05/20/2013 by Tom Rentschler - VP, Sales and Marketing
No sooner has the supply chain industry become accustomed to the new reality of same-day delivery being implemented in test markets by Amazon than a new, even faster paradigm may be about to emerge. In the April, 2013 issue of Wired magazine, Marcus Wohlsen asserts that we can “Forget next-day delivery. The standard in online shopping is rapidly approaching next-hour delivery.” Full Blog Post >
05/13/2013 by Jeff Ross - VP, Consulting
I have to admit I had a terrible tendency to procrastinate in my junior high years. In fact, I turned the advice of Ben Franklin’s Poor Richard on its head by never doing today what I could put off till tomorrow. And though I survived and even moved on to high school and beyond, I paid a price for regularly delaying what I knew needed to be done promptly. Late nights, lower performance (measured in grades), pleading discussions with teachers and my parents — all could have been avoided but were painfully routine due to my dilly-dallying. Full Blog Post >
05/06/2013 by Eric Clark - CIO
Evaluating warehouse systems and operations to determine if automation is the next step in the distribution center’s (DC) evolution has perplexed both IT and DC managers since the marriage of effective software with reliable material handling and equipment (MHE) systems. The incisive executive looks to innovation through automation as a means to keep pace with expanding distribution requirements while maintaining a continuous focus on market-driven customer needs and expectations. Full Blog Post >
04/29/2013 by Jeff Ross - VP, Consulting
When contemplating the principles of the “smart” warehouse over the weekend, I was reminded of the comments of Master Po from the iconic 70s television series, Kung Fu: “Balance, grasshopper. Balance,” he implored his protégé. Particularly during the situation assessment phase of distribution center design, the concept of balance is especially important, as statistical data must be properly balanced with more empirical evidence of stakeholders and the advice of industry experts. Full Blog Post >
04/22/2013 by Tom Rentschler - VP, Sales and Marketing
Gartner’s Dwight Klappich published a new research note on March 18, 2013 entitled Consider 10 Criteria When Evaluating WMSs. Among the factors that Klappich recommends Logistics and IT leaders should evaluate when replacing a legacy WMS or buying a new one is the degree of Warehouse Automation employed in the distribution operation. In fact, his recommendation calls into question the traditional practice of evaluating and implementing WMS prior to tackling the layout and design of the material flow through the warehouse. Full Blog Post >
03/25/2013 by Eric Clark - CIO
The sheer variety, volume and velocity of information — both structured and unstructured — currently available to DC managers and operators is both incomprehensible and, for the most part, indecipherable. A mobile, streaming avalanche of data overwhelms us and “Big Data” defies the structure and compartmentalization of traditional enterprise applications. Yet, this external “miscellaneous” information can be of great value, providing insight to the SCM/SCE team.
Full Blog Post >
03/18/2013 by Eric Clark - CIO
In today’s multi-channel distribution environment, fulfillment operations are squarely focused on better, cheaper and faster order delivery to the customer’s doorstep. Consumers have come to rely upon the Internet as an instantaneous resource to evaluate, compare, purchase and receive products. Automation, along with supply chain execution (SCE) software, is turning extraordinary performance into routine service. Customers have come to expect next-day or second-day receipt of their entire order with complete accuracy as the norm. For many customers, such service is a big factor of the e-commerce buying experience, greatly influencing their future purchasing decisions. Fulfillment, therefore, has become an important supplier differentiator, which progressive businesses are converting into high levels of customer satisfaction and repeat business — the holy grail of customer loyalty. Full Blog Post >
03/11/2013 by Bob Babel - VP, Executive Consultant
In the preceding blog, we covered the cost, quality and performance caveats of using pre-owned MHE components. In this second and last installment, we'll review the practical issues which are sometimes overlooked. Full Blog Post >
03/04/2013 by Bob Babel - VP, Systems Engineering
Return on investment (ROI) is frequently used to measure the success of a capital-expenditure (CAPEX) improvement project. Project leaders are often tempted to maximize ROI but minimize CAPEX, even if it means gambling on component quality. One tactic used to reduce the cost of a high-priced line item is the selection of pre-owned equipment rather than the purchase of new material handling equipment (MHE). This may be equipment you purchase from a second-hand dealer or that you already own and have used. Full Blog Post >
02/25/2013 by Tom Rentschler - VP, Marketing
Historically, operations management has been firmly in charge of logistics and distribution in most companies. But with today’s increasing emphasis on consolidating applications with global ERP vendors, IT is more commonly calling the shots when it comes to supply chain management (SCM) applications. Gartner analysts C. Dwight Klappich, Greg Aimi, William McNeill, Jessica O’Brien and Chad Eschinger published Predicts 2013: Collaboration, Cloud and Evolving Strategies Will Drive Global Logistics on November 19, 2012. According to their research, “Two compelling technology megatrends are the accelerated move to the cloud and the growing dominance in SCM applications of application megavendors.” The Gartner analysts predict that those megavendors will control one-half of the global supply chain execution market by 2016. Full Blog Post >
02/18/2013 by Eric Clark - CIO
Recently, the CIO of a client company contacted me regarding the maintenance of information systems infrastructure and hardware supporting his DC’s physical conveyance and automation systems, otherwise referred to as MHE. Our discussion quickly led to an IT systems maintenance solution based on OEM recommendations and facility factors (e.g., temperature zones, energy zone, eco-friendly considerations, etc.). MHE maintenance, however, was a knottier issue. Certainly, the OEMs publish suggested maintenance schedules. But the client’s business has been growing steadily, and demands on the facility’s MHE are increasing. So what strategy should we pursue to ensure maximum MHE uptime and DC efficiency?
Full Blog Post >
02/11/2013 by Bob Babel - VP, Executive Consultant
Implementation. With a one or two shift operation, retrofits generally are installed during off-shift periods and over weekends. Where there is a three shift operation, the work is generally done on the lowest volume shift when parts of the automation may need to be turned off periodically. The other option with three shift operations is to utilize multiple crews on weekend shifts, which extends the timeline and increases cost. Full Blog Post >
02/04/2013 by Bob Babel - VP, Executive Consultant
Gradually, almost imperceptibly it happens: Your shiny new, state-of-the-art distribution center has reached its design horizon. In an increasingly dynamic marketplace, ever-higher customer expectations, coupled with innovative competitor responses, pose challenges that may threaten your continued prosperity. Your business has changed, and you need to respond.
Full Blog Post >
01/28/2013 by Eric Clark - CIO
Before joining FORTE, my career in distribution center (DC) operations had largely been focused on enterprise-level software applications, such as as warehouse management systems (WMS). To me, the warehouse control systems (WCS) - the software that interfaces with the WMS - simply ran the “iron,” the material handling equipment (MHE) - to move product efficiently and fulfill orders accurately. The WMS was the “brains” of the DC…the WCS its “central nervous system”…and that was that. I made the mistake of not recognizing, much less understanding, what the WCS could really do: its power to harness available information to more productively operate the DC in the “now” and more insightfully manage it in the future.
Full Blog Post >
01/21/2013 by Tom Rentschler - VP, Sales and Marketing
The esteemed research analysts at Gartner published their comprehensive Supply Chain Management Market and Vendor Guide, 2012, on December 14. For the first time in the history of this guide, Gartner has initiated coverage of both Warehouse Control Systems (WCS) and Supply Chain Execution (SCE) Specialty Consulting Firms. Although 87 pages in length, this research provides a concise listing of the supply chain management application and technology categories and vendors covered by Gartner. FORTE has earned recognition in both of these brand new Gartner categories. Full Blog Post >
01/14/2013 by Eric Clark - CIO
A “Heads Up” to Optimal DC Operations: I had just finished my presentation on FORTE’s new WCS 2.0 Smart Warehouse Suite™ (SWS) when a marketing consultant in attendance asked: “What main value or benefit does this application provide a potential customer?” Reflexively reverting back to the PowerPoint script, I responded: “SWS is a ‘technological enabler’ to identify and remedy poor performance while empowering sustainable operational excellence.” Dazed but not confused, the consultant pressed the question: “As plainspoken as possible, tell me the main reason a customer would want to buy WCS 2.0.” Full Blog Post >
01/07/2013 by Jeff Ross - VP, Consulting
Many distribution organizations believe a Warehouse Management System (WMS) will solve all their problems while others believe automation is the solution. Neither assumption is correct. Full Blog Post >
12/18/2012 by Michael Howes - Director, Software Engineering & Principal Architect
Wikipedia defines “enterprise software” as a collection of computer programs with: common business applications; modeling tools that capture the processes, enabling an organization to accomplish its work; and development tools for building applications unique to the organization. This software is intended to solve an enterprise-wide problem, rather than a departmental problem. According to Martin Fowler, an internationally recognized author and international speaker on software development, “Enterprise applications are about the display, manipulation and storage of large amounts of often complex data and the support or automation of business processes with that data.” Full Blog Post >
12/10/2012 by Derek Sorensen - Senior Consultant
Optimal warehouse space utilization, reduced labor costs and increased throughput are all achievable through effective slotting. Years of industry consultant research confirm that slotting alone typically can (1) increase picker productivity between 7 and 20 percent, (2) reduce replenishment labor costs from 3 to 13 percent and (3) increase storage space cube capacity utilization by as much as 40 percent. Full Blog Post >
12/03/2012 by Derek Sorensen - Senior Consultant
Arriving early for a party at a friend’s house, you offer to help the harried host — by offering to unload the dishwasher and straighten up the kitchen. They demur; you insist. Springing to the task, you immediately realize you don’t know where everything goes, and your friend must continuously advise you where to store the mixing bowls, glassware, heavy cast iron skillet, oddball gadgets and so on. Over time, your friend has slotted every item in the kitchen to optimize their productivity and maximize limited storage capacity. They have attained labored space efficiency (at least temporarily), which is precisely the goal in managing your DC operation.
Full Blog Post >
11/26/2012 by Tom Rentschler - VP, Sales and Marketing
Whether you call it “multi-channel” or the currently trendy “omni-channel” fulfillment, few topics have generated more interest and analysis in the supply chain industry this year, and with good reason. Retailers are experiencing dramatic revenue growth by adding a direct-to-consumer (DTC) channel, certainly aided by the ubiquity of smartphones. In fact, some analysts are predicting that retail e-commerce sales will grow to $279 billion by 2015. Full Blog Post >
11/19/2012 by Larry Boroff - Director, Automation Systems Engineering
24 VDC Motorized Roller System vs. the Traditional Motor-Reducer Conveyor System: When confronted with distribution center capacity and efficiency problems, the traditional solution focuses on a typical conveyor system where 480 volts is delivered to widely distributed AC motors and transferred to a gearbox (drip pan included) that drives several long belts needing continual tracking. In many cases, and for many reasons, these mechanical Rube Goldberg monsters are the practical choice. But they are not necessarily the best choice. There are applications where motorized drive roller (MDR) conveyor systems utilizing low-voltage, 24-volt DC brushless motors may be the best, albeit unconventional, solution. Full Blog Post >
11/12/2012 by Jeff Ross - VP, Consulting
During the mid-1990s, several of the country’s retailers initiated vendor compliance programs that included substantial financial penalties for failure to comply. Penalty-based compliance systems are now prevalent among large retailers, resulting in challenges to operational efficiencies within the shipping distribution center (DC) due to the need to pull orders off-line from the standard fulfillment process and perform specific labeling prior to shipment. In the worst case scenario, the additional work to print and apply labels is not completed with 100 percent accuracy, and the DC incurs tens of thousands of dollars in penalties for noncompliance, in addition to the investment in labor. As a DC manager, I unfortunately had some first-hand experience with the challenges of complying with very detailed demands as well as a limited, but very painful experience with the cost of an instance of non-compliance and the resulting penalties.
Full Blog Post >
11/05/2012 by Tom Rentschler - VP, Sales and Marketing
In the October 22, 2012, issue of Forbes Magazine, publisher Rich Karlgaard, whom I’ve had the privilege of getting to know over the course of my career, challenged us in his Innovation Rules column to understand that winning companies “excel in both the hard stuff and the soft stuff of business.” Whether you think of this dichotomy as tangibles and intangibles, science and art, left brain and right brain, or yin and yang, the truly great companies (e.g., Apple) have gained mastery over both sides of the equation. Although we think of Apple’s success as a result of Steve Jobs’ relentless obsession with getting the “soft stuff” right (making Apple’s products “insanely great,” to use one of his favorite expressions), the truth is that Apple also excels at the “hard stuff.” Full Blog Post >
10/29/2012 by Charlie Rizzo - Program Director, Strategic Accounts
The previous blog focused on the processes and procedures — the maps and metrics — of daily DC operations vis-à-vis customer expectations and competitive pressure. Now we turn to an assessment of automation systems. Order processing throughput speed is one of the most valuable tools in your arsenal and absolutely essential to achieving a competitive advantage. You can realize significant improvements through process flow charting — (cut out the wasted and no longer necessary activities); by using the functionality in your software systems to minimize excessive entries or steps; by maintaining up-to-date slotting; and, lastly, by fostering a true team effort with cross-functional training and a staff dedicated to a common goal … get every order out on schedule or ahead and go home on time! Full Blog Post >
10/23/2012 by Charlie Rizzo - Program Director, Strategic Accounts
Be Proactive and Thrive: If your goal is to be the leader in your competitive space, you must begin with a cold and hard assessment of your current capabilities, and then identify and prioritize those areas where you need to immediately improve. In this installment, we'll look at increasing customer expectations and competitive pressures that expose potential weaknesses of your fulfillment processes and procedures. The next and concluding segment will focus on automation, controls and software which may have aged and are now ineffective. Full Blog Post >
10/15/2012 by Charlie Rizzo - Program Director, Strategic Accounts
This is the first of a three-part blog regarding competitive leadership in distribution center (DC) "order drop to out the door" cycle time performance. This first installment discusses the threats and opportunities of rapidly changing technologies and heightened customer expectations. The following blogs will examine specific DC obstacles and constraints that need to be addressed, including all team members who are required to enable you to move forward. Full Blog Post >
10/08/2012 by Tom Lehmkuhl - VP, Executive Consultant
You are ready for another busy day. Critical orders need to be picked, packed and shipped. Customer service and your well-earned reputation are once again on the line. Your teams of associates are humming like a well-oiled machine. You’ll meet your deadlines! All of a sudden, you notice that totes and cartons are recirculating or being rejected on the shipping sorter. Then you notice nothing is moving in the pick modules. At a sortation rate of 150 cartons/minute, the product is stacking up quickly and everything is in gridlock. Time (and space on the conveyor systems) cannot be recovered. Full Blog Post >
10/01/2012 by Robyn Poe - Director, Business Development
When I began my career in business development at FORTE a number of years ago, I wondered, “What will it take for me to successfully engage senior-level supply chain executives in meaningful conversation, or for that matter, have them return my call or reply to one of my emails?” I started doing some research and came across a well-known sales strategist who provided insight that simply made sense to me. Jill Konrath is a sought-after public speaker and accomplished author of two bestsellers, “SNAP Selling” and “Selling to Big Companies.” Fortune magazine named the latter one of eight “must reads” for sellers, along with “How to Win Friends & Influence People,” “The New Strategic Selling” and “Getting to Yes.” It has also been an Amazon Top 25 sales book since 2006. Full Blog Post >
09/24/2012 by Michael Howes - Director, Software Engineering & Principal Architect
Today, the proliferation of technology in our day-to-day lives is changing the way business gets done. The instant gratification offered by mobile apps and Web-enabled services is shaping the paradigm through which traditional software packages are viewed. Consumers are accustomed to highly targeted apps that offer the streamlined services they need — nothing more, nothing less. And, if one app doesn’t meet the consumer’s needs, there is a long line of low-priced (sometimes free) competitive apps waiting for a chance to do so. Full Blog Post >
09/17/2012 by Russell Pressler - Business Development/Sales/Marketing
I was recently asked a question by a prospect regarding the use of a third-party logistics provider (3PL). The question seemed simple enough, but definitely had strategic implications. This is the question as it was posed to me: What are the benefits of having a 3PL operate a specific facility for 10+ years vs. sourcing 3PLs every three years with the chance that a different 3PL would win the business? Full Blog Post >
09/10/2012 by Tom Rentschler - VP, Sales and Marketing
In a webinar entitled, Supply Chain Solutions: Growth Opportunity for Software Providers, conducted in July 2012 by Gartner, analysts Chad Eschinger and Dwight Klappich shared some of the strategic differences between supply chain leaders and followers, noting that the leading supply chain organizations are shifting from playing defense to playing offense. According to Gartner’s research in the supply chain management (SCM) space, 2011 was the year in which business priorities shifted toward customer satisfaction and growth initiatives, away from improving efficiency or productivity and reducing costs. Improving customer service was the number one priority in the 2011 survey, having been no higher than third in each of the preceding three years. Driving business growth through targeted supply chain contributions became the second priority, rising from only the sixth position the prior year. What is really fascinating about the survey is that “innovation” is now the third-highest business priority. Clearly there’s a pent up demand for SCM innovation that has been stifled by the slow growth and continued uncertainty in the economy. Full Blog Post >
09/04/2012 by Michael Howes - Director, Software Engineering & Principal Architect
“…There must be a million things that have to come together for this DC to start up. There’s no way!” I can remember saying these words when I stepped into my first automated distribution center startup. Looking back, what I didn’t realize was that I was being naive; there are 2.7 million things that have to come together. Back then, a typical software implementation would take weeks and often required long days. And after all that effort, issues often arose. Full Blog Post >
08/27/2012 by Tom Lehmkuhl - VP, Executive Consultant
I am often asked by prospective and current customers to describe what a Warehouse Control System (WCS) is and what it does. Depending on the situation, I find an analogy helps. The one I use most often is that of the computer in a car. For many, I talk about that period when we transitioned from distributer caps and points to electronic ignition: the transition from being in control to turning it over to software and some piece of silicon. Those times were challenging because it seemed that one device instantly became responsible for every problem you encountered with your car - at least that's what the service tech told you. And because it was there, you lost control. Full Blog Post >
08/20/2012 by Jeff Ross - VP, Consulting
Like the padlock and key that protect a building’s contents, the receiving operation safeguards the overall efficiency of your warehouse. The typical approach when receiving product is to get it unloaded and put away as quickly as possible. At the end of the day, many warehouse managers equate a clean receiving dock with a successful operation. Unfortunately, this approach can often create downstream problems and mask internal inefficiencies. Speed should not be the focus of receiving; in fact, speed as the primary objective can negatively impact an efficient warehouse operation. Full Blog Post >
08/13/2012 by Tom Rentschler - VP, Sales and Marketing
Whether you choose to call it “vendor agnostic” or “supplier neutral,” there’s no question that a truly objective approach to the evaluation and implementation of facility automation solutions and supply chain execution system (SCES) software offers real value to clients. At FORTE we call our objective approach to the business “client-side services” because we don’t have commercial arrangements with any suppliers of equipment for expected volumes of business and we don’t resell SCES software. In other words, our only allegiance is to our clients and recommending the most appropriate level and blend of technologies best suited to address their specific challenges.
Full Blog Post >
08/06/2012 by Eric Clark - CIO
In the July issue of DC Velocity, editor at large James Cooke poses the question in his Techwatch column, WCS or WMS: Which is right for you? Cooke correctly notes, "Not so long ago, software used in distribution centers fit into neat categories. There was the warehouse management system (WMS), the market's dominant application, which essentially ran the DC operation, overseeing activities like receiving, putaway, and picking. Then there was the warehouse control system (WCS). Designed for distribution centers that utilized automated material handling equipment, the WCS primarily served as an interface between the WMS and the automated devices." Today, however, as Cooke notes, "… the boundaries between WCS and WMS applications have blurred." Full Blog Post >
07/30/2012 by Tom Rentschler - VP, Sales and Marketing
Is a company’s corporate culture something that is imposed from the top, or does it emerge organically from within the organization? Recently I had the privilege of attending the Gartner Supply Chain Executive Conference where the keynote address was delivered by legendary management guru Gary Hamel. Hamel, for those not familiar with his work, is “the world’s leading expert on business strategy,” according to Fortune. In his address to approximately 1,500 senior-level supply chain executives, he argued persuasively against the old, hierarchical, command-and-control management style spawned by the Industrial Revolution. Drawing on his latest research and book, Hamel demonstrated that it is innovation in management—rather than in operations, products or strategies—that is most likely to create long-term advantage. He literally calls for nothing less than a revolution in how large organizations are structured, managed and led. Full Blog Post >
07/20/2012 by Jeff Ross - VP, Consulting
I recall the excitement and awe I experienced the first time I saw simulation of a material handling system 30 years ago. The screen displayed cartons being transported and sorted on a conveyor system that appeared to be exactly like the one I had risked my career to purchase several months prior. The simulation, I was told, would guarantee that the system to be installed in the service parts distribution center I operated would function correctly and without merge, congestion or sort issues. Being young and relatively naïve, I felt completely reassured by the simulation and the positive aura around me as each carton flowed efficiently throughout the conveyor system and diverted to the appropriate sort lane for palletizing.
Full Blog Post >