Enabler: UpNet Technologies (Minneapolis, upnettec.com)
Customer: Household goods importer
The Project: PO automation and inventory management. Manage the order flow from import to warehouse to retailers and enable drop ship fulfillment through extended visibility of multiple warehouse inventories.
Solutions/Services: UpNet's iEDeX data integration and translation platform with Distributed Order Management and Inventory Management applications enabled.
Business Impact: Expand customer base and provide greater visibility to the retailer. Manual entry errors greatly reduced while improving order fulfillment rates. Gained the ability to track entire product inventory across all warehouses, including keeping track of each retailer's SKU for easy reference and allocation.
Enabler: JDA Software Group (Scottsdale, AZ, jda.com)
Customer: Goya Foods, Inc. (Food)
The Project: Improve and leverage supply chain and planning processes; improve production planning and execution. Implement a tool to help determine what products to order, when, and in what quantities so Goya would have the right products at the right place at the right time, and to enable the company to bring on shorter shelf-life items and better manage them. Primary goal: Improve service levels (reduce out of stocks) to 98 %. Secondary goal: Reduce inventory levels. Also, make the process of generating purchase orders less cumbersome.
Description of Project: The project started in March 2009. A phased implementation approach was taken with Goya North East (Secaucus and 6 satellites) that accounts for over a third of Goya's sales volume going live in December 2009. The Houston and California locations went live in April 2010. The Miami location went live in May 2010 and the Puerto Rico location went live in September 2010.
Each of these locations is live on Demand, Demand Classification and Fulfillment and Order Optimization for their finished good products. Prior to the implementation of the JDA Demand and Fulfillment products, Goya utilized a legacy system eight-week moving average as their method of forecasting demand. Since Go Live, Goya has been able to realize record service levels.
Business Impact: Service Level Improvement from 95% to 98% or better.
Purchase Order Process Improvement from 20 minutes to 1-3 minutes.
More Supply & Demand Chain Executive 100 Recipients for 2011
Client and project type listed in parenthesis. Note that some enablers have requested that the name of the client not be listed for reasons of confidentiality. In these instances, either a substitute descriptor was used or, where marked with an asterisk (*), we have withheld the name or industry of the client altogether. More detail on the projects listed below will be available online at SDCExec.com.
Aspen Technology, Inc. (Plastic & Chemical Manufacturer; integrated supply/demand planning)
Avendra (Pillar Hotels & Resorts; implementing procure-to-pay solution)
Blue Sky Technologies, Inc. (Staples, Inc.; supply chain visibility)
Cardinal Logistics Management Corporation (Hazen Transport; TMS, driver handheld)
Cheetah Software Systems, Inc. (Central Freight Lines, Inc.; digital dispatch management implementation)
Choice Logistics, Inc. (Hitachi Data Systems; service parts logistics)
CombineNet Inc. (Advanced sourcing solution implementation)*
Core Solutions (Kmart Australia; retail product lifecycle and global sourcing)
Corporate United (Vertis Communications; safety supplies contract implementation)
CSC (Defense Group) (U.S. Army; ERP project)
Datria Systems (Roche Diagnostics; voice-enabled picking solution)
DSSI, LLC (Multinational Construction Equipment Manufacturer; procurement outsourcing – source to pay and integrated supply)
DW Morgan Company (Force 10 Networks; logistics outsourcing)
Dyadem (Roche Genentech; supply chain risk management implementation)
e-LYNXX Corporation (International Construction Equipment (ICE); automated vendor selection procedure)
Emptoris, Inc. (Global engineering and construction company; supplier performance management)
eZCom Software (P2F Holdings; EDI project)
Fieldglass (BP; VMS implementation)
Fluensee, Inc. (Container Centralen US; returnable asset tracking solution)
Full Circle Wireless (A.T. Kearny; recycling/sourcing/procurement/corporate social responsibility)
Genpact (Inventory optimization)*
GEP (Global eProcure) (Indirect procurement, outsourcing, technology)*
Greybeard Advisors LLC (Fortune 500 retailer; procurement assessment and transformation)
GT Nexus (Fortune 100 Retailer; paperless supply chain)
Iasta (OfficeMax, Inc.; procurement transformation)
IES, Ltd. (Private; packaging optimization)
INSIGHT, Inc. (Supply chain network redesign)*
Intermec (Mission Foods; inventory tracking solution)
Lucas Systems, Inc. (Voice-directed warehouse management)*
Manhattan Associates (Urban Outfitters; WMS)
Metastorm (now an OpenText business) (CRM/ERP consolidation)*
MetricStream Inc. (Fortune Global 200 Consumer Electronics Brand and Medical Devices Company; supplier quality solution implementation)
Mode Transportation (formerly Exel Transportation) (Leveraging TMS in the marketplace)*
ModusLink Global Solutions, Inc. (Provo Craft; supply chain outsourcing and optimization)
NFI (NFI; centralized distribution implementation)
NGC Software (Parigi Group; PLM software implementation)
Omnify Software (Crystal Technology; product lifecycle management implementation)
Pace Harmon (Fortune 500 Telecom Company; global supply chain optimization)
Prime Advantage (Ultrafryer Systems; sourcing/procurement solution)
ProcureStaff Technologies (Fortune 500 Financial Services Company; VMS implementation)
Psion, Inc. (Powell's Books; barcoding and WMS implementation)
Reddwerks (Well-known Specialty Retailer; event-enabled logistics)
RedPrairie Corporation (ADS Logistic Services; enterprise WMS/on-demand WMS implementation)
Remsoft, Inc. (One of the World's Largest Pulp Manufacturers; asset lifecycle optimization solutions implementation)
Retalix Ltd. (ERP & WMS implementation)*
Schneider Logistics, Inc. (International and domestic supply chain synchronization)
SciQuest, Inc. (KBR; e-sourcing/project-based procurement)
StarCite (One of the World's Leading Pharmaceutical Companies; strategic meetings management solution)
Sterling Commerce, an IBM company (Transportation management system (TMS) implementation)*
Strive Logistics, LLC (Fortune 500 Shipper; consolidation and optimization project)
Tableau Software (Norfolk Southern Corp.; supply chain network redesign)
TAKE Solutions Inc. (Baker Hughes Inc.; e-procurement, supplier integration, e-invoicing)
Terra Technology (Forecasting and inventory optimization)*
Test Technology (DriveCam; Recycling/redeployment/refurbishment/repairs)
TMSi Logistics (Lean action workout)*
ToolsGroup (Global 2000 Electronics Distributor; demand planning & inventory optimization)
Trade Wings (Telenor Norway; integrated reuse program)
TradeStone Software (UK's Leading Direct Home Shopping Company; merchandise lifecycle management implementation)
Transplace (Supply chain network expansion)*
Upside Software Inc. (International Pharmaceutical Company; contract lifecycle management solution)
Verian Technologies (e-Procurement solution)*
VHA Inc. (Scottsdale Health; multi-faceted supply chain cost reduction project)
Volt Consulting Group (Leading Provider of Health Insurance; business intelligence consultation)
Waer Systems Limited (Tier 1 Aerospace Manufacturer; replenishment solution using GPRS)
YRC Worldwide (Inventory management)*
Zionex Inc. (Fortune 500 Global Manufacturer; production planning solution implementation)
Next Level Purchasing, Inc., & the Next Level Purchasing Association
Next Level Purchasing (Moon Township, PA, nextlevelpurchasing.com) has long offered online courses teaching purchasing and supply management strategies, as well as the Senior Professional in Supply Management (SPSM) certifications. On April 4, the firm launched the Next Level Purchasing Association, a free professional purchasing association aimed at breaking the mold of traditional associations by offering the same benefits through a free online format. Its goal is to allow purchasing professionals to interact with their purchasing peers through the online discussion board, get the latest articles in NLPA's online magazine and manage their purchasing educational and certification pursuits all in one place. More information at the Next Level Web site.
Transforming from Tactical to Strategic
The Dana-Farber Cancer Institute, Inc. (Boston, dfci.org)
Project Goal: To transform our existing materials management group from tactical in nature to strategic by adding value to the bottom line.
The Project: Dana-Farber Cancer Institute, Inc. (DFCI) has engaged in a comprehensive transformation of our sourcing department. We created an organization that focuses on delivering strategic results and proactively seeks out cost savings and operational efficiency opportunities. By adopting cross-industry best practices and explicitly enfranchising the purchasing community, DFCI has become a leader in developing a truly strategic sourcing model that has yielded remarkable results.
Business Impact: We have achieved $3.5 million in actual savings and another $6.5 million in cost savings pipeline or backlog. Some of our savings include: 1) supply unit costs from several of our strategic suppliers (strategic suppliers are defined as holding 80% of our spend) have been reduced at a minimum of 15% and as high as 80%; 2) reduction in supply inventory has decreased 33% and consignment programs have grown 100%; and, 3) utilization of lower cost alternatives for reagents have been successfully sourced across diverse research laboratories.
Other achievements include:
- Exceeded our savings goal by 60%;
- Customer service ratings increased up to 43% in some areas from a year ago and now average 90% vs. 70%;
- Exceeded inventory turns best practice by 54%; and,
- Consistently deliver 16% return on investment; which is 136% above the benchmark.
– John P. Willi
Director, Materials Management,
Dana-Farber Cancer Institute, Inc.