Customization Toolkit: A Case Study on Supply Chain Integration

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Customization ToolkitA Case Study on Supply
Chain Integration

• Vincent Sita and Daniel Nall
• Rex Three, Inc.

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But First!

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

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Traffic Sheet Manager

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

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Closed Jobs Manager

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

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Adjust WIP Entries

• Expense job cost transactions for jobs closed
  manually without invoicing.

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MXML (Metrix) Importer

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

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UPS and FedEx Shipment Tracker

• Import job shipment info into carriers system,
  and retrieve tracking info and costs when
  available.

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Supply Chain Integration

• Implementation Study

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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.

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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

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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

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ePace Customization

• How Rex integrated into their customers supply
  chain.

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System RequirementsAutomate the following
processes

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

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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.

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Confirm PO

• If everything conforms, PO confirmation is sent
  back to client.
• Any problems are trapped and treated as
  exceptions.

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Advanced Shipment Notifier

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

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Invoice

• Invoice is sent to client electronically.
• Invoice is accepted directly into clients
  accounts payable system.
• Humans post invoice on Rex side, closing job and
  placing job into accounts receivable.

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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.

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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

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Daniel Nall

• Executing system requirements using the ePace
  customization framework.

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Questions and Answers