Supply Chain Innovators - Winners
ID Systems, October 2000
SHOWCASE
Ten companies reveal how their new
supply chain solutions are improving visibility, collaboration
and performance.
Supply Chain Innovators: The Selection
Process
Visibility. Collaboration. Improved performance.
Increased efficiency. Reduced costs. Such words can be seen
in many a press release issued these days by hardware and
software vendors that provide supply chain management products
and services. But for the companies highlighted in this article,
"ID Systems Supply Chain Innovator 2000 Showcase,"
they're more than just media buzzwords; they represent the
real benefits companies are seeing from new supply chain systems.
In some cases, the user companies discussed
here implemented totally new solutions in place of legacy
systems. (For more information on the criteria we used to
choose the firms mentioned in this article, see the accompanying
sidebar, "Supply Chain Innovators: The Selection Process.")
In others, the company's supply chain solution combines old
and new. The range and size of the user companies vary widely;
some are retailers, some are distributors, some are manufacturers,
and some are a combination of the three.
But they all have one thing in common:
They are leveraging supply chain management software and hardware
solutions to improve their customer service levels, increase
revenue, reduce costs, and find new opportunities. So, without
further ado, let's have a look at ID Systems' supply chain
innovators.
SUPPLY CHAIN INNOVATORS - WINNERS
HONDA TRADING AMERICA (“HTA”)
- Marysville, OH, and Torrance, CA
Business: Operations support
for Honda manufacturing facilities, including raw materials
procurement and supply chain management
Supply Chain Summary:
HTA uses 3rdwave, an enterprise-wide suite of software solutions
from Blinco Systems, for integrated inventory pipeline visibility
to synchronize planning, ordering, purchasing, logistics,
accounting, and finance functions in real time, both domestically
and globally. HTA uses inventory demand planning to collaborate
with its customers and suppliers on requirements that streamline
four-month lead times for purchasing of raw materials for
JIT (Just-in-Time) delivery to Honda's manufacturing facilities
and parts suppliers.
HTA can capture more than 2000 SKU (stock-keeping
unit) export manifests from Honda of America Manufacturing,
and produce export documentation in two hours (including time
required for the computers to produce the reports), a task
that Blair Fujii, HTA's senior assistant manager of information
technologies, says was not economically practical before 3rdwave
was installed.
Benefits: Consolidation
of procurement and logistics services through HTA lets Honda
leverage volume to lower costs; 3rdwave SCM (supply chain
management) software improves visibility and collaboration
among Honda's manufacturing units and trading partners.
MITAC INTERNATIONAL - Corporate
headquarters: Taoyuan, Taiwan
Business: Global computer
manufacturer and major OEM supplier, with more than 6000 employees
worldwide
Supply Chain Summary:
MiTAC was founded in 1982 as a PC manufacturer, but now designs,
builds, and markets a diverse range of products, including
high-performance workstations, servers, and motherboards;
commercial and industrial notebook PCs; LCD PCs; and LCD monitors.
As the company recognized the value of the Internet in global
commerce, it realized that it needed to better integrate disparate
ERP (enterprise resource planning) systems used in Taiwan
(Oracle ERP), England (QAD MFG/PRO), and the United States
(QAD MFG/PRO), while also implementing improved planning and
forecasting. In addition, part numbers used at each of the
company's sites were inconsistent with one another, and no
one system held information about in-transit inventory between
sites. To solve these problems and to improve collaboration
among its various facilities, MiTAC made several changes:
- The iCollaboration suite from
Adexa formerly known as Paragon Management Systems) was
installed at Taiwan; it pulls information automatically
as flat-file extracts from the Oracle ERP and MFG/PRO systems.
Microsoft Excel stores additional supply chain-related data
not held in the ERP systems.
- In addition to creating a system in
which reports from the various sites are now exchanged automatically,
the company established the Taiwan facility as the central
maintainer of the item master and bill of materials databases
to create part number consistency. This data is published
automatically from Taiwan to the other sites.
- The company also reduced planning conflicts
by giving Taiwan visibility into the actual requirements
of MiTAC's company offices in England and the United States.
Automated data collection (ADC) hardware is used to improve
accuracy and to increase speed of information sharing.
Benefits: Benefits of
the new system, which the company is continuing to extend
(for example, the Adexa engine will be used to provide an
available-to-promise backbone for MiTAC's customers), include
visibility of the entire supply chain from one model; visibility
of in-transit inventory; and the ability to do MRP (material
requirements planning) on a daily, rather than weekly, basis.
This allows for better communication.
McKESSONHBOC - San Francisco,
CA
Business: Supply management
and health care information technology
Supply Chain Summary:
McKessonHBOC is improving the accuracy of its pharmaceutical
supply distribution to stores, hospitals, and other health
care centers. Its existing paper-based system was not sufficient,
and the company needed a way to leverage its existing infrastructure
to enhance its supply chain from ordering through delivery
and receipt. The company selected AvantGo enterprise software
to integrate Web-based information displayed on Symbol SPT
1700 Palm OSÐbased handhelds with its back-end systems,
such as the ACUMAX WMS (warehouse management system). AvantGo
software acts as the interface between the enterprise systems
and the handhelds, which, in addition to providing key information,
such as delivery manifests, to drivers can also capture electronic
signatures at the point of delivery. Via the Web, McKessonHBOC
customers can view invoices and order status. Jesse Bork,
company project leader, says the firm plans to add more functionality
and to integrate with more applications.
Benefits: McKessonHBOC
has already seen a significant decrease in delivery errors;
customers now have visibility into order and other information
over the Web, thus reducing the need for inquiry phone calls
and faxes. The WMS software, which Mr. Bork describes as world
class, is used to receive, store, and ship health care products
efficiently.
SUPPLY CHAIN INNOVATORS - HONORABLE
MENTIONS
PLANETOUTDOORS.COM - Boulder,
CO
Business: Internet-based retailer of recreational equipment
SCIQUEST.COM - Morrisville,
NC
Business: B2B (business-to-business) Web
market for scientific products used by pharmaceutical, clinical,
biotechnology, and other organizations worldwide
CYBEX INTERNATIONAL - Medway,
MA
Business: Manufacturer of exercise equipment
DISCOUNT LABELS DLI - New Albany,
IN
Business: Short-run custom label producer
FURNITURELAND SOUTH MART AND
SHOWROOM - High Point, NC
Business: Home furnishings and accessories
retail showroom and distributor
BERGEN BRUNSWIG - Orange, CA
Business: Distributor of pharmaceutical and
health care products
UPER STORE INDUSTRIES - Lathrop,
CA
Business: Retail grocery distributor
For related information, please
go to:
3rdwave MTD (for
Metals Trading and Distribution)
3rdwave
CGD (for Consumer Goods Distribution)
Honda Trading America
Case Study
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