IDII Software Newsletter
 To assist the professional dealing with software in Warehousing Distribution, Logistics, and the Supply Chain.
August 16th 2001 - Vol 2 No 12
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Techniques, Vision, & Educational Thoughts

"The Top 10 Fallacies of Logistics Labor Management"

Labor Management represents perhaps the lowest hanging fruit for companies interested in reducing supply chain and distribution costs. With its accelerated, ROI, a Labor Management System (LMS) delivers a rapid, deterministic payback that can improve distribution center labor productivity 10-30 percent, as well as provide a long list of other benefits.

While many great companies in the retail, food, consumer goods, and third party logistics segments of the market have successfully implemented labor management systems and achieved these benefits, many others have not. Given the clear economic and operational benefits of LMS, the failure to implement advanced labor management appears to be related to a number of misconceptions surrounding LMS process, technology and impact.

The top 10 of these fallacies are described below.


Fallacy #1: I'm already getting labor management from my current WMS or ERP system

While leading best-of-breed WMS systems (such as McHugh's DLxÔ Warehouse) drive enhanced distribution center productivity, they do not deliver the depth of labor management capabilities a true LMS can provide. These advanced LMS capabilities generate another whole level of benefits that achieve rapid ROI, often increasing labor productivity by 10-20 percent over that obtained from a WMS alone. While many WMS systems have basic labor "productivity trackers," they do not provide the depth of functionality of a true LMS in such areas as support for discrete standards, labor planning, robust labor reporting and the ability to determine "cost to serve" specific customers.


Fallacy #2: Labor management embodies an old, unenlightened way of thinking about employee relations

Achieving increased labor productivity, improved quality and enhanced employee retention will always be in style. But beyond these hard dollar benefits, a comprehensive LMS is also supports a positive, modern approach to employee relations.

Advanced labor management emphasizes such elements as management/supervisor engagement in operator work to ensure safety and remove the barriers to productivity, detailed training on the best method to perform a job, and consistent feedback and counseling to employees to ensure their success. The most successful approach to LMS is to actively involve shop floor operators in the development of processes and standards. Well-designed and implemented labor management systems result in a more positive work environment that will be the model for tomorrow's high performance distribution companies. Therefore, any notion that they are relics of an unenlightened past is a misconception.


Fallacy #3: Implementing an LMS will reduce morale and increase employee turnover

McHugh's experience in implementing over 100 labor management systems across many industries indicates that the reverse is true: implementing a quality LMS almost invariably improves morale and reduces employee turnover. This is because all employees, including DC operators, like to understand how they are performing in their jobs, and to have feedback based on fair and objective standards. They also want to understand the right way to perform specific tasks. Labor management directly addresses both these employee issues. Labor management also provides the foundation for implementation of fair and accurate incentive programs, which increase employee satisfaction and retention.

White Paper is provided by McHugh Software Infernational (WMS, LMS, TMS).

Part two of this white paper will be in the next newsletter..


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 Software Company News


  • J.D. Edwards (ERP, CRM, Nasdaq: JDEC) to acquire YOUcentric, Inc. of Charlotte, N.C. YOUcentric is a privately-held provider of Java-based customer relationship management (CRM) software, including applications for sales force automation, campaign management, contact center management, and partner relationship management. CRM facilitates increased customer satisfaction and loyalty while reducing a company's costs for meeting customers' needs.

    By adding YOUcentric's capabilities, J.D. Edwards will deliver a comprehensive set of integrated collaborative applications that enable companies to electronically manage their business relationships from supply chain planning all the way to customer services. J.D. Edwards' collaborative commerce product set brings together Enterprise Resource Planning (ERP), Advanced Planning and Scheduling (APS), and Supplier Relationship Management (SRM) with traditional CRM functions. This enables a customer-oriented, collaborative B2B solution for optimizing a company's planning, marketing, sales, fulfillment, delivery, and service operations.

    ``Our customers and prospects are demanding software that delivers more value through enhanced customer experiences,'' said C. Edward McVaney, chairman, president and CEO, J.D. Edwards. ``By combining J.D. Edwards and YOUcentric, we will provide our current and future customers the benefits of a very adaptable and integrated collaborative CRM application suite.''


  • MARC Global Systems (WMS, TMS, 3PL) - Announces Release of MARC-Customs 5.0 Enables Licensed Bonded Warehouse Operations Across Borders The enhanced MARC-Customs software is available as a stand-alone system to integrate with other supply chain planning and execution systems and as a complementary product to the MARC supply chain execution suite. MARC-Customs supports administrative organizations and internal control processes in handling procedures to comply with bonded warehouse regulations.

    MARC-Customs automatically generates a variety of reports used by customs authorities to check and verify customs-related activities in warehouse operations, including import declaration, transit overview, stock overview, T-and ED- transport documents and national and Intrastat statistical documents. MARC-Customs also supports excisable goods registration, and handles VAT declarations for third-party logistics (3PL) companies that are authorized to act as fiscal representatives. As a result, companies reduce inventory and administrative costs, and improve warehouse performance and
    goods flow.

    MARC-Customs is a multi-principal product that manages customs processes for various customers within the same warehouse, making it extremely useful for both 3PL and traditional warehousing operations. Designed for a concurrent multi-language environment, MARC-Customs offers customers the ability to configure system language on a user-level and toggle between languages.


  • Microsoft Great Plains Business Solutions(ERP,WMS) announced the availability of four integrated modules in its Microsoft® Great Plains® Supply Chain Series powered by Logility Inc. Tightly integrated with Microsoft Great Plains eEnterprise, a global business solution for midmarket companies, these modules bring greater efficiencies to the coordination of planning, forecasting and delivery of goods throughout the supply chain.

    Warehouse Management - The warehouse management application brings greater efficiency to daily warehouse operations and the delivery of goods throughout the supply chain. The warehouse management application utilizes radio frequency (RF) technology to direct warehouse activities in the most efficient and cost-effective manner. The system guides workers to optimal pathing routes within the warehouse, optimizes space through several configurations rules, and utilizes flexible workflows to direct activities such as the selecting, packing and shipping of goods.

    Demand Planning - The demand planning module utilizes self-selecting, self-correcting algorithms to transform up to 36 months of historical data into forecasts. Users can override the forecast if needed for special events or promotions and can leverage the extensive drill-down capabilities within the module to analyze and forecast based on key variables such as product group, item, location or customer.

    Inventory Planning - The inventory planning module enables companies to intelligently control inventory costs. The solution generates recommendations on how much of which products to keep in inventory to meet desired customer service levels economically. In addition, the inventory planning module can run what-if scenarios to determine how changing variables can affect inventory goals and balance between service level and inventory investment.

    Replenishment Planning - Replenishment planning provides a time-phase view of inventories and guides midmarket companies through reorder of supplies and products to ensure proper levels of inventory are carried to meet specific demand. Tolerance levels within the solution enable companies to automate purchase-order and work-order generation for improved responsiveness.

  • LogicTools (Optimization,TMS) releases LogicNet Plus, a new strategic and tactical supply chain planning tool set. )

    LogicNet Plus has all the characteristics of LogicNet(R) with additional powerful enhancements. These features include:
    Unlimited number of tiers allowing users to model any complex supply chains where suppliers ship to plants to ports to warehouses etc.,
    Open/close decisions for plants and production lines Eextended international support and an extremely sophisticated solver able to exploit specific characteristics of network design problems to enhance performance.

    According to Edith Simchi-Levi, VP Operations of LogicTools, "LogicNet Plus fills an important gap in our ability to provide tools for analysis of complex supply chain planning problems. LogicTools' solutions replace extremely complex, expensive and customized software implementations on the one hand and limited spreadsheet analysis on the other. Providing the capability to optimize the supply chain results not only in significant savings, 5%-10% are typical, but also a clarity of vision and better understanding of the various trade-offs."

    LogicNet Plus offers advanced decision support capability while retaining the flexibility and ease-of-use of LogicNet, characteristics that have made it the most widely used strategic network design tool in the industry.


  • Oracle (ERP, DB Vendor) - Unveils Warehouse Management System & Mobile Supply Chain Applications. This latest addition to the E-Business Suite spans the areas of warehouse resource management, warehouse configuration, task scheduling, advanced pick methodologies, and value added services - all fully supported through barcode and radio frequency mobile devices. Oracle Warehouse Management System is delivered fully integrated, out of the box, as a part of the Oracle E-Business Suite, helping to dramatically simplify implementation and improve overall ROI.

    As a true execution system, Oracle Warehouse Management System can support various picking methodologies such as directed picking and putaway, automated task dispatching, and compliance labeling. The user can configure these methodologies by utilizing a powerful business rules engine to tailor Oracle Warehouse Management System to their specific requirements without the need for customization. Additionally, standard functionality that provides integrated barcode support, use of License Plate Numbers (LPN) and container management can dramatically reduce transaction complexity while increasing accuracy.

    Oracle Warehouse Management System (WMS) optimizes material handling business processes for warehouses, manufacturing facilities and distribution centers and provides a true execution system for the management of your warehouse logistics. Oracle WMS supports both paper-based and highly automated environments with material handling systems and RF hand-held computers. Oracle WMS provides advanced distribution processes such as directed picking and putaway, value-added services, cross docking, order assembly postponement, and resource and task management to optimize the order fulfillment process. Oracle WMS has been designed to be highly flexible so that it can adapt to your specific needs. With Oracle Warehouse Management System, companies gain the following benefits:

    • Comprehensive inbound, outbound, and reverse logistics
    • Easy to use automated interface for mobile wireless hand-held computers
    • Value Added Services/Manufacturing, including kitting/dekitting/light assembly and mixed-mode manufacturing
    • Advanced Inventory, Storage and Facility Management
    • Faster and improved ROI through full, seamless integration and flexible configuration capabilities


  • Syspro Impact Software, Inc.,(ERP, WMS, CRM) has announced e.net solutions, a new component architecture designed to give authorized individuals the ability to interact with IMPACT Encore(tm) data over the Web as well as from remote devices, including palm pilots and cell phones. IMPACT Encore is Syspro's enterprise software solution, which encompasses modules for manufacturing, accounting, distribution, APS&E, warehouse management and CRM.

    e.net solutions is a component-based framework that provides a standard way of directly accessing the business functionality within the IMPACT Encore solution while maintaining the software's built-in business rules and security. In addition to enabling such functions as remote purchase order entry and inventory status determination, e.net also facilitates the integration of best-of-breed applications with IMPACT Encore.

    e.net solutions delivers IMPACT Encore's functionality as discrete 'objects' of code, each object being a Microsoft COM (Component Object Model) component. Users can then access these objects using popular scripting languages, such as Visual Basic for Applications (VBA) or Active Server Pages (ASP). The components fully support the Type Library and IntelliSense, making it very easy for developers to understand and work with the document model. Applications communicate with the COM interface, not with IMPACT Encore directly. The business logic that lies behind the COM interface may change from time to time (as a result of database changes for example), but the 'methods' and 'properties' of the COM interface will remain the same for the life cycle of the component.

    e.net solutions components can be accessed either directly on the application server or remotely using the Distributed Component Object Model (DCOM). An example might be a web site with the application server running the COM components for purposes of scalability and security. The web server will communicate with the application server using DCOM.

  • Yantra (ERP, WMS, TMS) Targets Third-Party Logistics (3PLs) Providers.

    Yantra Distribution is a web-based software application that will enable users to link its customers, contact centers, carriers and suppliers into a real-time supply chain network. The software manages, tracks and executes complex orders across extended trading networks providing real-time information through an Internet browser to any authorized user. Yantra's powerful workflow engine allows Reality to provide flexible and responsive fulfillment processes designed to meet the needs of individual customers.

NextCard Visa

Scripture to Ponder

"A man's pride shall bring him low:
but honor shall uphold the humble in spirit."
-- Proverbs 29:23

Quotes to Ponder
  • "To understand ...and... to be understood."
    --Melinda Obal
  • "One way to evaluate your own reputation is to think about what would be said of you at your eulogy."
    --Brian Koslow
  • "We will discover the nature of our particular genius when we stop trying to conform to our own or other people's models, learn to be ourselves, and allow our natural channel to open."
    --Shakti Gawain

  • AUG 7 2001 - LONDON (Reuters) - Lost -- a tiny village in Scotland, called Lost.

    Well not quite.

    But residents in the village of Lost in Aberdeenshire are appealing for Lost to be found. The signpost for their village has gone missing.

    "Lost is a tiny village and it's quite difficult to find at the best of times," Beverly Tricker, a spokeswoman for Aberdeenshire tourist board, told Reuters. "Now that someone has taken the signpost, people are getting even more lost.

    "We are appealing for Lost to be found and for the signpost to be returned."
Websites To Check Out

http://www.logistics.about.com - Educational website on logistics and supply chain..


Good Book

"Designing and Managing the Supply Chain: Concepts, Strategies, and Cases"
David Simchi-Levi See reviews and more information on this book at Amazon.com

Good Book

"The Logic of Logistics: Theory, Algorithms, and Applications for Logistics Managements"
Julien Bramel (Columbia University) and David Simchi-Levi (MIT) See reviews and more information on this book at Amazon.com


Another Good Book - From IDII

"What To Look For In Warehouse Management System Software"
Obal, Philip See reviews and more information on this book at Amazon.com

New Software Directory

"Warehouse & Logistics Software Directory"
Obal, Philip See reviews and more information on this book at Amazon.com


Valuable Future Events

LogicTools will be holding its 2nd Annual Symposium: Improving Supply Chain Performance with Tactical Planning on Thursday, September 13th 2001. The symposium is being held in conjunction with the first annual LogicTools User Conference on Friday, September 14th, 2001. See http://www.logic-tools.com/symposium2001/



About This Newsletter - ISSN 1533-435X

We educate and share news on software for warehousing, transportation, shipping, packing, slotting, loading, optimization, and enterprise wide software solutions. This free newsletter is published twice a month. Feel free to forward this newsletter to others that you know. One may quickly subscribe by accessing our website at www.idii.com/esn/index.htm.

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© 2001 Industrial Data & Information Inc. All Rights Reserved.. Trademarks belong to respective trademark holders. Information accuracy is not guaranteed due to variety of sources.

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