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ESYNC | TranSystems
3232 Central Park West Drive
Suite A
Toledo, OH 43617
419.842.2210
www.esync.com
www.transystems.com
EXECUTIVE SUMMARY
BACKGROUND
Supply Chain
Industry Spending
Today, American industry
is spending well over
$1 trillion annually or
almost $.09 of each
sales dollar on the supply
chain, with half of that
amount attributable to
transportation costs.
Herbert W. Davis & Company/
Establish, Inc., 2006
Now, lets take a look at how SCES are being deployed to achieve
higher levels of supply chain performance and service.
As illustrated above, the tightly integrated advanced supply chain
management system monitors sales by customer and feeds that
data to the planning system (1) that adjusts manufacturing and
warehouse replenishment schedules to assure availability of the
products customers are actually buying. New orders then flow
through an OMS (2) that sorts and sources fulfillment based upon
customer delivery requirements, inventory availability and warehouse or distribution center proximity to that customer.
Once prioritized, the orders are passed with required delivery
dates to a TMS (3) for load planning, freight rating, carrier selection and scheduling at the lowest cost consistent with customer
promise dates. From the TMS, the orders move to a WMS (4)
that allocates resources and prioritizes order picking tasks based
upon actual workload while directing value-added processing as
required to meet scheduled carrier pick-up times. Once shipped,
the TMS monitors carrier performance and provides periodic
updates until delivery sign-off by the customer.
Data on all of these transactions as well as inventory status
throughout the supply chain is accessible to the companys management team through an SCV and event management system.
The SCV provides real-time order and inventory status throughout
the enterprise.
SCES BENEFITS
REDUCED
IMPROVED
Damage/Shrinkage
Inventory Accuracy
Misplaced/Lost Stock
Space Utilization
Search Times
Throughput
Order/Lot Tracking
Outside Warehousing
Paperwork/Forms
Customer Service
Human Error
Workload Planning/Scheduling
Resource Allocation
Deadheading/Equipment Costs
Utility Costs
Equipment Productivity
Transportation Costs
Performance Measurement
Backorder Handling/Crossdocking
Return on Assets
MOVING AHEAD
Information Week
on Technology
Random infusions of
technology will merely
leave the enterprise in
great disarray.
James Borck
Information Week
2001
10
Weigh Your
Options Carefully...
We are reminded of
the Fortune 200 food
company that delayed
rollout of a bar code lot
tracking system because
of its $2 million price tag.
A $5 million recall two
months later changed
management's position in
a hurry...
11
ESYNC | TranSystems
3232 Central Park West Drive
Suite A
Toledo, OH 43617
419.842.2210
www.esync.com
www.transystems.com