Sunday, January 25, 2009

Supply Chain Management strategies for Beating your Rivals

By Larry Emsweller

Jack Welch, retired CEO of General Electric and management guru, made it clear, "You can't beat your rivals by [following] the old rules." Yet many supply chain managers continue to use the rules of the past. These rules require an enterprise system to determine where orders should load from, where stock should be transferred to and when, and then hand-off to TMS (Transportation Management System) and WMS (Warehouse Management System) to make it happen. It is just like throwing information over the wall. Where is the coordination between production and distribution? The old rules don't optimize distribution.

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

Distribution Master Scheduling (DMS) is a process that determines how to best coordinate production and distribution, and manage the timing of events. DMS understands the production schedule, which orders are due over the next weeks, and where inventory is located. It uses this data to:

1. By determining where each order is shipped from, it can tell you the best dock schedule, where the product is made, the line to put it on, what truck to schedule it on, and when it can be cross-docked.

2. One of the advantages of the software is the ability to tell you where the product should be placed as it comes off the line - either in the plant or in one of the outside warehouses. Most WMS systems only tell you where the product should be stored in the plant.

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

4. Minimize pallet handling

One of the major advantages of using the DMS system is the ability to maximize efficiencies. For example, AutoScheduler is a new and sophisticated system from Transportation l Warehouse Optimization [www.TransportationOptimization.com]that can manage all of the data and create optimized distribution schedules. Procter & Gamble, in its largest operations around the world, uses this system maximizing supply chain management strategies.

DMS is such an effective optimizer in reducing supply chain management effort and costs while increasing customer service, that Procter & Gamble actually reported at one site a 33% reduction after installing AutoScheduler.

Beating your rivals requires new rules and the introduction of Distribution Master Scheduling software.

When you consider a Transportation consultant, Thomas Moore and his associates at Transportation | Warehouse Optimization have been working with some of the top companies in America finding practical solutions that have resulted in saving millions of dollars. They take a long-term view, know the market place and keep the client as top priority. Contact www.TransportationOptimization.com for transportation cost reductions or solutions to warehouse challenges. Ask for a free consultation. While visiting their website, TEST YOUR SKILLS and see how well you can load a truck or manage cost savings. Transportation l Warehouse Optimization - Solutions that work. Solutions that save. - 15433

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