IDII Software Newsletter
November
15th 2002 - Volume 3 Number 21
For professionals dealing with
software in Warehousing, Distribution, Logistics, and Supply
Chain.
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Techniques, Vision, & Educational Thoughts
Software Implementation FAILURE AVOIDANCE Guidelines - Part
Two
4. Hire a 3rd Party. No one can be as objective as a Third
Party acting as an Integrator, Umpire, Translator, or Consultant.
An Integrator can help weave together potential interdepartmental
rivalries, synthesize possible multiple software solutions with
disparate architectures and/or platforms, and distill all anticipated
benefits from your software implementation across all business units
and standardize across the enterprise. The Umpire will match your
very different agendas--the software vendor is looking for your
money and your signature on the dotted line. If you have this person
acting as a Translator, you will understand what the software peddlers
are telling you, and the software peddlers will understand your
needs. You are looking for a solution and often bleeding edge technology.
A Consultant by definition gives expert or professional advice.
This contract employee will keep you from redesigning a wheel or
keep you out of harm’s way. You really need an objective 3rd Party.
Your Third Party Hired Gun will also know the right questions to
ask. This is worth his or her weight in gold. Mr. or Ms.
Third Party and Seymour (Seymour always wants to see more will weed
out your unfavorable vendors with ruthless efficiency.
5. Know the ROI. There is always a Return On Investment
(ROI). You should have a general ROI expectation in place before
you begin your project. Let your hired gun help determine this very
important calculation. Do not bother to let your potential vendors
perform the ROI analysis. They usually arrive at a calculation that
easily and generously endorses their product and all of its associated
costs. Keep in mind your firm’s Economic Valued Added (EVA) in mind
to make up an ROI’s incomparability among divisions. EVA is net
operating profit minus an appropriate charge for the opportunity
cost of all capital invested in an enterprise. As such, EVA is an
estimate of true economic profit, or the amount by which earnings
exceed or fall short of a required minimum rate of return. It is
difficult to capture all costs and payoffs of any large project,
especially one as unpredictable and often terrifying as a major
software implementation. Albert Einstein once said that many times
things that can be counted do not always count, things that cannot
be counted often count. Go back and read that last sentence again.
Keep this in mind while evaluating your ROI. You will have to make
some assumptions. Use the ROI as a budgetary variance tool. During
your reviews you need to keep track of budgeted and actual costs.
This is critical in keeping a project within budget, monitoring
for adjustments, and knowing how well your team and / or the vendor
is performing.
6. Budget for all foreseen costs. This is easier
said than done. You will need to look at additional seat costs associated
with your operating system, database management system, reporting
and label producing applications, and technology such as wireless
applications. Cost-Creep will produce Budget Creep, which often
spells D-I-S-A-S-T-E-R. The aforementioned 3rd party can come in
handy here.
7. Document your processes. If you have not done
this, do it now. Let the Third Party help you. If your processes
are being documented at different sites, sit back and get ready
to discover the multitude of process variations for the same, well,
process. You may get a lot of bang for your buck here. Let the Third
Party help you distill the best processes and merge them all together
in a “Best Practices” process manual. Now you have a documented
methodology to present to the software vendors.
8. Document their processes (and functionality).
Their functionality needs to match your process as closely as possible.
Avoid customization as much as you can. The very best vendors know
the very best way to do things because they have the very best customers.
They have taken the collective wisdom of their customer base and
programmed it into the software. Consider changing your process
to fit the software if it makes sense. Remember how much you can
learn from the vendor’s customer site visits.
Author: Ray Scipioni - Next issue - Part Three
of Failure Avoidance
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IDII News - New Website Features
- New WMS Research Report Study.
IDII is now researching WMS solutions
that are capable of 25 RF Users & Above. To be included
in this study, please contact Phil Obal of IDII at philobal@idii.com.
This study will be completed in February 2003. IDII will announce an
exiting new research report with our detailed findings at that time!
- NEW ADVANCED
WMS RFI - Edition 7 Released November 1 - Includes
new sections and contains 1000 detailed questions - resulting in RFP's
with greater detail in a WMS software selection project. If your company
want to do a software search for a new WMS then this will greatly benefit!
It will save you a solid week of time or more!
- New Book Sections! - RFP
Development - Proposal
Writing - Software
Project Management - IT
Management - Software
Testing - Plus our other book catalog sections.
Keep Learning - Free
Books - White Paper Index
(Over 100) - Books
- Suggest A White Paper
Software Company News
- AquiTec (WMS, LMS, TMS) introduces its
web-enabled warehouse management software product, eWMS,
that will provide customers with real-time visibility of warehouse operations,
at Softworld 2003. Its web-enabled architecture offers enhanced availability
of information and greater flexibility in management reporting, enabling
retailers and wholesalers to respond more effectively to the demands
of the supply chain.
eWMS is the third product in
AquiTec's SCM/e suite of web-enabled supply chain products
and is a direct response to customer and market demand for flexibility
of platform choice. eWMS combines all the superior functionality of
AquiTec's existing iSeries-based warehouse and labour management products,
SCM/400, with additional functionality developed to increase warehouse
productivity and the enhanced flexibility, scalability and user-friendliness
provided by a web-based architecture.
- Cambar Software Inc. (1981, WMS, TMS,
CSI) has been acquired by Supply Chain Holdings LLC (SCH), a Southeast
investment firm, for an undisclosed amount. CSI plans
to leverage the new ownership group and funding to accelerate the growth
of its supply chain execution software in target vertical markets. Supply
Chain Holdings, LLC is a Southeastern investment firm that acquires
and invests in growing and established supply chain management software
and consulting firms.
- Catalyst International (WMS, NASDAQ:
CLYS) to acquire Catalyst Consulting Services, a Provider of Implementation
Services for SAP LES. Catalyst has signed a letter of
intent to acquire Philadelphia area-based Catalyst Consulting Services,
Inc., a leading independent provider of consulting, implementation and
support services for the SAP Logistics Execution System (SAP LES). Catalyst
Consulting Services is a US-based, certified SAP Services Partner focusing
on the implementation of SAP LES.
Editor's Note: IMHO, Looks
like Catalyst is continuing to focus on services - consulting - integration
dollars to keep it a profitable company. Services is a very profitable
item.
- EXE Technologies, Inc. (WMS, 3PL, Nasdaq:EXEE) announced that
its board of directors has authorized a reverse
stock split, to be effected at a ratio of between one-for-five
(1:5) and one-for-fifteen (1:15), subject to approval by the Company's
stockholders at a special stockholders' meeting, which will be held
in late December 2002 or early January 2003.
Editor's note: A year
ago, EXE & Manhattan were tied for 1st place in the largest WMS
provider. EXE still has a large install base with a low stock price
( EXEE has been trading for 41 cents to 75 cents per share during the
last month). IF
EXE can get out of it's slump, it will be an interesting 2003 story.
On the other hand, Manhattan has executed well during the last year
& a half - in both sales & financial health - and has been a
Wall Street favorite in the SCE space.
- ICS, Inc. (WMS, 3PL) announced LogiMation,
the newest module for ICS's third-party warehouse and logistics management
(3PL) solution, LogiMax. Delivering complete wireless
(RF) automation for 3PL warehouses, the LogiMation module enables dynamic
and paperless management of all warehouse tasks and processes in order
to optimize efficiency, maximize profitability and increase competitiveness.
A fully-integrated LogiMax module, LogiMation provides real-time,
total task visibility for all warehouse processes and activities -
from receiving through delivery - based upon pre-defined rules, priorities
and associated tasks. Leveraging this data, LogiMation paperlessly
automates tasks and optimizes efficiency by combining transactions
and delivering advanced task logic that enables warehouses
to:
- receive and put away inbound goods in a single, seamless transaction;
- match fulfillment orders with appointments from carriers and automatically
queue them for review by supervisors;
- receive unexpected shipments on the fly and more quickly react to
time-critical deliveries that require special attention;
- direct put-aways to optimize product consolidation and rotation
with enhanced logic that recognizes item velocity, stack-ability and
product date mixing - rules;
- assign order priorities and release to full pallet, case and split-case
task queues based on user equipment;
- generate consignee compliant labels for ready-to-stage pallets and
have them waiting at the stage location;
- replenish interleaved forward pick locations;
- Lilly Software Announces Additional Theory of Constraints
/ Drum-Buffer-Rope Training Offering. Lilly Software Associates
announces the availability of the Throughput Improvement Primer (TIP)
package. Leveraging the success that it has had with the VISUAL DBR(tm)
and VISUAL Power Boost(tm) solutions, Lilly Software developed this
offering to help VISUAL customers and prospects rapidly realize the
value of implementing Theory of Constraints (TOC)/Drum-Buffer-Rope (DBR)
management techniques, while minimizing the cost of their initial investment.
The TIP package includes four days of TOC expertise and training, where
companies develop high-level implementation plans for using DBR disciplines
and strategies to manage production. During this training, top management
and production teams work together to identify their bottleneck resources,
discuss how to apply the DBR methodology against these resources, and
recognize the impact of these changes on their financial bottom line.
As part of the high-level plan, teams also create a time table for achieving
their financial goals.
- Logistics Management Solutions (LMS)
introduces TOTALVision, a Web-enabled program that combines rate management,
Internet tracking & tracing and freight payment management
into one, easy-to-use system. By consolidating these fundamental shipping
functions, TOTALVision offers complete online shipment visibility –
from order entry to carrier payment – enabling shippers to gain tighter
control of their freight operations. TOTALVision becomes an online logistics
data warehouse, coordinating the following tasks:
· Rate Management
- Carrier inquiries
- Rate maintenance
- Batch rating
- Core carrier compliance reporting
- On-time delivery performance reporting
- Electronic route guides
- Shipment accruals
· Internet Shipment Tracking & Tracing
- Up-to-the-minute shipment status
- Final delivery notification
· Freight Payment Management
- Carrier payments
- Carrier inquiries – handled by LMS
- Reject resolution – handled by LMS
- Manhattan Associates
has 2 announcements.
- Forms strategic alliance with Tokyo-based Site Design,
a leading provider of Web-based order management and fulfillment
solutions.
- Signs letter of intent to acquire
Logistics.com. Manhattan Associates to Augment Offering
with Premier Transportation Execution Capability, Adding Transportation
Planning, Carrier Product Portfolio and Large Blue-Chip Customer
Base.
- Prophet 21, Inc. (Nasdaq:PXXI) has entered
into a merger with an entity formed by Thomas Cressey Equity Partners
Inc. ("TCEP") and LLR Partners Inc. ("LLR").
Under the Merger Agreement, all of the issued and outstanding shares
of common stock and in the money options of Prophet 21 will be acquired
for cash in the amount of $16.30 per share. Prophet 21 management will
continue to operate the business under its current name and operating
structure.
- RedPrairie has released a new version
of its best of breed warehouse management system, DLx® Warehouse,
containing the specific processing requirements food and beverage companies
require. The DLx® Warehouse/D 6.0 release runs on the Microsoft®
WIN 2000 platform using either Oracle or SQL Server databases. It is
available with industry-specific deployment packages for Consumer Goods,
Food & Beverage, and other environments. For food and beverage companies,
the system has extensive functionality to manage multi-level
holds, time holds, catch weights, shelf life, expiration dates, quality
assurance, recall processing and many other distribution functions.
- Richer Systems Group (RSG) has added
new capabilities to the Enrich Transportation Management System (TMS)
including dispatch, freight billing, driver settlement, and warehouse
management through an OEM licensing arrangement with SCORE Corporation
of Canton, Michigan.
Enrich TMS is a modular software package that can
be deployed progressively and extends functionality to every part
of the business: freight and truck operations, asset management and
maintenance, fuel management, compliance, accounting and financial
reporting, payroll and HR, customer service.It is unique in its abilities
to support multi-mode service offerings within a single management
system: truckload, LTL, dedicated, specialty, brokerage, air freight,
warehousing, leasing and contract maintenance, rentals, retail maintenance.
Quotes to Ponder -
List of Quotes to Ponder from
prior issues.
- "Kind words can be short and easy
to speak, but their echoes are truly endless."
- Mother Theresa of Calcuta
- "Don't walk in front of me;
I may not follow. Don't walk behind me; I may not lead. Just walk beside
me and be my friend."
- Albert Camus
Scripture to Ponder -
List of Quotes to Ponder from prior
issues.
- "Let no unwholesome
word proceed from your mouth, but only such a word as is good for edification
according to the need of the moment, that it may give grace to those
who hear."
- Ephesians 4:29
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.
Need help in RFP
Development or Proposal
Writing. IT Management Issues: Software
Project Management - IT
Management - Software
Testing
New Software Directory
- October 2002 -
"Warehouse
& Logistics Software Directory"
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Amazon
or IDII |
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Manufacturing
Manufacturing
- Supply Chain - ERP
SAP
& Supply Chain
SEARCHING FOR A NEW WMS - SAVE TIME !!!
Valuable Future Events in 2003 - List
Your Event or Convention
ProMat 2003 - February 10 - 13, 2003. ProMat 2003 will
provide business, IT and operations professionals with a comprehensive
solutions showcase of 700 exhibitors and nearly 80 educational sessions.
Focus is Material Handling and Software. See http://www.promat2003.com
National Conference on Operations & Fulfillment (NCOF)
- April 13 - 16, 2003 - Orlando, FL. The Walt Disney World Dolphin Hotel,
Exhibits: April 14 and 15 The Conference Exclusively for Direct-to-Customer
Operations and Fulfillment Management.
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.
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© 2001, 2002 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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