Core System Optimisation Vital Link for Supply Chain

Core system optimisation is a vital link for manufacturing’s supply chain success, writes David Lees (pictured), CTO of Basis Technologies.

Manufacturing supply chains are growing increasingly complex and difficult to manage. Factors like nature-related risks, geopolitical dynamics and business transformation have decreased the resilience, availability, and viability of managing supply chains effectively. However, one of the key barriers to supply chain success for global manufacturers is the archaic state of their core business systems, such as ERP.

ERPs, such as leading provider SAP, is the beating heart of many logistics organisations yet is often overlooked by CIOs. It’s widely regarded as being a ‘constant’ in and amongst business innovation happening around it – it’s the age-old foundation that has kept the company running for years. However, what CIOs may be unaware of is that these established systems have become ticking time bombs. As the ECC support deadline in 2027 grows ever closer, the race is on to prepare SAP systems for a mandatory transformation toward the cloud-based S/4HANA in time. And since these operations sit at the heart of the tech stack, the collateral damage of falling or ignoring the need for transformation altogether is substantial.

SAP itself recognises that many businesses are pushing their legacy systems to the brink, just in an effort to manage day-to-day operations across their supply chain. There is an industry-wide call for a way to unify, connect, and coordinate their supply chains more effectively and unlock the full potential of data-driven decision-making.

As a result, optimising these core systems is no longer a luxury for manufacturers; it’s non-negotiable.

Don’t shy away from change

The idea of making substantial changes to such a deep-rooted business system has put organisations off for years. Fear of unexpected costs, human error and operational collapse have been reasons enough to warrant holding off making any major alterations to such a central asset like SAP.

However, it’s now reached the stage where doing nothing is equally, if not more, damaging in the long term. It’s time to get rid of the ‘if it ain’t broke don’t fix it’ attitude, particularly considering the competitiveness of the manufacturing landscape worldwide.

Untold benefits await those manufacturers that move away from this mindset. If they can transform their legacy systems into platforms for innovation and growth, manufacturers can unlock huge value, including improved efficiency, increased customer retention, reduced overhead and operational costs, and fewer IT issues in general.

However, the way in which these core systems are managed in the manufacturing space currently act as a significant roadblock to these benefits. The problem is methods of change often lack the capabilities to capture the insights needed and match the pace of the organisation. It’s like trying to navigate a storm without a compass – a recipe for disaster in the world of supply chain management, particularly as manufacturers negotiate a consistent stream of CSR mandates when it comes to supply sourcing and manufacturing practices. According to the Business Continuity Institute’s 2023 Supply Chain Resilience survey, concerns about new laws and regulations increased by 40.5%, representing the fifth biggest concern for organisations.

Moving beyond a manual approach

Manufacturers with complex supply chains have large SAP environments, which is all the more reason to move away from archaic ways of managing these core systems. Basis Technologies recently found 59% of enterprises still uses manual Excel spreadsheets for business-critical SAP management. This is at odds with manufacturers’ vision for the future; Deloitte research from 2019 stated 83% of manufacturers believed that smart factory solutions would transform the way products were made in five years. Five years later and little has changed, as the lack of core system optimisation continues to impede progress across the operational funnel.

Spreadsheets are firmly rooted in the years that came before, and no longer meet the demands of modern businesses. Technologies such as automation, machine learning, and AI have enabled businesses to act smarter, leveraging data analytics and efficient technology to manage their operations more thoroughly and with increased ease.

To effectively manage change within SAP systems, organisations require a more robust approach: an automated system where everyone has a clear view, can work together seamlessly, and can take action instantly. This requires real-time visibility, collaboration, and integration. By replacing manual spreadsheets with automation, manufacturers will unlock real-time impact analysis, adaptive governance, automated backout and landscape flexibility, across the entire supply chain. CIOs are aware of the need for innovation, but progress has been hindered by tools ill-suited for the task.

By taking back control of SAP systems, manufacturers can gain a holistic view of their supply chains, acting on data-driven decisions to inform more sustainable practices, eliminate supply chain disruption from human error-driven IT outages and integrate SAP systems with their IT stack. Ultimately, this is the way manufacturers future proof their business.

The time for change is now. By embracing modern technology for core system optimisation, manufacturers can cultivate a more resilient, efficient, and sustainable supply chain. This, in turn, unlocks a domino effect of benefits, from improved customer satisfaction to reduced costs and an edge in a fiercely competitive market. The future of successful manufacturing supply chains lies not just in the new, but in leveraging the full potential of the technology that already exists within the heart of the organisation.

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How to Unlock Value of Data-driven Logistics

 

Drinks Digital Benefits with CloudSuite Industrial

Inforlogic has announced that Northern Ireland-based soft drinks manufacturer, Norbev, has selected Infor CloudSuite Industrial. The platform will support an organisation-wide digital transformation strategy at the beverage leader, bringing modern, cloud-based ERP capabilities from which to extend process automation and capitalise on both business intelligence (BI) and artificial intelligence (AI).

Having outgrown its previous Sage 1000 system, Norbev undertook a detailed evaluation of all major mid-market ERP vendors. Most could replicate the standard back-office functions that Sage 1000 supported. However, only Infor could offer deep, last-mile, manufacturing capability, coupled with an innovative cloud technology platform built on Amazon Web Services (AWS), to scale and meet their digital transformation requirements.

Once live, Infor CloudSuite Industrial will eliminate manual processes and streamline all core business processes for Norbev, from Financial Management through to Scheduling, Quality Control, Plant Maintenance, and Document Management.

To support consistency and collaboration, Infor’s University, an online learning platform, combined with Process Intelligence, will allow Norbev to standardise business processes. Through having a world-class ERP platform that represents a digital set of standard operating procedures, the team not only ensures that all knowledge is retained within the business to reduce risk, but that they have a robust and scalable platform from which to embrace future growth and build market share with confidence.

“Infor CloudSuite Industrial’s intelligent reporting and analytics converge with dedicated manufacturing functionality to provide capabilities which will help us to capitalise on opportunities in a more agile way,” comments Thomas Wilson, Senior Finance Manager at Norbev. “But crucially, and the criteria from which we felt Infor scored way beyond its competitors, was its data lake and API-led composable architecture, which will allow us to innovate, embrace powerful BI and AI capabilities, and scale to support our digital transformation journey into the future.”

“The beverage industry continues to navigate a complex environment centred around unstable supply chains, sustainability targets, and the convergence of cost/health drivers in consumer purchasing patterns,” comments Chris Stock, Managing Director, Inforlogic. “In order to pursue sustainable growth, manufacturers are embracing digital as a lever for increased efficiency, automation, and performance, and world-class platforms such as Infor CloudSuite Industrial represent a means of expediting this shift.

“Our team’s in-depth experience of cloud-led ERP deployments and manufacturing environments ensures that they can support our customers in the best way as they navigate their transformational journeys, drive innovation, and gain market share in their respective industries.”

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Infor Expands ERP into the Extended Supply Chain

 

The Critical Role of Your Supply Chain

Unlocking customer experience is the critical role of your supply chain, writes Roy Arguelles, Senior Vice President of Supply Chain Sales, QAD.

In today’s marketplace, where products and services proliferate and competition intensifies, businesses are realizing that they need to offer more than just commodities to thrive. Enter the Experience Economy – a paradigm shift where companies are no longer just selling goods or services but crafting memorable experiences for their customers. This emerging economic model emphasizes the significance of immersive, personalized encounters that leave a lasting impression on consumers.

For consumers today, loyalty hangs by a fragile thread. With a single disappointing encounter, customers readily shift allegiance. This fickleness stems from the plethora of options available at their fingertips, facilitated by the digital age. Whether it’s subpar service, a flawed product, or a lackluster interaction, consumers swiftly abandon brands, seeking refuge elsewhere. In this cutthroat environment, businesses must recognize that each interaction is a make-or-break moment, where the slightest misstep risks losing not just a transaction but a customer’s trust and allegiance to competitors.

At the heart of the Experience Economy lies the recognition that in an era inundated with choices, customers seek more than just functional benefits. They crave emotional connections, meaningful interactions, and memorable moments. Businesses that prioritize delivering exceptional customer experiences gain a significant competitive edge. These experiences not only create customer loyalty but also drive revenue growth, brand differentiation, and sustainable success in the long term.

Delivering great experiences to end users

Exceptional experiences forge deep connections, creating loyalty, advocacy, and repeat business. Satisfied customers become brand ambassadors, spreading positive word-of-mouth and attracting new clientele. Investing in exemplary experiences is no longer a choice–it’s an imperative for survival and success, but how do companies deliver great experiences to their end users?

While one traditional key principle in delivering great end user experiences is getting the right product to the right customer at the right time, this doesn’t encompass the story in its entirety as decisions are not made in a vacuum. Companies must also consider cost implications, accurate demand forecasting, trend analysis, process automation, and logistics considerations.

Cost implications play a pivotal role in delivering exceptional experiences for end-users. By optimizing expenses, businesses can allocate resources to enhance product quality and service delivery, ensuring customer satisfaction. Accurate demand forecasting and trend analysis enable companies to anticipate customer needs, ensuring products are available when and where they’re wanted. Process automation streamlines operations, reducing errors and inefficiencies, thus improving reliability and consistency in customer interactions. Logistic considerations ensure timely delivery, minimizing delays and enhancing convenience for end-users. Together, these factors create a seamless and satisfying experience.

Another way to ensure great end-user experience is by improving customer interactions across multiple platforms—website, phone, chat, email, SMS, or social media—is essential for delivering exceptional experiences. A user-friendly website offers intuitive navigation and personalized content, enhancing engagement and satisfaction. Responsive phone support provides immediate assistance, resolving queries efficiently and courteously. Live chat offers real-time assistance, resulting in instant rapport and problem resolution. Email and SMS communications deliver timely updates and promotions, keeping customers informed and engaged. Social media platforms enable authentic engagement, allowing businesses to interact directly with customers, address concerns, and showcase brand personality. By optimizing each touchpoint, companies cultivate meaningful connections, driving loyalty and advocacy among end-users.

While ensuring fantastic customer interactions is valid, it is important to note that roughly 85 percent of the issues that customer service agents deal with are related to not having the right product at the right time in the right quantity with complete documentation. Not receiving a child’s birthday present on time or not receiving paper instructions after purchasing a piece of furniture are good examples of customer frustrations. No matter how excellent customer service interactions are, issues like these deeply impact experience and ultimately brand loyalty.

Why do companies struggle to deliver great experiences?

First, siloed views within organizations can severely hinder the customer experience. When departments operate in isolation, critical information becomes fragmented or overlooked, leading to inconsistent messaging, disjointed processes, and frustrated customers. Silos prevent a holistic understanding of customer needs and preferences, resulting in missed opportunities for personalized interactions and tailored solutions. Also, disjointed systems often lead to inefficiencies, delays, and errors, further eroding trust and satisfaction. To deliver seamless experiences, businesses must break down silos, fostering cross-departmental collaboration and data sharing. Only through a unified approach can organizations truly prioritize and enhance the end-to-end customer journey.

Secondly, identifying root cause inefficiencies presents a formidable challenge for businesses. Symptoms of operational flaws often manifest in various departments or processes, making it challenging to pinpoint the underlying issues. Additionally, interconnected systems and dependencies further complicate the analysis, obscuring the true source of inefficiency. Without a comprehensive understanding of the root causes, organizations risk implementing superficial solutions that fail to address the underlying problems. Overcoming this hurdle demands meticulous data analysis, cross-functional collaboration, and a willingness to challenge conventional wisdom.

Lastly, specifically for manufacturers, shop floor productivity is lagging. Manufacturing shop floor productivity suffers as talent retention dwindles and fails to appeal to the younger workforce. Aging demographics and outdated perceptions render manufacturing less attractive to younger generations. The absence of modernization and technological integration exacerbates this issue, further deterring potential recruits. Additionally, inadequate training and career development paths hinder employee engagement and satisfaction. To revitalize productivity, manufacturers must prioritize talent retention through competitive benefits, upskilling initiatives, and embracing technological innovations. Cultivating a dynamic work environment that values diversity, innovation, and professional growth is pivotal in attracting and retaining the next generation of skilled workers, revitalizing shop floor productivity for sustained success.

Why are great customer experiences important?

A significant key performance indicator (KPI) around customer experience is the Net Promoter Score (NPS). NPS serves as a critical metric gauging customer loyalty and satisfaction. Derived from responses to a simple question—”How likely are you to recommend our product/service to a friend or colleague?”—it categorizes customers into promoters, passives, or detractors. Research consistently indicates a strong correlation between high NPS scores and revenue growth. Promoters, enthusiastic advocates of a brand, not only drive customer acquisition through word-of-mouth referrals but also exhibit higher purchase frequency and lifetime value. By focusing efforts on elevating NPS, businesses can cultivate a loyal customer base, stimulate organic growth, and ultimately, bolster their bottom line.

Supply chain management profoundly influences Net Promoter Score (NPS) by directly impacting key customer touch points. Delays in delivery, whether due to logistical issues or inventory shortages, lead to dissatisfaction and diminished trust. Product availability issues frustrate customers, potentially driving them to competitors. Inadequate quality control results in defective products, tarnishing brand reputation and loyalty. Moreover, cost increases passed onto consumers can provoke negative sentiment. By prioritizing efficiency, transparency, and reliability throughout the supply chain, businesses can mitigate these risks, ensuring consistent and positive experiences.

Find a partner that enhances customer experience

It is crucial to find a partner that understands that digital transformation alone is not enough. Unlike point solution vendors who solve isolated problems, prioritize a partner that focuses on three main areas: people, processes, and systems.

A good partner will begin its approach by understanding what is actually happening with mission-critical processes in the supply chain like inbound and outbound logistics, supplier management, customer service, help desk, and financial processes. Understanding these root causes helps identify opportunities for improvement and automation. Analyzing data and feedback reveals pain points, bottlenecks, and inefficiencies within each process. Utilizing process mapping and performance metrics helps pinpoint areas ripe for enhancement. Automation technologies, like AI and machine learning, streamline repetitive tasks, reducing errors and enhancing efficiency. By continuously assessing and optimizing these processes, businesses can improve responsiveness, reduce costs, and enhance overall supply chain performance, ultimately driving customer satisfaction and competitive advantage.

In short, the Experience Economy underscores the critical shift towards prioritizing immersive, memorable customer experiences as a key differentiator for businesses. Embracing this paradigm requires innovative solutions that enhance operational efficiency, customer engagement, and overall competitiveness. Partnering with a company that offers an Industrial Transformation Platform presents an invaluable opportunity to boost operational excellence and workforce productivity. Such platforms integrate advanced technologies, analytics, and automation to optimize processes across the entire supply chain, empowering businesses to deliver exceptional experiences consistently. By leveraging these platforms, companies can adapt to evolving consumer demands, drive sustainable growth, and thrive in the dynamic landscape of the Experience Economy, securing their position as industry leaders.

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Driving brand loyalty with sustainable supply chains

 

Nintendo Europe Opts for WMS

Soon, EPG’s LFS warehouse management system will control the material flow for Nintendo Europe. The European headquarters of the Japanese parent company, which produces video games and video game consoles, has been relying on EPG’s solutions since September 2023. Alongside LFS, the TIMESQUARE supply chain control tower will also launch, providing a dashboard for operations.

After initial contact in April 2023, project work began in September 2023. Nintendo of Europe’s decision to implement EPG‘s solutions was made quickly, encouraged by the aptitude of an intercontinental company with years of expertise and a comprehensive Supply Chain Execution Suite. To achieve greater flexibility in the management of its warehouse locations, Nintendo of Europe chose to introduce the LFS warehouse management system.

Game Boy, DS, Wii WMS

The initial focus is on connecting the ERP system and Nintendo’s B2C middleware for an April 2024 roll out in Spain and a June 2024 roll out in the UK. Nintendo of Europe does not manage its warehouse locations independently, but instead relies on logistics service providers. These will also work with LFS and TIMESQUARE in the future. The TIMESQUARE supply chain control tower ensures reliable monitoring and reporting of the logistics service providers in addition to all warehouse movements and defined management KPIs.

To ensure efficient implementation, the execution of this project is agile. The goal is to standardize the day-to-day functionality for Nintendo of Europe. As the project progresses, it will expand to manage the B2B business via LFS in addition to the B2C business.

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EPG automates Al Maya’s central DC

 

Leveraging Data-Driven Decision-Making Tech

ORTEC, a global provider of leading end-to-end supply chain solutions developed specifically for the operational needs of manufacturers, retailers, and distributors, introduces a state-of-the-art solution purpose-fit for the operational needs of the manufacturing and finished goods logistics industries. ORTEC’s Manufacturing Solution Suite provides valuable insights and planning tools that help companies optimize their supply chain and reduce costs.

“Manufacturing supply chain professionals know that conditions and demand change constantly, so it’s essential to continuously monitor and reassess,” said Mat Witte SVP, ORTEC Americas. “ORTEC uses data-driven analytics to create supply chain visibility and help solve everyday challenges for staying on target, improving the customer experience, and meeting business goals. Further, ORTEC’s Planner Insights and Prescriptive Planning are unmatched in the industry. Through our partnership and innovation, clients are able to navigate the changing supply chain while meeting fluctuating service demands.”

“For many manufacturers, supply chain and logistics comprise more than 10% of overall costs on average, which has a huge impact on company profits. ORTEC’s Manufacturing solution helps companies manage the complex logistics landscape by using their existing data to make more informed decisions,” said Aaron Geiger, Managing Director of Manufacturing at ORTEC. “With better planning and more accurate forecasting, they see higher efficiencies, improved utilization of labor and resources, and lower supply chain costs.”

The ORTEC Manufacturing Solution Suite offers a state-of-the-art solution for integrated pallet building, routing, loading, planning, and execution when distributing products. The solution combines load, route, and dispatch optimization to maximize vehicle and container utilization, improve collaboration between the manufacturer, carrier(s), drivers, and the consignees, and increase on-time deliveries.

ORTEC’s innovative Manufacturing solution presents a complete end-to-end solution that supports the entire length of the supply chain, following the company’s signature six-step approach that allows companies to Predict, Prepare, Plan, Execute, Monitor, and Improve across their operations. Performance analysis compares planned versus actual results to support continuous improvement and to reduce cost to serve. Future forecasting allows organizations to predict future needs and generate ‘what-if’ scenarios that help them prepare for changes.

“At ORTEC we partner with our wide range of customers in manufacturing to ensure they are consistently meeting their KPIs, including change management and sustainability initiatives. We continue to collaborate with them beyond implementation to develop a strategy that enables them to optimize gains over the long-term,” says Jeff Bailey, CEO, ORTEC Americas.

Top 5 Supply Chain Implementation Risks

Smart factory operations can help supply chain leaders achieve many of their highest priorities, but the challenges are too often underestimated, according to research from Gartner, Inc. Successful smart factory initiatives require accompanying cultural and operational transformations that are slow by nature and in many cases will require entirely new organizational designs to integrate the new capabilities within the broader supply chain.

“Smart factory operations hold the allure of numerous benefits for supply chain leaders, from expanding lights out manufacturing capabilities to improving quality and solving labor challenges,” said Simon Jacobson, VP Analyst in Gartner’s Supply Chain Practice. “The potential for transformational benefits can also present the biggest pitfall, as organizations may rush into launching smart factory initiatives without a clear understanding of the extent of the challenges facing them.”

Gartner research has identified the five top risks to avoid when launching new smart factory initiatives:

1. Confusing factory optimization with business model transformation: The optimization benefits of a smart factory are confined to that single site. When smart factory initiatives are disconnected from the rest of the supply chain, the site level benefits can come at the expense of creating costly constraints elsewhere in the business. This risk can be mitigated by ensuring factory objectives are synchronized with supply chain operating models and enterprise digital ambitions, flexibility and automation opportunities.
2. Overlooking the scope of change management: New technology acquisition may be straightforward and relatively cheap. Underestimating the resulting changes to existing processes, integrations and new performance targets can drive up both cost and time. This risk can be managed in part by treating such changes as part of an enterprise-wide initiative that requires alignment between senior leadership and the utilization of continuous improvement teams to ensure initiatives are properly sequenced.
3. Underestimating the complexity of aligning and converging IT, OT and ET: Governance for smart factories is not just centered on plant-business connections but also on how IT, operational technology (OT) and engineering technology (ET) are managed. These three are inseparable, and their convergence and alignment are critical as production models change. To mitigate the complexity of this risk, supply chain leaders should familiarize themselves with alternative organizational models for IT/OT alignment and evolve governance and organizational structures in line with new production models.
4. Insufficient funding for upskilling, reskilling and talent development: Modernizing learning and development (L&D) programs to help associates learn, acquire and retain knowledge to acquiesce to new experiences is essential. So too is enabling employees to execute the work they are aligned to support through additional education and upskilling.
5. Narrowly focusing on a single use case and technology: As technology options increase and expand, too much focus on enabling technologies and the “art of the possible” can expose organizations to a significant IT backlog and technical debt. The environment is complicated by the fact that there is no single dominant technology or vendor that fulfils all smart factory requirements. Technology purchases must be balanced between strategic considerations such as the ability to scale, along with the pragmatic, such as planning appropriately for operational disruptions.

Experts to Discuss Key Supply Chain Technology Trends at the 2023 Gartner Supply Chain Symposium/Xpo in Barcelona, June 5-7

Attendees of the Gartner Supply Chain Symposium/Xpo in Barcelona can learn more in the session: “Eliminate Variability From Your Smart Factory Strategy” on Monday, June 5.
Gartner clients can learn more in: Innovation Insight for Smart Factory. Nonclients can learn more in: Supply Chain Technologies and Digital Transformation.

Gartner experts will discuss key issues facing the industry during Gartner Supply Chain Symposium/Xpo. The conference delivers the must-have insights, strategies and frameworks for CSCOs and supply chain leaders to drive impact within their organizations. Supply chain leaders will gather to gain a strategic view of the trends disrupting their business and the insights and frameworks they can use to prepare for disruption, enable digital transformation and build sustainability as a competitive advantage.

eBook: Navigating the Journey of Digital Transformation

Logistics Business magazine, in association with Aptean, has produced a short digital issue eBook about Transport management operations and cloud-based route planning. In this 8-page special guide, Editor Peter MacLeod talks to Aptean’s spokespeople Gail Skinner and Ben Glossop about the benefits of digitization.

Read the eBook here now

The costs associated with the manual administration of business processes are usually unquestionably absorbed as unavoidable running costs, but in the current economic climate they are being scrutinized more closely than ever. It’s at times such as these that digital transformation can deliver a compelling ROI. Digital transformation brings many benefits to a business, and Aptean is well placed to steer customers towards a more profitable future, whether that’s optimizing time and resources, eliminating security concerns, or achieving sustainability targets.

The optimizing of transport operations is a process that can bring significant savings, especially for a business that does not consider logistics as its core function. In better times, transport is often viewed as a necessary evil, but with the cost of fuel and energy reaching unprecedented highs and labour shortages affecting recruitment of drivers, businesses are seeking new ways to reduce the size of their fleets.

The benefits brought by digital transformation vary according to the starting point of each particular customer. “We have different discussions with different types of customers,” says Ben Glossop, Vice President of Sales at Aptean. “They may be still doing their planning using an Excel spreadsheet or a whiteboard. In one case, when people were talking about pencilling in appointments I thought that was just a term they used, but when our solution team got there they were literally using a diary!” In situations like these, finding a business case to move away from a paper-based solution is a no-brainer, but in many other cases the decision to digitize isn’t always so obvious.

In terms of fleet optimisation, businesses running a minimum fleet size of around a dozen vehicles will start to benefit from using Aptean Routing & Scheduling Paragon Edition software. The solution is also used by the very largest fleet operators such as supermarkets, and although the system has evolved greatly over time there are still opportunities to make improvements. This is in part thanks to the superior algorithms behind the system that are ideally suited to deal with both the complexity and the uncertainty of truck routing. By reducing daily truck movements companies achieve savings in resources such as drivers, vehicles and fuel. Over a year that number becomes substantial.

Prior to implementation, Aptean’s team of experts will consult with the customer and apply a test data review to benchmark its current operations against the proposed solution. The greater the access to a customer’s existing data – for example to its order management system or ERP – the more the solution can be fine-tuned to produce the greatest benefits. “The software is effectively taken off the shelf and the customer then has the opportunity to sculpt the way it works to achieve the most desirable outcome,” says Glossop. “So when implementation takes place, they will as near as possible get an immediate positive result. One of the challenges that we have to deal with is the expectation that the software is telling the customer what to do. In actual fact, it is the other way round, as Aptean Routing & Scheduling responds to customer input.”

Another pushback to implementation can come from drivers themselves, however; those with something to hide are usually the most vocal in their objections. “Looking at the planned movements versus the actual movements, you can sometimes see glaring areas in which drivers are making unscheduled breaks during company time. In the vast majority of cases, however, drivers are won over when they realise that the software can bring them back to the depot or to their home at the same time every day. They’re not doing hours of overtime and no longer find themselves stuck in the middle of nowhere on a Friday afternoon.

“It’s plain sailing once they have bought into the feedback process. Aptean Routing & Scheduling can also be used as a tool to incentivise drivers to perform at the highest level of efficiency and safety. The system provides the company with data it can use to either reward their better performing drivers, or retrain those towards the bottom of the performance chart.”

With reports of cyber-attacks constantly in the news, businesses are rightly concerned about the protection of sensitive customer and commercial information; the implementation of cloud-based Software-as-a-Solution (SaaS) technology often leads to concerns about data security. Gail Skinner, Aptean’s Senior Solutions Consultant, says Aptean’s expertise in this area lays such concerns to rest. “We have a large Information Security Office led by our CIO, and our investment in that grows year-on-year,” Gail says. “Not only are Aptean security experts looking at what the standards for security are today, we also have a team who are tasked with looking at the security standards of tomorrow. They are already working out what our policies as an organisation need to be and how we can build those security standards into our products.

Aptean also partners with Microsoft Azure to securely host our products and our dedicated Reliability Engineers are responsible for our solution infrastructure, working in tandem with our product, research and development teams to make sure products are secure.”

Working from Aptean’s tech hub, these engineers build intrinsic security into the system, so all products are developed with this anti-threat policy in mind. Furthermore, should a business experience an unplanned event – such as a flood, fire, or ransomware attack – its data is safely backed-up to the cloud multiple times to a secondary site at least 300 miles away from the primary location.

Agility is another key requirement for businesses working in a dynamic industry sector such as logistics and eCommerce, where customer habits can rapidly change. Should a business need to alter the shape or size of its logistics functions or move to new premises, Gail says Aptean has it covered: “The beauty of our cloud-hosted system is that if a business moves its operation from one location to another, the software and data are not all stored on local servers that have to be relocated and reinstalled. It’s possible to literally just turn up at the new location the next day, open up the application and still access everything.

“Also, if demand increases and an Aptean Routing & Scheduling customer needs the ability to process more items, it’s really easy for us to scale-up the virtual environment that they’re in. They don’t need to invest in new hardware or new servers with better capabilities.”

The same goes for upgrades, which used to be disruptive and time-hungry when applied to on-premise hardware. Not only are upgrades now executed remotely, with no customer downtime, they can occur much more frequently than before. “Historically with Aptean Routing & Scheduling Paragon Edition as an on-premise solution, customers would get a new version of the software every year or so,” adds Ben. “In the new SaaS world, upgrades happens automatically and seamlessly behind the scenes. There are potential cost savings there, particularly around administration, as the next version is there for end users just as they open up for the new day.”

Every organisation that deploys a fleet of vehicles must be mindful of rising fuel costs. Furthermore, should it need to grow its fleet, rising bank interest rates and long lead times for new vehicles make a compelling case for optimising existing vehicle usage. The same holds true for the increasing need to reduce carbon use. Aptean’s Routing & Scheduling software is already designed to reduce the amount of fuel used, the amount of miles driven, and the number of vehicles in a fleet, so carbon use will already be minimised. On top of that, the software has an additional feature called the carbon minimiser. “This looks at getting weight off the vehicle early in its run by taking into account the size of the loads as well,” explains Ben. “So, for example, using just the mapping software, the most efficient route will be calculated taking into account factors such as time windows and rush hours. However, if the final drop on that route accounts for three-quarters of the vehicle’s load, then the carbon minimiser might propose that the heaviest is dropped first, even if it takes a little bit longer or adds a bit to the distance. The logic there is that you are not then carrying three-quarters of a load around to all the other customers.”

When Aptean consults with a customer to help make it leaner, savings aren’t just found out on the roads. Internally within a business there are often inefficient processes and functions that can be reduced or eliminated. Ben cites an example in which an employee spends the entire working day on Google Maps plotting routes for the following day’s vehicle movements. “Is that really the best use of their time and are they getting the best answer?” he asks. “In some larger operations, we have slimmed down and centralised the planning team. For smaller companies, it’s just a better use of someone’s time. A very clever transport planner will always have a role, because they can still tinker with the Aptean Routing & Scheduling plan. We don’t discourage that, because user experience and knowledge adds value and improves the quality of the plans.”

Many organisations also find savings in the area of customer services. Because the software issues automatic updates regarding planned delivery times or late arrivals, end customers are kept better informed about the status of deliveries and make fewer calls. Often, the number of customer services personnel can be reduced. Furthermore, the team needn’t be so large once processes are improved, as the number of incoming complaints will also be minimalised.

With the economic climate arguably the most challenging it has been in living memory, businesses need to be in a state of continuous improvement not only to get ahead, but sometimes also just to stay afloat. Aptean has the tools, experience and expertise to help businesses extract the maximum capability from their assets – both physical and human – to help increase performance, eliminate waste, reduce carbon usage, and, most importantly, lower costs and improve profitability.

Alstom Trust Kinaxis to Support Industrial Planning

Kinaxis® Inc. (TSX: KXS), an authority in driving agility for fast, confident decision-making in an unpredictable world, announces that Alstom, global leader in smart and sustainable mobility, has confirmed the choice of Kinaxis’ solution to support the management of its industrial planning.

From high-speed trains, metros, monorails, and trams, to turnkey systems, services, infrastructure, signalling and digital mobility, Alstom offers its diverse customers the broadest portfolio in the industry. The company is present in 70 countries, and runs over 50 rolling stock and components production sites. Faced with increasing demand, the company has realised in recent years the need to equip itself with a powerful planning platform to engage with its customers and meet delivery deadlines and to identify and manage risks that could disrupt its supply chain and production.

The industrial complexity faced by Alstom and the increase of its production capacities, made it necessary to implement a transparent, agile, and accurate planning on all its rolling stock and components production sites, nine of which are users of the Kinaxis RapidResponse® solution since 2014. Thanks to the renewal of its agreement with Kinaxis, Alstom will progressively extend its use of RapidResponse to all its rolling stock and components’ sites.

“Kinaxis is today seen by the market as one of the leaders in supply chain planning. Our production constraints – similar to those encountered in the aeronautical industry – made us naturally turn to Kinaxis which has a strong expertise in this sector,” said Francis Henrard, Alstom Supply Chain Director. “Already mastered by our teams, its solution will allow us to accelerate our transformation plan by homogenising the processes and our methodology on all the sites and gain in efficiency.”

Kinaxis’ RapidResponse solution will enable Alstom’s teams to make the best decisions in a constantly disrupted environment by creating plans aligned with customer demand and simulating a wide range of planning scenarios while taking into account its commercial and operational constraints. This ensures that the company can most effectively arbitrate its launches, ramp-ups and potential production shifts according to its commercial commitments and corporate objectives.

The platform will integrate industrial planning to the existing ERP core model and extend end-to-end supply chain visibility to internal and external suppliers. It will also remove silos, improve business agility and planning performance.

“We are delighted to continue our collaboration with a leader like Alstom and help them gain agility and visibility in their supply chain planning.” said John Sicard, CEO of Kinaxis. “In these times of disruption, it is necessary for many companies to be agile to deal with the unexpected and to be able to get an immediate view of business risks and opportunities. This is exactly what our solutions allow Alstom to achieve.”

Everyday volatility and uncertainty demand quick action. Kinaxis® delivers the agility to make fast, confident decisions across integrated business planning and the digital supply chain. People can plan better, live better and change the world. Trusted by innovative brands, we combine human intelligence with AI and concurrent planning to help companies plan for any future, monitor risks and opportunities and respond at the pace of change. Powered by an extensible, cloud-based platform, Kinaxis delivers industry-proven applications so everyone can know sooner, act faster and remove waste.

limbiq Raises €1M to Accelerate Growth

limbiq.com has closed its oversubscribed EUR 1 million pre-seed round with Motion Ventures and renowned angel investors.

The round is lead by Motion Ventures, a strategic global venture investment fund with a focus on early-stage investments in the maritime supply chain sector. Further backers are renowned Angel Investors such as Patrick Merkel, co-founder of Prologue solutions and Nikolaus D. Bayer, founder of IRIS Analytics and recently awarded BAND-Business Angel of the year.

limbiq was founded in 2020 with the ambition to create the world’s most flexible and efficient supply chain workflow solution to revolutionize communications in international logistics and to ease the daily pains of supply chain professionals that are facing increasingly broken supply chains, having to deal with unreliable offline data, thus lacking transparency and visibility at the core of their value chain.

The Germany-based company is serving to enterprises from industry, trade and logistics. What their B2B-customers share with hundreds of thousand other enterprises is having complex global supply chains and a lot of communication and data exchange related to it. This communication work is mainly done manually and offline, with email and excel sheets.

“Imagine, organizing one single container shipment from overseas requires an average of 50 emails, just to get it started,” says limbiq CEO Arne Oltmann, adding: “It is because legacy company software such as ERP or WMS come to limits when data exchange and communication with external partners across corporate boundaries is required. We’ve managed to cut this routine work by half. And by providing better transparency, we help our customers to reduce their working capital, avoid revenue losses due to delivery delays, thus leveraging their profitability.”

limbiq’s SCM solution is designed to digitize and streamline exactly these processes. Their AI-enhanced platform flexibly reads and analyses partner communication, thus integrating many heterogeneous data sources regardless of their format. This helps customers to digitally integrate large parts of their supply chain in a very flexible way and with little integration effort.

Limbiq.com is leveraging cutting-edge AI technology to provide a more comprehensive overview of goods in the supply chain, combining both existing and alternative data to streamline processes. This innovation is crucial to a more resilient global economy, and limbiq.com is leading the charge to automate every day operational workflows,” says Shaun Hon, General Partner at Motion Ventures.

The funds will be used to accelerate the company’s growth plans to triple revenues in the next twelve month. limbiq plans to hire more staff in technology, including engineers and developers, and to grow the project management team to cope with the increasing demand.

Wenko Focuses on IT Transformation

Whether it’s a shower basket, ironing board or cutting board: when it comes to household goods, Wenko is the first place to go for many. To bring transparency into the supply chain and be more agile, the company introduced the SCM software OSCA. The family-owned business uses it to manage 145 suppliers and other supply chain partners.

Nothing is as constant as change. This proverb is the secret of success for many companies. This is also the case for the household goods specialist Wenko-Wenselaar GmbH & Co. KG, better known as the Wenko brand. In 1959, entrepreneur Wietze Wenselaar and his wife Maria Koellner founded a company which launched the first metallized ironing board cover in Germany.
However, achieving major growth was not possible with just ironing articles alone. The founder’s son, Hans-Joachim Koellner, therefore significantly expanded the product range after joining the family business in 1968. From then on, Wenko’s business no longer revolved mainly around laundry and ironing, but also included bathroom accessories, home storage solutions and other household helpers. Business boomed.

Today, the company from Hilden near Düsseldorf offers more than 5,000 articles from the areas of lingerie, bathroom, living, kitchen, and leisure – with patents or property rights for around 1,500 products. With Niklas Koellner and his brother Philip, the third generation joined the family business around two decades ago. The two are also pursuing new ideas. In 2020, they acquired the mail-order supplier Maximex from Lower Saxony, which supplemented the product range with its products.

To keep up in the tough price war, Wenko’s goods are manufactured all over the world in Eastern Europe, Spain, France, Germany, and Asia. More than 200 suppliers are listed with the company. Five freight forwarders deliver around 4,000 shipments to North Rhine-Westphalia in Germany. Most of the deliveries are stored in two buffer warehouses, each with 20,000 pallet spaces. The hub for shipments to 81 countries – with the focus on Europe – is the Wenko central warehouse in Hückelhoven. It was opened in 1997. In 2017, the family-owned company invested in the semi-automation of the warehouse, which now covers more than 35,000 square meters. The high-bay warehouse comprises 34,000 pallet spaces. During peak season, up to 50,000 picks can now be carried out – per day.

Keeping track of all orders and shipments is not easy. Prior to the Covid-19 pandemic, Excel lists and emails were the main communication aids with supply chain partners. But Covid threw supply chains into turmoil. Suppliers couldn’t deliver, ships couldn’t leave their ports. As with many companies, goods often flowed hesitantly, but emails were frantic. “The Covid-19 pandemic led to the realization that we needed to change in the supply chain space. Production and delivery delays were almost impossible to handle manually,” reports Wenko Managing Director Niklas Koellner. “In order to be able to control production and transport, we wanted to bring transparency into the supply chain with the help of a central tool. This should then inform all partners about changes at the same time.”

No sooner said than done. Koellner and the supply chain management team looked around for tools at the end of 2021. They found what they were looking for with the SCM software specialist Setlog. More than 150 brands worldwide now use the OSCA solution to manage their supply chains. “The decisive factor for the provider was that the best-practice version, which has been tried and tested at other companies, is easy to use and enables optimal control of logistics processes,” explains Koellner. The first meeting took place at the end of February 2022, and the system went live at the end of July.

Since then, Wenko has been transmitting orders from their ERP system to its suppliers via OSCA. 145 of a total of 200 partners are connected to the system, which accounts for more than 85 percent of the total volume. Four of the five forwarding agents also work with OSCA. The software acts as a central communication and control tool – from order confirmation and delivery planning to booking shipments and transports. In addition to costs, volumes, lead and transport times, post-carriage control, carton packing lists including label creation and delivery dates can also be controlled. The forwarders enter transport notifications and tracking data into OSCA.

At the headquarters in the Rhineland, a dashboard visualizes the most important key figures for the nine Wenko employees who are connected to the cloud-based system. When production or delivery data changes, all supply chain partners are notified simultaneously. “Monitoring has improved greatly. Production backlogs, for example, can be easily called up in the dashboard,” Koellner says. Even colleagues’ vacations no longer pose a challenge because everyone involved can track the processes in the system through central communication. Implementation and training took a few days. But the advantages of a transparent supply chain quickly made up for that for Wenko: “There are no more media disruptions – and changes in orders and shipments are immediately visible to everyone,” Koellner emphasizes.

And there are now more and more disruptions – due to political crises, strikes, environmental disasters or pandemics. “If a consumer goods manufacturer today cannot rely on a modern IT landscape – with SCM solution, ERP, CAD, WMS, PLM, payment system as well as production planning – it is quickly overwhelmed with the challenges of our time,” says Ralf Duester, board member of Setlog. According to him, the most important trends in the industry include increasing complexity in procurement and distribution, the shift from push to pull markets, the acceleration of ordering processes in companies, and the growing need for additional services. “Wenko shows how an innovative mid-sized company with 550 employees is embracing change and has prepared for the future with a modern IT infrastructure, dedicated IT experts and collaborative supply chain partners. And with the planned integration of Shippeo’s Visibility Tool into the running OSCA solution, Wenko will additionally be able to track its shipments in real time, adding further value to logistics,” explains Duester.

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