Supply chain software: New wins outside the four walls

Bob Trebilcock -- Modern Materials Handling, 9/1/2004

It should come as no surprise that Modern Materials Handling readers planto buy warehousing and manufacturing software systems in the coming years.

And many of those systems operate inside the four walls of the plant, warehouse, and distribution center, where materials handling professionals have traditionally done most of their work.

What does raise eyebrows is that more than a third of respondents to Modern’s survey intend to buy supply chain planning systems. Planning systems, after all, focus more often than not on what happens outside of a facility.

But in today’s world, what goes on inside the four walls is directly related to what goes on across the supply chain, especially with the increased use of third party logistics providers and contract manufacturers. The result: a facility manager’s area of responsibility may reach beyond the dock doors and yard.

Supply chain software has responded with applications that handle business across the supply chain.

Warehouse management systems (WMS) are a great example of that extended reach. Not so long ago, WMS providers were focused on traditional operations like receiving, putaway, pick, pack and ship, all activities inside the four walls.

Today's WMS systems, however, are now at the core of a broader suite of solutions that reach across the supply chain. This new expanded tool set is designed to manage all of the processes required to fulfill a customer's order from end to end.

"Most users started with WMS as a solution that allows you to attack the problems in the warehouse," explains Chris Heim, president, HighJump Software (952-947-4088). "That's works, but you gain more benefit when you realize that a WMS is part of a larger business ecosystem."

That might involve adding applications that drive productivity in targeted areas, like cubing and weighing, labor management and dynamic slotting. Or it might involve integrating with applications outside of the four walls of the warehouse, like yard management, transportation management, and RFID. It might even involve supply chain planning and collaboration with suppliers.