Supply Chain Network Top Ten Search Terms – Q4 2008

edi software

spend management

distribution software

supply chain software

security network

manufacturing software

software management

corporate performance management

inventory management

vendor managed inventory

Interesting to note that half of these terms include software which even further highlights the importance of systems and software in the building of today’s supply chain networks!

Jeff Ashcroft

In the meantime, companies that ship food products say the pallets’ primary attraction is their plastic composition, which they claim is lighter, more hygienic and sturdier than wood. Martori Farms, a produce grower in Scottsdale Ariz., and HEB Grocery Co., based in San Antonio, Texas, are among the iGPS converts.

Martori Farms ships the broccoli and melons it grows to distribution centers nationwide, which then transfer the produce to local retailers. “We have been urging our pallet suppliers to develop a plastic product for many years,” says Paul Fleming, VP of marketing and business development for Martori Farms. “IGPS presented an option that included the benefits we desired in a pallet.” Such advantages included the elimination of broken boards, wood pieces and nails from wooden pallets, which he says “were littering our warehouse floors.”
Growers and Grocers Get Into Plastic Pallet Pool

The proof of concept project must be very carefully selected as it will be the key to ongoing success within the industry and it must show significant promise relative to the potential for rolling out an ongoing ROI implementation of the methods demonstrated by the proof of concept.

Selection of the proof of concept to be completed must be made and supported by the industry group established in part one and this group will also share the cost of the proof of concept through a jointly established funding formula.

Once this proof of concept project has been successfully completed, a detailed roadmap and business plan for the roll out of the industry supply chain network can then be safely and quite accurately defined.

Availability of this roadmap and business plan will greatly facilitate companies in making the decision to support and implement the industrywide supply chain network as proven out during the proof of concept stage.

In order to maintain focus and deliver an initial success the first model of the industrywide SCN will not likely incorporate all functions and methods, but focus on those most critical and ROI drivers, with additional functionality to be added later once the SCN is up and running.

Please note that each of these steps will take at a minimum six months and likely longer given the cultural issuues in many industries as well as the amount of time industry professionals can dedicate to the supply chain network process.

If you or your group would like assistance in mobilizing your industry’s supply chain network just ASK and we’d be happy to assist further based on past success in projects of this nature.

Jeff Ashcroft

Without such standards and a community of interest supporting them, no comfort levels on which technologies to buy and how to implement them can be safely established. This indeed is a long process and significant work has already been undertaken by groups such as the Supply Chain Network Project.

RFID (Radio Frequenct IDentification) is one of the key technologies required for this purpose and to understand more about RFID applications for SCM, see Are You Ready for RFID? as this technology has suffered through a long evolution which is rapidly becoming a revolution. Perhaps even catching some of the major software providers offguard who are now rapidly playing catch up to ensure their applications are compatible with and support the use of RFID and other new methods.

So what is meant when we say that SCM Standards are needed? Well at the basic level, there needs to be a standard developed for the physical processes required for efficient functioning of supply chains in conjunction with the technologies such as RFID and others. These others include electronic catalogues, vehicle location devices, security technologies, smart returnables and wireless devices to name some of the most important. But beyond this, also required is a definition of the required systems applications and how they may be developed and used in a “standard” methodology to support interoperability between trading partners in diverse supply chains.

To give you an idea of these application requirements, what we’re looking at are Activity Hubs, Dashboards and Standardized Database Structures. Such SCM standards will most likely roll out on an industry by industry basis, with some items slightly tailored or customized to support each industry, but there’s no doubt in this author’s mind that without the development of strong SCM Standards, the forward movement required to achieve the heady goals set for SCM applications will not be made. So when you’re looking at future investments in SCM technology and infrastructure, you may first want to look at what standards are being developed and where they’re headed to avoid bad investments or the need to replace current technologies sooner.

Take some time to look at what is happening in the area of Supply Chain Management standards development, get involved, contribute and participate in one of the most exciting periods of development in the history of Logistics and Supply Chain Management.

Cheers

Jeff Ashcroft