become the standard for any list of this type.
• We think the
supporting comments are at least as important as the fact that a partner
has been nominated, so we have included many quotes from nominations and
follow-up interviews. Space does not allow us to reproduce anywhere near
the total number of responses we received.
Methodology for
the 100 Great Supply Chain Partners
The list accompanying this report is based entirely on
the entries voluntarily submitted by readers of Global Logistics &
Supply Chain Strategies and users of its sister web site,
SupplyChainBrain.com, where the official nomination form has been posted
since the early spring. Over the last few months, many GL&SCS readers
received e-mails asking them to participate and directing them to the form.
Other readers and users of the web site independently found a link to the
official nomination form on the home page of SupplyChainBrain.com.
Nominations could only be made using the official web-enabled
form that required nominators to identify themselves, their position, their
company, their e-mail address and a phone number where they could be
reached to verify their responses. If they chose, participants could elect
to remain anonymous for purposes of being identified in this report.
However, for their nomination to be counted, the participants had to
provide adequate identifying information to verify their identity and their
legitimate role in the industry. Nominations from participants selecting
their own companies or closely allied entities were disqualified, as were
multiple nominations from the same customer company.
Participants could nominate up to three companies and could
support their nomination with as much or as little commentary as they
wished. To provide more in-depth information for this report, some
nominators were interviewed after they submitted their completed forms. We
received more than 1,500 qualified responses nominating over 500 different
companies. The final list presented here includes the 100 companies that
received the most nominations. In the case of ties, the nominations with
the most detailed justification were selected.
Outsourcing Outpaces the Field
By far, the greatest number of nominations we received were for outsourced
supply-chain services, which includes third-party logistics providers, carriers,
brokers and consultants. Clearly, companies are looking for cost savings
and rapid improvement in their logistics operations without having to
invest in more people and technology.
For example, Phil Cox, president of CT Global, says that he
has been impressed and highly satisfied with the relationship that he has
built with UPS Supply Chain Solutions in just four months.
“UPS SCS executed
what it promised, never lagged or dragged its heels, always found a way to
move thorny issues out of our path and press forward in a cooperative
manner. Its positive business attitude and style is exemplary.”
Cost reduction is among the most important goals for all
supply-chain managers, and Dennis J. Defnet,
corporate transportation manager for OshKosh B’Gosh, who found major savings with his 3PL, Averitt Supply Chain Solutions. He says that Averitt’s flexible service capabilities has
helped his company reduce transit times by more than seven days and landed
logistics costs by more than $700,000.
“Averitt’s internet-based document and reporting
has resulted in a tremendous improvement in collaboration among all our
partners,” says Defnet.
Savings also were the key issue for Dick Ward, director,
logistics and transportation for Hughes Network Systems.
“Con-Way Logistics
provides logistics cost reductions year after year on top of excellent
service to our customers,” says Ward.
For many companies, the primary reason to outsource their
logistics is to allow their people to focus on the core competencies. For instance,
James Wenger, director of traffic and logistics for National Store Fixtures
Companies finds that Eagle Global Logistics’ operational excellence
and handling of his account allows his staff to concentrate on value-added
activities.
The manager of North American distribution operations for one
of the largest router manufacturers in the world says that Choice Logistics
has allowed his company to provide overall better logistics support than
his company could have accomplished internally.
Al Sinram, PC&L manager for
Dynamic Manufacturing, says that TransGroup
Worldwide Logistics’ easy-to-use tracking software allows his people
to spend time taking care of customers and not worrying about our freight.
“Our production
materials flow to our plants with little involvement by our staff, so we
can do what we do best — make things,” says Sinram.
“TransGroup has become more like a division
of our company than a supplier.”
It is also clear from our readers that they now view their
relationships with 3PLs as more than a short-term solution. They are
looking for a strategic relationship. For example, Glenn H. Wood, director
of logistics for Fujitsu Computer Products of America, says that Expeditors
International put in the time and effort to develop a strategic partnership
with his company.
“This partnership
ensures that performance-based incentives are in place that cover key
aspects of service,” says Wood.
Christoph Roeer,
vice president of logistics for Wella, says that
his company has worked with BAX Global on two projects this year.
“In both cases,
they have proven to be a high quality solution provider and consultant,
highly responsive, focused on tailoring their solutions to the customer
needs,” says Roeer. “They combine a
pragmatic approach for short-term solutions with long term strategic
vision. BAX adheres to commitments and deadlines.”
Building the Partnership
Developing such a partnership usually requires a tremendous commitment of
time and resources by the 3PL. Michael J. Duciewicz,
vice president of supply-chain management for the Ricoh Corporation says
that his company has been working with Menlo Worldwide Logistics for the
past two and a half years, and they have become an extension of Ricoh.
“Menlo worked hard
to understand our whole business, not just logistics,” says Duciewicz, adding that Menlo fits very well within
Ricoh’s SCM culture of people, creativity and progression. “We
have worked together to achieve a seamless business partnership.”
According to Duciewicz, Menlo
worked hard to establish trust and respect from his company, and now builds
on the relationship. From an operations standpoint, Duciewicz
says that Menlo pays attention to a careful balance between levels of
customer satisfaction and overall costs, not only for Ricoh but also for the
customers being served. He also compliments them for first-rate technology.
“Menlo also
understands that systems do not replace people,” says Duciewicz.
If a 3PL is going to be a close partner, that provider must
share the same values as the company it serves.
Pattie McAlister, a Six Sigma black belt for the Dow Chemical
Company, says that BDP International shares the same quality values as her
company.
“BDP has the
people and technology within their organization to contribute to a very
mutually beneficial partnership,” says McAlister. “They are
continually looking for ways to improve processes and drive down costs.
They are very responsive to requests for information.”
Problem Solvers
The mark of a truly great 3PL for many readers is the ability and willingness
to take on the problem-solving role with end-use customers. Handing over
this customer-relations role is an act of trust that is not given lightly.
For example, Mark J. Hogan, vice president, logistics for H&K Dallas,
says that his company has been using Pegasus Logistics Group for three
years, during which time the 3PL has grown its time-definite business with
his company from 15 percent to about 90 percent.
“When a customer
calls in with a problem, we can promise that Pegasus will take care of it
quickly and efficiently with very little cost to my company or my
customer,” says Hogan. “Due to their superior customer service,
Pegasus has made pricing a much lower priority.”
Such deep partnerships allow companies to leverage the
expertise of 3PLs to achieve benefits often beyond the capabilities of the
companies themselves. For example, Patrick Sake, warehouse manager for City
Brewery says that Total Logistics Control works very closely with its
customers from start to finish. “They monitor our product forecasts,
inventory levels, policies and space requirement in a very timely
professional and courteous manner.”
Elisa Dailey, Xerox’s parts fulfillment manager says that Kuehne & Nagel’s USCO division
“provides us with a virtually seamless logistics solution with very
positive impact on our business and customers.”
John Butler, director of international logistics for Leapfrog
Enterprises says that the experience and relationships that Commodity
Logistics has in his industry has proven beneficial time and time again.
“They are
completely committed to our project and goals,” he says.
For manufacturers with global operations, a 3PL with coverage
of all their markets and customers has become an important selection
criterion. For example, James Fernandes, international
transportation manager for Sonoco Products, a global manufacturer of
industrial and consumer packaging solutions with approximately 17,400
employees at more than 300 manufacturing and sales locations in 32
countries, needed a 3PL with true global logistics service.
“Panalpina has met that challenge providing service and
support to our operations throughout the world,” says Fernandes. “Equally important, when issues arose
effecting service, Panalpina has quickly devoted
whatever resources were necessary to overcome problems and get operations
back on track.”
Import & Export
Along with global coverage, there is also the need for a broad range of
import/export services. Steve Garrett, vice president of global supply
chain and logistics for Timex, says that GeoLogistics
provides Timex with Customs services.
“We are also
working on a vendor-managed inventory solution with Geo to support our Far
East manufacturing and distribution operations.”
This year, we also received a number of nominations for freight
‘service providers’, who have clearly helped their customers
find capacity and deal with carriers better than the companies could manage
on their own.
One common challenge for outsourcing to brokers has always
been maintaining good communications and information visibility, but Jeff
Nianick, owner and sales rep for Ruby Robinson, says that Real Time Freight
Services offers the best freight communication system he has seen during
his 20 years in the produce business.
“Real Time Freight helps us streamline our freight information to all of our carriers, as well
as our other three offices,” he says. “The software is so easy
to use that everyone can use it. The value and return on our investment has
been incredible. We plan on using their software and services as long as we
remain in the industry. Real Time Freight has not only become a vital
service for us, their staff and customer service is the best we have
experienced.”
Carrier Connections
Perhaps the most basic type of outsourcing is transportation services, and
in our program, carriers of all types also received their share of Supply
Chain Partner nominations. This year motor carriers and package express
companies received the most recognition, apparently because of their
reliability and their expanding range of services and technology
capabilities.
For example, Wendy Hedin, logistics
manager for the global chemical company Special Materials Company, says
that Jevic Transportation moves her
company’s hazardous chemicals throughout the U.S.
“Jevic always knows exactly where my cargo is at every
moment,” says Hedin. “Their service
is swift and reliable. Their customer service is personal, personable and
effective. Billing is accurate and fair.”
Keith Quick, purchasing manager, mechanical logistics for CSX
Transportation, says that Overnite Transportation
has continually come forward with win/win proposals on logistics cost
savings for his company. As an example, he points to a truckload
consolidation program for storage and distribution of high volume consumer
materials.
“Overnite has handled this well,” says Quick,
adding that CSX has begun consolidated and scheduled LTL pickups with key
suppliers for mutual cost savings. “Overnite
helped us reduce our costs for developing an internal logistics management
system for shipment-by-shipment mode and carrier selection. Responsiveness
has always been high all across our very large rail network. A valued
business partner in every way.”
For Wallace L. Eslick, president of
General Cordage & Packaging, reliability is the key. He says that Old
Dominion Freight Lines is on time, has great rates and knowledgeable
personnel in their local and corporate support locations.
For air express services, Linda Petroline,
logistics administrator for Sierra International, says that FedEx has
“helped us establish shipping arrangements to our foreign customers
that are both economical and efficient.”
Steve Garrett, vice president of global supply chain and
logistics for Timex, says that UPS continues to be a strong partner with
his company.
“We are jointly
working on a trade direct air model for small package delivery that will
allow Timex to complete U.S. retail store door deliveries from a ship point
over eight thousand miles away,” says Garrett.
Counting on Consultants
Supply chain-oriented consultants received dozens of nominations, both for
their technical expertise in helping implement new systems and for their
ability to improve business processes. For example, Maj. Tim Hawkins,
chief, purchasing and supply-chain management for the United States Air
Force, says that IBM Consulting’s expertise
is helping to transform the Air Force Materiel Command’s annual $5bn
weapon system supply chain to adopt best commercial practices in purchasing
and supply-chain management.
“IBM’s
support helps us to meet efficiency and effectiveness goals to provide
optimal support to our nation’s war fighters,” says Hawkins.
With the emphasis today on better business processes,
consultants are clearly playing a more important role for companies seeking
best practices and business transformation. Mark Hardison,
director of global supply-chain management for Banner Pharmacaps,
nominated Deloitte Consulting for demonstrating leadership in combining the
Supply Chain Council’s SCOR model with its proprietary SPEED and Pharmaprint tools, which he says have guided his
company through a business transformation initiative.
Along the same lines, Bill Shearer, demand chain manager for Akzo Nobel Surface Chemistry, says that Supply Chain
Consultants’ forecasting work has made a significant improvement in
his company’s S&OP processes.
“Their Zemeter software has also increased process visibility
in compiling forecasts,” he says.
Ultimately, companies have to operate their supply chains
without the help of the consultant, so high value is placed on making this
transition as smooth as possible. For example, Frank Slaughter, director,
production planning and inventory management for British Petroleum’s
Fabrics & Fibers business unit says that Logistics Resources
International works very hard in building the internal client capabilities.
Rather than just implementing a software solution, he says
LRI helps clients establish initial process redesign, the proper
organizational structure and supply-chain data metrics before software is
even discussed.
“Clients capture
immediate benefits, establish credibility and develop a pay-as-you-go
philosophy,” he says.
Of course, one of the key roles that consultants play today
is helping companies implement new technology to gain its full value as
quickly as possible. John Goione, manager,
logistics systems for BMW of North America, says that ESYNC has been an
invaluable partner in preparing his company for a major WMS implementation.
“We consider ESYNC
a strategic partner in our operations,” says Goione.
When very large implementations are the challenge, the role
of the consultant is even more important. Larry Owens, principal engineer
with Lockheed-Martin praises the supply-chain technology support his
company has received from Unisys. As an example, he points to how Unisys
tackled a challenging project on a very short schedule with a set of
difficult deliverables that involved three different contractors.
“They exceeded all
deliverables, beat the schedule by two months and came in under the project
cost estimate,” says Owens. “I could not have asked for
more.”
As a number of our readers noted, supply-chain outsourcing
can go well beyond logistics, transportation and fulfillment. For example,
Thomson Corporation outsourced its entire distribution center project to
industrial developer, The Alter Group. Steve Gibson, vice president of real
estate for Thomson, praises the Alter Group for its “incredible
client focus, adaptability and superior performance in delivering our
warehouse ahead of schedule and on budget.”
Technology Touted
Just about every type of supply-chain application was nominated, including
planning, sourcing, global supply-chain management, transportation and
logistics, warehousing, fulfillment, radio frequency identification,
analytics and international trade logistics. Large planning oriented
systems received their share of nominations from companies, primarily
because their solutions provided a wide range of benefits throughout the
supply chain. For example, Frank W. Reinig,
supply network, global business process owner, for Procter & Gamble,
says that SAP has allowed his company to provide significant collaboration
capabilities and to define business processes.
“All of our
business requirements are reflected in the platform solutions that SAP has
provided,” says Reinig. “We are fully
prepared to meet emerging supply network planning and execution
challenges.”
Mark Hardison, director of global
supply-chain management for Banner Pharmacaps,
praises PeopleSoft for continuing to develop their own supply-chain
technologies as well as to enhance the capabilities of the J.D. Edwards
applications it recently acquired.
Providing software is not enough today, especially for
complex systems. Users expect their technology suppliers to make sure the
implementation goes well, and then provide ongoing support whenever needed.
Alison Guest, a Six Sigma black belt with Caterpillar Logistics Services in
the U.K., says that Logility’s flexible
forecasting and inventory planning system is easy to control and to adapt
to the 3PL’s changing business needs.
“Logility provides timely, relevant support from
friendly and highly skilled consultants,” she says.
Just as software users expect after-sale support, so do
buyers of all types of machinery, vehicles and high-tech devices. The need
for after-sale parts support has become a critical component in business
success. Not surprisingly, many readers nominated vendors of solutions for
best-in-class after-sale support, especially if they also provided cost
reductions and inventory savings. For example, Paul Smith, materials
manager, global logistics for SGI, says that Baxter Planning Systems help
the company maintain high customer satisfaction while managing inventories
in over 300 inventory locations worldwide.
“The combination
of Baxter’s Prophet software, its support team, and SGI’s experienced service personnel have enabled
us to shrink the worldwide inventories by more than 34 percent,” says
Smith. “SGI has realized immediate and sustained savings in repair
activities, and showed substantial increases to our service levels.”
Similarly, Thomas H. Walter, director of purchasing and
strategy for Parts Now! LLC, says that within six months of implementing Servigistics parts management software, his company was
able to reduce its inventory investment by 25 percent while simultaneously
improving its parts availability.
The group manager of maintenance for one of the largest truck
rental companies in the world credits PartsRiver
for providing knowledge, data, system capacity, and proprietary search
engines enabling the reduction of redundant part numbers used to purchase
repair parts by a factor of six. The normalization of SKUs enabled target
pricing and target sourcing resulting in a 9.7 percent reduction in parts
acquisition cost, netting more than $10m in savings.
“Our ongoing
relationship with PartsRiver gives us
time-sensitive pricing, supersession and
obsolescence updates for all parts,” says the truck maintenance
manager.
Measuring Up
Of course, the ultimate test for whether a software vendor is a great
partner is how well the application measures up to what was promised.
Chuck Franzetta, chief executive
officer for consulting firm Franzetta &
Associates, nominated RedPrairie because it
passed this test with flying colors. Not only does RedPrairie
provide effective logistics software at an affordable price, according to Franzetta, but also it “actually works when it’s
installed.” He says competitors’ products work in
“customized presentations during sales presentations, but not when
actually installed.” He also points to RedPrairie’s
guaranteed installation within a specified timeframe, often three months,
at the price initially quoted.
“RedPrairie is continuously investing in an
improved-performance, easier-to-use product, which provides the CRM benefit
that logistics software is supposed to deliver,” says Franzetta.
Similarly, Dave Niemann, a director
with Electronic Arts, says that he nominated Irista
for two reasons: its agility in deploying this best of breed solution at
his company, and because of its commitment to customer success.
For Al Mazany, manager,
transportation and logistics for FMC Technologies, the measure of a great
partner is a willingness to customize the software to meet his needs. He
praises TransportGistics for helping it to
establish entirely new systems and procedures for his company’s
traffic needs.
“It isn’t
rare that most suppliers enthusiastically discuss new procedures,
regardless of the implementation difficulties,” he explains.
“But it is rare to have those requests meet with no resistance at a
fair price, and implemented with expediency.”
Supply-chain Execution
We received the most nominations for execution-oriented applications, which
include transportation management, warehousing management, fulfillment and
similar applications that can provide quick cost savings and return on
investment. For example, Amit Kalra,
a business analyst with Best Buy, says that Yantra
has the best product in the marketplace for order management and
fulfillment.
“Yantra has shown vision and great depth in its
solution,” he says.
In the case of Darice Inc., the
requirement was far more than just execution software. As Michael Birkholm, chief operating officer for Darice explains, the company needed a redesign of its
entire distribution process. TECSYS was a key partner in the project.
“Our goal was to
fully integrate a WMS, TMS and material handling control system,”
says Birkholm. “The challenges and
obstacles were great, but by persevering with us, TECSYS has allowed us to
go live on a process that will carry us into the future.”
For example, Ralph Alleman,
purchasing director, logistics, for Lucite International, explains that his
company initiated a relationship five years ago with Cornerstone Solutions.
Initially, it moved all of its TL and intermodal
freight to them for sourcing and operations. Next, Alleman
established point-to-point rates and state-to-state rates for over-sized
and dimensional (OD) flatbed, flatbed, van and intermodal.
“We began sharing
the savings with Cornerstone when they were able to find backhauls and
other lower cost carriers on a quarterly basis,” says Alleman.
Lucite was thrilled to be able to make such progress with its
outsourcing relationship with Cornerstone and was able to gain better
reporting metrics, but Alleman says the company
had even more ambitious goals in mind. In early 2004, the company worked
with Cornerstone to control its outbound packaged freight in the Memphis
area, its largest shipping location. The goal was to lower total outbound
freight costs. By better consolidating loads, Lucite improved its weight
per load 8.5 percent for flatbed, OD flatbed and regular truckload van
service. The consolidation for TL alone lowered effective freight costs by
3 percent.
“As we saw the
value increase, Cornerstone pushed an IT solution which would link our IT
order system with their developing freight management software,” says
Alleman. “We see continued opportunities in
this area.”
Chuck Adams, chief information officer and vice president of
distribution for Hibbett Sporting Goods, provides
specific details about his favorite partner, Manhattan Associates. He
calculates that Manhattan’s applications lowered distribution center
costs from 2.18 to 1.99 percent of sales, decreased delivery time from an
average of 23 to 10 days, increased accuracy from 94 to 99.4 percent,
increased cross-dock percentage from 41 to 79 percent over two years, and
enabled a 24 percent growth in units processed while headcount was reduced
from 119 to 102.
John Horvath, a supply-chain specialist with the Boeing
Company, explains that for six years, Catalyst International has provided
an outstanding warehouse management system for Boeing’s
implementation on the Air Force C-17 program.
“This
implementation has contributed to cost reductions in the flow of production
parts to the final assembly line,” he says. “We’re
currently working together on improvements in upstream supply-chain
processes using additional WMS functions and fully expect to realize cost
reductions in this area as well. We have a strong partnership with Catalyst
and believe they’re in with us for the long haul.”
While direct cost savings are probably the most often
mentioned benefit from execution applications, readers also pointed to
improvements in efficiency and productivity. Joe Stannard,
vice president of logistics at CooperVision,
nominated Voxware because it has proven to be a
very successful voice picking technology for “ eaches.”
“This system has
allowed CooperVision to improve picking rates by
50 percent,” he says.
Rob Shafer, manager of carrier alliances for The Dial
Corporation, says that Nistevo’s
transportation management solution has provided an opportunity to truly
manage its transportation needs with broad functionality, system
flexibility, enhanced visibility, and the ability to manage costs while
driving service improvements.
“I’m not
sure how we managed our business before the Nistevo
implementation,” says Shafer.
Similarly, Lance Pratt, president of Advantage Logistics,
says that Tranzact Technologies’ rating and
routing tools and management reporting gives him the visibility he needs to
manage all of his inbound and outbound transportation.
For Charles H. Kerr, equipment control manager for NYK
Logistics, productivity is definitely the key measure of a great partner.
He says that his company installed WhereNet’s
RTLS system in its Long Beach, Calif., yard that has 1,350 parking slots.
The WhereNet system has increased velocity of the
yard, visibility and productivity.
“The productivity
of yard tractors has increased by 50 percent and carriers now spend less
than 20 minutes in the yard for a double transaction. Drivers do not have
to get out of their cab except to lower and raise their landing
gear.”
Measures of Greatness
For other readers, easy implementation and ease of use is extremely
important. Chris Hunt, IT manager for Peake
Printers, says that he was able to replace carrier specific shipping
systems with the Pitney Bowes TMS system, which also provided him with
central reporting and one platform to support all users on training.
“I can also
compare rates with just three clicks of the mouse,” says Hunt.
“The backend is a Microsoft SQL database, so I can use Crystal
Reports to extract data with ease.
For companies operating globally, the need is for
comprehensive capabilities that ultimately deliver competitive advantage.
For John Wells, vice president, import traffic, for Phillips Van Heusen, his company’s partnership with GT Nexus
met the challenge. The requirement was to centralize the management of
global ocean freight operations.
“Effective ocean
services management is critical to our supply chain,” says Wells. He
credits GT Nexus for introducing more efficiency, standardization and
control to his company’s ocean freight process — from initial
service procurement through bid tender, analysis, negotiation, optimizing
service agreements, allocating freight strategically with ocean carrier
partners, and managing contracts and continual updates in a single online
system.
“We can design and
execute customized ocean transportation solutions that meet the unique cost
and service requirements of each operating group,” he says.
“Ultimately that helps us gain the most value from our investment in
transportation and reduces the cost of managing a worldwide ocean freight
network.”
Supply-chain visibility is among the key features that
companies look for in technology solutions of all types. Herman Stiphout, the recently retired executive vice president
and chief financial officer for Efficient Networks, says that he found the
visibility his company needed with Dynamic Cycle-time Reduction Associates.
“DCRA helped us
design a new supply chain and implement an automated sales and operating
procedures tool that provided supply-chain visibility from customer orders
to ultimate deliveries,” says Stiphout.
“They saved us millions in operating costs and reduced obsolescence
in 2003.”
William Parr, vice president of logistics for Giant Eagle,
echoed this idea. He nominated G-Log, which he says will become the
foundation for supply-chain visibility.
“Its ability to
provide and document events along the supply chain to companies both inside
and outside of our network, with different levels of technology truly
provides end-to-end visibility,” says Parr. “They have also met
every time line committed to on each phase of the project. This nomination
is not so much what they have done today as it is for what we will now be
able to accomplish with them.”
An area of tremendous interest in this year’s Supply
Chain Partner’s program is RFID and similar automatic identification
technology. Companies need to understand the technology, the true value and
how it can fit into their supply chains. Roy Gallagher, director of
business systems for Doskocil Manufacturing, says
that ClearOrbit’s rich history of
successful implementations across multiple ERP systems made it the obvious
choice to provide Doskocil’s RFID and
barcode inventory management solutions.
“With the clear
success of the project to date, we write to nominate them for the 100 Great
Supply Chain Partners list,” he says. “Barcode compliance
labeling and guided picking were areas where we needed rapid implementation
of a flexible, trouble-free system that didn’t require custom coding
and costly maintenance, and ClearOrbit has
performed beyond our expectations. Their RFID platform will enable us to
meet upcoming tagging requirements without moving to a separate
system.”
Of course, RFID is not just about software. The hardware
involved is equally important. Barry Craver, senior application development
manager for Old Dominion Freight Line, nominated two automatic
identification vendors: Symbol Technologies and Intermec Technologies.
“The Symbol
handhelds we use in our pickup and delivery operations have significantly
improved ROI in these operations,” says Craver.
“Intermec’s data collection devices support our dock operations
and have shown excellent ROI. Both of these companies are great to work
with and are very responsive to customers’ issues.”
Of course, the ultimate purpose of all supply-chain
technology is to share vital information, so readers offered kudos to
technology suppliers that are helping to make communication faster,
cheaper, and better. For example, John Streff,
EDI administrator for Milwaukee Electric Tool, says that Inovis has substantially reduced costs for its EDI program.
“Both their VAN and EDI Trusted Link 400 products are
excellent,” he says. “Their customer support solves our
problems quickly and correctly the first time.”
Conclusion
We thank all of the readers of Global Logistics & Supply Chain
Strategies magazine who participated in the 2004 100 Great Supply Chain
Partners program. By voicing your appreciation for the vendors of
technology and services that help you achieve your supply-chain goals, you
not only give them the recognition that they deserve, but you point out to
all vendors the qualities that you admire — and expect. That effort
helps the entire industry. Thank you again, and we look forward to your
participation in next year’s 100 Great Supply Chain Partners program.
|