The challenge for supply chain executives is showing how logistics infrastructure performance improvement will deliver bottom line results – in a manner that will resonate with executive leadership all the way to the board level and in turn Wall Street.

The first task in the process is to assure that supply chain strategies are closely aligned with corporate strategies and performance metrics and that the linkage between them is clearly articulated. The second is developing a value proposition that mitigates risk and shows specifically how each supply chain improvement impacts the financial statements, KPIs and benchmarks used by management to govern.

This approach, which New Course strongly recommends, is the launch point for most client engagements. It helps create broader senior-level understanding as well as informed support for specific supply chain infrastructure, technology and systems initiatives. It can and should be used to obtain approval (and, as appropriate, funding) for moving forward with specific strategic initiatives.

Supply chain network optimization addresses the question of what is the optimal configuration of the network needed to satisfy customer demand within service levels targets and the lowest overall cost? New Course and our consulting partners assist clients with defining this network, examining the cost trade-offs and answering the following additional questions:

• Are our distribution facilities sized properly and in the right locations? Will they be in five years? Seven?
• Which and how much inventory should be deployed within the network and where should it be located?
• When and where should we add additional plant and/or storage capacity?
• What about construction/lease cost, the local labor market, wage rates, utilities, access to carriers, etc.?
• Which customers should be served from each facility?
• What transport modes and lanes should be used to move products through our network?

New Course’s proven business case development methodology is frequently used by our clients to develop the value proposition for deployment of SAP’s Supply Chain Execution systems such as WM, EWM, TM and Labor Management, upgrading from SAP’s WM to EWM or deploying one of the systems from a main “best of breed” vendor. The New Course Methodology takes into consideration the following:

• Key Performance Indicators (KPI’s) to establish and value performance improvement targets.
• Uses standard New Course templates to identify the changes needed to meet performance goals and industry “Best Practice”.
• Matches functional requirements against current systems, identifies gaps and estimates probable costs for remediation.
• Defines recommended solution(s) and the estimated total deployment cost including the both internal resource costs and external vendor fees.
• Documents potential risks and recommendations for mitigation.
• Estimates the tangible and “soft” savings potential of deployment.
• Uses the estimated total deployment cost and projected savings to develop a detailed cost / benefit Business Case document with projected break-even points.

The best supply chain technology installed in operations with ill-conceived material flows and processes will only enable users to do the wrong things — faster. Contemporary supply chain management must focus upon matching material and data flow as transactions occur. The challenge is to craft a fulfillment and delivery infrastructure that meets these needs at a cost that is supported by ROI. Effective supply chain operations cannot exist without integration into information technology and data systems. Launching a WMS project from a “best of breed” vendor or SAP’s EWM without a hard look at facility layout, handling systems and methods will almost certainly produce a sub-optimal implementation. Prospective users must first look at process flow as well as the efficiencies that might be realized in terms of space, layout, equipment and people. Indeed, minor changes to facility configuration, material flow, storage and picking procedures will often benefits before a system is introduced.

New Course has engineering resources that focus on supply chain execution services such as engineered labor standards, slotting, material handling simulation and throughput modeling. Our resources are experts in operational best practice, work flow and development of incentive based pay structures. Contact us for more information and learn how we can help maximize productivity in your logistics operations.

Are your distribution facilities a candidate for re-layout, consolidation or expansion of your distribution operations? Are your facilities sized, configured and equipped to support your future supply chain strategy? What are the tradeoffs between material handling automation and additional staffing? New Course and our trusted consulting partners will work with your team to address these questions as well as analyze alternatives and develop layouts and material handling designs that work to support your requirements, both today and into the future. Our seasoned team of consultants will work diligently to identify the most cost-effective, practical solutions and then support their implementation. Contact us for a no obligation review of your current operation and discussion about industry best practices.

“Material handling” defines the equipment, controls and systems used to manage the movement, storage and protection of inventory throughout the manufacture, distribution, consumption and disposal cycles. Hands-on material handling expertise is critical to analysis and design of warehousing and distribution operations. New Course resources and our trusted partners have extensive experience with both conventional and automated material handling equipment and systems and have been nationally recognized for their contributions to the industry. As members of the Material Handling of America (MHIA) and Council of Supply Chain Management Professionals (CSCMP), we nurture our industry relationships to ensure that, from pallet jacks to AS/RS; the solutions we recommend represent current best practices and are drawn from the broadest arsenal of field-proven alternatives.

It’s been New Course’s experience that successful supply chain execution systems projects get off to a great start by having the proper set of requirements and “future state” process flows documented. Over the years, New Course has developed detailed, comprehensive sets of requirements for supply chain systems execution including:

• Warehouse Management (WM)
• Transportation Management (TM)
• Labor Management (LM)
• Yard Management (YM)
• Slotting

Our experience from hundreds of previous engagements was used to build out and maintain these industry “best practice” templates. Utilizing these existing documents allows us to efficiently and effectively deliver value to our clients.