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Customization Toolkit: A Case Study on Supply Chain Integration Vincent Sita and Daniel Nall Rex Three, Inc. www.pace2020.com | See the possibilities… …But First! 5 quick customization projects realized since the last time we met. www.pace2020.com | See the possibilities… Traffic Sheet Manager A tool to allow the shipping department to manage 120 pickups and deliveries per day. www.pace2020.com | See the possibilities… Closed Jobs Manager Review and approve jobs without invoices, which have been manually closed by the plant. www.pace2020.com | See the possibilities… Adjust WIP Entries Expense job cost transactions for jobs closed manually without invoicing. www.pace2020.com | See the possibilities… MXML (Metrix) Importer Take data from a Metrix layout and import key information into an estimate. www.pace2020.com | See the possibilities… UPS and FedEx Shipment Tracker Import job shipment info into carrier’s system, and retrieve tracking info and costs when available. www.pace2020.com | See the possibilities… Supply Chain Integration Implementation Study www.pace2020.com | See the possibilities… Definition A supply chain is a network of facilities that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers. www.pace2020.com | See the possibilities… The Efficient Supply Chain Exchange Information • Product descriptions, specifications, and prices • Purchase order information, such as quantities, required shipment dates, and addresses • Planned and actual production, shipment, and delivery dates/times • Data on products, components, and equipment • Accounting information, such as prices, discounts, allowances, and account numbers www.pace2020.com | See the possibilities… Inefficient And Incomplete Data • Manual data entry is widespread; critical information is often manually reentered at many points in the chain. • The manual intervention of Purchasing Clerks and Order Processors are critical links in supply-chain information flows. • A lack of system integrity creates a continuing need for verbal or written authorizations to protect against costly errors or even catastrophic failures. • Firms operate without needed data. Planning Report 04-2 Economic Impact of Inadequate Infrastructure for Supply Chain Integration RTI International for National Institute of Standards & Technology www.pace2020.com | See the possibilities… ePace Customization How Rex integrated into their customer’s supply chain. www.pace2020.com | See the possibilities… System Requirements Automate the following processes: • • • • Receive PO Confirm PO Send Advanced Shipment Notifier Send Invoice www.pace2020.com | See the possibilities… Receive Purchase Order • Create finished goods job and job parts. • Add job materials, verifying price and availability of each inventory item. • ePace business rules deduct from available inventory. • Auto-create pre-invoice for billing department. www.pace2020.com | See the possibilities… Confirm PO • If everything conforms, PO confirmation is sent back to client. • Any problems are trapped and treated as exceptions. www.pace2020.com | See the possibilities… Advanced Shipment Notifier • • • • When client system allows, ASN is sent. Shipment weights are calculated. Delivery date is confirmed. Planned shipment is created. www.pace2020.com | See the possibilities… Invoice • Invoice is sent to client electronically. • Invoice is accepted directly into client’s accounts payable system. • Humans post invoice on Rex side, closing job and placing job into accounts receivable. www.pace2020.com | See the possibilities… Project Stats • 100% on-time delivery and order accuracy. • Hands-off entry of more than 700 jobs with an average of 4 items per job. • 250 orders per month with an average of 3 items per order without increase of customer service staff. www.pace2020.com | See the possibilities… Four Things that a Service Business Must Do Right • The Offering – Service excellence – Enhance the customer experience • The Funding Mechanism – Charge in a palatable way – Enhance customer experience while spending less – Have the customer do the work • The Employee Management System – Are they motivated to do the job? – What causes them to produce excellence? • Customer Management System – Does the customer have the skills to do the job? – How will you manage performance gaps? – Which customer will you incorporate? From Harvard Business Review; Francis Frei; April 2008 www.pace2020.com | See the possibilities… Daniel Nall Executing system requirements using the ePace customization framework. www.pace2020.com | See the possibilities… Questions and Answers www.pace2020.com | See the possibilities…