Thursday, January 22, 2009

Supply Chain Management strategies for Beating your Rivals

By Larry Emsweller

"You can't beat your rivals by [following] the old rules." At least that is how retired GE CEO, Jack Welch feels. Yet, you can beat them by using new and successful supply chain management strategies. The problem is that many rely on what they know, and the simple fact is, the old rules don't work anymore. New Supply Chain Management strategies are available and in order to survive you must implement them.

What's the major component that makes up the new rules - distribution scheduling software.

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. Determine where every order should be shipped from. It establishes dock schedules to minimize handling. For example, schedule shipments when product is being made on the line and can be put directly into a truck or 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. Provide insight to where there will be stock-outs or other failures in the system, for planners to start remedial action

4. Minimize pallet handling

Procter & Gamble uses AutoScheduler - Distribution Master Scheduling software - from Transportation l Warehouse Optimization [www.TransportationOptimization.com] in its largest operation around the world to maximize supply chain management strategies. It is sophisticated software that manages the data and maximizes optimized scheduling.

This rule-based optimizer has been effective in reducing supply chain management effort and costs while increasing customer service. One P & G site reported a 33% reduction in WMS transactions after installing AutoScheduler.

Using this Distribution Master Scheduling software makes the task of beating your rivals much easier. Playing by the new rules and throwing out the old make a lot of sense.

Tom Moore along with his associates have worked with the best of the best. Procter & Gamble, and other top Fortune 50 companies are among their client list - P & G is a long-term client since 1992. TlWO has saved P & G millions of dollars with transportation consulting solutions. Taking a long-term view, they understand the industry, the market place and like good consultants do, keep the client as the top priority. Contact them at www.TransportationOptimization.com for your free consultation today. Also TEST YOUR SKILLS and see how well you manage your costs. Load a truck and see how efficient you are. Transportation l Warehouse Optimization - Solutions that work. Solutions that save.

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