IDII Software Newsletter
September 12th 2002 - Volume 3 Number 17
For professionals dealing with software in Warehousing, Distribution, Logistics, and Supply Chain.
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Phil Obal, consults & researches software solutions. Click for more details. Philip Obal
President of IDII


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Techniques, Vision, & Educational Thoughts

3PL Challenges & Manhattan Associates PkCost

3PL clients have their own special sets of requirements, causing the need for greater levels of sophistication, analysis and reporting. In addition to managing inventory and order fulfillment for multiple clients, 3PLs must also be able to efficiently track and bill each activity for every customer. As a result, 3PLs have an even greater need for visibility into the supply chain activities associated with their customers and carriers.

In response to this need, Manhattan Associates has developed PkCost, a dynamic billing solution that captures information from supply chain execution systems to enable 3PL providers to track and bill clients for inventory handling, storage, fulfillment and transportation activities. PkCost, which is a component of MA Fulfill, leverages XML-based communication to capture detailed activity information from supply chain execution systems for improved overall billing capabilities and granularity. With PkCost, 3PLs can apply rates to each transaction, refining their ability to identify costs and generate accurate invoices per the terms of their customers’ contracts.

Within PkCost, activities are defined as system-driven operations performed by associates in the distribution center. Manhattan Associates’ WMS and TMS solutions are enabled to generate and send detailed transactions to PkCost upon completion of a task. To complete an operation (and therefore 'notify' PkCost of an activity) an associate selects a WMS or TMS option and then executes all of the requirements of that task, which is considered finished once all of the task-specific work is done. The critical information related to that task is then sent to PkCost via XML for use in customer billing and cost analysis. The PkCost billing engine subsequently processes these transactions against customer-defined rules, thereby generating billing log records which store all information necessary to accurately bill clients.

Driven by rules-based charges, PkCost can satisfy the numerous contract requirements 3PLs must address. For example, rules can be created to satisfy such requirements as processing volatile, dangerous, hazardous and/or flammable goods. Min/max amounts are honored throughout the invoice generation process so that contract-driven requirements around min/max agreements can be satisfied based on configuration. Min/max levels can be set up at several levels and check points thereby providing a great deal of system flexibility and benefit to the 3PL provider.

PkCost supports multiple methods of storage billing, including:

  • Target Day Snapshot – billing for inventory storage on a pre-defined day of every month
  • Average Snapshot – billing for the average storage between two dates
  • Anniversary Storage, Retroactive – billing for the number of days since the last inventory storage charge was applied
  • Anniversary Storage, Advanced – billing in advance based on predetermined length of time
The billing flexibility PkCost provides 3PL providers allows them to address the dynamic needs of their customers by enabling companies to review, audit and/or modify billing logs and previewed invoices. 3PL operators can audit charges and make adjustments prior to creating final invoices, independent of an accounting system.

3PLs can support numerous clients within a single DC with multiple order profiles, SKU profiles, product handling and value-added services (VAS) requirements. In addition, PkCost allows 3PLs to analyze activity-driven costs that are not part of existing contracts to ensure that actual cost drivers are being accounted for in their economic and accounting models. PkCost is both single and double byte ready—capable of being translated to support European and Asian markets.

"PkCost has functionality that transcends the 3PL industry, offering critical cost-savings for all industries," said John Langham, vice president of Langham, a 3PL provider and Manhattan Associates customer. "By addressing the cumbersome job of tracking and affixing a cost to inventory handling, storage, fulfillment and transportation, it frees-up both operating costs and labor. Additionally, PkCost is Web enabled so I can easily access billing information both at the distribution center and remotely."

Information provided by Eric Lamphier, Product Manager, Manhattan Associates. Condensed by Philip Obal of IDII.

Editor's Note by Philip Obal: What surprised us about this new module by Manhattan was that it is a separate module (a positive). The norm in the WMS industry is tight integration of costing & WMS functionality. PkCost is a separate module (unlike the norm) that can receive/pull task information from -all- of the Manhattan WMS & TMS products. Through the exposed APIs the company has, PkCost is capable of receiving data from non-Manhattan Assocaites products.

This is important as 3PL's will continue to acquire other 3PL's and service customers that 'dictate' to the 3PL that you will use our ERP/WMS solution. The 3PL then has to pull/receive data - in order to invoice customers - even from ERP/WMS solutions that belong to the customer. Therefore, "fluid costing data is excellent" and a separate costing module can assist greatly to receive it!

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Cadre Technologies - WMS - Check It Out!
Cadre Technologies


IDII News - New Website Features

Optum Software - WMS - Check It Out!
Optum Software

Keep Learning - Free Books - White Papers (Over 100 Papers) - Books - Suggest A White Paper

Software Company News

  • i2 Trade Service (Nasdaq: ITWO, TMS, Optimization) Selects XyEnterprise XML Content Management and Publishing Solution. i2 Trade Service is the provider of content and pricing solutions for the electrical, plumbing/PVF, HVACR, industrial and office products industries. i2 Trade Service serves manufacturers, distributors and contractors by providing both accurate product descriptions, as well as current pricing. i2 Trade Service selected Content@, to assist with the quick compilation of catalogs for manufacturers and distributors, and to allow distributors to automatically populate their business systems with accurate pricing each week.

    i2 intends to use XyEnterprise's Content@ content manager to assemble business critical documents in XML format. The Content@ system will be integrated with the i2 content management process to automatically build documents with information stored in Content@ and i2's pricing database and MRO database of over 5 million items. i2 also intends to use XyEnterprise's XPP (XML professional Publisher) software to automatically publish this content in electronic and print format.

  • Made2Manage Systems Inc. (Nasdaq: MTMS) announced significant enhancements to its supply chain management solution, M2M™ SCM. M2M SCM is a suite of interlocking supply chain management tools that include demand forecasting, planning and scheduling applications.The company has added several new functions to its enterprise portal, M2M VIP, and enhanced its Electronic Data Interchange (EDI) capabilities with XML technology in its enterprise integration tool, M2M Link. Both applications are fully integrated with the M2M SCM solution and the Made2Manage Enterprise Business System. In addition, Capable to Promise (CTP) functionality has been imbedded within M2M ERP to work in tandem with M2M Synchronizer, an application server that enables the M2M SCM planning and scheduling functionalities.

  • PeopleSoft (ERP, HR, CRM, SRM) announced the general availability of the first industry-specific solutions for Supplier Relationship Management (SRM). PeopleSoft first to deliver vertical solutions for Supplier Relationship Management New functionality speeds implementation and adoption. PeopleSoft SRM, built on PeopleSoft's Pure Internet Architecture(tm), manages the complete source-to-settle process, from the development of sourcing strategies to supplier selection, transaction execution, financial settlement and ongoing supplier management. SRM allows customers to manage the complete enterprise spend-including business and manufacturing supplies, raw materials, capital assets and contract services.

Quotes to Ponder - List of Quotes to Ponder from prior issues.

  • "Happiness is a choice that requires effort at times."
    - Anon.
Scripture to Ponder - List of Quotes to Ponder from prior issues.
  • "If a king judges the poor with truth, his throne will be established forever."
    - Proverbs 29:14
Websites to Check Out

Online Book Catalog - Intuitive Categories

Books on Shipping, Warehousing, Distribution, Operations, WMS, ERP, MRP, CRM, Supply Chain, Customer Service, Logistics, Facility Layout & Design, Metrics & Measurements, and books on software solution providers SAP, Peoplesoft.

New Software Directory - September 2002 -

"Warehouse & Logistics Software Directory"


Order From
Amazon
or IDII

Manufacturing
"Value Stream Management"


Order From
Amazon


Manufacturing - Supply Chain - ERP
"Lean Performance ERP Project Management" - Implementing the Virtual Supply Chain"


Order From
Amazon


SAP & Supply Chain
"Supply Chain Management
Based on SAP Systems"


Order From
Amazon

SEARCHING FOR A NEW WMS - SAVE TIME !!!

"ADVANCED WMS RFI Search Bundle"
Available from IDII only
Obal, Philip
 Advanced Version is available only from IDII

Valuable Future Events - List Your Event or Convention

Frontline Solutions' Supply - September 23 - 26, 2002 - McCormick Pace, Chicago, IL. 250 technology & service providers, and over 100 conference sessions help you understand and compare the latest generation of data-capture, mobile computing, warehousing, and collaborative technology. Visit http://www.frontlinexpo.com or call 1-800-331-5706.

Council of Logistics Management Annual Conference - Sept 29 - Oct 2, 2002 - San Francisco, CA. This year's conference offers 36 tracks (educational) on supply chain, logistics, CPFR, technology, and Sunday is a software showcase day. See http://www.clm1.org

Distribution/Computer EXPO 2003 - May 20 - 22, 2003 - Navy Pier - Chicago, IL. The largest Exposition for logistics and supply chain technology including; distribution, transportation, and warehousing. Held in conjunction is the D/C EXPO seminars focusing on the latest trends and advances in logistics and supply chain technologies. Visit our website at www.logistar.com or call our toll free number - 800-338-4112.


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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. One may quickly subscribe, view past issues, view FAQ, & our rate card by accessing www.idii.com/esn/index.htm.


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