Mixing the old with the new
Supply chain management software has a big future, says John Splude.
By Staff -- Modern Materials Handling, 12/1/1998
To some people there doesn't seem to be much of a link between supply chain management (SCM) software and materials handling system retrofits. But to John Splude, president and chief executive officer of HK Systems, the two go hand in hand.Both, he says, are in strong demand, and with good reason. Managers in warehousing and manufacturing are under heavy pressure to find ways to streamline the supply chain and gain new efficiencies. And while SCM software is the wave of the future in that struggle, retrofits are a way to keep in place components of the supply chain that are proven performers.
"I have big expectations for immediate growth in supply chain management software," said Splude in an exclusive interview with Modern Materials Handling. He added that there is the possibility of 20% or greater growth in HK's $250 million annual revenues next year due in large part to an expected surge in SCM software sales.
Early this fall, HK completed acquisition of two software companies-Kitimat and its transportation management package, and Endura with its order management system. HK is now integrating its established warehouse management system with the two newly acquired packages.
"An SCM suite like the one that we will be offering in early 1999 will meet end users' desires for a fully integrated execution software package," says Splude.
There is even a strong future for an expanded link between SCM software and retrofits than what currently exists, he said.
HK Systems has developed an equipment management system (EMS) to integrate materials handling hardware from multiple suppliers. Using object oriented technology, the company's software could become a standard integrated equipment control package for all materials handling equipment in a facility. In addition, there can be direct links made between this software and SCM, further streamlining operations within the four walls of the plant or warehouse.
Splude explained that EMS is well beyond the pilot stage and has been used in retrofit projects for 15 end users already. "There has to be more standardization and this is a viable way to go," Splude concludes.
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