If you lag behind in technology, you are putting your efficiency at risk. Supply chain management is simple if you are shipping one thing at a time, but when shipping multiple SKU orders, they need to be directed to the proper shipping point. A competent software management tool can maximize your direct plant shipping opportunities. It can save you time and efficiencies that will save you money.
It gets even more complex. How do you determine to ship from the plant if only 95% of the product is located there? If you do determine that it is ok to ship, how do the one or two missing pallets get ordered and later transferred to make the shipment complete? For most companies, it doesn't happen this way. These companies give up on anything but single SKU, fully in-stock orders because it is too tricky to do anything more complex. Their supply chain systems don't support this and they are forced to invoke the KISS (keep it simple) principle. They find the location with all the stock and send the order from there.
But KISS is high cost. On local campuses consisting of a plant and several warehouses, companies like Procter & Gamble have realized there is a better way. In their extensive supply chain management program, P & G uses a distribution master scheduling system called AutoScheduler from Transportation l Warehouse Optimization to optimize their direct plant shipping by:
A. Pre-positioning inventory to maximize DPS B. Determining the best place to ship any order from C. Re-deploying the inventory to ensure the shipment is complete D. Establishing the dock and staff schedule to perceive the customer service goal of on-time, every-time
This requires more timely decisions. Many management systems use the KISS principle. It is easier for the user of the system. The creation of optimized rules to determine where orders will ship from is often done by strategic location analysis. This is done every few years and looks at a variety of functions. The end goal is to make the system as efficient as possible - saving time and money. Supply chain management requires constant scrutiny.
It is imperative that capacity balanced optimization which performs the sourcing analysis in near and real-time, would define that the order should ship from the Chicago plant. While tools exist for distributed order processing, they work best for catalog shippers. The ones needed to do the heavy lifting for the transportation industry are custom made. However, AutoSPA [Automatic Ship Point Assignment] is also available from Transportation l Warehouse Optimization. This system looks at the total cost of delivery.
AutoSPA can also limit the number of shipments made from any site.
You can save nearly twice as much as DPS alone on ship-point assignment in supply chain management. It is worth doing.
Sign up for the exclusive free Truck Loading Manual that can SAVE YOU MONEY and offer you the perfect Operator Manual for truck operators at www.TransportationOptimization.com. While there, request a call back from one of the premier transportation consultants in the industry, Tom Moore or one of his associates from Transportation | Warehouse Optimization. Working for many companies in the top Fortune 50 - like Procter & Gamble and BP - they understand your unique problems and can help you solve them. Transportation l Warehouse Optimization - Solutions that work. Solutions that save. - 15431
It gets even more complex. How do you determine to ship from the plant if only 95% of the product is located there? If you do determine that it is ok to ship, how do the one or two missing pallets get ordered and later transferred to make the shipment complete? For most companies, it doesn't happen this way. These companies give up on anything but single SKU, fully in-stock orders because it is too tricky to do anything more complex. Their supply chain systems don't support this and they are forced to invoke the KISS (keep it simple) principle. They find the location with all the stock and send the order from there.
But KISS is high cost. On local campuses consisting of a plant and several warehouses, companies like Procter & Gamble have realized there is a better way. In their extensive supply chain management program, P & G uses a distribution master scheduling system called AutoScheduler from Transportation l Warehouse Optimization to optimize their direct plant shipping by:
A. Pre-positioning inventory to maximize DPS B. Determining the best place to ship any order from C. Re-deploying the inventory to ensure the shipment is complete D. Establishing the dock and staff schedule to perceive the customer service goal of on-time, every-time
This requires more timely decisions. Many management systems use the KISS principle. It is easier for the user of the system. The creation of optimized rules to determine where orders will ship from is often done by strategic location analysis. This is done every few years and looks at a variety of functions. The end goal is to make the system as efficient as possible - saving time and money. Supply chain management requires constant scrutiny.
It is imperative that capacity balanced optimization which performs the sourcing analysis in near and real-time, would define that the order should ship from the Chicago plant. While tools exist for distributed order processing, they work best for catalog shippers. The ones needed to do the heavy lifting for the transportation industry are custom made. However, AutoSPA [Automatic Ship Point Assignment] is also available from Transportation l Warehouse Optimization. This system looks at the total cost of delivery.
AutoSPA can also limit the number of shipments made from any site.
You can save nearly twice as much as DPS alone on ship-point assignment in supply chain management. It is worth doing.
Sign up for the exclusive free Truck Loading Manual that can SAVE YOU MONEY and offer you the perfect Operator Manual for truck operators at www.TransportationOptimization.com. While there, request a call back from one of the premier transportation consultants in the industry, Tom Moore or one of his associates from Transportation | Warehouse Optimization. Working for many companies in the top Fortune 50 - like Procter & Gamble and BP - they understand your unique problems and can help you solve them. Transportation l Warehouse Optimization - Solutions that work. Solutions that save. - 15431
About the Author:
Tom Moore and his Associates at Transportation l Warehouse Optimization will help you maximize Supply Chain Management and save you money. Sign up for a exclusive free truck loading Manual that can SAVE YOU MONEY and offer you the perfect Operator Manual for Truck Operators. Transportation l Warehouse Optimization - Solutions that work. Solutions that save.
