Eric Joiner's Freightdawg.com - The Logistics and Supply Chain Blog!

Supply Chain Strategy: Developed by Market.

Cranfield University in the UK is a leading supply chain educational institution. Richard Wilding, PhD is an expert on supply chain strategy by market. He is a professor of Supply Chain Risk Management at Cranfield. Dr. Wilding is a well respected expert in Europe on Supply Chain Strategy.

Corporate marketing teams make the case relative to product value in individual markets. Logistics teams however are the ones who fulfill the delivery of the promise made by marketing.

Eric

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Tesco Direct Chooses Manhattan

Tesco is a major convenience retailer in the UK and more recently in Southern California.   Tescodirect.com is a website operated by Tesco that allows ordering of products for home delivery in the UK.    To enable the Tescodirect.com ordering capabilities,  Tesco chose Manhattan Associates warehouse management systems to facilitate the unique order picking requirements of direct purchasing, such as picking single items.   This is not something ordinarily done in a distribution center that supports retail stores.    The video below shows how Tesco are using Manhattans tools as a case study.

The video below is embedded from www.yourtechtv.com.  I recommend signing up for this site because they have a complete supply chain management category for video.  I'm a believer in online video as an interesting and instructive communication tool.  You'll see more of these vids on Freightdawg.com in due course.   

(Note: Some corporate proxy servers ban video from some sites such as youtube.com.  If you see white space below...you may be on such a network.  Please revisit from home or a connection that does not go through your company VPN.)

 

 

Eric

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XBox 360 Supply Chain

Microsoft's Xbox 360 game system is one of the most popular console gaming systems in the world. Distribution of those systems to satisfy hungry customers is a challenge.   The video below illustrates some other Microsoft technologies that the MS Xbox manufacturing team used to enable efficient distribution of the game systems.  Biztalk is a Microsoft variant of XML.    It differs somewhat from public Rosetta.net XML standards.    However MS is free to use whatever protocol it wants to in a closed loop environment.   The key message is that MS used an XML based visibility system to enable their manufacturing and distribution of the Xbox 360 game system. In this case MS used MS BizTalk Server applications to integrate a variety of data streams from vendors and 3PL's using XML.

Microsoft's problems in seeing their supply chains are not unique.  MS just has a number of proprietary ways to attack problems including internal solutions development.  Even more unique is that MS markets its solutions to solving its own problems.

I am convinced the bald guy in this video is
a Borg alien from Star Trek.

(Note: Some corporate proxy servers ban video from youtube.com.  If you see white space below...you may be on such a network.  Please revisit from home or a connection that does not go through your company VPN.)

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RFID: No Problem for Metro

Earlier RFID related posts here at Freightdawg.com have illustrated European retailer Metro Groups vision of how RFID should work in their stores.  Now Metro is deploying RFID and being successful in getting accurate reads in operational retail environments.

Metro is getting good RFID read rates at the pallet level, and rates that are almost as good at the case level.  Surely Tesco, the UK early adopter of RFID, will be watching closely to see how Metro's deployment will impact their operations.   

The article below is clipped and digested from eweek.com

clipped from www.eweek.com A senior executive at the $81 billion European retail giant Metro Group says the efficiencies the chain saw in RFID trials were so compelling they just had to deploy. The chain, based in Germany, has informed all of its suppliers that they need to ship all RFID pallets to Metro fully RFID tagged by Oct. 1, said Gerd Wolfram, an IT managing director for the chain. The initial phase of the full rollout will impact about 180 locations, Wolfram said, including about 60 Cash & Carry stores, nine distribution centers, some wholesale locations and 100 Real stores. One of the key hurdles to full-scale RFID deployments with U.S. retailers has been low-read accuracy rates, but Wolfram said that wasn't what his people found in European testing. "It's not a problem at all on the pallet level," he said, adding that pallet-level read rates were "about 100 percent." It's only slightly weaker on the case level, Wolfram said, describing read-rate accuracy "at around 95 percent to 100 percent." The Metro move is likely to be a key domino in global retail RFID support, with Wolfram predicting that his United Kingdom neighbor will be next. "Tesco will follow with an even bigger rollout," he said. "There is now movement in the market and it will go forward." In the U.S., Wolfram says Wal-Mart will be joined by more aggressive efforts from Best Buy and Target. "In Japan, they do a lot of things with item level, but they don't talk a lot about it in public." But mere support of RFID will not deliver most of its benefits and this technologically change needs to be accompanied by a business process change, he said. "This is basic innovation in retail. This is the next step forward. But the real innovation is that we must change the process," Wolfram said, adding that many of the dire predictions for RFID have been based on a lack of comprehension. "People have minor understanding [of] what RFID really means in a retail environment," Wolfram said. "Even the IT management does not have the knowledge, they don't see the potential. Therefore, they answer very pessimistically about RFID." What about unenthusiastic suppliers that seem to be doing the bare minimum to be RFID-compliant? "We also have these kinds of suppliers. We have to educate them and we have to push them harder," Wolfram said, adding that there are going to be strict requirements for things such as advanced ship notices. "We will punish those in the future" who do not cooperate. Metro will be using Intermec RFID starter packs along with Reva Systems' Tag Acquisition Processor products.

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Very Cool: RFID Checkout at the Grocery Store

This is a "Best of" Freightdawg.com article!

Back in February, I wrote an article highlighting an excellent video done by the Metro Group on how RFID works. The video below, which is actually an IBM commercial I snagged from youtube.com, is a clever piece showing what appears to be shoplifting, but is actually one of the key features of an RFID enabled store.

The "shopper" in this case picks up whatever he wants and when the customer passes through an RFID reader at the check out, the products, which are in his pockets, are automatically scanned and charged to his credit card.

Those who have read some of my other articles know I despise check out lines, especially self check outs.  I can never make them work.    The scenario below is a dream to somebody like me.  It speeds me through the store and out to do my other errands.    Since the tag reader knows what I bought, it can also be tied to replenishment ordering to resupply the store with the goods I just bought.

Wal*Mart has mandated that their top 100 vendors tag products with RFID tags.   One day it will be great if all products are similarly tagged.   Just think how convenient holiday shopping will be if you don't have to wait in long check out lines!    I might actually venture back into a shopping mall again.

(Note: Some corporate proxy servers ban video from youtube.com.  If you see white space below...you may be on such a network.  Please revisit from home or a connection that does not go through your company VPN.)

Eric

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Retail Video on RFID

This is a "Best of Freightdawg.com article!

This is an outstanding video demonstration and explanation of RFID.   Radio Frequency Identification. It was produced by the Metro Group in Germany.  Retailers such as Wal*Mart and Target in the  US require this technology from their vendors for application at the pallet level.  European Retailers such as Metro and Tesco are also making use of Radio tagging.    DHL is a major partner with Metro in enabling RFID in Germany.

There are a number of people who think RFID is a conspiracy to track individuals and an insidious threat to personal freedom.  I prefer to think of it as a high potential supply chain tool whose cost must come down to be widespread in reality.

Eric

This was clipped from www.youtube.com using Clipmarks 2.0.   (Note that some proxy servers prevent viewing youtube videos.  If so...check the article from home!)

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Sun Microsystems: A one TEU Data Center

"Project Blackbox" packs an Entire Live Data Center into one 20 ft. Container

Sun Microsystems has developed what has to be one of the most creative uses of the standard ocean shipping container yet.  By building an entire electronic data center into a 20 ft container, Sun has developed a full strength, highly portable platform that can be rapidly deployed virtually anywhere.

The "Blackbox Project" as it is known is designed to contain a full data center with densely packed racks to hold a highly configurable combination of servers, storage and cooling systems.   Several patents are pending for the environmental monitoring system, rack designs and servers.

The Blackbox Project idea comes from a need to serve everything from the military to remote science stations with computing power only found at large data centers.   Natural disasters, developing nations, and other emergency response applications are envisioned.

The Blackbox is designed to hold 250 Sun Fire servers configured for grid computing. These are stored in seven custom racks.  The servers are supported by another rack containing cooling units, switches and dehumidifiers. Equipment from other companies can also be inserted into the Blackbox so long as components fit within the Sun designed rack system.

Sun also sees the Blackbox as a "green" solution to data center computing by containing the entire data center footprint in a 8ft. x 8'6" x 20 ft. space. When the box needs moving, standard shipping conveyance can be used, ranging from ship to truck to intermodal flat car.   The Blackbox can be stored virtually anywhere because of its wind and watertight container.   The portability of the Blackbox system also means that it reduces the possibility of a data center being a terrorist target.   Blackboxes can be deployed on roof tops or on ships or even in the corner of a distribution center.  For major corporations with operations in politically unstable regions, or in turbulent weather regions, the Blackboxes potential as a full data center back up is huge.

Disposal of the Blackbox can be done through Sun Microsystems, who will take back any Blackbox container (and its contents), anywhere in the world, and reuse, recycle, or dispose of it in an environmentally responsible way.

Practical Stuff to think about... How well will the Blackbox hold up when the container gets a hole in the roof, gets intensively inspected by US Customs, or lets say, Customs officials demand that the box be "stripped"?  What if a DEA official gets a drill and starts poking holes?  (Like in Miami for instance.) C-TPAT clearance of the Blackbox container will be interesting indeed.   What if some foreign customs group demands to inventory the data on the computers?   These units are painted black. 150+ degrees Fahrenheit inside the container is likely in the summer.  Sun seems to have thought about cooling, but what about a "Keep From Freezing (KFF)" program in the winter?  When the unit is on a chassis, will it's native cooling units hook up to a genset? This is one instance where the customs broker for these containers better go early to Customs in any country to explain what these units are.  This is an unusual case where the container and the product are unitized.  Failure to do so in a port that has not seen this kind of cargo before could be a disaster as a result of damaging inspection.

Blackbox units are now in early deployment. Sun says limited quantities are available with more on the way.

Make sure to check out Sun's Blackbox Demo Tour.   I particularly love the segment on shipping containers where a Sun Microsystems vice president evangelizes about Malcolm McLean and development of the ocean container.

Old school innovation meets new school.   I love it when that happens. Check here to see where the Blackbox is today.

Eric

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RFID: Metro Expands "Tag It Easy" Program

Metro Group, one of Europe's largest retailers and a pioneer in the use of Radio Frequency Identification tags (RFID), has expanded its RFID program to enable 30 Chinese vendors to tag products bound for Metro stores in Germany.   US RFID tag manufacturer Checkpoint Systems is partnered with Metro in the expanded program.

The article below is from RFID Journal.  You may also be interested in this earlier freightdawg article that contains an excellent video on Metros RFID program.   Metro is one of the few retailers who are making RFID a reality in their supply chain program.   

clipped from www.rfidjournal.com Metro Group Expands RFID Pilot in Asia The retailer's new "Tag It Easy" program with Checkpoint Systems will enable 30 Chinese suppliers to tag goods bound for Metro stores in Germany. By Mark Roberti May 23, 2007—Metro Group, one of world's largest retailers, is expanding its Advanced Logistics Asia RFID pilot to include several Chinese suppliers. The company has teamed with Checkpoint Systems, a Thorofare, N.J.-based provider of radio frequency identification systems, to provide RFID labels for the participating suppliers. "We have been testing RFID in our supply chain from Asia to Germany since 2006," says Gerd Wolfram, managing director of MGI Metro Group Information Technology. "We've been achieving good read rates, and everything has been working fine. So we decided to have a supplier event here in Asia and do a bigger test with more participants." Until now, Metro's Advanced Logistics Asia initiative has involved a third-party logistics provider, Fat Kee Stevedores, and a small Chinese supplier. The two companies have been applying UHF Electronic Product Code (EPC) tags to containers loaded with cartons of various goods to be exported, including pens and kitchen gadgets. At the Fat Kee facilities in China, the packages are pushed through an RFID portal. After the system reads the tags, software creates an electronic packing list, which is sent electronically to MGB Metro Group Buying HK to be checked for accuracy. The list is then used to generate an advance shipping notice (ASN), which is sent to Metro headquarters. When the goods arrive at a Metro Group distribution center in Unna, Germany, the system reads the tags and checks them automatically against the ASN. The pilot was deemed a success, so Metro Group decided to expand the system to additional suppliers in Asia. Today, Metro is holding a meeting with its Hong Kong suppliers to explain how the pilot, known as "Tag It Easy," will be run. Suppliers will be able to access a secure Metro extranet called Metro Link, which will let them view their purchase orders. Each order will have an EPC and Serial Shipping Container Code (SSCC) associated with it. Checkpoint, as the nominated third-party label supplier, will supply and give technical training to the suppliers.

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Blue Sky's Insight into Visibility Solutions

I recently posted an article regarding Blue Sky Logistics recent deal with Staples, the office supply retailer.  Staples announced selection of BSL's "Insight" supply chain visibility software for use in providing dashboard level visibility across their supply chain and order systems.   

Following that article, I was contacted by both Jeff Ashcroft of the supplychainnetwork.com and by Steve Hensley, President of Blue Sky Logistics.  Both were very helpful in showing me how Insight assists logistics professionals and other business users in seeing inventories and activities in a unified way across disparate systems.  The highly customizable user interface for Insight is one of the better ones I have seen. Though I would still like to see more events management components added, the tight integration to a variety of ERP and WMS systems was impressive.   

Jeff's site has a guest column by Kari Dwyer of Blue Sky Logistics discussing how Visibility tools pave the way for continuous improvement.  That article is partially clipped below.

Eric

clipped from supplychainnetwork.com Guest article from Kari Dwyer - Blue Sky Logistics As competitive pressures become more intense across the global supply chain industry, companies must seek new ways in which to increase efficiencies within the supply chain.  In order to do this, cross-functional supply chain visibility solutions become a critical partner in identifying areas for strategic and tactical performance improvements.   For supply chain visibility solutions to be effective, actionable data must be easily accessible and acted upon.  Companies that invest in supply chain visibility solutions as an integral part of their continual performance improvement initiatives will be able to react most quickly to the demands of their adaptive supply chains and will secure substantial cost savings. Continual performance improvement is not a small undertaking; it is a way of life for companies seeking to remain competitive. In fact, the term “continual” guarantees an ongoing effort in refining operations. Supply chain visibility solutions provide a powerful avenue in contributing to performance improvement goals by providing statistics and measurements of supply chain processes and operations. The ability to view Key Performance Indicators (KPIs), metrics, and trends does not provide much value unless the underlying detail behind the numbers is also available. Obtaining actionable data is critical in order to make effective strategic and tactical decisions. Through the availability of actionable data, supply chain visibility solutions become an invaluable asset in providing continual performance improvement.

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Nails on ITWO

i2 Technologies took a beating on Wall Street last week, losing 30 percent of its share value after announcing earnings of 13 cents a share on revenues of 65 million dollars. Analysts had expected earnings per share in the 22 cents range.   i2 subsequently announced the retirement of CEO Michael McGrath as a result.  i2 is a leading software developer of enterprise level transportation and supply chain management solutions.

The column below is by Lenny "Nails" Dykstra, who is now a columnist for TheStreet.com.   I find it entertaining that a guy who played "all out" for the New York Mets and Philadelphia Phillies is now a Wall Street columnist!  The most vivid memory of Dykstra I remember was the 1993 World Series when TV cameras showed Dykstra sitting in the dugout next to Phillies manager Jim Fergosi.   Dystra was smoking a cigarette and chewing tobacco...at the same time!  Fergosi had a smoke as well!  Lenny Dykstra was crazy then and may still be.  He thinks i2 is a good buy.   

Maybe I'm crazy too.  I agree with him!   i2's product line is solid and they continue to grow in customer base.

clipped from www.thestreet.com Dykstra: An Options Play on i2's Bloodletting By Lenny Dykstra Special to TheStreet.com 5/3/2007 9:14 AM EDT In my April 23 column on Yahoo! (YHOO - Cramer's Take - Stockpickr - Rating), I discussed my inclination to invest in battered stocks with my deep-in-the-money (DITM) call strategy. As I said then, the market tends to go to extremes, meaning share prices generally reach higher highs and lower lows than true fair market value would dictate. Another example of this came Tuesday, when i2 Technologies (ITWO - Cramer's Take - Stockpickr - Rating), a supply-chain management company, plunged 30% in one day after releasing lower-than-expected earnings and announcing the retirement of CEO Michael McGrath. This move is an overreaction. True, the company reported earnings of 13 cents a share on revenue of $65.6 million, falling short of analyst EPS expectations of 22 cents a share on $64.9 million in revenue. But although earnings per share missed by a lot, the revenue was largely there. And after removing several one-time items, earnings per share climb to a more respectable 16 cents. Plus, when you consider the company posted just 4 cents in EPS a year ago, it's clear this company is growing. In fact, ValuEngine rates the stock a buy. Also, in doing my homework -- which includes a daily 4 a.m. telephone call to RealMoney contributor Richard Suttmeier -- I discovered that the stock has a fair value of $22.55, according to Suttmeier; it closed Wednesday at $18.10.

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