Customization Toolkit: A Case Study on Supply Chain Integration

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Customization Toolkit:A Case Study on Supply Chain Integration

Vincent Sita and Daniel Nall

Rex Three, Inc.


…But First!

5 quick customization projects realized since the last time we met.


Traffic Sheet Manager

A tool to allow the shipping department to manage 120 pickups and deliveries per day.


Closed Jobs Manager

Review and approve jobs without invoices, which have been manually closed by the

plant.


Adjust WIP Entries

Expense job cost transactions for jobs closed manually without invoicing.


MXML (Metrix) Importer

Take data from a Metrix layout and import key information into an estimate.


UPS and FedEx Shipment Tracker

Import job shipment info into carrier’s system, and retrieve tracking info and costs when

available.


Supply Chain Integration

Implementation Study


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.


The Efficient Supply ChainExchange 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


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


ePace Customization

How Rex integrated into their customer’s supply chain.


System RequirementsAutomate the following processes:

• Receive PO• Confirm PO• Send Advanced Shipment Notifier• Send Invoice


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.


Confirm PO

• If everything conforms, PO confirmation is sent back to client.

• Any problems are trapped and treated as exceptions.


Advanced Shipment Notifier

• When client system allows, ASN is sent.• Shipment weights are calculated.• Delivery date is confirmed.• Planned shipment is created.


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.


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.


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


Daniel Nall

Executing system requirements using the ePace customization framework.


Questions and Answers

Documents

Customization Toolkit: A Case Study on Supply Chain Integration