A long held tenant of supply chain management has been to maximize the amount of direct plant shipping (DPS). Production and shipping directly from the plant in full truckload quantities can minimize costs. Achieving DPS is a challenge. Detecting a single SKU order that can be redirected to ship from the plant may be an easy task, but if the order has 2, 3, 4, 5 or even 20 SKU's, it can be much harder to determine if it is ok to do DPS. Missing these opportunities to do DPS is ineffective supply chain management and can be very costly.
Another reason - you may be dealing with product that is incomplete. For example, how do you determine to ship from the plant if only 95% of the product is at the plant site? Also, how do you get the remaining product to that location to make the shipment complete? It is difficult to do, so most companies will give up. They revert to old antiqued practices and find a location with all the stock and send the order from there. You can lose out on a lot of business this way ultimately minimizing market share.
This is why companies like Procter & Gamble use a sophisticated supply chain management program - DMS (distribution master scheduling) - called AutoScheduler from Transportation l Warehouse Optimization to optimize direct shipping by:
A. Pre-position inventory which will maximize DPS; B. Allows you to consider the best place to ship from; C. Checks to make sure the shipment is complete - you do this by re-deploying the inventory; D. Establish dock/staff schedule to achieve customer service goals
This requires more timely decisions. Many management systems use the KISS principle. It is easier for the user of the system. The creation of optimized rules to determine where orders will ship from is often done by strategic location analysis. This is done every few years and looks at a variety of functions. The end goal is to make the system as efficient as possible - saving time and money. Supply chain management requires constant scrutiny.
It is imperative that capacity balanced optimization which performs the sourcing analysis in near and real-time, would define that the order should ship from the Chicago plant. While tools exist for distributed order processing, they work best for catalog shippers. The ones needed to do the heavy lifting for the transportation industry are custom made. However, AutoSPA [Automatic Ship Point Assignment] is also available from Transportation l Warehouse Optimization. This system looks at the total cost of delivery.
AutoSPA can also limit the number of shipments made from any site.
Savings here are significant for ship-point assignment, up to nearly twice as much as DPS alone. This is huge in supply chain management - well worth doing.
When you consider a transportation consultant, Transportation | Warehouse Optimization have been working with some of the top companies in America, finding practical solutions that have resulted in saving millions of dollars. They take a long-term view and keep the client as top priority. Contact them at www.Transportation Optimization.com for transportation cost reductions or solutions to warehouse challenges. While visiting their website, sign up for their exclusive free Truck Loading Manual that can SAVE YOU MONEY and offer you the perfect Operator Manual for truck operators. Transportation l Warehouse Optimization - Solutions that work. Solutions that save. - 15465
Another reason - you may be dealing with product that is incomplete. For example, how do you determine to ship from the plant if only 95% of the product is at the plant site? Also, how do you get the remaining product to that location to make the shipment complete? It is difficult to do, so most companies will give up. They revert to old antiqued practices and find a location with all the stock and send the order from there. You can lose out on a lot of business this way ultimately minimizing market share.
This is why companies like Procter & Gamble use a sophisticated supply chain management program - DMS (distribution master scheduling) - called AutoScheduler from Transportation l Warehouse Optimization to optimize direct shipping by:
A. Pre-position inventory which will maximize DPS; B. Allows you to consider the best place to ship from; C. Checks to make sure the shipment is complete - you do this by re-deploying the inventory; D. Establish dock/staff schedule to achieve customer service goals
This requires more timely decisions. Many management systems use the KISS principle. It is easier for the user of the system. The creation of optimized rules to determine where orders will ship from is often done by strategic location analysis. This is done every few years and looks at a variety of functions. The end goal is to make the system as efficient as possible - saving time and money. Supply chain management requires constant scrutiny.
It is imperative that capacity balanced optimization which performs the sourcing analysis in near and real-time, would define that the order should ship from the Chicago plant. While tools exist for distributed order processing, they work best for catalog shippers. The ones needed to do the heavy lifting for the transportation industry are custom made. However, AutoSPA [Automatic Ship Point Assignment] is also available from Transportation l Warehouse Optimization. This system looks at the total cost of delivery.
AutoSPA can also limit the number of shipments made from any site.
Savings here are significant for ship-point assignment, up to nearly twice as much as DPS alone. This is huge in supply chain management - well worth doing.
When you consider a transportation consultant, Transportation | Warehouse Optimization have been working with some of the top companies in America, finding practical solutions that have resulted in saving millions of dollars. They take a long-term view and keep the client as top priority. Contact them at www.Transportation Optimization.com for transportation cost reductions or solutions to warehouse challenges. While visiting their website, sign up for their exclusive free Truck Loading Manual that can SAVE YOU MONEY and offer you the perfect Operator Manual for truck operators. Transportation l Warehouse Optimization - Solutions that work. Solutions that save. - 15465
About the Author:
Tom Moore and his Associates at Transportation l Warehouse Optimization will help you maximize Supply Chain Management and save you money. Sign up for a exclusive free truck loading Manual that can SAVE YOU MONEY and offer you the perfect Operator Manual for Truck Operators. Transportation l Warehouse Optimization - Solutions that work. Solutions that save.
