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Streamlined Payments to Transportation Providers

Streamlined Payments to Transportation Providers

DP&C SmartFleet streamlined payments to transportation providers and administration associated with hourly payments to transportation providers associated with delivering material and services to construction projects.

The Challenge: Creating Streamlined Payments to Transportation Providers 

Transportation services provided by vendors that was compensated on an hourly, as opposed to per delivery, basis created compensation accuracy issues and a somewhat cumbersome and un-timely administrative process.

The former process was driven by paper tickets (hourly tickets), issued at the material source / pick up location or construction origin site. The start and end times were issued by the origin site dispatcher or site supervisor. The process was to record the start / end time on paper tickets.

The validation of the start and end times was inaccurate and untimely resulting in inaccurate transportation expense associated with the construction project. It also created non-value added administrative time collating and collecting paper, hourly tickets. The information from the hourly ticket is a core component for transportation costing to the project and ultimately, project profit.

The Solution: Streamlined Payments to Transportation Providers 

DP&C’s SmartFleet application, which is integrated with Tilcon’s JWS dispatch and scale system, provided a user interface for the site dispatchers and supervisors to record the start and end times for each vehicle, each day , on each construction job.

The start and end time information initiated through the user interface creates a proof of delivery for each vehicle assigned to the specific construction job. The start / end information is validated against the JWS dispatch and scale system to confirm the information on the electronic hourly ticket per vehicle, per day —–for each construction job.

The information from the electronic proof of delivery is automatically integrated and delivered back to the vendor and distributed to Tilcon’s document storage system for future reference.

The Benefits of Streamlined Payments to Transportation Providers 

Validated payment to transportation vendors for hourly services provided

More accurate costing associated with construction work

More management time to analyze costs with less redundant data input and paper document collection and collating

Readington Farms: real time visibility for transportation & shipping

DPC Provided real time visibility for transportation & shipping operations to drive faster , more informed management decisions. DP&C is able to link disconnected operations and activities under one TMS operating system by integrating information from manual processes and existing DSI ERP (Data Specialists Inc.) application to enhance supply chain performance . DSI is one of the most used ERP applications in the dairy & food product manufacturing and distribution industry.

The Challenge: Create real time visibility for transportation & shipping

Resource management and allocation to execute delivery of existing sales orders is managed through manually spread sheets that mitigates operating visibility.

Validations to tie together system , process and resource activity is cumbersome and time consuming Delivery Chain of custody for food products is not readily availability and cannot be easily validated Operating improvement is not easily measured for current and future state due to the lack of timely, visible information

Connect separate processes , manual systems and information from existing ERP application into a seamless enterprise to drive efficient management decision making

The Solution: 

Implement the DP&C SmartFleet TMS application to provide systemic and real time visibility for transportation to the transportation operation.

Integrate the sales order management process to and from the existing DSI ERP application to electronically match demand (sales orders) and supply (resources —–drivers , tractors , trailers) to provide an efficient and visible chain of custody for transportation operations.

Manage the order to cash process seamlessly through the DPC SmartFleet application and integration with DSI ERP to mitigate redundant data input , increase the validation of information , create a platform for efficient supply chain expansion.

Implement temperature chain of custody for food deliveries under the FSIS requirements (USDA —-Food Safety & Inspection Service) Provide system and process efficiency to mitigate redundant administration associated with manual tracking of delivery systems (bossies & dollies) , payroll management , sales order invoicing

Tie together the sales order management and hours of service management requirement into one application and management process

The Results: real time visibility for transportation & shipping

Successfully linked sales order and resource management together to improve the visibility of information and delivery performance Mitigated redundant data administration in the sales order management area by directly linking proof of delivery information to DSI for customer invoicing

Eliminated the redundant administrative effort to track delivery systems (bossies and dollies) and provided more visibility to chain of custody to improve overall asset management , reducing annual shrink

Ties together all the elements associated with the weekly payroll process and provided system validation to reduce redundant administration One transportation system from which to grow and improve operating results

Provides real time visibility of resource execution versus sales order assigned.

Streamlined Supply Chain Processes for Arma Container

DP&C streamlined supply chain processes to increase the utilization of existing Amtech ERP application & physical resources. DP&C also adapted additional system modules to drive overall streamlined supply chain efficiency improvements. Amtech is one of the most used ERP applications in the corrugated and folding carton industry .

The Challenge: Creating Streamlined Supply Chain Process

Target Amtech ERP applications that allow for better utilization of existing manufacturing capacity while delivering real time information to maximize the speed & accuracy of managerial decisions.

Focus efforts on the system analytical tools to improve utilization, profit margins, manufacturing efficiencies and commercial sales management Coordinate all efforts to increase information speeds so that material and cash move faster both internally and externally Tie together production and commercial management with material oversight to reduce expensive complexities Identify repetitive tasks and replace them with value added time focused initiatives to better manage product and process improvements to streamline results.

The Solution: 

Enhanced the connection between the work and activity of individuals through Amtech modules (Scheduler, Perpetual Inventory, Production Data Entry , and Delivery) to make decisions more accurate and timely.

Turned non actionable data collection into exception management information by implementing and executing the Production Data Entry Module across the shop floor

Increased the visibility and accuracy of operational questions such as —–is the customer delivery complete? , is there enough material available to complete the next production order? , where are the dies for the next production order to be run?

Mitigated redundant data collection by installing , implementing and training operators on the use of shop floor computers directly connected to Amtech ERP application.

Implemented full use of Amtech’s shipping module to increase the payload on all truck deliveries Installed an electronic dispatch and truck loading module directly integrated with Amtech’s ERP application to provide chain of custody visibility for customer deliveries and shipping process.

The Results: A streamlined supply chain process

Increased tonnage on customer delivery trailers by 65% that resulted in both reduced transportation expense and improved customer service performance and visibility.

Improved manufacturing efficiency by 20% as measured by man hours per thousand square feet corrugated converted resulting in reduced expenses and additional in house capacity for more volume to increase gross profit

Provided visibility to material waste areas to increase material yield on purchases to sales by 50%
The improvement on the accuracy and visibility of operating data increased to reliability on cost estimates to improve gross profit accuracy to To evaluate business decisions impacting company gross profit analysis.

Successful negotiation for a New York State ReEnergy grant resulting in 7 years of reduced energy expenses Overall organization capability improvement to more effectively manage current and expanding business opportunities.

7 Steps of Project Management

7 Steps of Project Management

7 Steps of Project Management

1. Project management starts with the development of an executable plan developed by a combination of data analysis, key player discussion, and personal observation.

2. A key component of any plan is an accurate assessment of the organization’s financial & human resource capability. A plan is not an executable one if the human resources are not skilled and aligned to successfully execute, and the organization cannot financially support the initiative.

3. Project management responsibilities include accomplishing the activities identified in the plan, meeting the key milestone delivery dates, and working within the financial budget to achieve the overall objectives defined.

4. A key component of any effective project manager is to measure the end point / desired result objectives and the starting point for the initiative. Status updates need to include not only qualitative feedback but continual quantitative measurement as well .

5. An effective project manager will assimilate the initiative into the organization’s day to day management. Sustainability is a key component of any project. If the project becomes part of the culture, it is more than likely to be successful. On the other hand, if the project becomes another thing to do, it more than likely will not be successful.

6. Project management should provide documented status updates to the key operating personal for constant reinforcement of alignment on progress to the stated objective. Successful results are both well defined in objectives and dynamic in terms of implementation. This requires constant, visible communication.

7. Finally, project management takes passion and persistence to be successful. This is a very human process to influence change to be executed. There will be many operational roadblocks to not progress. The issues need to be heard and understood, with flexibility on approach, but a good project manager keeps laser focus on the stated objective.

Inventory Management and Cash Flow

Inventory ManagementCash flow is the lifeblood of any business and inventory management is the plasma to that lifeline. Inventory Management to keep accurate and minimize on hand to sales is critical to cash flow that feeds all critical elements for any business, including;

Revenue Growth
1. Looking for revenue growth either by increasing activity with current customers , or mining new opportunities in their respective industry.

Service & Quality
2. Focusing on providing quality product and excellent customer service to all its clinets

Portfolio Growth
3. Expanding its product portfolio and menu offering to continually differentiate itself in the industry the firm competes

Typical Inventory Management issues that any firm faces to maintain accuracy and positive cash flow

1. In a firm it is not untypical when asked “who is responsible for maintaining inventory integrity and accuracy “for either no one or everyone to respond” , which translates to actuallyno responsibility in the company.

2. Processes rely on individuals as opposed to being systemic and well understood and executed throughout the organization.

3. Physical inventories are viewed as a “count” as opposed to a reconciliation against the company’s perpetual inventory and books & records.

4. ERP item master data information is not maintained , and transactions go unreconciled.

5. There is not an easy to manage physical layout in place to make inventory management and reconciliation easy to manage and maintain.

6. Obsolete products are “pushed” to the side without being dealt with resulting in poor facility utilization and less than optimum cash flow.

Learn More About How DPC Can Assist Your Business >>>

Understanding Supply Chain Management

Understanding Supply Chain ManagementThis article is intended to assist you in understanding supply chain management. Supply Chain Management includes all the activities a business employs to keep its products and services moving efficiently. The velocity of a firm’s supply chain is core to its cash flow lifeline. Businesses from manufacturers , wholesalers & retailers , distributors etc. use supply chain principles to plan , assemble , store , ship , and track products from the beginning to the end of the supply chain.

Supply Chain is recognized as one of the key organization functions along with sales / marketing , R&D , and finance to the point that supply chain execution is treated as competitive point of difference.

Understanding Supply Chain Management Duties

Supply Chain Management encompasses collaboration & integration with suppliers , distributors / manufacturers (internal & external) , and customers . The success of a supply chain and the benefits it can provide is predicated on the strength and efficiency of the linkages between each of the key functions , including:

  • Sourcing raw and packaging materials
  • Manufacturing & Assembly
  • Warehousing & Inventory Visibility & Integrity
  • Sales Order Management
  • Sales Order fulfillment & Delivery to the customer

“ Supply Chain is the Execution Music of a company’s sales and marketing effort”

Understanding Supply Chain Management’s Value

There is a need and skills gap that has evolved for employers that require associates to have multi functional , critical thinking skills. Multi Level communication and leadership skills are more important than ever in this highly competitive , global environment to every organization.

Businesses are looking for supply chain professionals to continuously increase the organization’s capability by reducing costs , improving the efficiency of relationships internal and external , and increasing capacity all at the same time.

Supply Chain Management professionals meet the growing demand and challenge of constant product profile updates while at the same time improving cash flow.

If your business is considering upgrading your supply chain management, please contact us

Selecting a Transportation Provider

Selecting a Transportation ProviderWhen selecting a transportation provider many companies are torn between selecting a third party logistics company or (3PL) or working directly with providers.

Advantages of a 3PL transportation provider:

1. Purchasing power of a larger procurer of freight providers to provide the lowest cost rates and best service for the purchaser of services.

2. High investment in information technology to provide efficient ability to track pick-up and delivery, consolidate multi-company merchandise into efficient truckload mode versus LTL pricing, and integrate with multi-client ERP applications to present a seamless order management system to the user base.

3. Provides the opportunity for a firm to reduce the transportation management overhead associated with managing its pick-up and delivery process.

Advantages of self managing your transportation providers:

1. Direct engagement and contact with the transportation provider network. Those companies that actually deliver product and directly maintain physical (tractors & trailers) & human (drivers) assets. This allows for direct rate and service negotiation to assume best price and delivery experience without paying additional 3PL management fees.

2. “Doesn’t put all the eggs in one basket”——a contract with a 3PL provider is typically a multi- year engagement. Although significant time and effort can be spent on contracts, there are always multiple interpretations on the verbiage which presents the opportunity of cost and service expectations not to be met.

3. The technology investment spent to integrate with 3PL systems can be invested in the firm itself to mitigate a “hostage” situation from the 3PL & provide high flexibility to the firm to manage its own transportation network.

Summary:

Firms should approach and evaluate its current transportation management process in the following way:

1. How should firms direct its human resource base:

a) Investing in its own or 3PL technology
b) Build its own internal management or purchase managed services

2. 3PL versus Direct purchase :

a) If the firm is not satisfied with the 3PL performance , does it have a pragmatic out from the agreement
b) Is the firm aware of the asset based companies to manage the process itself

3. Strategic

a) Is transportation a core component of a company’s business plan critical to customer satisfaction and profit margin management

Increased Supply Chain Capability for Comax Manufacturing

The customized DP&C® solution that increased the supply chain capability for Comax involved both analysis and implementation of systems and processes to improve shop floor flow, enhance process and procedures and strengthen documentation process. In addition, DP&C® increased the ability of the client’s ERP system to more effectively manage expenses, inventory, product traceability and customer service.

Comax is a proprietary Aroma and Flavor Components Developer and A world leader in proprietary technology of flavors and aroma components.

DP&C® Solution:

The customized DP&C® solution involved both analysis and implementation of systems and processes to improve shop floor flow, enhance process and procedures and strengthen documentation process. In addition, DP&C® increased the ability of the client’s ERP system to more effectively manage expenses, inventory, product traceability and customer service.

Results:

The DP&C® solution resulted in improved shop floor layout, increased visibility of information linking the shop floor with management tools using wireless communication, mobile personal computers and customized technology. Overall, the DP&C® solution reduced operating expense by 30%, resulted in reduced inventory on hand through increased inventory management, and enhanced customer service.

Learn how DP&C® solutions can help your organization

Supply Chain Consolodation for Cargill

DP&C® created a strategic supply chain consolidation plan and then provided the execution plan and project management to support plant consolidation. The DP&C® customized solution resulted in the introduction of new technology and processes as well as resulting in the increased utilization of its current ERP application.

Cargill is a global flavor business serving a variety of businesses in the beverage and dairy industries.

DP&C® Solution:

DP&C® created a strategic supply chain consolidation plan and then provided the execution plan and project management to support plant consolidation. The DP&C® customized solution resulted in the introduction of new technology and processes as well as resulting in the increased utilization of its current ERP application.

Results:

The DP&C® solution resulted in plant consolidation that subsequently lowered overhead and improve profitability. In addition, the solutions implemented by DP&C® will result in further reductions in operating expense, improve material variance to purchase and reduced lead time in delivery products and services to the client’s customers.

Learn how DP&C® solutions can help your organization

Robertet Fragrance & Specialty Materials


The U.S. fragrance and specialty materials divisions of Robertet, a global flavor and fragrance company.

DP&C® Solution:

DP&C® developed and executed a complementary process, technology and information enhancement strategy and then implemented the plan which included the adaptation of technology to existing ERP application, physical engineering redesign, process improvement , and the integration of automation controls.

Results:

The DP&C® solution has provided the client with the advanced tools necessary to successfully support lower operating expense, improve material yield and improved management that has lowered inventory relative to sales volume.

Learn how DP&C® solutions can help your organization