Successful implementation of anything new within one’s business is a challenge—whether it’s software or technology adoption or new strategy implementation. Add the intricacies that supply chain processes bring and the task can be downright daunting. But executives in this fast-paced industry know that continuing to redefine one’s business processes and management to meet market demand and assess risk management is crucial for future business growth. The old adage “if it ain’t broke, don’t fix it” goes out the window. Businesses realize that sometimes there is better than what one currently has. And this month’s Supply & Demand Chain Executive 100 Award honorees are walking proof that adding value to your bottom line doesn’t always require a massive overhaul to achieve potential company savings that are well within reach. From effective S&OP practices to cost-saving inventory control and optimization to efficient warehouse management operations—implementations to improve and drive business value are happening successfully across the country. But don’t take it from us. Check out this month’s “100” projects and gain the best practices you need to grow your business.
Enabler: Accellos Inc.
(Colorado Springs, Colo., www.accellos.com)
Customer: ITS Logistics
The Project: ITS Logistics was looking to enter the outdoor sports supply chain market with the goal to implement a new 3PL system that could handle the company’s growing needs.
Enabler: Aditya Birla Minacs
(Bangalore, India, www.minacs.adityabirla.com)
Customer: A financial institution providing diversified services to emerging, developing and established technology companies and the life science, private equity and premium wine markets.
The Project: Telecom Expense Management: Recovery Audit and Forward Savings; Client engaged Minacs to undertake telecom audit and bill management service for $4.5 million telecom spend. The target was also to reduce client’s telecom spend with a focus on identifying contract violations, inventory optimization, overcharges and service optimization (no contract negotiations in scope).
Minacs Solutions: Gather billing data and Customer Service Records (CSR), set up online access for all client locations; analyze telecom bills, compare contracts and tariffs and investigate non-compliances, overcharges & over payments; Identify possible areas of cost avoidance by studying existing inventory; create recommendation dashboards; process orders and file disputes to recover funds from the service providers; producing post audit bills showing reduced monthly charges and savings; monthly review and management of bills to ensure minimum billing errors.
Results: Delivered annual savings and Reduced Telecom Spend to the tune of $ 530,000 p.a.; streamlined telecom inventory by eliminating unused PRI’s, circuits and wireless services; identified further savings opportunity to the tune of $ 200K through telecom contract renegotiations.
Enabler: AFN LLC
(Niles, Ill., www.loadafn.com)
Customer: The U.S. division of one of the world’s largest specialty beverage groups
The Project: to minimize impact of retail charge-backs and control overall logistics costs, the company hired AFN to consolidate and manage multiple logistics functions.
Solutions/Services: Integrating order management through electronic data interchange (EDI) to optimize shipments; order process monitoring; analytics generation to track overall performance and continuously improve and eliminate redundancies throughout the supply chain.
Business Impact: By outsourcing its transportation management to AFN, the company increased visibility into all aspects of its supply chain, significantly reduced total logistics costs and improved customer service. Measurable results include $1.4 million in annual savings in the first year alone for direct shipments to a single major big box retailer with 15 North American facilities; on-time delivery performance levels consistently exceed 98 percent; 27.6 percent reduction in chargebacks; 12.0 percent reduction in expedited shipping expenses.
Customer: Top 50 of Fortune 500 Retailer
The Project: Collaboration VMI, Planning and Replenishment implementation
Since 2000, AGENTRICS delivered supply chain results for retailers and manufacturers in the form of reducing out of stocks; decreasing inventory levels; increasing working capital; and ultimately strengthening the ever-critical bond with consumers. AGENTRICS has pioneered supply chain solutions enabling retailers and suppliers to access action-oriented collaboration tools in a high-scale, low-cost SaaS environment, even before the concept of SaaS was adopted at a larger scale worldwide. Today, AGENTRICS has transformed traditional supply chain co-managed inventory models into innovative collaborative-managed inventory solutions allowing trusted relationships to extend beyond the retail distribution center, by extending the power of of true collaboration to the stores’ shelves.
Enabler: Amazing Print Corp.
The Project: to automate ordering of highly personalized and patented printed product.
Enabler: Amber Road
(East Rutherford, N.J., www.amberroad.com)
Customer: Bunzl Distribution USA
The Project: With more than 90 warehouses in the United States, Canada, the Caribbean, and Mexico, Bunzl Distribution USA needed a Global Trade Management (GTM) solution to help improve visibility of their inbound shipments, monitor carrier and supplier performance, and automated Customs entry to improve customer service, reduce brokerage fees and strengthen compliance with international trade regulations. By integrating the end-to-end import supply chain on a single GTM platform, Bunzl can better coordinate the process among origin operations, its logistics providers and branch operations. This allows Bunzl to eliminate supply chain bottlenecks, better manage carrier and supplier performance, and reduce entry processing and brokerage fees.
Solutions/Services: Amber Road’s Supply Chain Visibility and Trade Import solutions
Business Impact: Since implementing Amber Road’s GTM solutions, Bunzl was able to significantly streamline its inbound supply chain. The company now has a centralized import process where all its branches access all compliance reference data, in-transit shipment and inventory levels, and all import transactional data. This has improved coordination across the company to meet higher service level agreements and to reduce supply chain costs. Bunzl has reduced fees associated with demurrage, detention and per diem as a result of providing internal and external customers with increased visibility to their inventory in-transit and allowing for better planning. Brokerage and entry fees have also been reduced, since Bunzl can now pay its carriers directly, instead of paying via brokers. Furthermore, the distributor has streamlined its payment process by establishing in-transit milestones to pre-determine when to initiate the payment process.
(Sunnyvale, Calif., www.ariba.com)
Customer: Cox Enterprises Inc.
The Project: Implementing Ariba Procure-to-Pay to consolidate information from six ERP systems, centralize its indirect spend and capitalize on purchasing power across divisions
(Wilmington, De., www.arkieva.com)
Customer: Manufacturer of integrated fibers and polymers
The Project: Primary function of the project was to provide a solution that could easily scale and adapt to changes in the product portfolio to help manage the clients thousands of SKUs; and to allow them to better control inventory.
Solutions/Services: Arkieva Demand Planning software; Arkieva Inventory Management software
Business Impact: As a result of the Arkieva solution implementation, the customer was able to reduce their inventory by 30 percent, which equates to more than $30 million in savings. It improved the sales force forecasting because their global sales force can interface with Arkieva. It also enabled the client to analyze variability, see the accuracy of their forecasts and view the collaborative history of open orders. This resulted in saved time for the planners and the increased ability to identify areas that require the most focus, allowing them to direct sales leasers to those items that needed the most attention.