Thursday, January 22, 2009

Supply Chain Management strategies for Beating your Rivals

By Larry Emsweller

As in every industry, times change and so do the rules. However, many Companies continue to perpetuate the old rules because they feel comfortable with them. The problem is that they can be beaten in the game they have played for many years by newcomers who understand the new rules of the game. Former General Electric CEO, Jack Welch stated the obvious. "If you want to beat your rivals, you can't follow the old rules." It's a new day and new rules apply. There are new supply chain management strategies that work better and are more efficient.

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. 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. DMS can maximize direct plant shipping. It determines when to bring product into each site. While most WMS systems determine where in the building each product should be stored, DMS determines where the product should be put (either in the plant or in an outside warehouse) as it comes off the line.

3. Provide insight to where there will be stock-outs or other failures in the system, for planners to start remedial action

4. Save time on 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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