DECEMBER 2015
The European magazine promoting the effective use of IT in supply chain applications
Reference guide to benchmarking solutions Special Technology Report: CLOUD/SOFTWARE AS A SERVICE
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Case studies Opinion Company news
M an uf ac tu rin g
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Report Round-up: ENTERPRISE RESOURSE PLANNING PLANNING/FORECASTING/S&OP VOICE/WAREHOUSE MANAGEMENT SYSTEMS
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CONTENTS Manufacturing and Logistics IT December 2015
Special Technology Report 5
Cloud/SaaS
Editor: Ed Holden
Manufacturing Contributors:
12
Fibre optic manufacturer doubles revenue in 18 months with QAD Cloud ERP
Maria Toft Madsen, TimoCom Exel Computer Systems: Software upgrade brings new functionality to Naim Audio Isabel McCabe, Voiteq Capgemini signs three-year collaboration deal with UiPath for Robotic Process Automation Publisher: Dean Taylor
Special Technology Report Designer: First Sight Graphics Ltd, www.firstsightgraphics.com Production: Carolyn Pither
18
Enterprise Resource Planning
Planning
24
Inland Label makes a mark with efficiency using SIMATIC IT Preactor
Circulation: Carole Chiesa
Special Technology Report
IT Manager: Ian Curtis
26
Planning, Forecasting, S&OP
Accounts: Sarah Schofield
Transport Management Published by: B2B Publishing Ltd PO Box 3575, Barnet, Herts, EN5 9QD UK Tel: +44 (0) 1707 664200 Email (publishing): info@logisticsit.com Email (editorial): editor@ibcpub.com
34
TimoCom: Assign available freight more efficiently with transport platforms
Voice
36
Horseware keeps a tight rein on its warehousing operations thanks to door-to-door Voice solution from BEC and Honeywell
Printed by: The Magazine Printing Company plc, www.magprint.co.uk No part of this publication may be reproduced in any form without written permission from the publishers. No liability is accepted for any action arising from the contents of this publication; readers are advised to check any manufacturerâ&#x20AC;&#x2122;s or supplierâ&#x20AC;&#x2122;s claim for products. The publishers do not endorse opinions expressed in any article by an outside contributor. While every care is taken over photographs and illustrations, which are returned when requested, no liability can be assumed by the publishers for the loss of such materials.
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Warehouse Management
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Snapfulfil provides big benefits for major internet retailer Vanderlande: Shaping change with innovative solutions
Special Technology Report
46
ISSN:1463-1172
4
Voiteq: Voice is not just for picking
Voice/Warehouse Management Systems
Cloud/SaaS
Special Report
A clearer view Manufacturing & Logistics IT spoke to a number of key spokespeople from the vendor and analyst communities about the current state of play in the world of Software as a Service/Cloud technology, together with what might be in store over the next year or two. The Cloud and Software as a Service (SaaS)
inclined to lean toward a private Cloud model,
for business applications on hardware that is
are terms that have become increasingly
whereas those that view enterprise systems
not on the company’s premises and is
familiar within the world of manufacturing,
as commodities and/or want to outsource their
therefore in someone else’s data centre but is
logistics, warehousing and retail etc. over the
applications are typically more inclined to
still secure,” he said, adding that the nearer
past few years. There is an ever greater
lean toward SaaS solutions,” he said.
the ERP the more Cloud-based this type of adoption is. While in a distribution context the
choice of application choices available in the Cloud, but how do Cloud and SaaS compare
To Jim Rapoza, senior IT research analyst at
nearer the physical machinery and equipment
with the more traditional on-premise model,
Aberdeen Group, one of the biggest
then the less Cloud-based it is. “Nevertheless,
what are the core strengths of Cloud/SaaS
questions surrounding Cloud today is how it
the general trend is towards more Cloud
and what are the remaining concerns
responds to new technologies that will
adoption,” he remarked.
regarding the former? To address these and
change and challenge it. “Cloud is used to
other issues surrounding our topic in hand,
being the disruptive technology (in how it
However, Paul Hammond, VP, infrastructure
we spoke with a number of leading analysts
changed how we think about applications,
services, Capgemini, points out that there are
and vendors.
servers and services) but today, technologies
some practicalities to consider, such as
like Software Defined Networking, network
where organisations can have SaaS-based
To open the discussion, Eric Kimberling,
virtualisation and converged systems are
solutions provided from. “This can either be
managing partner at Panorama Consulting
changing how Cloud-based systems are
an enabler or a disabler in terms of, for
Solutions, makes the point that, first, it is
deployed, managed, even how we think about
example, where companies can legally hold
important to understand the Cloud versus
Cloud,” he commented. “There are great
data inside or outside the EU,” he said,
SaaS dynamic, as they are two very different
opportunities for Cloud to become even more
adding that the Safe Harbour Act has helped
deployment models and are not
powerful – especially in how it utilises
to clarify this issue to a large extent.
interchangeable terms. The second is to
software defined networking (SDN) – but it will
Additionally, Hammond made the point that if
understand the level of complexity and
need to evolve quickly to take advantage of
an organisation is holding manufacturing data
need/want for control of enterprise
these opportunities.”
to do with government departments that might be highly secure such as the MOD, then there
applications within an organisation. “Organisations that either view business
Steve Wilson, VP, head of supply chain,
would naturally be further considerations
applications as competitive differentiators
Capgemini, sees a significant trend towards
concerning security within UK boundaries.
and/or require a good deal of control over
an increasing level of Cloud adoption. “For
their enterprise applications are typically more
the most part that is private Cloud – hosting
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Richa Gupta, senior analyst, AutoID & data
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capture at VDC
have to move a site or a few sites at a time,â&#x20AC;?
capex costs. â&#x20AC;&#x153;With Cloud they donâ&#x20AC;&#x2122;t have to
Research, observes
said Winter. â&#x20AC;&#x153;Thus, a blended approach,
build, run and maintain a physical data centre
that Cloud-based off-
where some sites run on Cloud and some run
and all of the IT hardware,â&#x20AC;? he said. The other
premise deployment
on premise but still fully synchronised, is often
major driver, according to Wilson, is that
is gaining increased
appealing.â&#x20AC;?
many companies would like to be able to switch potentially to other applications within,
consideration with
' $"( '% # ! &% $' ( $%& !%#
enterprises, many of
Gavin Clark, commercial director at Snapfulfil,
say, a three to five-year timeframe.
whom are actively
believes that security is always a key topic,
â&#x20AC;&#x153;Consequently, if they move to the Cloud
looking to move to
even more so with the recent and much
there is a perception that this makes
subscription-based
publicised TalkTalk â&#x20AC;&#x2DC;hackâ&#x20AC;&#x2122;. â&#x20AC;&#x153;Taking advantage
switching easier,â&#x20AC;? he said.
pricing options.
of known vulnerabilities, such as logging-in as
According to VDCâ&#x20AC;&#x2122;s
a website admin or accessing open ports, are
Gupta makes the point that, according to
recently-conducted
typical activities of the amateur hacker, but
VDCâ&#x20AC;&#x2122;s research, enterprisesâ&#x20AC;&#x2122; primary reasons
end user survey on
can have devastating consequences to the
for investing in SaaS-based solutions are â&#x20AC;&#x201C;
the topic, more than half the respondents
reputation of an organisation,â&#x20AC;? he remarked.
reduction in costs associated with solution
have already replaced or are in the process
â&#x20AC;&#x153;Utilising a specialist SaaS provider will help
deployment and integration, ability to improve
of replacing some or all of their legacy
to ensure that your chosen application is
business agility (flexibility and scalability), and
enterprise applications (ERP, MES, CMS,
securely hosted, has been security tested
the relative speed of implementation when it
SCM, TMS and WMS) with Cloud-based
and, most importantly, can provide you with
comes to application delivery, deployment,
options.
the relevant security information/white papers
updates and maintenance.
you need to check all will be well.â&#x20AC;? Clark â&#x20AC;&#x153;Both public and private Cloud delivery and
added that hybrid solutions can be very
Winter considers one of the key benefits as
deployment models are gaining popularity,â&#x20AC;?
useful, but again careful attention must be
being more business focus while enjoying
said Gupta. â&#x20AC;&#x153;VDCâ&#x20AC;&#x2122;s research shows that the
paid to the security of the connectivity
better service levels. â&#x20AC;&#x153;With Cloud, customers
greatest shift will be towards private Cloud
between the two networks.
can spend their time focusing on their business and not the ERP infrastructure
deployments (managed internally or by a third
needed by the business,â&#x20AC;? he said. â&#x20AC;&#x153;This will
party) especially for mission-critical applications, which speaks to the need for
Key benefits
give them an edge over on premise
more control on information storage and
In essence, what are the key benefits of the
customers that have to maintain their own
retrieval while also helping generate a greater
SaaS deployment model? Rapoza believes
deployments. For example, QAD knows our
sense of security and privacy.â&#x20AC;?
that by far the biggest benefits are in ease of
product inside out. On premise customers
deployment. â&#x20AC;&#x153;Without the need to have to
only have their own system to learn from,
Tony Winter, chief technology officer at QAD,
deploy a platform in-house on company
where QAD has multiple customer systems to
believes that, among global manufacturers,
servers and resources, a business can deploy
learn from and thus can typically maintain
risk, compliance, integration and
a major SaaS-based application in the time it
much higher service levels than on premise
internationalisation are key subjects for Cloud,
takes to buy a present online,â&#x20AC;? he said,
customers. Some people refer to this as part
as is â&#x20AC;&#x2DC;depth of featuresâ&#x20AC;&#x2122;. He commented that
adding that ease of management is also very
of â&#x20AC;&#x2DC;Lean ITâ&#x20AC;&#x2122;: The ability to reallocate IT
while manufacturers understand the appeal
important â&#x20AC;&#x201C; no need for constant software
resources onto value added projects and
and benefits of moving to Cloud, they also
upgrades that can disrupt business continuity.
letting the cloud vendor do what they know
understand that they cannot go backward
â&#x20AC;&#x153;SaaS based apps are constantly updated
how to do best â&#x20AC;&#x201C; operate their own software.
with regard to features; in terms of introducing
without any need for the business to do
compliance issues (e.g. life sciences
anything.â&#x20AC;?
Another key benefit,
manufacturers often must operate on an FDA
in Winterâ&#x20AC;&#x2122;s view, is
qualified infrastructure â&#x20AC;&#x201C; most Clouds do not
Kimberlingâ&#x20AC;&#x2122;s view is that the technical aspects
business adaptability
qualify); in terms of SLAs not delivered and
of implementation are typically more
and best practices.
support not provided.
streamlined and less costly. In addition, he
â&#x20AC;&#x153;With Cloud/SaaS
believes the pains of upgrades and ongoing
manufacturers may
Winter added that moving to Cloud
maintenance can often times be addressed
more readily be able
reintroduces app integration requirements
more effectively in the SaaS model.
to move quickly in new site
that may have already been satisfied on premise. â&#x20AC;&#x153;This implies that multi-site
Wilson points out that many of his clients are
acquisitions, M&A,
manufacturers are seldom in a situation to
moving to the Cloud for two main reasons.
using shared
â&#x20AC;&#x2DC;throw the switchâ&#x20AC;&#x2122; to Cloud â&#x20AC;&#x201C; rather they will
The first concerns cost savings; for example,
services,
6
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Cloud/SaaS
reorganising
implementations â&#x20AC;&#x201C; such as business process
thinking enough around how they run end-to-
subsidiaries and
changes, organisational change
end operations when they are using public-
moving towards
management, training, etc. â&#x20AC;&#x201C; which isnâ&#x20AC;&#x2122;t
private Cloud in a hybrid mode and SaaS
global standards,â&#x20AC;?
addressed by the fact that the technology
applications alongside legacy where they are
he commented.
itself may be easier to deploy. In other words,
undertaking integration to the databases. â&#x20AC;&#x153;So,
SaaS is no surrogate for all of the people and
these companies have security operations
Additionally, Winter
process issues that need to be addressed as
that now have to span something that is
considers Value
part of any ERP implementation.â&#x20AC;?
inside and outside of their data centre,â&#x20AC;? he
Stream Collaboration $ '( '#( &"$!%('"' #( !
( ' '( ' %&#(
Special Report
said, adding that these organisations also
to be a core benefit.
In addition to the points he made earlier
need to think about a new operating model,
â&#x20AC;&#x153;Cloud/SaaS is a
concerning risk, compliance, integration and
which means they canâ&#x20AC;&#x2122;t see that the server
natural architecture
internationalisation etc., Winter added that
lights are flashing when they have some sort
for certain apps, like
security, availability, business continuity,
of outage or major incident.
supplier portals and
global accessibility and the new lock-in
EDI â&#x20AC;&#x201C; it enables the value stream to share
(dependence on a single Cloud service
templates, formats, provides better visibility
provider) all remain concerns. â&#x20AC;&#x153;Manufacturing
Recent developments
and in general enhances communication,â&#x20AC;? he
IT and executive management understand
What have been some of the most notable
remarked.
that Cloud is not a panacea â&#x20AC;&#x201C; there is no such
developments and improvements within the
thing as an easy answer,â&#x20AC;? he said.
SaaS marketplace over the past year or two? Rapoza thinks we have seen a major
Remaining concerns
Wilson considers that one of the potential
recognition of the mobile-first world we now
Are there any remaining concerns regarding
pitfalls of SaaS is the lock-in side of this type
live in. He points out that over the past couple
the SaaS deployment model? Gupta maintains
of provision. â&#x20AC;&#x153;There is sometimes an issue
of years more and more SaaS apps have
that organisationsâ&#x20AC;&#x2122; concerns surrounding data
concerning getting the integration to work
become much more capable in their mobile
security and privacy of these Cloud-based
effectively,â&#x20AC;? he said. â&#x20AC;&#x153;So although there is a
interfaces and capabilities.
solutions are very real. â&#x20AC;&#x153;These represent the
perception that companies can switch
primary barriers to adoption, especially in
relatively easily I think that is not yet
In Kimberlingâ&#x20AC;&#x2122;s view, flexibility and ability to
highly regulated industries,â&#x20AC;? she said. In
completely proven.â&#x20AC;?
more easily integrate with third party systems have been some of the key improvements.
addition, Gupta comments that network connectivity, performance and reliability are
Hammond made the point that some IT
â&#x20AC;&#x153;Best of breed SaaS solutions such as
also not yet optimal, which could also count
departments and IT organisations are not
Salesforce, Netsuite, and Workday are
as potential inhibitors to Cloud-based solution
necessarily very well geared up or forward-
providing more robust ecosystems to address
investments and deployments. Rapoza also homes-in on security as remaining a perceived pitfall. â&#x20AC;&#x153;Some businesses donâ&#x20AC;&#x2122;t want their vital data outside their data centre, even though in the vast majority of cases the SaaS provider has better security than most businesses could manage,â&#x20AC;? he said. Rapoza also made the point that there are regulatory hurdles, especially in where data is stored geographically. Kimberling reflects that organisations often think that SaaS will eliminate all of the pains associated with on-premise implementations. He commented: â&#x20AC;&#x153;Even though the technical aspects can indeed be less complicated and time-consuming than on premise, organisations still need to address the business transformation aspects of these
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those areas that they
more ubiquitous access to that data anytime
traceability, which are important in consumer
donâ&#x20AC;&#x2122;t address within
and anyplace via mobile devices and other
oriented manufacturing including F&B, is also
their core solutions,â&#x20AC;?
means. In addition, Kimberling explains that
potentially improved by Cloud due to global
he said. â&#x20AC;&#x153;For
this data is more likely to be captured,
accessibility.â&#x20AC;?
example, Salesforce
reported and analysed real-time in a
has an entire
SaaS/Cloud environment relative to on
Rapoza believes uptake has been across the
ecosystem of SaaS
premise.
board. â&#x20AC;&#x153;Interestingly, even sectors that used to be laggards in Cloud adoption, such as
solutions to augment
%$ ( $ &% $" # '"' $" ( '% "&%#(
their core CRM
Rapoza observes that many businesses
government and financials, are now more
solution in areas
interested in utilising Big Data are turning to
likely to use Cloud-based systems,â&#x20AC;? he said.
such as financials,
the Cloud. â&#x20AC;&#x153;Letâ&#x20AC;&#x2122;s face it; most companies
inventory
donâ&#x20AC;&#x2122;t have the infrastructure, expertise and
Kimberling reflects that functional vertical
management, and
sheer computing power to pull off high-level
offerings are more robust than industry
other critical
Big Data analytics â&#x20AC;&#x201C; but many Cloud
vertical offerings at the moment. â&#x20AC;&#x153;For
providers do have all of these capabilities,â&#x20AC;? he
example, sales functions are being well-
remarked.
served by CRM offerings such as Salesforce,
business functions.â&#x20AC;?
HCM offerings such as Workday, and
Clark considers that technological advances in storage (SSD), database technology (SQL
Winter explains that the use of Cloud-based
manufacturing offerings such as Plex,â&#x20AC;? he
clusters, â&#x20AC;&#x2DC;always onâ&#x20AC;&#x2122;) and data centre
storage gives Big Data a more flexible
said.
availability have made online services faster
approach for dealing with very large datasets
and more resilient than ever before. He
and complex analyses. â&#x20AC;&#x153;It helps Big Data, but
commented: â&#x20AC;&#x153;Historically, the cost of gaining
by itself is not the answer to achieving Big
Strongest line of defence
access to these advances has been
Data,â&#x20AC;? he said. â&#x20AC;&#x153;Manufacturers improve their
What are the on premise modelâ&#x20AC;&#x2122;s strongest
prohibitive for all but the largest global
business insight and actions from analytics by
lines of defence against Cloud/SaaS? Winterâ&#x20AC;&#x2122;s
enterprises. However, the economies of scale
developing a data-oriented culture and
immediate reaction is: comfort and success.
available to SaaS and data centre providers
concentrating on giving each user the right
â&#x20AC;&#x153;Ironically, companies who have done a great
have made these advantages far more
information needed at the optimal moment.
job with on premise apps, and those
affordable to all.â&#x20AC;?
Again, Cloud is not a panacea for Big Data,
manufacturers tend to be â&#x20AC;&#x2DC;world-classâ&#x20AC;&#x2122; in IT,
just a helpful enabling technology.â&#x20AC;?
have less motivation to adopt Cloud â&#x20AC;&#x201C; â&#x20AC;&#x2DC;If it
Winter remarked that QAD looks to its own
ainâ&#x20AC;&#x2122;t broke donâ&#x20AC;&#x2122;t fix itâ&#x20AC;&#x2122;,â&#x20AC;? he said. â&#x20AC;&#x153;Nonetheless,
approach to Cloud provisioning as a potential
often those already best in class move first to
breakthrough in Enterprise Cloud
Sector uptake
Cloud. Some compliance scenarios raise
Management. â&#x20AC;&#x153;QAD acts as a single point of
In what vertical end-user sectors are our
barriers to Cloud. Also, some IT departments
contact for customers for Cloud
commentators seeing most uptake of software
culturally feel like going to Cloud reduces
implementation and support, yet QAD works
provided in a SaaS format? Clark commented
their control. We donâ&#x20AC;&#x2122;t see it that way â&#x20AC;&#x201C; we
with multiple Cloud service providers,â&#x20AC;? he
that operations that require high levels of item
see Cloud as an opportunity for IT to focus
said. â&#x20AC;&#x153;Some Cloud service providers do a
picking across retail and B2B businesses are
more on value-added projects and less on
better job in some regions than other
Snapfulfilâ&#x20AC;&#x2122;s main sources of uptake at present
â&#x20AC;&#x2DC;keeping the lights onâ&#x20AC;&#x2122; work.â&#x20AC;?
providers. QAD wants to ensure customers
â&#x20AC;&#x201C; however, the unique business model is
receive the best possible service levels.
becoming attractive across all verticals.
Gupta makes the
Therefore, QAD has built its own management
point that several
layer. It gathers app and system information
Winter explained that QAD works primarily
organisations
from all sources continuously, and uses Big
with six manufacturing sub-verticals,
continue to associate
Data analytics to spot problems before they
automotive, industrial, high tech, life sciences,
higher levels of data
occur. The result has been improved services
food & beverage and consumer products. He
security and privacy
levels regardless of which Cloud service
elaborated: â&#x20AC;&#x153;All these verticals are moving to
with on premise
provider(s) are used.â&#x20AC;?
Cloud, and life sciences seemed like the first
deployments. â&#x20AC;&#x153;This is
mover. But recent Cloud growth in automotive
especially true in
is resulting in technology investments that
highly regulated
Big Data
have been needed for a long time â&#x20AC;&#x201C; including
manufacturing
What effects do our commentators think Big
Cloud. Even industrial manufacturers,
industries like
Data is having on the SaaS/Cloud world?
historically the latest technology adopters, are
aerospace &
Kimberling focuses on the ability to provide
catching on. Addressing trends like
defence, medical
8
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$ ( ' ! '#( &"$!%( %& &'% ('"' #
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Cloud/SaaS
device and
of change still makes it relatively unattractive
pharmaceuticals,â&#x20AC;?
for some of these companies because they
she said.
have invested in the on premise solution, they
Special Report
have their own data centre with all the Clark doesnâ&#x20AC;&#x2122;t believe
hardware, and they have people to maintain
that any single type
the applications,â&#x20AC;? he said. â&#x20AC;&#x153;So, to switch to a
of deployment
Cloud-based solution can be a significant
method should be
upheaval for them and involves effectively
the natural choice.
disposing of a significant cost base â&#x20AC;&#x201C;
â&#x20AC;&#x153;The choice between
something thatâ&#x20AC;&#x2122;s not an easy thing to do. Their
on premise and
on premise infrastructure is in place and itâ&#x20AC;&#x2122;s
Cloud/SaaS is
functioning, so rather than companies that
governed by a range
make a complete transition to the Cloud, we
some legacy systems sitting on premise and
of factors including the availability of IT
see many of them chipping away at the
are then putting in place new capabilities that
resources (hardware and personnel) along
AS400 type capabilities; replacing pieces of
are on Cloud while retiring one-by-one the old
with accessibility and broadband connection
the functionality with the Cloud-based
capabilities. â&#x20AC;&#x153;For example, they might have a
speeds/availability,â&#x20AC;? he remarked.
solutions and effectively â&#x20AC;&#x2DC;hollowing outâ&#x20AC;&#x2122; their
CRM system thatâ&#x20AC;&#x2122;s on premise and retire that
â&#x20AC;&#x153;Purchasers should not focus on the
applications over a period of time.â&#x20AC;?
in favour of something like a Salesforce, or
& &( $ !"#( #( &' (! ( ( '$"#
deployment mechanism, but instead on the
they might have integration on their website to
vendorâ&#x20AC;&#x2122;s ability to deliver the final solution,
Hammond added that companies are under
their fulfilment and warehousing through a
experience in their industry and levels of
pressure on two main fronts. â&#x20AC;&#x153;First, theyâ&#x20AC;&#x2122;ve got
legacy order management capability and
service they offer.â&#x20AC;?
the challenges that Steve referred to â&#x20AC;&#x201C; having
retire that and replace it with a more fully
legacy technologies that they thought were a
featured order management capability on
Clark added that on premise can often be
great idea three or four years ago and that will
Cloud. This is because these days everybody
slower to support, with secure keys and VPNs
remain on the balance sheet for maybe one or
wants Click & Collect, and everybody wants
required, while the lack of a qualified
two years. Theyâ&#x20AC;&#x2122;ve also got enormous
the ability to do far more than the original
database administrator to provide database
pressure to be much more agile in terms of
legacy integrated systems often provided. So
maintenance can lock up a system with little
connecting the business to different
we see that gradual chipping away approach.
or no warning. â&#x20AC;&#x153;Buyers must look at their
collaborative marketplaces etc. How quickly
This is pretty common in my experience.â&#x20AC;?
whole IT estate when choosing a deployment
companies move to the Cloud really depends
method,â&#x20AC;? he stressed.
on their appetite for transformation, and the
Gupta points out that a hybrid Cloud
speed of change really does dictate how
deployment model (composed of at least one
Rapoza considers that, with on premise, will
quickly these companies can retire their
public Cloud and one private Cloud) typically
always be a benefit of security and visibility.
legacy technology to get to the new world.â&#x20AC;?
includes a variety of options with multiple
â&#x20AC;&#x153;With an on premise system you donâ&#x20AC;&#x2122;t have to
providers, making it highly flexible. â&#x20AC;&#x153;This can
rely on SLAs or take a providerâ&#x20AC;&#x2122;s word for
prove to be more cost efficient than a 100 per
what it is doing,â&#x20AC;? he said. â&#x20AC;&#x153;Businesses know
Mix and match
cent private Cloud deployment but is
everything that is being done for security, they
What about the â&#x20AC;&#x2DC;mix-and-matchâ&#x20AC;&#x2122;/hybrid
generally more expensive than a public Cloud
know where the data is stored and they can
adoption model as a viable option? Winter
deployment model,â&#x20AC;? she said. â&#x20AC;&#x153;Enterprises
view and monitor all aspects of the system.â&#x20AC;?
believes this model makes sense in some use
can choose to purchase hardware (or not)
cases, such as the aforementioned advanced
and base decisions
Kimberling believes on premise still provides
analytics. â&#x20AC;&#x153;In many cases, however, some
on cost to lease and
a superior amount of control and flexibility for
vendors late to Cloud are pushing the hybrid
infrastructure
the time being, which still appeals to many
approach because they are not really
requirements. Data
buyers. â&#x20AC;&#x153;These two factors â&#x20AC;&#x201C; coupled with the
prepared for a true Cloud-style deployment,â&#x20AC;?
transfer rates on the
inaccurate perception that SaaS/Cloud is not
he said. â&#x20AC;&#x153;While hybrid is not a one-size-fits-all
private network are
as secure as on premise â&#x20AC;&#x201C; are probably the
solution, there are some types of apps, such
significantly higher
strongest lines of defence for on premise
as global financial services apps, or e-
than that on the
vendors,â&#x20AC;? he said.
commerce, where hybrid is a great approach
public internet. Users
â&#x20AC;&#x201C; franchise business models are good fits for
have the option of
hybrid.â&#x20AC;?
meeting dynamic
Wilson believes there remains a case for on premise because many companies still rely on legacy systems such as AS400. â&#x20AC;&#x153;The cost
www.logisticsit.com
!" ( $" &%#( $& & "! ! (! $ &%#
demand spikes with Wilson explained that many of his clients have
access to public
IT
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December 2015
&LOGISTICS
9
Special Report
Cloud/SaaS
Cloud while having their performance-
believes hybrid can be a very powerful model
Winter considers that we think the notion of
intensive applications supported by the
for certain organisations, particularly those
‘freedom’ is an issue that not just IT
private Cloud. This option gives enterprises
that are decentralised and have sophisticated
departments but manufacturers in general are
the best of both worlds as they can choose to
IT departments able to handle the technical
looking at in terms of Cloud and related
keep secure data on private, dedicated
complexities of such environments.
technology trends. Do manufacturers want to
servers, which offers them greater control on
be locked into a single database? Do they
information storage, access and retrieval.”
want to be locked into a single Cloud service
Infrastructure
provider? Do they want feature,
Clark reflects that the chosen deployment
Are there any remaining issues related to the
enhancements and patches to ‘just happen’
model should take into account a wide variety
Cloud infrastructure itself to consider? Wilson
without any or much user notice – as is typical
of options, not be chosen for speed of
and Hammond reflect that when we hear about
in SaaS. “The notion of Cloud is to hand over
deployment or lowest cost route. “Problems in
large manufacturing organisations suffering
the keys of your apps to a third party – how
your warehouse can create unforeseen costs
data security breaches because they were
far are you willing to go?” asks Winter. “At the
that far outweigh the initial savings made
using a provider who didn’t have adequate
end of the day the CEO will look to the IT and
possible by an inefficient system/deployment
controls and governance in place this really hits
business leaders for explanations if things go
method,” he said. Rapoza thinks SaaS is
home the need for an adequate level of security
wrong ‘in the Cloud’ or elsewhere. Yes, the
increasingly vital for enterprise applications.
and control. “These issues remain, and that’s
Cloud has some great benefits, but how do
“Paired with private Cloud systems, it gives
why procurement of these solutions requires an
you navigate realising those benefits without
businesses the security and increased
active participation by the IT departments within
introducing new risks and problems? Finding
manageability of on premise while letting
the companies involved, as opposed to making
the right balance between risk and benefit
them leverage the public Cloud for its benefits
business decisions independent of the IT
and maintaining that balance is the ongoing
in scalability,” he commented. Kimberling
departments,” added Wilson.
issue for Cloud adoption.”
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Cloud/SaaS
Special Report
Kimberling believes Cloud providers are becoming a commodity with tons of alternatives, so sifting through all the options is an important consideration. In addition, he comments that CFOs are often interested in balance sheet considerations, with on premise investments typically being balance sheet lines item and SaaS/Cloud solutions being a P&L expense line items. Rapoza reiterates his earlier point that the biggest issue is in how Cloud responds to emerging technologies like SDN.
On the horizon What do our commentators see as some of the key areas of continuing SaaS/Cloud development to look out for over the coming year or two? Wilson is seeing Cloud/SaaS moving down the solution stack. “It’s moving into areas that would previously have been kept on premise,” he said. “I think the only thing that’s holding back more Cloud/SaaS deployment in warehouses that use more automation technology and in manufacturing plants where MES systems are used for controlling machinery is bandwidth and response speed. This is what held back putting WMS on Cloud a few years ago. Now, WMS is increasingly going on Cloud because
to see tremendous opportunity in the Cloud.
hardware, mobile workers and people using
people have the confidence that the
“ISVs – including some of the biggest like
their own devices from home. Winter points
bandwidth and latency will be reliable and
Microsoft, Oracle, and SAP – have made
out that OpenStack and open standards
that the system won’t come to a halt. So,
significant strategic investments in developing
continues to gain dominance over proprietary
these network issues have, for the most part,
a Cloud-based portfolio that appeal to a large
Cloud models. “The ‘API economy’, though
been addressed. The cost has come right
base of customers,” she said, adding that
slow to develop, continues to make progress
down too, which makes it much more feasible.
rising interest in and migration to Cloud-
as the development approach for SaaS
Therefore, I see the solutions stack going
hosted enterprise applications is starting to
apps,” he added. Rapoza reiterates that
increasingly on Cloud, and progressing
trickle down to smaller ISVs in the businesses
technologies such as SDN, network
further down to the level of controllers etc.”
that integrate with these broad-based
virtualisation and converged systems are
Wilson is also seeing Cloud being utilised
solutions to support their customers’ mission-
changing how Cloud-based systems are
reasonably heavily is for collaboration
critical application requirements.
deployed, managed, even how we think about Cloud.
between organisations and their supply base – and between organisations and their
“Allaying users’ concerns with data security
customer base. “This is now very prevalent in
and privacy is top-of-mind for Cloud-based
Kimberling concludes that SaaS and Cloud
areas such as retail and fashion,” he said.
solution providers,” said Gupta. “They also
adoption is definitely gaining traction, as
need to enhance offline functionality to
outlined in recent data published in
Kimberling considers that the concept of
compensate for unavailability of always-on
Panorama’s 2015 ERP Report, but the on
Platform as a Service and the corresponding
network connectivity.”
premise model is certainly alive and well and likely will be for years to come. “Whether
emphasis on development and integration tools as opposed to the more myopic focus
Clark believes Cloud/SaaS deployments will
SaaS/Cloud versus on premise is right for any
on software functionality, will gain further
continue to grow, which will drive the need
particular organisation depends on business
traction over the coming year or two, while
for security technologies and flexible
requirements, needs, and priorities that are
Gupta believes software vendors will continue
deployment options to support different
unique to the organisation.”
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\\\ Manufacturing \\\
Success story
/ +231&0/%3!-,$#-%0$+2+3doubles revenue in 18 months with QAD Cloud ERP 2fx is a British manufacturer
m
customer requirement dates didn’t match
of optical fiber protection
commitment dates; and shortages on the
systems with a patented
production line, excess stock and a lack of
grooved design and
clear metrics and estimated profit margins
process. Best known for its
were among its key challenges.
Microduct products, m2fx specialises in
“We had three key goals — growth,
cable/microduct routing products that are
profitability and customer satisfaction,” says
designed to protect fibre yet still be ultra-
Tom Carpenter, chief executive officer for
flexible to enable fast and efficient installation
m2fx. “The next two to three years were
service, manufacturing, asset management,
in the field.
critical for us. It was vital that we focus our
supply chain execution, service and support,
resources on our key goals and minimise any
analytics and interoperability.”
Miniflex Protection Tube, Cable and
Founded in 1994, the rapidly growing
distracting effort or expenditure.” The company implemented QAD Cloud ERP
company manages its complex make-to-order manufacturing process for delivery to an international customer base; the company has distributors in France, India, the
with QAD Easy On Boarding, a scalable
The solution: QAD Cloud ERP provides flexible full-strength ERP functionality
solution that offers pre-defined processes and predictable costs that significantly reduce implementation time. Once implemented, it took
Netherlands, South Africa, the UK and the US. Recently, m2fx reached a major
m2fx defined its core requirements and
m2fx a weekend to transition to an ERP system.
milestone, with its Miniflex product range
began to investigate enterprise resource
“The capability to scale and integrate modules
successfully deployed in 25,000 fibre to the
planning (ERP) solutions. To aid the decision-
on a grow-as-we-go basis is exceptional,” says
premises (FTTP) installations around the
making process, it created a scorecard to
Carpenter. “We initially set up with core
world, a testament to its continued leadership
rate the various solutions and ERP delivery
functionality, including Financials,
in a growing market.
models. First, m2fx wanted the solution to be
Manufacturing, Analytics and Supply Chain
highly flexible to support the company’s
Execution and have gradually implemented
aggressive growth without taxing its current
additional functionality.
The challenge: outdated financial reporting impedes performance In order to meet its strategic goals for
budget and resources. QAD allows us to maintain, support and m2fx evaluated and scored several factors on a
upgrade individual components of our QAD
scale of one to ten including:
ERP application, while continuing to leverage our existing system.”
continued growth, great customer service and maximum profitability, m2fx recognised the
•
Sales order processing.
need to augment its financial reporting
•
Production and financial control.
“QAD Cloud ERP mitigated many of the IT and
system. Its existing solution no longer sufficed
•
Business management information.
financial risks associated with a new ERP
and was impeding its progress. Unlinked and
•
Customer relationship management.
implementation, as all of the software, systems
out-of-date data slowed performance;
•
Implementation risk.
and infrastructure are managed and
•
Engineering control.
administered by QAD in a secure, reliable and
•
Cost over three years.
industry compliant data center,” says Carpenter. “QAD is a proven cloud ERP solution.”
In essence, m2fx was in search of a simplified, rapid implementation; scalable solution; and turnkey management to support daily
The benefits: QAD delivers global capabilities while optimising business processes and time to value
enterprise-wide operations. QAD Cloud ERP, the web-based delivery of QAD Enterprise Applications, was chosen to
12
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December 2015
reduce the total cost of ownership and simplify
QAD Cloud ERP supports every operation
applications management. “QAD Cloud ERP
within m2fx. “With QAD, we’ve benefited from
stood out,” adds Carpenter. “It offers the robust
a level of ERP functionality typically enjoyed
features we need for financials, customer
by much larger companies, yet it is affordable
www.logisticsit.com
Success story
\\\ Manufacturing \\\
and adaptable enough to support m2fx as we
With a service level agreement of 99.5 per cent
Cloud ERP offers a responsive user experience,
continue to expand.”
application system availability and 24x7x365
as fast as, if not faster than, if the application
user and technical support, QAD Cloud ERP
were on our own local servers. Yet it allows
With QAD Cloud ERP integrated globally
frees the m2fx IT team to focus on strategic
global access and cost-effective scalability.
across the functions of the company, m2fx
initiatives for growth and customer satisfaction.
Now we can focus on running our business with
has realised the following results:
This frees executives and decision makers to
real-time visibility into key metrics and
focus on the core business of manufacturing
performance indicators.
•
95 per cent or greater on-time delivery of
best-in-class fibre protection systems. The
customer orders.
company leverages QAD’s powerful
“With the support of QAD Enterprise
•
Less frequent material shortages.
compliance capabilities to support ISO 9000
Applications we utilise our ERP to support rapid
•
Easy access to key business metrics that
certification – a complex body of standards that
growth — we doubled our business in 18
are measured and monitored from within
help ensure m2fx solutions consistently meet
months. We benefit from powerful QAD
the application.
customers’ requirements.
solutions that have increased our visibility and
•
Real-time visibility of business data.
•
Proactive visibility into margin drivers.
•
Global visibility of stock and production plans.
allowed us to plan according to market requirements. With QAD Cloud ERP we have a
Clear benefits
complete ERP solution that allows us to forecast
“The merits of QAD Cloud ERP are clear: a low
supply and demand — all in one flexible, highly
capital expenditure with predictable operational
extensible system. And we realise a strategic
QAD Cloud ERP carries no overhead
expenditures, no server expertise required in-
partner in QAD with whom we will continue to
expense for m2fx in terms of server and
house and an extremely reliable cloud
become an even more effective enterprise in
support resources.
connection,” says Carpenter. “Moreover, QAD
years to come.”
QAD – Manufacturing ERP Solutions
Enterprise Applications is a complete ERP suite designed to address the needs of global manufacturers. QAD Enterprise Applications has been a leading ERP solution for global manufacturers in the Automotive, High-Tech, Food
joined by her husband Karl Lopker, as a small start-up solution
and Beverage, Consumer, Industrial and Life Sciences
to address a large gap in complete, integrated business
industries for several decades.
software for manufacturing companies. QAD Enterprise Applications supports multiple local QAD began with a few local customers, supporting them from
languages and country-specific business practices and legal
the company’s headquarters in Santa Barbara, California. But
requirements. QAD Enterprise Applications’ domain
as customers took their brands to the next level—
architecture enables customers to easily configure ERP to
international—QAD adapted quickly to keep up. Today, the
match their organisational structure, including support for
company supports customers in over 100 countries around the
shared services.
world. QAD’s products have gone global, too, and the company has spent years innovating and growing its offering as its
QAD designed its ERP for manufacturers and has never
customers expand their businesses overseas.
deviated from that commitment. Whether customers operate a single plant or span the globe, QAD Enterprise Applications
You will often hear QAD say that at the heart of company is a
is built for manufacturers.
strong and loyal customer community. QAD believes that to create the best full-featured manufacturing ERP software for its
Industrial markets served
customers, these companies and QAD need to work together.
QAD serves the following manufacturing sub verticals:
QAD prides itself on its customer engagement and its commitment to continually evolve as the manufacturing industry
Life Sciences.
changes.
Automotive. Industrial Manufacturing.
It has been over three decades; QAD still focuses solely on
Electronics/High-Tech.
manufacturing—the company lives and breathes it every day
Food & Beverage.
alongside its customers. QAD’s passion is its customers’
Consumer Products.
Corporate Profile
In 1979, QAD was founded by Pamela Lopker, who was later
advantage. “Become an Effective Enterprise with us,” says QAD. Countries served Solutions offered
Worldwide.
Effective manufacturers depend on their enterprise resource planning (ERP) solution to streamline business operations and to scale and adapt as their business changes. QAD
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Website: www.qad.com
IT
MANUFACTURING
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\\\ Manufacturing \\\
Success story
1#0"-+23$&'+-)23brings new functionality to Naim Audio aking advantage of continuous
T
"We had various bespoke elements that had
software improvement is always a
been written by Exel as well as other systems
good idea. Thanks to Exel
added around EFACS. It was everything from
Computer Systems plc, Naim Audio
Microsoft Excel spreadsheets to custom
has upgraded its EFACS E/8 ERP
software."
and is achieving business growth.
Naim quickly found that earlier bespoke work
system, introduced powerful new functionality could be duplicated with the new EFACS Based in Salisbury, Naim Audio designs and
Customisation Toolkit. EFACS’ Workflow module
manufactures advanced music systems. In
promised help with other business
2014 the company won the Queen's Award for
requirements too.
Enterprise in Innovation for its network music players, all-in-one players, hard disk
A project to implement new hardware platforms,
players/servers and digital to analogue
the latest versions of Microsoft SQL Server and
converters. Naim employs 170 people. An
Windows Server along with VMware
EFACS user since 2004, Naim enjoys an
virtualisation was completed first. Naim's
workflows. Exel provided technical support
excellent working relationship with Exel.
attention then turned to upgrading EFACS.
throughout, including the customisation in key
"There were no problems with EFACS 8.2 but
"Because of our working relationship with Exel,
consultants helped Naim acquire key
newer versions offered functionality that we did
they knew our business processes. They also
knowledge for future projects.
not have – this was enticing. The main issue
offered us a good deal on upgrading to the
was with our old versions of Microsoft SQL
latest version of EFACS," says Marchington.
areas like deliveries. Working alongside the
Server and Microsoft Windows Server," says Systems Development Engineer, Ben Marchington.
New infrastructure
A high priority was given to training the company's 60 users. Although some might see
Smooth upgrade
little change, others had to learn new functionality. Exel ran in-depth training sessions
Exel gave expert help with project
and process reminder sheets were given to
management, development and training. An
everyone.
Exel consultant copied the ‘live’ database and
The company decided to upgrade its IT
developed some upgrade scripts. These were
The upgrade to the live system took place
infrastructure and introduce virtualisation. A
thoroughly tested on a development platform.
during the company's annual holiday shutdown
review of business processes was also
in August 2013. Its move into a virtual
conducted, comparing old and new versions of
Much work was done to create new reports,
environment also improved scalability,
EFACS.
messages, screens, other customisations and
redundancy and disaster recovery. "The training was delivered in a very good way with examples relating to the real world. When the users came back, we were live on 8.5. We had an Exel consultant with us for a few days just for confidence," says Marchington.
Automated processes Naim has since continually expanded its use of EFACS E/8. The ability to customise the system is important to Naim so that it can offer the best possible customer experience. New custom fields are now stored in the EFACS database,
14
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Success story
\\\ Manufacturing \\\
Microsoft SQL Server Reporting Services, these
Marchington. "Exel is really good at supporting
colourful displays extract details of sales and
you and the knowledge of their consultants is
works orders from the EFACS database.
amazing."
"It gives the production managers a much better idea of when they are going to get which materials through." enabling built-in reports or third-party reporting
Another useful development involved the
tools to have access.
company's first wireless music system, Mu-so. These are now tracked worldwide by serial
From a day-to-day perspective, the Workflow
number which previously needed manual entry
module ensures the right work is done at the
to EFACS for each location change. Another
right time. A new workflow may be set by
workflow technique, using XML, links customer
schedule or triggered by events inside EFACS.
web ordering to EFACS and automatically
Custom screen messages help focus user
raises Mu-so sales orders.
attention on particular tasks too. Extending the intuitive EFACS system for new "The Workflow system is fantastic. We have a
business requirements like these has fully met
whole variety of alerts. For example, the Quality
expectations. The work has been so successful
department can be alerted when a certain part
that the number of users across the company
comes in and requires inspection."
has increased.
Production area staff now view large screens
"EFACS E/8 was going to allow us to grow,
showing management KPI dashboards. Using
which is what we have done." says
Exel Computer Systems plc, a UK software author currently celebrating 30 years of innovation, has been developing, implementing and supporting business software solutions since 1985. With hundreds of successful implementations and thousands of users around the world, Exel’s customer base spans industries as diverse as food, aerospace, engineering, nuclear, automotive, electronics and packaging. Exel’s experience and extensive industry knowledge ensure that the company is best placed to assist its customers to achieve competitive advantage through the employment of a state-ofthe-art business solution. In a constantly changing business environment Exel is a provider that you can trust, and with continual product investment, a company which will be around in the future. Solutions offered Exel’s EFACS E/8 business solution is a highly flexible, browserbased, platform independent ERP suite built using the latest internet technology. Exel’s solution incorporates a broad range of business functions including Product Management, Change Control, Manufacturing, Field Service, Finance, Business Intelligence, Reporting Tools, Mobile and Touchscreen Applications, Document Management, CRM, Workflow and many more.
www.logisticsit.com
Exel’s Eagle Field Service system is a complete mobile management solution providing real-time information and resources to field-based engineers delivered directly to their mobile or touchscreen device, as well as high levels of control and visibility to management. Eagle Field Service provides a fully integrated range of modules from a single software author. Industrial markets served Exel’s market sectors include discrete manufacturing, general engineering, sub-contract engineering, nuclear, aerospace, automotive, electronics, plastics, packaging, food, pharmaceutical and companies with a field service/facilities management requirement. Countries served Exel services the UK market and have a network of resellers across the globe.
Website: www.exel.co.uk
IT
MANUFACTURING
December 2015
&LOGISTICS
Corporate Profile
Exel Computer Systems plc
15
\\\ Manufacturing \\\
Company news
-&'2!/,/3./',.30(+22 2-+3collaboration deal with UiPath for Robotic Process Automation apgemini, one of the worldâ&#x20AC;&#x2122;s
C
foremost providers of consulting, technology and outsourcing services, has announced its collaboration
with UiPath, a specialist automation software company, to expand its Robotic Process Automation capabilities. The agreement will see Capgemini use UiPathâ&#x20AC;&#x2122;s software to provide advanced automated technology to its BPO clients globally, to help drive more effective business outcomes and greater business benefits. Capgemini has been operating in the area of Robotic Process Automation for a number of multinational organisations in a wide range of areas including automated data entry, file and data manipulation, automated formatting, and multi-format message creation. Capgeminiâ&#x20AC;&#x2122;s
Jon Bell, senior VP and head of Capgeminiâ&#x20AC;&#x2122;s
standards for growth and excellence in the
collaboration with UiPath is an illustration of its
BPO Global Delivery Network said: â&#x20AC;&#x153;The new
RPA sector.â&#x20AC;?
commitment to and investment in advanced
wave of Robotic Process Automation offerings
tools to enhance its BPO offerings and
has significantly increased our ability to drive
generate greater business benefits for its
efficiency, with a heightened level of accuracy
clients worldwide.
resulting in labour intensive back office functions being replaced by advanced
Driving process improvement
technologies. Our global delivery capability coupled with our new collaboration with
Robotic Process Automation (RPA) has
UiPath will enable us to offer these services
revolutionised the way companies have
and enhanced outcomes to our clients
started operating their BPO services by
worldwide.â&#x20AC;?
allowing business users to simplify, accelerate and improve the accuracy of manual and repetitive tasks. With UiPath automation
Mutual understanding
software, Capgemini is able to drive process
Daniel Dines, CEO of UiPath, commented:
improvement to the next level, especially
â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re pleased to work with Capgemini in the
around manual and labour intensive activities
burgeoning field of Robotic Process
in functions such as HR, Finance and
Automation. This relationship is based on a
Accounting and Supply Chain management.
mutual understanding of the value each
The new collaboration reinforces the
company brings to the table. Capgemini
continued investment in RPA as a key element
recognises our technology as being next
of the automation portfolio employed by
generation â&#x20AC;&#x201C; particularly our superior
Capgeminiâ&#x20AC;&#x2122;s BPO Global Delivery Network. It
computer vision based automation of
also represents an important move in
applications delivered via Citrix. For our part,
Capgeminiâ&#x20AC;&#x2122;s overall industrialisation strategy,
UiPath is keenly aware of Capgeminiâ&#x20AC;&#x2122;s deep
a key element of which is the deployment of
knowledge of business processes, automation
automation solutions across the entire range
implementation and change management. Iâ&#x20AC;&#x2122;m
of managed services.
confident this collaboration will set new
16
IT
MANUFACTURING
&LOGISTICS
December 2015
Capgemini at a glance 1"3"/0(3 3&21&*23/,31 2+3 %1$,0+/2. 3 -&'2!/,/3/.31,231#30(2 "1+*) .3#1+2!1.03&+1 /)2+.31#3%1,.$*0/,' 02%(,1*1' 3-,)31$0.1$+%/,'3.2+ /%2. (23 +1$&3+2&1+02)3 3'*1 -* +2 2,$2.31#3 3 3 /**/1, 3 1'20(2+ "/0(3/0.3%*/2,0. 3 -&'2!/,/3%+2-02.3-,) )2*/ 2+.3 $./,2.. 302%(,1*1' 3-,)3)/'/0-* .1*$0/1,.30(-03#/030(2/+3,22). 32,- */,' 0(2!3013-%(/2 23/,,1 -0/1,3-,) %1!&20/0/ 2,2.. 3 3)22&* 3!$*0/%$*0$+-* 1+'-,/.-0/1, 3 -&'2!/,/3(-.3)2 2*1&2) /0.31",3"- 31#3"1+ /,' 30(23 1**- 1+-0/ 2 $./,2..3 &2+/2,%2 3-,)3)+-".31, /'(0.(1+2 3/0.3"1+*)"/)23)2*/ 2+ 3!1)2*
UiPath / -0(3/.3-3 2,)1+31#3 1 10/%3 +1%2.. $01!-0/1,3.1#0"-+230(-03&1"2+.30(2 /,02**/'2,03&+1%2..3-$01!-0/1,3.1*$0/1,. 1##2+2)3 30(23!1.0302%(,1*1' 3.- 3%1!&-,/2. 3 (23%1!&-, .3!/../1, /.30132+-)/%-02302)/1$. 3+2&20/0/ 230-. . -,)3*203.1#0"-+23+1 10.3)13 0(23'+$,0 "1+ 3 / -0(32,- *2.3 $./,2..2.3-,) 1+'-,/.-0/1,.3013)2 2*1&3-,3-'/*23)/'/0-* "1+ #1+%23 3&+1 /)/,'3-3.0-02 1# 0(2 -+0 &*-0#1+!3#1+3.1#0"-+23+1 10.31+%(2.0+-0/1,
www.logisticsit.com
ERP
CRM
BUSINESS INTELLIGENCE
W O R K F LO W
DOCUMENT MANAGEMENT
EBUSINESS
PROUD OF OUR PAST, PASSIONATE ABOUT YOUR FUTURE. Exel Computer Systems plc are proud to be celebrating 30 years as a UK software author. Since our entry into the market in 1985 our innovative and scalable EFACS E/8 ERP business solution has enabled our clients to adapt, diversify, and grow. To ďŹ nd out more about our fully integrated business solutions or to discuss how Exel can help your business, call us now on 0115 946 0101 or email sales@exel.co.uk
www.exel.uk
Business as usual, only smarter.
EXEL
Special Technology Report
ERP
The right resources Manufacturing & Logistics IT spoke to a number of experts from the vendor and analyst communities about recent developments in the world of ERP – including those concerning, rich analytics and Big Data, mobility and the Cloud/SaaS. The contributors also reflect on some of the key drivers for these developments, and consider what ERP users can likely look forward to in the not too distant future. evelopments in the world of
will require in-memory computing capabilities,
tiered ERP strategy. In a multi-tiered ERP
Enterprise Resource Planning
not only for handling Big Data but also ‘real’
strategy, there is from one standard ERP
(ERP) solutions and related
real-time and new planning, simulation etc.
implementation for the corporate offices. This
technology over the past year or
capabilities throughout the system – not just in
is often referred to as the ‘administrative
two have been plentiful, covering
isolated places such as Sales & Operations
ERP’.”
D
areas such as mobility, richer analytics, better
Planning (S&OP) or Material Requirements
demand forecasting and many more. We asked
Planning (MRP).
Castellina added that additional ERP solutions
a select group of key spokespeople with a keen
that may offer different functionality or configurations are implemented at separate
focus in this technology space to provide their take on what some of the predominant and
Multi-tiered ERP strategy
locations. “Best in class companies are
most important areas of change have been in
Nick Castellina, research director, business
recognising that one size does not fit all,” he
the recent past.
planning & execution, Aberdeen Group,
remarked. “For example, an ERP that does a
explains that Aberdeen’s 2014 business
great global financial rollup may not be well
In the view of Christian Hestermann, research
management and ERP benchmark survey
suited to scale down to manage the needs of
director ERP at Gartner, the main areas that
found the majority of organisations are
a specific assembly line. There may also be
have an influence on future of ERP include
utilising ERP to support their operations.
localisation and compliance issues when
‘Nexus of Forces’: the combination of Cloud,
“Traditionally ERP was seen as a one size fits
using a ‘one size fits all’ ERP strategy. These
social, mobile and analytics (not each of them
all solution company had multiple business
reasons make a multi-tiered ERP strategy
in isolation, but effects from combining some or
units,” he said. “More recently, there has been
attractive for organisations with
all of them with each other). He also cites
much discussion about managing multiple
geographically distributed subsidiaries. This
developments related to the Internet of Things
ERP implementations as a strategy in and of
is especially evident in organisations that are
concept and the digitisation of business
itself. Best-in-class companies are 90 per
in the acquisition mode and need to integrate
models. Hestermann explains that most of this
cent more likely than others to have a multi-
new units with existing operations.
18
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ERP
Special Technology Report
Castellina continues:
elements such as colours or motion to draw the
According to Orme, all this places more
â&#x20AC;&#x153;Of course,
user directly to the most important information
emphasis on how intelligently ERP is put to use,
organisations using
rather than presenting everything with the same
which puts more emphasis on the underlying
multiple ERPs need to
degree of importance.â&#x20AC;?
knowledge and expertise of the ERP vendor to
be able to transfer
deliver the best possible results. For example,
data from one system
In addition, because so much of the
Orme makes the point that every manufacturer
to the other
information is based on operational metrics,
expects to have comprehensive mobile
seamlessly. The best
KPIs and business intelligence, Lloyds makes
connectivity, â&#x20AC;&#x153;but the real benefits come when
in class are 49 per
the point that ERP systems are incorporating
you can demonstrate to them new and
cent more likely to
BI as an integral part of the ERP system so
innovative ways of working as a result of this
have integrated their
users receive the insight they need in near
technology,â&#x20AC;? he said.
business systems to
real time without the need to run queries or
be one complete
reports from a data warehouse. â&#x20AC;&#x153;Business
Steve Winder, regional vice president, UK &
system of record. Consequently, this
intelligence is more pervasive and less of a
Eire, Epicor Software UK, considers that
information is shared between these
bolt-on because users need insight into
â&#x20AC;&#x2DC;anytime, anywhereâ&#x20AC;&#x2122; computing is becoming
applications seamlessly and transparently.â&#x20AC;?
current status to do their jobs every minute of
mainstream, especially with the proliferation of
every day,â&#x20AC;? he remarked.
mobile technology. â&#x20AC;&#x153;Once strictly chained to the
&'!"'$%) (!"(& $%%# &(!($& ) '&( " &) #)
As an example Castellina explains that a
office desktop, ERP software is now
corporate office could take an order for a
Lloyds also observes that the move to the
increasingly becoming a device-centric mobile
product and then a remotely located subsidiary
Cloud has driven ERP companies to adopt a
technology, especially if its users have their
could ship the order. â&#x20AC;&#x153;During this process, both
simpler user interface, so that the total
way,â&#x20AC;? he remarked. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s greater emphasis
ERP systems would communicate with each
experience is more conducive to completing
on what software can be used for, how that
other automatically. The key benefit of a multi-
a task. â&#x20AC;&#x153;Rather than present every field in a
software can be accessed and used and who it
tiered ERP strategy is the ability to implement
table, for instance, modern UIs have role-
can benefit than ever before. ERP has to shift
solutions in different business units based on
based transaction screens that each user can
its focus from being purely about deep
the needed functionality of those business units.
personalise to their needs,â&#x20AC;? he explained.
functionality to being about broad usability and
While this saves the company money, it is only
â&#x20AC;&#x153;This results in faster implementation times
the ability to make decisions based on ERP
useful if these systems are able to
and less required training, so upgrading to a
data. This is perhaps where ERP currently faces
communicate with the corporate standard.â&#x20AC;?
modern ERP system is easier to cost justify
its greatest challenge.â&#x20AC;?
than ever before.â&#x20AC;? By creating a technology environment that fully supports the needs of individual business units
Jonathan Orme, sales operations & marketing
Internet of Things
and locations, Castellina points out that
manager for Exel Computer Systems, believes
Another key opportunity for ERP to become far
organisations with a multi-tiered ERP strategy
the key development drivers in ERP systems
more responsive and useful to its customers is
perform more effectively in a variety of metrics.
remain the same as ever â&#x20AC;&#x201C; meeting the
alongside the development of Internet of Things
These range from improved delivery, execution,
current and anticipated needs of
(IoT), believes Winder. â&#x20AC;&#x153;In the near future every
accuracy, and, ultimately, profit margins. â&#x20AC;&#x153;This
manufacturers in an increasingly global
aspect of a manufacturing and engineering
is evidence that the multi-tiered ERP strategy
market. â&#x20AC;&#x153;The reality is that the underlying
companyâ&#x20AC;&#x2122;s business will be revolutionised,â&#x20AC;? he
can lead to a more effective organisation as a
technology of many ERP systems is now
remarked. â&#x20AC;&#x153;Machines used in production are
whole,â&#x20AC;? he said.
largely the same and manufacturers take for
becoming increasingly connected, as are
granted areas of functionality and connectivity
transportation and
Carter Lloyds, chief marketing officer at QAD,
which not so long ago would have proved to
logistics networks as well as sales channels.â&#x20AC;?
believes that, today and in the future, it is all
be cutting edge,â&#x20AC;? said Orme. â&#x20AC;&#x153;In many ways
about the user experience, and in his view ERP
the main underlying differentiator is how latest
is becoming much more proactive. He
technologies are incorporated within ERP.
Steve Wilson, vice
commented: â&#x20AC;&#x153;In the past, you could find the
Some ERP solutions, letâ&#x20AC;&#x2122;s call them the â&#x20AC;&#x2DC;me
president at Capgemini
information you needed if you knew what
toosâ&#x20AC;&#x2122;, are essentially a loose knit collection of
Consulting, recognises
inquiries to make, but today modern ERP
bolt-ons, which may well be integrated to a
a trend for integration in
systems automatically greet the user with
certain degree. Others however are designed
terms of business
exceptions, waiting tasks and other important
from the outset to not just incorporate the
planning from a financial
information. Much more than the simple
latest functionality required by manufacturers
perspective through to a
dashboards of the past, the newest role based
but to seamlessly integrate this into the overall
product and unit
ERP launch pads use sophisticated UI
efficiency and effectiveness of the solution.â&#x20AC;?
forecasting perspective.
www.logisticsit.com
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IT
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December 2015
&LOGISTICS
19
Special Technology Report
' ) $!"( '%$# &(!($& ) '&( " &# !'%(!!) $%%'% ) ( ( "' %#
ERP
He commented: “For
all the integration feeds into and then feeds
software as we once knew it. Now, rather than
some organisations
from this to the ERP and back again,” he
simply considering the traditional ERP
these things remain
explained. “This makes it less expensive and
vendors, organisations can look to standalone
quite separate.
therefore quicker to integrate new elements,
CRM, financial and inventory management
However, in the best
whether they’re supply chain, CRM or mobile
systems and still have options to extend those
organisations we see
elements etc. Some of the software tools that
solutions into more traditional ERP territory.”
those as being not
deliver service bus capability and ERP vendors
Orme observes that ERP systems have moved
just joined but
each have their own kind of tool for doing that.
away from older middleware connectivity, and
integrated at a data
So we’re seeing this as a trend rather than the
points out that the majority of serious ERP
level and integrated
historic way, which was more around using
systems now offer what on the surface appear
using ERP
middleware or point-to-point mapping.”
to be similar levels of integrated functionality
capabilities. We have
that were traditionally the preserve of third-party
seen that as a
Hestermann considers that integration has
bolt-ons or specialist systems. “While this has
significant move over
become much more important, mainly under
removed some of the legacy problems
the past two or three
the influence of Cloud and postmodern ERP.
customers used to face, where they were left
years where large
“ERP systems now offer more APIs and more
with three vendors each pointing the finger of
organisations have invested in joining up their
options to integrate,” he said. “In addition,
blame at each other, often the increased
view of the data so that they’re able to analyse
Cloud-based integration platforms and Cloud
functionality in some ERP systems is the result
not just the flow of product into their company
service brokerage providers are evolving (see
of loosely incorporating these other third party
but the raw materials then the finished products
the Gartner paper: ‘The Role of CSB in the
systems,” he said. “So, while there may be only
out. Also, they are able to look at what that
Cloud Services Value Chain’). However, this
one system vendor to deal with, in reality your
means regarding sales projections in terms of
also means that end user organisations will be
system may comprise a number of sub-
the cash that they are spending – what they’re
even more responsible for building and
systems. As Exel supplies a fully integrated
giving to suppliers – and aligning the financial
maintaining application integrations than
system, designed in-house in the UK, if there’s
forecast performance with the supply chain
before.”
ever a problem anywhere throughout the
forecast of sales and operations.”
solution, our customers know who to come to in order to get it resolved.”
As companies are deploying more and more Following on from Wilson’s remarks, John
applications in the Cloud, Lloyds maintains
Lewins, managing consultant at Capgemini,
that integration methods have had to change
Andrew Briggs, technical director at BEC,
reflected that the challenge is to align orders,
to keep pace. “The old style point-to-point
considers that the better ERPs try to address all
sales, planning, forecasting etc. and come up
integration might have worked when all the
of the business needs in terms of putting
with numbers that are consistent, so that when
applications were on premise, but it doesn’t
together various operational or application
there is a movement in one direction
work when one or more of the apps are in the
strands such as CRM, Sales & Marketing
companies understand what the budget and
Cloud,” he said. “What if one is on premise
Management, Enterprise Asset Management,
stock implications are, etc.
and one in the Cloud, or if you’re running two
WMS, Supply Chain and Service &
apps in two different public Clouds? Forward-
Maintenance; i.e. putting together different
Wilson is also seeing an increase in the use of
thinking ERP companies have addressed this
systems, which may have been separate
analytics to extend demand management –
need by re-architecting their systems, so all
systems with integration links, into one common
looking at data analytics much more carefully
tables are addressable through APIs. This
environment so that all of the information is
and then feeding that into the way in which
enables a tool such as Dell Boomi to integrate
shared across the business through one
demand forecasts are made and how that can
apps easily regardless of where they’re
solution rather than
feed the S&OP process
running.”
many. “The better ERPs are achieving
Eric Kimberling, president of Panorama
this by having a
Integration
Consulting Solutions, considers that ERP
common architecture
Have ways of best integrating ERP with other
software will no longer be limited to ERP.
upon which all of
systems developed to any notable degree over
“Salesforce used to simply be a CRM vendor
these modules are
the past year or two? Wilson believes
– albeit a very strong competitor in that
built,” he said. “This is
integration is less of a problem than it was a
space,” he pointed out. “With its increasing
called ‘Service-
few years ago. “Within the companies we’re
ecosystem of apps and bolt-ons designed to
Oriented
working with we’re finding increasingly that
address the things the software can’t do on its
Architecture.’ This is
there’s a common architecture for integration –
own, it is becoming clear that Salesforce and
the platform that
basically a service bus-type process whereby
other non-ERP vendors are disrupting ERP
brings all of these
20
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December 2015
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ERP
%) ( '%!# $%$ '% ) %! "$%"#
Special Technology Report
parts together as it
value from SaaS ERP, companies need to
desktop PC, or on a tablet or smartphone,â&#x20AC;? he
has been written
adapt to highly standardised applications used
said. â&#x20AC;&#x153;They also need the freedom to change
purely to achieve
â&#x20AC;&#x2DC;as-isâ&#x20AC;&#x2122; (see the Gartner paper: â&#x20AC;&#x2DC;Standardise
how it is deployed without having to configure
this.â&#x20AC;?
Business Processes and Implement
and implement a different solution, allowing
Governance to Maximise Business Value of
them to upgrade faster and stay current with
Winder points out
SaaS ERPâ&#x20AC;&#x2122;).â&#x20AC;?
technological advances.â&#x20AC;?
modern ERP
Kimberling sees blurred lines between SaaS
Wilson observes that some companies are
platforms are now
and on-premise ERP software. â&#x20AC;&#x153;For years,
going down the hybrid model, i.e a mix of ERP
supported by open
organisations (ourselves included) have been
and SaaS solutions integrated together, and
and flexible
obsessed with the SaaS versus on-premise
use ERP as the holder of the master data.
architectures that
debate,â&#x20AC;? he said. â&#x20AC;&#x153;As the dust of the debate
Lewins adds that Capgemini is also seeing
encourage and
begins to settle, it appears that we may have
many clients using open source software with
embrace the
been arguing a moot point. ERP vendors are
some integration functionality, reporting and
integration of other
increasingly more likely to offer both SaaS and
analytics. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a low cost of entry but there
applications, enable greater collaboration with
on-premise solutions to their customers, and, in
remain questions, especially within a
business partners, and use new technologies
many cases, organisations are adopting both.
manufacturing environment, in terms of
without requiring the wholesale replacement of
The real grey area is with hybrid solutions that
validating things such as resilience, the
infrastructure or applications. â&#x20AC;&#x153;We believe ERP
host on-premise solutions in the Cloud, which is
upgrade path and the support thatâ&#x20AC;&#x2122;s behind
solutions will continue to become more agile,
a solution more of our clients are starting to
this,â&#x20AC;? he said. â&#x20AC;&#x153;Also, with things such as
more adaptive and more flexible â&#x20AC;&#x201C; all of which
adapt as a way to get the best of both worlds.â&#x20AC;?
Salesforce.com in the marketplace it gives
lowers the total cost of ownership and
companies access to extend functionality
encourages business to think more strategically
Orme observes that every year the benefits of
quicker than they may typically find with ERP.
about how they can use technology to drive
the SaaS model are pushed by those vendors
So itâ&#x20AC;&#x2122;s opening up new opportunities, but some
competitive advantage,â&#x20AC;? he said.
with a vested interest in doing so. â&#x20AC;&#x153;Whilst our
questions remain.â&#x20AC;?
software can be operated in a hosted environment, and some customers are currently
Far from greeting the Cloud with fear and
The Cloud and SaaS option
doing this, every year we still see the majority of
trepidation as they once did, Lloyds observes
Has the Software as a Service (SaaS) model,
our customers preferring to operate using the
that progressive CIOs now consider the Cloud
and the Cloud concept in general, had any
on-premises model,â&#x20AC;? he said.
to be a strategic preference. â&#x20AC;&#x153;In fact, as they become aware of the simplicity, flexibility and
notable level of impact on the ERP market so far? Hestermann considers that the answer
Winder explains that, in Epicorâ&#x20AC;&#x2122;s experience,
security of the Cloud, we see more and more
depends on two key questions: what is meant
the uptake of Cloud for fully integrated ERP
companies considering the Cloud as a strategic
by ERP, and what is meant by Cloud? â&#x20AC;&#x153;Cloud is
solutions from manufacturers in EMEA has been
choice rather than a simple deployment option,â&#x20AC;?
not equal SaaS; SaaS is a special flavour of
slow so far. â&#x20AC;&#x153;The concept of running an entire
he remarked. â&#x20AC;&#x153;IT finds that when they are freed
Cloud, with three main characteristics: It is
ERP solution in the Cloud is still relatively new
up from day to day mundane tasks such as
externally hosted and managed by the
and we are in an education phase where
backups and setting up users, they can focus
provider. It is delivered in a one-to-many model.
manufacturers are exploring the benefits,â&#x20AC;? he
on more strategic initiatives such as
It is subscribed to on a pay-per-use basis. It is
said. However, Winder adds that while the
streamlining the companyâ&#x20AC;&#x2122;s differentiating
important to note that it does not have to be
adoption of Cloud seems relatively low, it is on
business processes.â&#x20AC;?
multi-tenant per se.â&#x20AC;?
the rise and he believes this could help manufacturers to meet their product
Lloyds sees more and
Hestermann adds that certain ERP domains
improvement and cost competition goals
more companies
such as purchasing, HR and e-commerce have
through, for example, easier collaboration in the
turning to ERP in the
absolutely been transformed by SaaS. â&#x20AC;&#x153;In
supply chain and lower cost of IT ownership.
Cloud as a strategic choice. â&#x20AC;&#x153;Some Cloud
broader ERP deployments, Cloud is mainly relevant as Cloud-hosted or for private Cloud,â&#x20AC;?
Winder observes that the rapid evolution of
ERP vendors make it
he continued. â&#x20AC;&#x153;For complete suites, SaaS had
global business has changed the ways in which
hard for their
only a major impact on the ERP market for
companies approach the deployment of ERP
customers to move to
SMBs. For a company in the upper midmarket
solutions. â&#x20AC;&#x153;Todayâ&#x20AC;&#x2122;s need for agility and
the Cloud because
or a large enterprise, the one-to-many nature of
responsiveness has increased the demand for
they donâ&#x20AC;&#x2122;t have or
SaaS is not a good fit to the level of
choices, and customers need to be able to use
support an on
differentiation and individualisation these
the same product whether they want it
premise model,â&#x20AC;? he
companies need. In order to obtain business
deployed on-premise or in the Cloud, on a
said. â&#x20AC;&#x153;Large global
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%$" $%) & (#)!$ (! (&$"' %!) $& ("'% ) $%$ (&#
IT
MANUFACTURING
December 2015
&LOGISTICS
21
Special Technology Report
ERP
multi-nationals canâ&#x20AC;&#x2122;t just convert all their sites in
about technology if youâ&#x20AC;&#x2122;re considering the
steadily upgraded
a day or even a few months, so ERP vendors
cloud. Let the ERP vendor manage all that
their EFACS system
have to offer a way for systems to co-exist
while you focus on running your business.â&#x20AC;?
as and when
regardless of the deployment method. The
required in order to
coexistence strategy canâ&#x20AC;&#x2122;t be about doing tasks
Hestermann considers that both the upgrade
keep meeting their
offline or manually entering adjustments. The
and replace options can make sense,
needs,â&#x20AC;? he remarked.
system has to be designed to function
depending on the individual situation of the
â&#x20AC;&#x153;We also have
seamlessly in both environments and to look
company (see the Gartner paper: â&#x20AC;&#x2DC;Postmodern
customers that had
and feel to users as if itâ&#x20AC;&#x2122;s a single deployment.â&#x20AC;?
ERP: When Staying With On-Premises ERP Is
ripped out legacy
the Right Choice.). In some special cases, he
systems from other
&' ) ' (& '% # &(!' (%"#)
believes there is even a case for migrating
vendors and
Upgrade or â&#x20AC;&#x2DC;rip and replaceâ&#x20AC;&#x2122;?
legacy applications to the Cloud.
replaced them with
Is there still a case for upgrading legacy ERP,
Wilson points out that some of Capgeminiâ&#x20AC;&#x2122;s
former systems didnâ&#x20AC;&#x2122;t meet their needs. That,
or is it now better to â&#x20AC;&#x2DC;rip and replaceâ&#x20AC;&#x2122;? Briggs
clients are still operating AS/400. He
at the end of the day, is the core factor for
believes it would depend on the levels of
commented: â&#x20AC;&#x153;This system is still very good at
most manufacturers â&#x20AC;&#x201C; does their ERP meet
modifications already in place, and whether
acting as an interface layer, so all the
their requirements? Yes, there is always the
they are needed. â&#x20AC;&#x153;If they are heavily
integration is already there. And some users
additional potential disruption caused by
entrenched in some bespoke functionality, this
are swapping in pieces of functionality and
implementing a new system and for some
will push them down the path of keeping what
using, in some cases, ERP-type capability and
manufacturers, a failed ERP implementation
theyâ&#x20AC;&#x2122;ve got,â&#x20AC;? he remarked.
plugging that in, and in other cases using
can mean a failed business. However, what we
SaaS-type capability and plugging that in.
are increasingly finding, as ERP systems
Lloyds considers there are pros and cons on
AS/400 being used as a kind of interface map
become more similar, is the role and value of
both sides. â&#x20AC;&#x153;Truthfully, most ERP systems are
makes sense because switching it off and then
the relationship with the supplier. Customers
very similar in terms of the functionality they
replacing it can be a major undertaking in
want security and peace of mind not just in the
offer,â&#x20AC;? he said. â&#x20AC;&#x153;One might have a little more of
terms of integration. Maintaining AS/400 as the
early days of a system, but also in the years of
this while another has a little more of that, but
interface layer means it doesnâ&#x20AC;&#x2122;t actually have
ownership that follow, where the system may
overall they are functionally at parity. So the
any functional requirement anymore; it simply
need further development and customising to
issue becomes one of industry focus and your
passes messages backwards and forwards
adapt to future business and market
comfort level with the vendor. If your current
and therefore becomes cheaper to run while
conditions.â&#x20AC;?
ERP vendor understands your industry and
giving users more time to start to streamline
theyâ&#x20AC;&#x2122;ve given you good support over the years,
and, eventually, maybe replace it with a
Orme adds that, again, this brings Exel back to
why not upgrade rather than rip and replace? If
services bus.â&#x20AC;?
keeping an eye to the future and being ready
EFACS because their
for future client requirements. â&#x20AC;&#x153;If the client has
youâ&#x20AC;&#x2122;ve customised your system so extensively that you canâ&#x20AC;&#x2122;t do a simple upgrade, itâ&#x20AC;&#x2122;s still
Winder maintains that there is definitely a case
outgrown their current system and needs to
going to be easier to go with your existing ERP
for upgrading. However he adds that
implement an up-to-date solution, the first port
vendor than a different company, because you
businesses need to make sure to invest in a
of call will always be their current vendor,â&#x20AC;? he
will minimise training and conversion costs. On
system that has the capability and flexibility to
said. â&#x20AC;&#x153;If that vendor hasnâ&#x20AC;&#x2122;t been investing in
the other hand, if your vendor hasnâ&#x20AC;&#x2122;t been seen
be able to evolve to meet future needs. â&#x20AC;&#x153;A
development and cannot offer the functionality,
since the day you went live or youâ&#x20AC;&#x2122;re tired of
perfect example of this is that some
speed, and stability required by their client, the
dealing with
businesses may not yet be comfortable with
chances of retaining that client are slim.â&#x20AC;?
cumbersome
Cloud deployment, either for their entire system
functionality
or as a hybrid,â&#x20AC;? he said. â&#x20AC;&#x153;Having the choice
designed to support
means customers can make a decision today
The role of Big Data
industries you arenâ&#x20AC;&#x2122;t
to choose on-premise deployment, knowing
How can technology trends such as Big Data
in, maybe itâ&#x20AC;&#x2122;s time to
that at some point in the future they can
help to gain the best out of ERP systems?
switch. In any case, it
choose to move to the Cloud without having to
Winder reflects that, in the case of Big Data,
should be as much
change their product.â&#x20AC;?
the focus is the insight that data gives
about the relationship "( () '% (&# &( ' %$ ) ' ( &(!' (%"#) ) ) '&(#)
22
IT
Orme comments that Exel is in the enviable
time data means that manufacturers no longer
ERP vendor as it is
position of having customers still using EFACS
need to make crucial decisions based on gut
about functionality.
10, 15 and 20 years after initial implementation.
feel or past experience; they get a dynamic
And donâ&#x20AC;&#x2122;t worry
â&#x20AC;&#x153;As such we have customers who have
view of the intricacies of their business from
MANUFACTURING
&LOGISTICS
companies. â&#x20AC;&#x153;The availability of precise real-
you have with the
December 2015
www.logisticsit.com
ERP
Special Technology Report
end-to end,â&#x20AC;? he said. â&#x20AC;&#x153;This is driving a
innovation in the type of devices that people
data that often come
revolution in the way that leading
will use to access data in their ERP system.
with the territory,â&#x20AC;?
manufacturers use complex data to gain
â&#x20AC;&#x153;Whether itâ&#x20AC;&#x2122;s more sophisticated tablets and
commented. â&#x20AC;&#x153;As a
competitive advantage and streamlines
smartphones, to more intuitive touchscreens
result, solution
processes. Improved visibility into the
on the production floor, getting accurate data
architecture and
manufacturing process makes it possible to
into and out of the system, will become
integration will
track trends, identify problem areas such as
simpler,â&#x20AC;? he said. â&#x20AC;&#x153;As mentioned before, this
become increasingly
wastage, facilitates precise quoting, accurate
will then place the onus on how the latest
important
procurement and better planning; all of which
technologies can then be used by the ERP
competencies
have a direct impact your customers ensuring
system and the business as a whole to
required to support
that you meet their needs promptly and more
generate competitive advantage.â&#x20AC;?
effective ERP
efficiently.â&#x20AC;?
"( () ' ! %#) ' ( &(!' (%"#
implementations.â&#x20AC;? Lloyds believes we will see every ERP system
Additionally,
Briggs comments that much of the business
introducing a new, more streamlined user
Kimberling points to convergence of ERP and
intelligence in BECâ&#x20AC;&#x2122;s solutions to date has
interface over the next year or two. He adds
consumer user interfaces.
focused on users; for example, the
that we will also see more companies getting
performance/productivity of operatives. â&#x20AC;&#x153;We
serious about mobile. â&#x20AC;&#x153;QAD has had mobile
Hestermann comments that the biggest
expect that we are going to see much more use
applications for years, including business
innovation will come from adding machine
of the masses of data that can be gathered
intelligence, mobile approvals and user
learning and more â&#x20AC;&#x2DC;intelligenceâ&#x20AC;&#x2122; to ERP
through our production line systems â&#x20AC;&#x201C; sensors,
customisable â&#x20AC;&#x2DC;collectionsâ&#x20AC;&#x2122; of our functionality,
systems. "Imagine a system that proactively
measuring, testing equipment, robots etc. â&#x20AC;&#x201C;
but we will be adding more and more mobile
recognises and alerts the users of any event
giving the ability to monitor all business
transactions,â&#x20AC;? he pointed out. Lloyds also
that might negatively impact customer
process, transparently across many sites,â&#x20AC;? he
believes we will see BI becoming more of an
satisfaction: why would anyone have to
said. â&#x20AC;&#x153;The large volumes of quantitative data
integral part of ERP and less of an add-on
search for that information?,â&#x20AC;? he said.
will enable very accurate measurement and
application.
forecasting of resources â&#x20AC;&#x201C; labour, energy,
Castellina considers that best-in-class
materials etc. â&#x20AC;&#x201C; providing immediate real-time
Winder believes the key thing over the next
organisations are realising that one size fits all
quality and reliability measures, with triggers for
few years is to keep up with ever-evolving
is not necessarily accurate when it comes to
anomalies, and exceptions which can then be
technologies to future-proof the businesses;
ERP implementations. â&#x20AC;&#x153;Top performing
handled immediately.â&#x20AC;?
for example, with social ERP. â&#x20AC;&#x153;People
organisations are looking to multi-tiered ERP
increasingly want simpler, more intuitive tools
strategy to optimise costs and functionality
Lloyds comments that Big Data and ERP can
to help them make business decisions that fit
among multiple business units,â&#x20AC;? he said. â&#x20AC;&#x153;This
exist side by side, with ERP using insight
in with their working patterns rather than
may be because the organisation is in a
provided by the Big Data engine to adjust
defining working patterns for them,â&#x20AC;? he said.
phase where it is rapidly attempting to open
plans and simulations. â&#x20AC;&#x153;Big Data is about very
new business units or purchase those units in
rapid changes in high volumes of data
Another area to look out for, according to
other countries. Organisations that are
coming from multiple sources and in multiple
Winder, is business intelligence (BI). â&#x20AC;&#x153;One of
embarking on a growth strategy should
formats, and most ERP systems can benefit
the main benefits from investing in BI solution
carefully consider a multi-tiered strategy. They
from it in a few areas such as forecasting and
is the ability to provide faster and easier
can therefore improve their efficiency and
supply chain simulations or predictive
access to the needed data. BI enables
visibility across business units, while keeping
analysis for equipment maintenance,â&#x20AC;? he said.
companies to gain more complete and more
costs low.â&#x20AC;?
In addition, Lloyds believes Big Data can be
structured knowledge about what has a
very helpful in streamlining the supply chain,
positive effect on business performance, as
Lewins looks forward to improved cost
where one might consider how to manage
well as what actions can cause harm.â&#x20AC;?
control through demand sensing and better
Kimberling believes best-of-breed systems
supply chain; better control of outsourced
will make a comeback. He also maintains that
operations â&#x20AC;&#x201C; whether that is contract
integration and solution architecture will
manufacturing, logistics or testing; and
sourcing in countries based on local weather conditions or political events.
inventory management up and down the
An eye on the future
become increasingly important. â&#x20AC;&#x153;The increase
realising the tangible benefits of aligning
What might be the next key ERP innovations
of best-of-breed ERP systems will put more
S&OP and Integrated Business Planning
and developments to look out for over the
pressure on CIOs and ERP consultants to
(IBP) with the financial forecasts and the
next year or two? Ormeâ&#x20AC;&#x2122;s view is that there is
provide better integration between systems
demand and supply forecasts.
no avoiding the continuing evolution and
and address potential silos of processes and
www.logisticsit.com
IT
MANUFACTURING
December 2015
&LOGISTICS
23
P
lanning
Inland Label
makes a mark with
efficiency using SIMATIC IT Preactor APS ounded in 1903, Inland Printing
F
specialised in brochures, catalogues and other commercial print items. In 1944, John Glendenning, a print broker from Detroit, Michigan
invested in Inland Printing with two other partners and moved his family to La Crosse, Wisconsin. In 1960 Johnâ&#x20AC;&#x2122;s son Jack, the first in the family to graduate college, joined Inland. Under Jackâ&#x20AC;&#x2122;s direction, the company continued to steadily grow and in 1968 it invested in its first multicolour offset press. Inland continued to offer commercial print while its label business expanded throughout the 80s and 90s, but by the late 1990s investment was focused solely on label printing. In 2004 a 20,000 square foot addition was made to the headquarters
building and a state of the art gravure label press was installed. With a focus on label printing, the company changed its name to
carefully. The initial model and scheduling rule
Inland Label. Today, Inland is on a growth
was developed by Quinn & Associates, and
trajectory with a global reach into Latin
with training provided by the SIMATIC IT
America, the UK and China.
Preactor reseller, Inland staff became self-
â&#x20AC;˘
Significant expansion of our production without having to add planning staff.
â&#x20AC;˘
All scheduling consolidated into a single data-driven system.
sufficient in modifying the basic SIT Preactor As with any successful company with strong
scheduling model. "Having the capability to
Today users import new jobs and operations
growth, process improvement is essential, and
rapidly develop and modify custom business
from custom-built software into SIMATIC IT
Inland's scheduling methods needed to take
logic on top of the SIT Preactor framework to
Preactor several times a day, using SIT
advantage of automated technology to address
help us efficiently schedule production, taking
Preactor as a tool to optimise the scheduling
several problems with production planning.
into account all of our unique business
of these operations without violating
Scheduling was taking place in multiple
processes and objectives," says Willie Spindler,
constraints or due dates. They use the tool
systems and done completely by hand.
systems analyst and developer. SIMATIC IT
the update the ERP system with the
Dependent operations did not link between the
Preactor is deployed in two facilities and
scheduled dates and times and to publish the
grouped operations and constraints and down
integrated with several systems within Inland:
schedule to the operations team. Using
times had to be factored in manually as part of
ERP, various in-house applications, shop floor
SIMATIC IT Preactor allows planners to group
the schedule.
production instrumentation systems, and
production runs with similar requirements
reporting and analytical tools.
together to gain production efficiencies.
Extensive benefits
delivered the results that we were looking for. One platform that gave us the visibility
Inland Label uses Syspro ERP. A previous integration of Syspro with a basic Preactor scheduler and employee experience made the
Wetzel concludes: "SIMATIC IT Preactor APS
upgrade to SIMATIC IT Preactor Advanced
The benefits that SIMATIC IT Preactor has for
Planning and Scheduling (APS) the logical next
Inland Labels are extensive:
needed to put the optimal schedule on the
step for Inland Label. "We knew that we had to
â&#x20AC;˘
Visibility of operations to maintain
shop floor that sequences jobs correctly and
sequencing while ensuring maintaining due
minimises the changes to any of our
make dramatic improvements to schedule all of our critical plant resources on one scheduling
dates.
production lines and cuts changeover times
â&#x20AC;˘
Ability to help manage constraints and
dramatically." Future plans for SIT Preactor
down time.
include using scheduling pre-production
â&#x20AC;˘
Automation of optimisation of the schedule
activities or adding additional viewer
Inland has unique business requirements and
by creating a rule to group similar jobs
licenses to improve schedule visibility
so the design and development proceeded
together.
throughout the organisation.
platform," recalls Garet Wetzel, vice president of Supply Chain.
24
IT
MANUFACTURING
&LOGISTICS
December 2015
www.logisticsit.com
P
lanning
SIMATIC IT Preactor is a world-leading advanced planning and scheduling software used by a wide range of businesses across multiple industries.
Solutions offered Advanced Planning Software. Advanced Scheduling Software. OEM Planning and Scheduling Solutions.
SIMATIC IT Preactor APS products are designed to work alongside and facilitate, rather than replace, existing systems. Products from the range can be used for long term strategic planning covering months and years ahead, medium term tactical planning with a few weeks planning horizon and for detailed sequencing and scheduling.
Industrial markets served Aerospace, Automotive, Chemicals, Discrete Manufacturing, Electricals, Food and Beverage, Glass, Machinery, Metals, Packaging, Pharmaceuticals, Precision Engineering, Process Plant Pulp & Paper, Rubber & Plastics, Textiles, Transport, Wood Products.
SIMATIC IT Preactor APS is not a single point solution. It represents a family of products that have different levels of functionality and pricing so that you can select the system that satisfies both your needs and your budget.
Countries served Worldwide.
Website: www.siemens.com/preactor SIMATIC IT Preactor APS is a highly customisable planning and scheduling package. Event-driven communication scripts can be installed for tight integration with other systems across multiple sites and unique sequencing rules can be created. The package offers a high degree of flexibility.
Corporate Profile
SIMATIC IT Preactor
SIMATIC IT Preactor APS A Advanced dvanced Planning & Sc Scheduling heduling SIMA ATIC T IT Preactor is a world leading advanced planning and scheduling sof tware used by a wide range of businesses across multiple industries. SIMA ATIC T IT Preactor APS products are designed to work alongside, rather than replace, existing systems. Products from the range can be used for both long term planning and detailed scheduling. SIMA ATIC T IT Preactor APS represents a family of products that have dif ferent levels
www.logisticsit.com
of functionality and pricing so that you can select the system that satisfies both your needs and your budget. SIMA ATIC T IT Preactor APS is a highly customizable planning and scheduling package, its flexibility is unparalleled. siemens.com/preactor
IT 25 &LOGISTICS RDecember ealize2015inno vation. MANUFACTURING
Special Report
Planning/Forecasting/S&OP
Be prepared Manufacturing & Logistics IT spoke to a number of key spokespeople from the vendor and analyst communities about recent developments in the world of planning and forecasting-related software â&#x20AC;&#x201C; including those involving mobility, Cloud/SaaS and Big Data. he pace of technological change
T
and regulatory reporting requirements)
in their rapidly changing markets. â&#x20AC;&#x153;More
has been considerable in the
enables a business to enhance their services
accurate â&#x20AC;&#x2DC;what-ifâ&#x20AC;&#x2122; scenario planning, using
demand planning and forecasting
offerings to customers.â&#x20AC;?
Social Supply Chain Networks for increased
prominent sweet-spots in terms of
Closer relationship
organisations to be respond faster than ever,â&#x20AC;?
enhancement or innovation? From an
Kimberling believes having a closer
he said.
Advanced Planning & Scheduling (APS)
relationship with your suppliers is also critical.
perspective, Barry Drummond, business
â&#x20AC;&#x153;Solutions now offer direct communication with
In terms of user needs, Chris McDivitt, vice
development manager at DynaSys, makes the
suppliers via EDI and can align
president, supply chain technologies leader at
point that the development of in-memory
production/distribution schedules,â&#x20AC;? he
Capgemini, comments that demand planners
processing is helping to deliver true â&#x20AC;&#x2DC;real-timeâ&#x20AC;&#x2122;
explained. â&#x20AC;&#x153;Businesses now have the ability to
do not necessarily want to spend time looking
planning and collaboration possibilities for
plan further out with all aspects of their supply
in hindsight at developing a statistical
APS users. â&#x20AC;&#x153;Vendors who are still relying on
chain in order to be â&#x20AC;&#x2DC;proactiveâ&#x20AC;&#x2122; when
forecast. He elaborated: â&#x20AC;&#x153;The planner should
cumbersome import and export of data
traditionally â&#x20AC;&#x2DC;reactiveâ&#x20AC;&#x2122; had been the baseline.
be working with the most recent set of market
between functional modules, or lengthy waits
Supplier insights enable the supply chain
intelligence thatâ&#x20AC;&#x2122;s available, having information
for aggregation and disaggregation of data
workflow to run smoothly, with organisations
about competitors, having information about
are being left behind in this area,â&#x20AC;? he stressed.
gaining product availability and new product
how product is going to be promoted;
arena in the recent past. So, what
collaboration and accurate input data, and
have been some of the most
considering macroeconomic factors enable
campaigns. More importantly, solutions are
leveraging collaborative relationships with their
Eric Kimberling, president of Panorama
instituting Demand Sensing and Demand
retail community (which is probably one of the
Consulting Solutions, considers that many
Shaping techniques that flow downstream
big distribution channels).â&#x20AC;? McDivitt believes
current developments have come in the form
from raw material intake through the
that by leveraging those different marketing
of more complex workflows and pushing more
production schedule and to distribution. If the
intelligence channels
data to the end-user for better decision-
supply chain is an oil pipeline, these demand
â&#x20AC;&#x201C; whether it relates to
making. â&#x20AC;&#x153;Required inputs (e.g. Demand
techniques are grease that keeps it flowing
their customer
Forecasting & Planning, Advanced Planning &
smoothly. Grouping items with common
service, marketing or
Scheduling, Finite Capacity Scheduling,
demand requirements and having a balanced
sales organisation â&#x20AC;&#x201C;
Workforce Planning and Integrated Business
stock will provide a higher ROI, with softwareâ&#x20AC;&#x2122;s
companies can
Planning/S&OP. BI/Analytics systems etc.)
ability to â&#x20AC;&#x2DC;detectâ&#x20AC;&#x2122; potential variances in SCM
come in with the best
have been augmented to include seasonality
and planning the end-user gets better
demand signal
trends, organisational and customer
information faster.â&#x20AC;?
before they walk it
constraints, and extended variable factors that are specific by industry,â&#x20AC;? he said. â&#x20AC;&#x153;Including
through their S&OP By integrating communications with suppliers
customer-specific information beyond sales
and customers, Kimberling maintains that
(seasonal buying trends, carrying capacities,
businesses can increase agility and flexibility
26
IT
MANUFACTURING
&LOGISTICS
December 2015
process.
'** , * ") $ &()+&&, + +!" +)% ')' +*$,
McDivitt added that
www.logisticsit.com
Planning/Forecasting/S&OP
one of the
unpredictable and complex. For example,
optimal demand plan and optimal supply
advantages in this
there are often more products involved, with
chain and trying to ensure the two are
regard is in not
customers having increasing expectations in
relatively well-balanced â&#x20AC;&#x201C; or, if they are not,
having to put so
terms of product choice or buying channels
that the company has the right inventory in the
much energy behind
available to them.â&#x20AC;?
right place to bridge the gap. This is really traditional batch-oriented sequential planning.
things such as auto
*(&, # ( (%%$, (#+ *+&( +)%$,& ! ,# '() %+# )"!" (+&,!+' +*$
Special Report
assignment,
Payne adds that the supply chain is also
statistical and the
becoming more multi-enterprise. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s hard
Then there is Respond Planning (R). â&#x20AC;&#x153;Having
parameter settings.
enough for some companies to plan at an
created an optimal plan reality is going to
â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s still some
enterprise level â&#x20AC;&#x201C; with joined-up thinking
intervene,â&#x20AC;? said Payne. â&#x20AC;&#x153;Companies know their
work to do in this
between the demand and supply side of the
forecasts and plans will be wrong to some
area, but essentially
business â&#x20AC;&#x201C; but then if companies outsource or
extent; itâ&#x20AC;&#x2122;s a question of how wrong. So they
there are
want to work more with tier 1 or tier 2 suppliers
need a capability or mechanism by which in
technologies
or outsource part of their manufacturing
the short term they can respond to those
available today that can help in this area,â&#x20AC;? he
operations etc. they are moving into a multi-
changes in planning and execution events but
said.
enterprise environment where naturally the
in an intelligent way â&#x20AC;&#x201C; in a way that keeps
level of supply chain complexity increases.â&#x20AC;?
them as close to their original goals as possible.â&#x20AC;?
Additionally, McDivitt believes the market will see leveraging consumer insight as a component of market intelligence to help
Multi-enterprise dimension
Drummond reflects that things donâ&#x20AC;&#x2122;t have to
shape demand. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s really about leveraging
Payne explains that the technology required to
be new to be â&#x20AC;&#x2DC;hotâ&#x20AC;&#x2122;, and the continued
this consumer data to help sense demand
enable that will need to be able to work with
importance of Sales and Operations Planning
better,â&#x20AC;? he said. â&#x20AC;&#x153;If you can sense demand
more granular information, operate at greater
(S&OP) is proving that. He added: â&#x20AC;&#x153;Customers
early on and know what that consumer
speed and scale and have greater
are engaging with us from different points of
sentiment is you could actually then shape
collaborative capabilities. â&#x20AC;&#x153;This multi-
maturity in their S&OP process, with some
demand by influencing the way you promote.â&#x20AC;?
enterprise dimension becomes very important
companies just getting underway with the
However, he added that companies would
and thatâ&#x20AC;&#x2122;s why weâ&#x20AC;&#x2122;re seeing a lot of the Cloud-
basics and others looking to develop their
have to do this in a very collaborative way with
based solutions moving more into this area,â&#x20AC;?
existing S&OP to encompass the themes of
the retailers.
he said.
Integrated Business Planning (IBP) and
McDivitt explained that Capgemini is seeing
According to Payne, the type of planning
this being put into practice particularly among
many companies want to do is also changing.
Drummondâ&#x20AC;&#x2122;s view is that a good S&OP
manufacturers in the food and beverage
â&#x20AC;&#x153;We can certainly see that with the leading
process will inevitably evolve over time; from
space at the moment. â&#x20AC;&#x153;They are the ones that
companies,â&#x20AC;? he said. â&#x20AC;&#x153;These companies tend
simple summaries of demand and supply
are blazing the trail,â&#x20AC;? he remarked. â&#x20AC;&#x153;This is
to be more mature in terms of what they are
information, to â&#x20AC;&#x2DC;what-if?â&#x20AC;&#x2122; scenario planning and
really an example of how manufacturers will
able to do with their supply chains.â&#x20AC;?
financial analysis. â&#x20AC;&#x153;The key message here, in
Integrated Business Leadership (IBL).â&#x20AC;?
increasingly leverage data and insight in a
terms of systems, is flexibility,â&#x20AC;? he said.
more significant way versus doing this in the
Payne observes that there are hundreds of
â&#x20AC;&#x153;Typically the initial choice of system is Excel
traditional supply chain planning manner.â&#x20AC;?
software vendors and hundreds of different
in order to get the process up and running,
planning solutions available on the market.
but once youâ&#x20AC;&#x2122;ve outgrown this then you need
Tim Payne, research vice president at Gartner,
However he believes there are in essence
something that can take you to, not only the
reflects that, because of the way many
three main categories of planning capabilities
next level, but the one after that and one after
companiesâ&#x20AC;&#x2122; supply chains are evolving and
or components to consider â&#x20AC;&#x201C; configure,
that.â&#x20AC;?
the way their businesses are developing their
optimise and respond (COR). Configuration
planning processes need to be more
(C) refers to technology or processes that help
Richard Watkins, managing director at the
integrated â&#x20AC;&#x201C; i.e more joined-up sales &
companies design their supply chain and,
Delos Partnership Ltd., considers that many
operations planning (S&OP), demand
from a segmentation perspective, help them
companies are confused on what Integrated
planning, inventory planning, replenishment
consider how they are going to postpone,
Business Planning or SOP is. â&#x20AC;&#x153;Arguments rage
planning, production planning, manufacturing
determine which part is push and which part is
around that somehow they are different, that
scheduling etc. â&#x20AC;&#x153;Many companies and their
full, and know whether they are going to be
IBP is SOP with steroids and an advance on
suppliers now have supply chains that are
efficient and agile enough etc.
SOP,â&#x20AC;? he said, adding that, in principle they are the same thing. â&#x20AC;&#x153;Many companies still rely
more global,â&#x20AC;? he pointed out, â&#x20AC;&#x153;and so these supply chains have become more uncertain,
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Optimisation (O) is about putting in place an
on a business planning model which rests on
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a process of creating
packages, and so in turn have developed
an annual budget,
â&#x20AC;&#x2DC;modulesâ&#x20AC;&#x2122; like Rough Cut Capacity Planning,
However, Watkins adds that this is way off
take six months to do
Advanced Planning and Scheduling and Finite
happening for most companies. He believes
it, and then spend
Capacity Planning. So companies then
that, slowly, there is a move to provide
the 12 months of the
implement these separate systems around or
Integrated Business Planning with the platform
financial year trying
interfaced to their â&#x20AC;&#x2DC;basic ERPâ&#x20AC;&#x2122; system.â&#x20AC;?
that it needs. â&#x20AC;&#x153;But there is still a long way to
to achieve something
go before organisations can have a truly
that was put together
Also critical to the quality of this IBP process,
integrated high quality system to support
up to 18 months ago.
states Watkins, is a good reporting tool, which
Integrated Business Planning,â&#x20AC;? he remarked,
A review is carried
enables a company to aggregate the data into
adding: â&#x20AC;&#x153;Back in the early 1900s Henry Ford
out at most quarterly.
families, and then provide management with
famously came up with the idea you could get
Measurement of
graphs, reports and commentary. â&#x20AC;&#x153;Here there
from A to B with a car, and drive. Cars now
success is based on
are a number of Business Information tools
are very different things, with Sat Navs,
achieving the budget. The fundamental
which are stand-alone reporting tools,â&#x20AC;? he
automatic parking, anti-lock braking systems
difference that IBP should bring is a formal
explained. â&#x20AC;&#x153;These have to be configured to
and so on. But the basic principle is that you
monthly review of all of the business plans,
get the information required, and then need to
can get from A to B because the engine, gear
and making sure they all join up. From a
be interfaced to their ERP systems to extract
box, steering wheel, chassis and body and
measurement point of view there are 7/8 key
the information. In truth many people do not
seats are all properly connected, and if the
performance indicators which will help deliver
do this, and instead rely on Microsoftâ&#x20AC;&#x2122;s Excel
driver turns the wheel the car will go in an
the long-term strategic plan. This formal
package to drive the information â&#x20AC;&#x201C; which relies
expected direction. To get to where we want
process happens monthly and works through
on dozens of peoplesâ&#x20AC;&#x2122; individual abilities to
to go we need to know where we are going, a
all of the parts of the business.â&#x20AC;?
programme macros and write complicated
plan of how we are going to get there, and a
formulae â&#x20AC;&#x201C; with all the probabilities of
measure of our speed, petrol consumption,
Underlying this, according to Watkins, is a
corruption, wrong formulae etc. causing
and fuel levels to make sure we get there
series of weekly planning activities which
potential damage to a businessâ&#x20AC;&#x2122; financial
safely.â&#x20AC;?
underpin the monthly process. â&#x20AC;&#x153;If there is a
position.â&#x20AC;?
(# '* , '% ()&$ ')' () , (*+#%"*$,
difference between IBP and SOP then it is that
Watkins makes the point that Integrated
many companies who implemented SOP
Watkins added that some companies are also
Business Planning is like the â&#x20AC;&#x2DC;knowing where
tended to focus on Sales/Marketing and
trying to sell â&#x20AC;&#x2DC;SOPâ&#x20AC;&#x2122; software or â&#x20AC;&#x2DC;Integrated
we are goingâ&#x20AC;&#x2122;, and having a plan to get there
Supply Chain,â&#x20AC;? he said. â&#x20AC;&#x153;These projects are
Business Planningâ&#x20AC;&#x2122; software, which is a further
with measures to know how well we are doing.
typically driven by the Supply Chain director
advance in this area, as it is built on a
â&#x20AC;&#x153;But in many manufacturing organisations
trying to get a better forecast. IBP also covers
recognised process, does the adding up, and
companies still need (if you look at the
the integration of Finance, Human Resources,
also is built around emails telling people to get
systems this way), to buy engines, gear
Information Technology, Research and
the data ready for the monthly meeting. This,
boxes, chassis, Sat Navs and bodies from
Development etc. But in truth the original SOP
he believes, is another key development.
different people. There are still some motor car enthusiasts who build their own cars, but they
process as developed in the 1980s was meant According to Watkins, Integrated Business
are a minority. That is not the case with
Planning also needs companies to manage
manufacturing companies. Certainly very few
Critical to the quality of this IBP process is
project type activities well, and also manage
people would operate like Excel and take all of
good Demand Planning, maintains Watkins.
multiple projects (whether they are new
the individual parts of a car and assemble
â&#x20AC;&#x153;In this area there is a definite divide between
product development, or new machinery and
them themselves in their own garage.â&#x20AC;?
ERP systems (which cover Order Entry,
equipment). â&#x20AC;&#x153;In this are there is little in the way
to cover all of this.â&#x20AC;?
Inventory Management, Planning, Purchasing
of integration of project management systems
and costing) and specialist
into ERP systems,â&#x20AC;? he said.
Driving down costs
forecasting/demand planning systems,â&#x20AC;? he
Nick Castellina, research director for the
said. â&#x20AC;&#x153;Few of the ERP vendors have a
Additionally, Watkins makes the point that
Aberdeen Group's business planning and
forecasting system which is entirely integrated
managing the interface with the customer
execution practice, comments that one key
with the Production Planning and Order Entry
around enquiries, contracts, order entry,
talking point in the industry at the moment
systems. Those that do generally do not have
marketing activities and the like requires a
concerns the integration of tools such as MES
the functionality of the specialist forecasting
Customer Relationship Management system.
with ERP to get a more full view of a
systems. To make matters â&#x20AC;&#x2DC;worseâ&#x20AC;&#x2122; the
This, he states, should then be integrated into
companyâ&#x20AC;&#x2122;s plans for production in the near
specialist forecasting system vendors have
the Demand Planning process and the supply
future, and how that integrates with demand
seen â&#x20AC;&#x2DC;opportunitiesâ&#x20AC;&#x2122; to add value to their
planning process.
planning. â&#x20AC;&#x153;This type of integration is driving
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down the amount of time companiesâ&#x20AC;&#x2122; inventory
expect simpler interface, a more â&#x20AC;&#x2DC;socialâ&#x20AC;&#x2122; style
or inventory levels.â&#x20AC;? Drummond adds that
is staying on the shelf, and this is hugely
of interaction and want information and
vendors with good R&D and strong Supply
important for driving costs down,â&#x20AC;? he said.
insights â&#x20AC;&#x2DC;nowâ&#x20AC;&#x2122;,â&#x20AC;? he remarked. â&#x20AC;&#x153;Planning
Chain consulting skills are able to offer a
solutions must adapt to user needs and
simplified APS package in order to help
Castellina added that Aberdeen Group is also
deliver friendly, social aware offerings.
companies get the â&#x20AC;&#x2DC;quick winsâ&#x20AC;&#x2122; by establishing
seeing a lot more embedded analytics
Recognising that not all organisations will
a robust process based on industry best
capabilities built within the solutions to make
utilise best of breed, being able to provide
practice. â&#x20AC;&#x153;This can then be used as a platform
intelligent decisions. â&#x20AC;&#x153;Certainly, as
connection into and through other systems is
to develop the system and solve more
organisations grown larger they are more likely
essential.â&#x20AC;?
complex issues once it is embedded as part
to be taking advantage of these types of
of day to day business,â&#x20AC;? he pointed out.
solutions,â&#x20AC;? he said. â&#x20AC;&#x153;Some of the smaller
With regard to ERP integration, Kaltenbrunner
organisations are having difficulty; they are still
considers that planning solutions need to be
According to Watkins, the end-user
running their shop floor on paper. Even if they
ERP aware while at the same time agnostic.
requirements have changed in part over the
have these software tools they are still
â&#x20AC;&#x153;Many organisations operate multiple ERP
years. He commented: â&#x20AC;&#x153;Customers and
producing one thing, planning for another and
systems, particularly those with historically
consumers have wanted more products more
going back at the end of the day and making
high levels of M&A activity,â&#x20AC;? he explained. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s
quickly. Shareholders have wanted more
those changes within the solutions. So I think
important to move beyond just being able to
profits, or to keep their current profits.
thereâ&#x20AC;&#x2122;s a need for organisations, or the leaders
connect, and into having guided pathways
Marketing activities to keep a competitive
within these organisations, to commit to using
and processes to minimise cost, impact and
edge have meant more rapid changes to
these tools that are available to them,
risk.â&#x20AC;?
demand, and required more responsiveness.
particularly after theyâ&#x20AC;&#x2122;ve purchased them.â&#x20AC;?
So whereas 20 years ago an MRP system Barnaby Speller, product manager for
might have recalculated once a month, now
Hans-Georg Kaltenbrunner, VP industry
SIMATIC IT Preactor at Preactor International â&#x20AC;&#x201C;
an ERP system has to do so in â&#x20AC;&#x2DC;real timeâ&#x20AC;&#x2122;.
strategy EMEA, JDA Software. Interactive
A Siemens Company, considers that the
Once upon a time all cars could be black; now
planning, makes the point that Agile Control
concepts of Industry 4.0, digital factories and
they need to have all sorts of different options
Tower (ACT) capability enables companies to
Manufacturing Operations Management
fitted to them. The Lean philosophy has
detect and respond to significant supply chain
(MOM) mean that Advanced Planning &
helped considerably in forcing people to
events rapidly and profitably. He added: â&#x20AC;&#x153;This
Scheduling (APS) is no longer being seen so
simplify, but â&#x20AC;&#x2DC;mass-customisationâ&#x20AC;&#x2122; is the
capability allows planners to move from â&#x20AC;&#x2DC;What
much as a bridge between level 3 and 4,
buzzword the people follow. This means you
do we do now?â&#x20AC;&#x2122; to â&#x20AC;&#x2DC;What is the best alternative
where it communicates directly with both MRP
make a pink one followed by a green one
of those that were tested and reviewed?â&#x20AC;&#x2122; With
and MES, but rather as a component of the
followed by a yellow one all in the same day.
guided resolution options, decisions are
complete and integrated MOM portfolio within
And you can only make a pink one providing it
effectively made and implemented, and using
level 3. He added that the SIMATIC IT
does not follow one that has nuts in it â&#x20AC;&#x201C;
in-memory power, clients are able to rapidly
Preactor APS range is part of the Siemens
because of regulatory requirements. Hence
respond to disruptions during execution.â&#x20AC;?
MOM portfolio, which includes among other
there has been a real expansion in Advanced
solutions, MES, to better meet the end userâ&#x20AC;&#x2122;s
Planning Systems and Finite Capacity
Kaltenbrunner then moves on to the topic of
needs. â&#x20AC;&#x153;This means that the APS system can,
Planning Systems to cope with complexity.â&#x20AC;?
business & operational scenario planning.
if an MES system is present, take advantage
â&#x20AC;&#x153;Strategic and medium-term scenarios can be
of the more manufacturing-centric data from
Watkins pointed out that some software
modelled for operational validity, and the
there to produce schedules that accurately
companies â&#x20AC;&#x201C;
results made visible across the teams,â&#x20AC;? he
reflect the reality of the shop floor,â&#x20AC;? he said.
because of the
said. â&#x20AC;&#x153;Moreover, the different scenarios can be
development of
optimised for cost and business outcome.
â&#x20AC;&#x2DC;Integrated Business
Utilising advanced simulation models,
Motivation for change
Planningâ&#x20AC;&#x2122; â&#x20AC;&#x201C; have
planners are now able to â&#x20AC;&#x2DC;try outâ&#x20AC;&#x2122; multiple
What has driven these types of trends and
started to market
options without committing to plans â&#x20AC;&#x201C; and
developments? Drummond reflects that there
â&#x20AC;&#x2DC;IBPâ&#x20AC;&#x2122; systems in
intelligently decide on â&#x20AC;&#x201C; and execute against
are still many companies that are trying to get
response to their
the most effective and profitable paths.â&#x20AC;?
the basics right. â&#x20AC;&#x153;They have usually been
clients wanting
burned at least once on a failed APS
integration. However,
In terms of the subject of integration and ease-
implementation and are wary of starting
he explains that there
of-use, Kaltenbrunner explains that this
another,â&#x20AC;? he said. â&#x20AC;&#x153;Meanwhile the forecast
is a real gap in this
facilitates effective user adoption and reduces
accuracy stagnates and they struggle to get a
area, which is that
change management requirements. â&#x20AC;&#x153;Users
step change improvement in customer service
few clients and
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')& +"*
'!%+) * ))+*$, () &%* ,&%*'%+ , $,
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companies have really bought in to the idea of
technologies have been available now for
centricity is critical in
true Integrated Business Planning and
some time but the market demand to bring this
understanding what
Management â&#x20AC;&#x201C; â&#x20AC;&#x153;thus they have an ERP system
data together, integrate it and understand it is
different types of
which is linked to the Forecasting and
very compelling now.â&#x20AC;?
consumers buy, the
Demand Planning system, which is linked to
influences that drive
the Project Management system, which is
Morgan added that Capgemini has partners
those buying
linked to the Customer Relationship
who have machine learning capability
behaviours, as well
Management system,â&#x20AC;? he said.
embedded in their tools, and Capgemini is
as how and where
able to build machine learning into tools so
they buy. He
Watkins added that because many end-users
they can constantly learn about consumer
commented:
do not understand and buy-in to this concept
vocabulary in the social media world, and
â&#x20AC;&#x153;Responding to these
it is still the case that organisations have the
constantly learn ways to better predict
needs requires
ability to pick and choose the different
consumer buying trends. â&#x20AC;&#x153;There are waves
evolving strategies
systems, and hence develop disintegrated
and layers of technology that can be exploited
supported by
processes with which to run their companies.
in this space; even in terms of Mobile Device
segmentation; with
â&#x20AC;&#x153;Education in and acceptance of a completely
Management (MDM) and virtualisation,â&#x20AC;? he
the proliferation of the omni-channel world,
integrated business model â&#x20AC;&#x201C; in terms of
said. â&#x20AC;&#x153;What is now possible in those spaces
customer demand and volatility â&#x20AC;&#x201C; being able
systems, processes, behaviour and
are things that people would have dreamed of
to develop and manage multiple supply chain
organisation â&#x20AC;&#x201C; is still a dream,â&#x20AC;? he remarked.
ten years ago.â&#x20AC;?
â&#x20AC;&#x2DC;instancesâ&#x20AC;&#x2122; is critical to supply chain success.â&#x20AC;?
to call people but also to monitor how healthy
Another thing that manufacturers and retailers
Speller observes that the APS market has
you are have become the must have objects.
need to bear in mind, according to McDivitt, is
matured considerably over the past five years.
That is because the inventors have looked
that there are so many different channels
He maintains that users have a much clearer
ahead and developed things that consumers
through which consumers can buy goods
understanding of what is available in terms of
might want. The same is not true in the
today. â&#x20AC;&#x153;This is really being driven by digital
functionality in the marketplace and higher
manufacturing IT world.â&#x20AC;?
forces such as the Cloud, social, mobile and
expectations than ever before. â&#x20AC;&#x153;With todayâ&#x20AC;&#x2122;s
Big Data,â&#x20AC;? he said. â&#x20AC;&#x153;Therefore, there is not just
global competition, the pressure to increase
Jules Morgan, head of insight and analytics,
a case for putting in place better sensing
production capacity and shorten lead times
consumer products & retail at Capgemini
technology to monitor and anticipate
while lowering costs and inventory, forces
Consulting, points out that in the US and
purchasing habits related to certain types of
companies to find ways to optimise operations
Europe there is currently a substantial amount
goods, there is also the importance of
and reduce delays,â&#x20AC;? he said, adding: â&#x20AC;&#x153;In some
of money being spent on promotions.
determining which channels will most likely be
cases, weâ&#x20AC;&#x2122;ve seen customers who have tried
â&#x20AC;&#x153;Grocers, the retail industry and the consumer
deployed by the consumer when they decide
to achieve this with their existing ERP/MES
products industry are under a lot of pressure
to make a purchase.â&#x20AC;?
systems before turning to a SIMATIC IT
!+&, "* ')$, +' " ,()&( %,') ')'! %(#&$,#")& +* *" #%&, ,*+%'(!$
â&#x20AC;&#x153;Phones and watches that not only allow you
to discount at the moment,â&#x20AC;? he said. â&#x20AC;&#x153;This is
Preactor APS system, which then enabled
pushing a lot of interest in how can these
Kaltenbrunner considers that todayâ&#x20AC;&#x2122;s user
them to succeed in reducing or eliminating
companies can target promotional dollars to
community is demanding a more interactive
non-value-added activities and improve
the individual rather than to the mass, and to
way of planning compared to the black box
production efficiency, in order to better meet
adopt technology available today, as well as
optimisation of the past. Another driver for
market demand and deliver on-time.â&#x20AC;?
keep an eye on technology trends and
change, according to Kaltenbrunner, is BYOD
*(#, ( +*!() $ *+&( +)%$,
opportunities that
(Bring Your Own Device) and the proliferation
may be just on the
of mobile devices, which has created the
SaaS/Cloud
horizon. Take
trend towards mobile applications with access
Has the Software as a Service (SaaS) model,
concepts such as
anywhere anytime functionality. â&#x20AC;&#x153;Having
and the Cloud concept in general, had a
Big Data, which
applications and offerings being mobile aware
notable level of impact on the planning-related
might encompass
and responsive is a must have,â&#x20AC;? he said,
software solutions market so far? Watkins
social data and
adding that solutions able to deliver quick
believes SaaS/Cloud solutions are beginning
mobile data and a
insights through dashboards, KPIâ&#x20AC;&#x2122;s and high
to take root, but are at an early stage of
host of other sources
level reports are essential for the mobile
development. His view is that security of data
of structured and
executive â&#x20AC;&#x201C; as well as the board level who
is the principle stumbling block â&#x20AC;&#x201C; although he
unstructured data;
look for the overview.
recognises that there are clearly plenty of
Natural Language Processing (NLP)
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IT
MANUFACTURING
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security systems and protocols. According to Kaltenbrunner also reflects that consumer
Watkins also made the point that, with regard
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to on-premise ERP, the pricing mechanism is
allows businesses to focus on their business,
lot of benefits in the Cloud beyond just cost;
changing. â&#x20AC;&#x153;For years the model has been pay
and be able to grow and evolve without having
for example, the ability to access information
a large licence fee â&#x20AC;&#x201C; say ÂŁ1 million including
concerns about their technology scaling. He
wherever you are in real-time can prove
named user licences, and then pay a
added: â&#x20AC;&#x153;Deployment in the Cloud has become
visibility in collaboration.â&#x20AC;?
maintenance fee of 20 per cent â&#x20AC;&#x201C; ÂŁ200,000
the default delivery method for JDA offerings.
per annum. On top is the consultancy and
JDA has been offering these capabilities for
Payne explains that if one visualises a â&#x20AC;&#x2DC;Cloud
implementation cost. Now some companies
almost a decade and has proven pedigree
sandwichâ&#x20AC;&#x2122;, the lower slice of bread could be
are charging a fixed monthly fee to cover
with more than 300 Cloud deployments to
thought of as all the functionality that provides
licence and maintenance. This can ease the
more than 350,000 users across retail,
the visibility outside of an organisation; the
purchasing position, as companies no longer
manufacturing, wholesalers/distributors and
end-to-end supply chain visibility showing
have a large capital expenditure to make, but
transportation worldwide.â&#x20AC;?
what is happening with a companyâ&#x20AC;&#x2122;s suppliers,
can treat it as revenue expenditure. In the past
contract manufacturers and so on. â&#x20AC;&#x153;Today,
many companies have been put off
According to Speller, the main change
most people expect this to be Cloud because
implementing a â&#x20AC;&#x2DC;properâ&#x20AC;&#x2122; ERP system because
Preactor has seen is new requirements in
weâ&#x20AC;&#x2122;re talking about the multi-enterprise and
of the big capital cost. If this becomes less of
terms of integration to accommodate offsite
thereâ&#x20AC;&#x2122;s a community aspect to it as well,â&#x20AC;? he
a barrier then that is going to help.â&#x20AC;?
solutions. â&#x20AC;&#x153;I believe that over the next few
said. Then if we think of the upper slice of
years there will be increasing pressure on APS
bread as S&OP this, says Payne, can also
However, Watkins maintains that the real
vendors to provide Cloud-based offerings,
involve collaboration with other parties; key
challenge to the IT vendors will be to develop
both to meet with customer expectations and
customers etc. so there can be an external
a completely integrated system in the Cloud;
to meet the requirements of global multi-plant
element to this as well. Therefore, this area is
then each company could have their data
companies,â&#x20AC;? he said.
also fairly Cloudy. Then, according to Payne,
managed anywhere at any time.
the filling in the sandwich could be thought of In terms of planning capability, McDivitt cites
as operational planning â&#x20AC;&#x201C; production planning
Drummond observes that the Cloud model is
two areas worthy of analysis: Cloud/SaaS
and scheduling. This, he said, is still
still polarising opinion in the market; with
Planning and Cloud/SaaS ERP. â&#x20AC;&#x153;In terms of
predominantly on-premise for most
organisations either definitely for or against it
Cloud/SaaS Planning, weâ&#x20AC;&#x2122;re definitely seeing
companies.
when it comes to APS. â&#x20AC;&#x153;Companies with an
momentum in this space; more so in retail than
established Cloud strategy are actively
in manufacturing but it is certainly becoming
Payne added that Cloud solutions tend be
encouraging the adoption of Cloud-based
increasingly deployed in both areas,â&#x20AC;? he said.
multi-enterprise, fast and scalable. Because of
Supply Chain Planning tools, whereas those
â&#x20AC;&#x153;Cloud SaaS planning is gathering interest
this, he believes more and more companies
who have yet to make the move do not see the
because the Cloud SaaS players around
are looking to invest in Cloud applications and
implementation of an APS as a driver for
planning are basically delivering optimisation
expects to see above market growth rates
moving to the Cloud,â&#x20AC;? he said, adding: â&#x20AC;&#x153;There
capabilities across functions on a single
moving to Cloud in all categories; including
is still work to do in educating customers on
enterprise solution platform. For example,
operational planning. However, he points out
the cost-benefits of Cloud. It is a much more
companies can create a merchandise plan
that there are industry differences. â&#x20AC;&#x153;For
transparent model as the total cost of the
that feed into a companyâ&#x20AC;&#x2122;s demand plan that
example, in process industries that rely heavily
software and IT support is provided upfront.
feeds into the way it replenishes and allocates.
on their operational planning and scheduling â&#x20AC;&#x201C;
However it can be
The company can also do its â&#x20AC;&#x2DC;open to buyâ&#x20AC;&#x2122;
chemical plants, pulp and paper
initially viewed as
and promote and price in a single enterprise
manufacturers etc. â&#x20AC;&#x201C; they often think itâ&#x20AC;&#x2122;s still
more expensive
platform. This is quite an attractive proposition,
important to have operational planning tightly
when compared to
and thatâ&#x20AC;&#x2122;s why weâ&#x20AC;&#x2122;re seeing momentum.â&#x20AC;?
integrated to their ERP and MES system,â&#x20AC;? said Payne. â&#x20AC;&#x153;Also, a defence company might say it
an on-premise
(# , '&%+!!()'$ *+&+'*# , (*+#%"*$ &()+&&, !'))() , + +# %(")$
solution where the IT
Castellina believes the Cloud is certainly here
canâ&#x20AC;&#x2122;t have its data outside its operations due
costs are hidden
to stay. He commented: â&#x20AC;&#x153;I think itâ&#x20AC;&#x2122;s shortly
to perceived security concerns.â&#x20AC;? Nevertheless,
within the fixed costs
going to become the preferred solution for
in general, Payne believes the uptake of Cloud
of the organisation
manufacturing and also distribution
is on the rise.
and soft costs such
organisations; the latter currently being faster
as peopleâ&#x20AC;&#x2122;s time are
to adopt Cloud/SaaS than manufacturers, who
overlooked.â&#x20AC;?
are a little slower to come over. However,
The big picture
many manufacturers are getting to the point
Is Big Data having an effect on the
Kaltenbrunner makes
where they have identified the need to replace
development and benefits of todayâ&#x20AC;&#x2122;s
the point that utilising
their existing solutions and often this leads to
forecasting and planning-related solutions?
Cloud deployment
them adopting a Cloud solution. There are a
First, Watkins puts the Big Data concept in
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Special Report
Planning/Forecasting/S&OP
context by pointing out that there is masses of
and product characteristics are likely to
repository capability and the demand sensing
data out there and companies need to be able
change.â&#x20AC;?
capability. â&#x20AC;&#x153;And I think what is also coming is
to process it â&#x20AC;&#x201C; and by processing it they can
being able leverage the unstructured
come up with more valuable information which
Kimberling reflects that the initial concept for
component that would allow companies to
can save them time and money. â&#x20AC;&#x153;All Demand
demand planning and forecasting was mostly
sense demand to an even greater extent,â&#x20AC;? he
Planning and Forecasting systems must rest
inventory-based; and that confidence in the
added.
on assumptions,â&#x20AC;? he said. â&#x20AC;&#x153;One basic
appropriate inventory level has always been
assumption is that the price you charge for a
fundamental in the simplistic supply and
In terms of the definition of unstructured data,
product will influence demand. I see that
demand economic model. â&#x20AC;&#x153;Too little inventory
Morgan points out that this could include
companies can now collect information across
and you risk losing sales, too much inventory
things such as weather patterns, which could,
multiple stores and multiple
and you risk higher costs,â&#x20AC;? he said, adding
for example, have an impact on the sale of
customers/consumers and can analyse this
that this required specific data inputs
certain types of food or beverage products.
data to see if this assumption is true.â&#x20AC;?
(historical sales, projected inventory).
However, he adds that, interestingly, weather
However, Kimberling explains that recently
data could also be structured to some extent.
Castellina believes that for the organisations
software solutions have enabled businesses to
â&#x20AC;&#x153;We are increasingly seeing Natural Language
that are able to afford a solution such as SAPâ&#x20AC;&#x2122;s
not only capture mass quantities of information
posting (NLP) tools structuring that otherwise
HANA there is certainly a user case in terms of
from Big Data but manipulate and integrate
unstructured data to make sense of it,â&#x20AC;? he
having more data and being able to analyse it
that information back into Sales, Pricing and
said, â&#x20AC;&#x153;and when this is done the data actually
within a quicker timeframe. â&#x20AC;&#x153;I think this is
more effective Distribution practices.
behaves in the same way as structured data.
something that is going to be increasingly
There are still huge volumes of this data, but it
important in the near future,â&#x20AC;? he said. â&#x20AC;&#x153;It really
Speller sees the relationship between APS and
comes down to whether your organisation can
Big Data as very much that APS can be a
handle that extra data from a sophistication
source of data that can be aggregated into
standpoint, and whether you can pay for it.â&#x20AC;?
Big Data and then analysed by tools such as
Planning the future
Siemensâ&#x20AC;&#x2122; Omneo Performance Analytics to
What do our commentators believe will
Drummond considers that the danger of Big
deliver product performance intelligence. He
possibly be some of the key developments in
Data in an APS is too much information can
pointed out that Omneo monitors data across
the world of planning-related solutions over the
cause â&#x20AC;&#x2DC;paralysis by analysisâ&#x20AC;&#x2122;. â&#x20AC;&#x153;Planners spend
the entire supply chain and customer
next year or two? Morgan believes the
too long trawling through information and not
experience, using data from sources including
individualisation of promotions and the ability
enough time communicating and collaborating
field service, manufacturing, CRM, ERP and
to more fully exploit that data is definitely
on the forecast, where the big benefits are,â&#x20AC;?
the Internet of Things (IoT).
coming. He commented: â&#x20AC;&#x153;We talk to big CPGs
he said.
will increasingly become more manageable.â&#x20AC;?
and FMCGs and most if not all of them over â&#x20AC;&#x153;Big Data is to some extent influencing what
the next five years intend to keep records on
Kaltenbrunner explains that many FMCG
the vendors do,â&#x20AC;? said Payne. â&#x20AC;&#x153;The idea of Big
around half their target base â&#x20AC;&#x201C; and they will be
companies are looking into the subject of Big
Data and Big Analytics are very much on the
able to exploit this information in planning,
Data and trying to utilise the condensed
business intelligence side and the general
forecasting and promotions in a variety of
outcome into their mid- to long-term
analytics side of most organisations. However,
ways.â&#x20AC;?
forecasting as one of many factors. He
it would be fairly rare for a company looking
commented: â&#x20AC;&#x153;It is our understanding that this
for supply chain technology to say I need a
McDivittâ&#x20AC;&#x2122;s view is there is going to be an
input is mainly used to detect early change
Big Data demand planning system; it is more
increasing challenge in trying to predict which
of consumer buying
likely to say it wants a very scalable demand
buying channels the consumer is going to
preferences or to
planning system with demand sensing
utilise. â&#x20AC;&#x153;This to some extent challenges the
predict seasonal
capability because the company has a lot of
relevance of forecasting, or is going to be
changes. B2B
sophisticated data to look at and so needs a
more reliant on predictive analytics than
companies are
big repository, and wants a system that is fast.
traditional historical sales forecasts,â&#x20AC;? he said.
using Big Data
So thereâ&#x20AC;&#x2122;s a lot going on in terms of scale,
â&#x20AC;&#x153;And thatâ&#x20AC;&#x2122;s because the market is now so
analysis to better
speed, granularity and the growing demand
dynamic around the consumer in terms of
understand their
for things such as in-memory databases.â&#x20AC;?
where they are going to be and how they are
customerâ&#x20AC;&#x2122;s ( , ' )+$,*+&+'*# (#+, *+&( +)%$,
32
IT
McDivitt believes Big Data is definitely having
foresees greater movement of learning how to
and to be ahead of
an impact on the market intelligence side as
leverage Big Data and predictive analytics in
the game where
well as in terms of more and more
trying to sense demand from the perspective
buying behaviour
organisations leveraging the data signal
of what channel that consumer is going to use.
MANUFACTURING
&LOGISTICS
going to be buying goods.â&#x20AC;? McDivitt also
consumer markets
December 2015
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'*)' , +!!+*$ *" #%, ')' +*$ , , *+'#%"*$
Special Report
Payne believes that,
which to run their businesses. â&#x20AC;&#x153;Once the
on the shelf. â&#x20AC;&#x153;By reaching consensus across
from an end-user
system side is sorted, then we can get to the
trading partners based on true demand, a true
perspective, we are
point where we can integrate people in the
single, agreed on forecast can be developed
close to the tipping
organisation, because many companies still
and executed against,â&#x20AC;? he remarked.
point in the market
operate in cars without sat navs, engines from
where the old view of
one maker, bodies from another, gear boxes
Speller comments that the recent acquisitions
planning that started
form another all put together in their own
of APS solutions (including Simatic IT Preactor
with MRP and then
garages,â&#x20AC;? he remarked.
APS) by companies like Siemens with wider
moved to MRPII and
Drummond foresees a continued focus on
portfolios in the MOM space, point to APS
ERP â&#x20AC;&#x201C; preparing a
supporting S&OP and its evolution into
being considered as much more closely tied
demand plan,
Integrated Business Planning (IBP) and
to the execution layer and an important part of
passing this
Integrated Business Leadership (IBL).
a complete digital factory solution such as the
information to
â&#x20AC;&#x153;Companies will want this functionality
Siemens MOM portfolio can provide. â&#x20AC;&#x153;This
distribution and
integrated with their APS where the demand
brings benefits in terms of quality of data for
production etc. â&#x20AC;&#x201C; is no longer going to be
and supply information already exists without
the scheduling model and also a tighter loop
good enough for end-usersâ&#x20AC;&#x2122; needs.
bolting on yet another system,â&#x20AC;? he said.
for shop floor feedback, giving a better
â&#x20AC;&#x153;Companies that are at a low stage of maturity
Drummond also anticipates more scenario
could still start here, but some companies that
planning and â&#x20AC;&#x2DC;what-ifâ&#x20AC;&#x2122; capabilities within APS
have been relying on that traditional model for
to see the impact of changes in demand and
Due to the exponential growth rate of
many years are now saying theyâ&#x20AC;&#x2122;ve pretty
supply and plan accordingly. He also sees the
technological advances and information
much exhausted what they can do with it,â&#x20AC;?
further development of functionality to support
availability, Kimberling reflects that it is difficult
said Payne. â&#x20AC;&#x153;This is understandable because,
collaboration across the supply chain with
to forecast future developments. However,
as I mentioned earlier, many of them are now
internal and external stakeholders.
with so many users on social networks he
operating in a more global, complex, uncertain
Additionally, he foresees development in the
believes it is easy to see the logic in Microsoft
and volatile environment.â&#x20AC;? This, explains
area of web-based user interfaces for
buying Yammer for US$1.2 billion in 2012.
Payne, is why Gartner put together the
reporting and adding intelligence to the plan,
â&#x20AC;&#x153;Social Supply Chain Networks are bringing
configure optimise respond (COR) model. â&#x20AC;&#x153;We
coupled with full-feature â&#x20AC;&#x2DC;rich-clientsâ&#x20AC;&#x2122; for
collaboration, information and availability to all
see that companies are increasingly wanting
traditional planning functions.
individuals within an organisation or
representation of the production status when
to be able to integrate those things together,â&#x20AC;? he said.
creating and amending schedules,â&#x20AC;? he said.
association,â&#x20AC;? he said. â&#x20AC;&#x153;First, we had to capture Kaltenbrunner believes the key innovation
and gather information. Next, organising and
drivers will continue to be user enablement,
interpreting captured data. Now we can
Watkins makes the point that traditional
ease-of-use and mobile front-end to offer
manipulate and simulate data for even better
forecasting and planning solutions tend
interactive planning as well as sophisticated
business decisions. Moving forward based on
depend for their existence on creating Time
optimisation across organisational boundaries
current internet user trends, it is logical to
Series analysis, and also some statistical
and countries.
assume that sharing all that information with
analysis. He comments: â&#x20AC;&#x153;They require
anyone in the world will become ever more
marketing intelligence to produce a valid
He added that implementation of advanced
forecast. But that marketing intelligence
collaboration options among trading partners
critical.â&#x20AC;?
should be based on a real analytical engine
through Flowcasting is particularly interesting
Castellina thinks the future will largely be
that enables you to look at the data,
and will drive tremendous value across the
about driving more embedded analytics into
summarise, understand the relationships
supply chain. â&#x20AC;&#x153;By connecting the planning and
the solutions. He considers that Big Data is
between things and then influence the
execution processes to what is actually
certainly a part of this; as is In-Memory
demand to meet business objectives.â&#x20AC;?
happening with store level demand, inventory
analytics. â&#x20AC;&#x153;So itâ&#x20AC;&#x2122;s really about being able to
visibility can be increased and products can
make decisions based on large amounts of
more effectively flow through a synchronised
data very quickly,â&#x20AC;? he said. To sum up,
supply chain,â&#x20AC;? he said.
Castellina remarked: â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s really all about the
True enablement
convergence of technology with operations,
However, Watkins believes the key requirement should be to provide real
Kaltenbrunner also points out that by utilising
and making a commitment to utilise the
integration between all the separate parts of
technology looking at point of sale data,
available technology that will impact on
the business so that Integrated Business
partners have the ability to collaborate
manufacturing the most.â&#x20AC;?
Planning is truly enabled, and companies can
effectively to drive processes for better
get away from relying on spreadsheets with
product availability and less excess inventory
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TRANSPORTATION MANAGEMENT
Opinion
Assign available freight
more efficiently with transport platforms By Maria Toft Madsen, country manager Northern Europe, TimoCom.
he manufacturing and trade industry is dynamic and open to international influences. Cargo owners need to focus on consumer requirements and thus act flexibly on the market. The use of online freight exchanges from the logistics sector especially makes sense for these companies to quickly and efficiently find available vehicles for their goods on the logistics spot market. But how do these internet transport platforms work and what do you need to be aware about?
T
For cargo owners, working with big player is worth it. For example, TimoCom has over 100,000 users who enter up to 450,000 offers in its transport platform each day. The reason for this is very simple: The more transport service providers and the more vehicle offers there are on an exchange, the greater are the chances for manufacturing and trade companies of having their goods transported quickly and easily. With the Europe-wide freight exchange from TimoCom, the available freight entered by cargo owners is mostly only online for a brief period. Any available freight offer being found is assigned to one of the available transport providers within seconds. For manufacturing and trade companies, there is hardly a quicker way of having their goods transported.
Tendering transport jobs Basically, you distinguish between two main types of freight tendering via online platforms: For the so-called spot market there are exchanges in which available freight and vehicles are offered up-to-the-minute. The term ‘spot market’ means ‘on the spot’, i.e. assigning orders at short notice at the price applicable on the day. With access to the spot market, TimoCom customers will find up to 150,000 vehicle offers from 33,000 certified transport service providers – and always be able to find suitable vehicles for their goods. The fundamental principle of a freight and
34
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vehicle exchange for the spot market is simple: It works like a virtual notice board. A cargo owner specifies which goods have to be transported, a transport service provider then contacts the company and both business partners negotiate the conditions and a deal closure is done quickly. The actual transaction is then finalised directly between the two partners who have found each other in the exchange. The second way of assigning transport jobs takes place on the ‘contract market’, which is oriented towards long-term business relationships. Here, long-term contracts for specific service packages or routes are tendered via an online tendering platform.
What makes a freight exchange a transport platform? In order to really work efficiently and securely with freight exchanges, manufacturing and trade companies should be aware about some issues in regards to security. After all, valuable goods which have to be transported are at stake. Freight exchanges which do not offer any services or special security measures should be avoided. Using one of the large transport platforms is the best option. Besides these two – freight exchanges for the spot market and tendering platforms for longterm contracts – a good transport platform also offers a substantial security system. Those who conduct business online and release sensitive data should make sure they are ‘working on safe grounds’. A given transport platform should also offer an effective tracking solution, so manufacturing and trade companies can locate and follow their goods during transportation. The benefit of TimoCom is the tracking platform which works provider independent – i.e. many different telematics
providers can be displayed within a single platform. Moreover, the security measures from the transport platform also include verifying new members and a multi-level security package which forms the basis for transparent and reliable business. Reliable transport platforms only allow new customers access to the freight exchange once they have passed an extensive check. This prevents ‘black sheep’ with fake companies’ access to the freight exchange. Prior to activation, important business documents such as commercial register excerpts are verified as well as creditworthiness. Once a contract has been signed, customer actions within the platforms are also monitored. The highest priority is to ensure security for all customers. Establishing business contacts is another advantage of the large transport platforms. The largest transport platform in Europe offers an online transport directory with company profiles of over 33,000 active transport, logistics service providers and cargo owners. This allows companies from manufacturing and trade to find exact information on the transport and logistics field in Europe and to quickly expand their pool of suppliers and service providers. If manufacturing and trade companies consider the above mentioned aspects they will be able to choose the right transport platform to make their logistics faster and more efficient and offering security at the same time.
www.logisticsit.com
TRANSPORTATION MANAGEMENT TimoCom
TC eMap is a route planning and calculation solution feature with an integrated tracking function for all conventional telematics systems. New to the market is the TimoCom Messenger. Available to all users, TimoCom Messenger simplifies the communication within the platform. Also available is TC Profile, a transport directory with 33,000 verified contacts. All products are user-friendly and available in 24 languages in 44 European countries. Extra services: The multi-level security packet which is the basis for transparent and reliable business and TimoCom Identify, enabling users to let other users in the exchange be verified by a TimoCom staff. Solutions offered TC Truck&Cargo – a freight and vehicle exchange and a warehousing exchange. TC eBid – the online transport tendering platform. TC eMap – a route planning and calculation solution feature with an integrated tracking function for all conventional telematics systems. TC Profile – a transport directory with 33,000 verified contacts. Industrial markets served Road haulage, freight forwarders, manufacturing and trade from all industrial markets.
Corporate Profile
Founded in 1997, IT service provider TimoCom is today one of the largest transport platform providers in Europe. Manufacturing and trade companies can optimise their supply chain with TimoCom. The freight and vehicle exchange TC Truck&Cargo with up to 450,000 freight and vehicle offers daily from 100,000 users; TC eBid, the online transport tendering platform and a warehousing exchange.
Countries served Pan-European.
Website: www.timocom.co.uk
1 4
2
Change your Chain with Europe’s largest transport platform! Manufacturing and trade can now handle all transport business through TimoCom: In Europe’s largest transport platform you can find up to 150,000 international vehicle capacity offers and 33,000 verified transport providers from everywhere in Europe. You haven’t tried it yet?
Test TimoCom for four weeks free of charge at:
www.timocom.co.uk/logistics
Customers, whom we have convinced:
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V OICE technology
Success story
Horseware keeps a tight rein on its warehousing operations thanks to door-todoor Voice solution from BEC and Honeywell ounded in 1985, Horseware Ireland
F
is one of the world’s most wellknown and prestigious designers and manufacturers of riding wear, leisure wear, horse rugs,
equestrian products and accessories. With a turnover of approximately €40 million, Horseware is a true global enterprise which employs over 600 people worldwide. The company has offices in North America and factories in China and Cambodia, while its sales, marketing and financial headquarters, as well as its factory and European warehouse, reside on a 175,000² ft. site in Dundalk in the Republic of Ireland.
The problem Due to a period of expansion and rapid business growth, Horseware gradually
David Minto, warehouse & retail manager at
The solution
became unable to keep up with the ever-
Horseware, comments: “It was becoming
After completing a thorough data capture
increasing volume of orders with the paper-
increasingly clear that an automated data
audit of its warehousing facility, which
based method it was using to record the
capture solution was needed within our
included gaining a full understanding of all
movement of goods in, around and out of the
warehouse which would integrate fully and
Horseware’s operational processes, BEC
warehouse. This was creating issues with
seamlessly with our legacy Movex ERP system.
recommended its eSmart Warehouse with
order picking, order accuracy and stock
We looked at a number of solutions and
Voice software solution.
replenishment, which in turn was resulting in
subsequently chose BEC to work with us to
customer service and time management
install a brand new WMS with Honeywell’s
Philip Jarrett, director of sales and marketing
issues.
Vocollect Voice software at its core, having
at BEC, explains: “Conceptually, Voicedirected technology is very similar to
“
traditional RF scanning, but prompts are
For Horseware, the results of the new solution are far-reaching. As of August 2015, Horseware was running 7 per cent up on its 2015 sales target without adding any extra staff, as well as a 23 per cent increase in units shipped. Horseware has also drastically improved upon its order traceability.”
delivered and responses are provided verbally. The Honeywell Vocollect Voice solution can help businesses increase worker productivity by up to 35 per cent, whilst reducing errors by up to 50 per cent.” With a proven and trusted track record in
Aware that a new and improved solution
seen Voice solutions in operation in other
supplying and implementing Voice
needed to be implemented in order to provide
apparel warehouses. BEC was also able to
technology within a range of warehousing and
the company with the level of functionality
showcase an impressive amount of experience
distribution centre applications, BEC is a
required to cope with new levels of demand,
in implementing its solutions into Movex ERP
specialist provider of future-proof and
Horseware sought to deploy a fully-automated
systems, so we had every confidence that BEC
innovative automated data capture solutions
solution within its warehouse facility.
was the right company for the job.”
designed to integrate seamlessly into any
36
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December 2015
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Success story
V OICE technology
host ERP system to fulfil business and commercial requirements. Its eSmart Warehouse with Voice solution has been developed with Voice technology at its core rather than as an add-on feature, allowing Horseware to use the benefits of Vocollect Voice solutions throughout its warehousing facility, specifically within its picking, put-away, stock replenishment, despatch and replenishment operations. Horseware selected the Honeywell Vocollect A710 Talkman device and the SRX2 advanced speech recognition wireless headset, having been particularly impressed with the built-in Vocollect TouchConnect technology. This allows workers to quickly pair wireless headsets to the mobile devices, thereby reducing shift start-up procedures
order is released to a picker. This saves so
staff, as well as a 23 per cent increase in
from minutes to seconds. The solution also
much time and avoids confusion and
units shipped. Horseware has also drastically
provides other time saving features, such as
unnecessary delays. As far as order picking
improved upon its order traceability.
battery runtime remaining, allowing workers
is concerned, our processes are now much
to ask the Vocollect device when a battery
more streamlined and occur virtually without
Minto explains: “The new solution now allows
change may be needed, helping them to
error. Our accuracy levels have dramatically
us to easily find out who picked and who
plan and eliminate unnecessary travel time
increased and we are saving a lot of time
packed an order, the date it was shipped and
and money as a result. We used to need two
which courier it was sent with. All of this
people to pick an order – one for picking
information is fully available to our customer
Minto continues: “With the old system,
and one for packing – but now a single
service team, so any issues can be dealt with
orders were being released even if there
picker is able to complete both tasks much
in an accurate and timely manner. We have
wasn’t enough stock on the shelf. With the
more quickly.”
also been able to achieve increased visibility
in the midst of completing an order.
of staff performance, allowing us to implement
new system however, if there’s not enough stock, then the order automatically goes
The result
a bonus scheme, which has increased our
back to replenishment and the products are
For Horseware, the results of the new solution
employees’ pride and satisfaction in their
put on the shelf by the forklift driver before
are far-reaching. As of August 2015,
work. Despite some initial scepticism of the
the picker actually goes to pick the order.
Horseware was running 7 per cent up on its
new solution amongst a few of our warehouse
Once all products are available then the
2015 sales target without adding any extra
workers, they would now never agree to go back to the old system. “In terms of our operational processes, we are experiencing increased efficiencies and a tangible reduction in errors. The new solution ‘just works.’ As far as BEC is concerned, they have been fantastic to work with. We feel that as a business, thanks to the new BEC solution, we have future-proofed ourselves for the next ten years and will be able to continue to grow and become more and more profitable as time goes by – the sky’s the limit for us now.”
www.logisticsit.com
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V OICE technology
Corporate Profile
BEC (Systems Integration) Ltd.
Solutions offered Offering access to a range of cutting-edge data collection hardware from market-leading vendors, including Vocollect
BEC (Systems Integration) Ltd. is a leading UK-based supplier of
Voice-directed technologies, BEC’s future-proof solutions
Automated Data Capture solutions for use within the supply
integrate seamlessly into any host ERP system to fulfil
chain and manufacturing industries. Based on BEC’s eSmart
business and commercial requirements.
Data Capture software suite, the company’s systems offer complete end-to-end solutions that improve the productivity and
Through the development of innovative AIDC solutions with
accuracy of clients’ operations, whilst delivering increased
barcoding and Voice technology at their core, BEC offers a
profitability and quality with a rapid return on investment.
comprehensive set of services, from initial consultation, advice and design, through to delivery, implementation and
BEC has performed hundreds of successful implementations in
after-sales support.
mission-critical operational areas such as receiving, inventory management, production control and shipping. The company’s
Industrial markets served
team has a wealth of experience in seamlessly integrating data
Manufacturing, Food & Beverage, Supply Chain,
capture solutions to various business hosts, including M3, SAP,
Warehousing, Distribution, Engineering, Pharmaceutical,
Oracle, Microsoft Dynamics and IFS.
Clothing & Apparel, Oil & Gas, Nuclear.
With a notable list of clients which includes Kerrygold, Baxi,
Countries served
Haribo, Estee Lauder, Baxters, Hydrasun, Delice de France,
Pan-European.
Sellafield and Raleigh, BEC’s customers vary from small and medium enterprises to blue-chip household names throughout the UK and Europe.
Website: www.becsi.co.uk
Honeywell Vocollect voice solutions from BEC can increase worker productivity up to 30%, whilst reducing errors up to 25%.
Work faster, better, smarter and stay ahead of the competition with Honeywell Vocollect voice solutions from BEC. Vocollect Solutions Gold Total Solution Provider
Call BEC today and speak to the experts: +44 (0)1254 688 088 or visit www.becsi.co.uk
V OICE technology
BCP â&#x20AC;&#x201C; Business Computer Projects Ltd.
Operating across mobile, Cloud/SaaS and on premise,
house delivering proven Supply Chain Execution solutions and
Accord delivers seamless integration, real-time operations
Voice-enabled WMS that empower businesses to maximise
and true visibility across the whole operation, empowering
efficiency and customer service.
companies to improve business efficiency and facilitating overall growth in revenue and profitability.
A technology innovator, BCP has been at the forefront of software development for over 30 years, offering cost-effective,
Accordâ&#x20AC;&#x2122;s Voice-directed WMS provides wall-to-wall Voice
fully scalable solutions which enable real business benefits and
control across the warehouse or for individual operations.
an excellent return on investment. As a software author, BCP
Suitable for any business which operates a warehouse,
can tailor solutions to suit clientsâ&#x20AC;&#x2122; particular business
Accord Voice WMS is scalable to meet the needs of small to
requirements rather than offering a â&#x20AC;&#x2DC;one size fits allâ&#x20AC;&#x2122; approach.
large organisations, allowing users to maximise warehouse efficiency, reduce costs and improve customer service levels.
BCP continues to be a leader in introducing Voice technology to
Its modular design means it can be implemented as a
the UK warehouse industry, having implemented the first wall-to-
Warehouse Execution System, to enhance an existing WMS,
wall Voice solution in the UK food and drink sector 14 years
through to a full-scale solution to manage large operations.
ago. Over 90 per cent of BCP Voice customers realise the benefits of Voice across all warehouse operations.
Industrial markets served BCP solutions benefit companies of all sizes throughout the
Solutions offered
supply chain â&#x20AC;&#x201C; wholesalers, distributors, retailers,
BCPâ&#x20AC;&#x2122;s Accord software suite addresses the complete range
manufacturers â&#x20AC;&#x201C; be they single or multi-site, single or multi-
of supply chain activities, including procurement, multi-
channel.
channel fulfilment, stock management and financials, with powerful business analytics and dashboard-driven, user-
Countries served
configurable graphical reporting.
Mainly UK and Ireland.
Corporate Profile
Business Computer Projects Ltd (BCP) is a leading UK software
Website: www.bcpsoftware.com
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V OICE technology
Success story
Voice is not just for picking Taking Voice-directed work beyond the realms of warehouse picking is now very much a reality, writes Isabel McCabe, managing director of Voiteq Ltd.
he supply chain industry and
T
Grrreat cubing
technology continue to change
If we take a look at the fast moving consumer
rapidly. Over the last few years
goods (FMCG) market, for instance, the growth
we have seen tremendous
of convenience shopping and changing
advances in the organisation of
customer buying patterns has seen retailers
supply chains and in the technology being
demand smaller, more frequent deliveries. This
used to manage them to an optimum level.
has led to a significant increase in case picks
While important key performance indicators
compared to full pallet picks; presenting a new
(KPIs) such as accuracy, productivity and
challenge to the way the industry processes
cost-efficiency remain key supply chain
and ships orders.
priorities, customer service, buying
Kellogg’s has worked with us to lead the way
experience and personalisation are more
in combining Voice with Intelligent Volumetric
important than ever before. The warehouse is
Cubing in order to pick and stack the perfect
pivotal in ensuring these KPIs are achieved
pallet. The efficiency benefits of this approach
and is an ideal area to develop a competitive
are exceptional; Kellogg’s are now able to
remove an entire stage in the outbound
advantage through the use of technology.
meet the demands and pallet stack
fulfilment process.
requirements of its customers with a 40 per A year ago, we were discussing the
cent productivity gain. The company has seen
More recently, customers are looking to our
emergence of technologies such as ‘Google
further benefits from areas such as improved
Returns module to inspect and process
Glass’ in the warehouse space and we have
customer satisfaction, fewer damaged goods,
returned goods; a growing challenge for omni-
yet to see many real-world examples of their
better vehicle utilisation and lower CO2
channel retailers whose customers order
performance improvement over some more
emissions.
multiple product variants and return the ones they decide not to keep. Optimising the returns
established technologies. By contrast, over the last year Voice technology has continued
Loading Santa’s sleigh
process can improve brand loyalty, ensure
to deliver substantial business benefits and is
The John Lewis Partnership has recently
consistent handling of returns and get items
rapidly gaining traction in processes above
extended its Voiteq Voice solution into its
back into stock as quickly as possible.
and beyond picking.
loading area. For a quick and simple connection to its JDA warehouse management
Voice on forks
Voiteq has been at the forefront of this
system (WMS), the company used Voiteq’s
With the application of Voice widening, we are
movement and we have seen the adoption of
VoiceMan Screen-to-Voice solution which
seeing more and more customers equipping
Voice across all areas of the warehouse, from
seamlessly Voice-enables any screen based
their forklift operators with Voice to complete
Receiving to Put Away and Loading to
process and does not require any additional
tasks such as receiving, put-away and
Returns. We are also seeing Voice
configuration or change to the existing WMS.
replenishment. Affiliated Foods were
increasingly becoming an enabler for greater
The solution is already cutting errors and
experiencing stock-outs in the store due to
innovation. The use of volumetric cubing, box-
speeding up the delivery of goods to
incomplete orders being shipped. Using Voice
fill labelling, advanced data capture, pick-
branches.
on forks enabled them to ensure every pick
and-pack and optimised Screen-to-Voice as
face was stocked accurately and efficiently,
well as the use of business intelligence tools
Omni-channel returns
minimising issues in the picking process and
to analyse Big Data are just some of the
We’re also finding that using Voice with its
achieving impressive productivity
trends we’ve driven this year. Recognising the
hands-free, eyes-free method of processing
improvements of 23 per cent in dry grocery
benefits of hands-free, eyes-free work, our
orders is supporting retailers looking to
and 66 per cent in perishables. In addition,
customers are approaching us about their
develop an airtight omni-channel strategy.
Voice removed screen and paper distractions
other distribution centre (DC) or warehouse
Operators using Voice can pick several orders
from the drivers, enabling them to stay focused
processes and asking what more they can do
in one go, and its high accuracy levels enable
on the safe operation of their vehicles.
with Voice.
a combined pick-and-pack process which can
40
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www.logisticsit.com
Success story
V OICE technology
Data is king Business Intelligence is another area our customers get great value from Voice, both for data capture and for Big Data processing. Companies such as Greencore use Voice to capture additional data such as â&#x20AC;&#x2DC;best beforeâ&#x20AC;&#x2122; dates in order to maintain stock and legislative compliance. Furthermore, Holland & Barrett uses our InfoCentre Dashboards' predictive analytics capability to proactively manage resources across warehouse zones. The subject of Big Data has become a common theme at our customer focus and user groups. By structuring and analysing the comprehensive shop-floor data generated by our Voice systems, our customers can identify trends and highlight additional opportunities for process improvement, further enhancing the
value of their Voice solution. Voiteqâ&#x20AC;&#x2122;s Voice solutions are now also moving
compliance, accuracy and productivity benefits
Voice has become the preferred warehouse
beyond the warehouse and into retail stores
to customers involved in the inspection of
technology choice for businesses all over the
with applications such as shelf replenishment,
assets, plant and equipment. Voice isnâ&#x20AC;&#x2122;t a trend
world and weâ&#x20AC;&#x2122;re seeing a marked increase in its
stock counting, pricing and home shopping
and itâ&#x20AC;&#x2122;s not just for Christmas â&#x20AC;&#x201C; itâ&#x20AC;&#x2122;s improving
adoption for processes other than picking.
fulfilment. We have also delivered impressive
the way we work way beyond picking.
Voiteq â&#x20AC;˘
VoiceMan Inspection Execution System.
Voice is Voiteqâ&#x20AC;&#x2122;s core business and the company has helped its
â&#x20AC;˘
VoiceMan Connector Suite including Screen-to-Voice, Connect, Connect for SAP and Scan.
customers reap the substantial benefits of hands-free, eyes-free work for over 15 years. The simplicity of a Voice-directed
Corporate Profile
Voiteq is a leading global supplier of Voice-directed solutions.
â&#x20AC;˘
VoiceMan Business Intelligence Suite.
operation provides a much smoother and more efficient way of working than other methods; resulting in real productivity,
Industrial markets served
accuracy and customer service improvements that deliver
1. Retail.
bottom-line savings.
2. Clothing/Apparel. 3. Fast Moving Consumer Goods (FMCG).
With offices in the UK, France, Germany and North America,
4. Electronics & Appliances.
Voiteq has the largest team of experienced and Honeywell
5. Food & Beverage.
certified Vocollect Voice specialists in the world.
6. Grocery. 7. Pharmaceutical/Life Science.
Voiteq offers a range ways to improve customersâ&#x20AC;&#x2122; warehouse,
8. Automotive.
in-store and inspection operations with the companyâ&#x20AC;&#x2122;s award
9. Dairy Agriculture.
winning VoiceMan product family; including intelligent execution
10.Speciality Retail.
systems, Screen-to-Voice and direct connections to SAP and
11.Wholesale Distribution.
other host systems. Voiteqâ&#x20AC;&#x2122;s business intelligence tools provide
12.Cold Chain.
users with real-time dashboards and performance reports to
13.Third Party Logistics Providers (3PL).
improve operational visibility and decision making.
14.In-store 15.Inspection
Solutions offered â&#x20AC;˘
VoiceMan Warehouse Execution System including Picking, Receiving, StockMoves, Inventory, Dispatch, Assets,
Countries served Worldwide.
Delivery and Returns. â&#x20AC;˘
VoiceMan In-store Execution System.
www.logisticsit.com
Website: www.voiteq.com
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Warehouse Management
I
Success story
Snapfulfil provides big benefits for major internet retailer stablished in 2007 as a niche internet retailer, Big Red Group has grown to become a multi-faceted group, spanning every aspect of eCommerce. Employing 50 people and generating a turnover of £11.5 million, Big Red is now a multi-website retailer, as well as an experienced vendor in global marketplaces. Due to its core competence in e-Commerce and logistics, the company has also established ‘Platform Retail’ – a new business unit that provides third-party e-Commerce management, logistics and fulfilment services to other online retailers.
E
To service these customers, in July 2013, Big Red Group took possession of a custom-built, 26,000 sq ft warehouse in Manchester, which handles millions of SKUs, from phone covers and jewellery to footwear and precision engineering, high performance products.
The challenge While Big Red Group’s proprietary software had driven impressive growth in its own eCommerce channels, the company recognised that it needed a best-in-breed Tier 1 warehouse management system (WMS) to underpin the levels of performance and accuracy required to deliver a full 3PL offering in a highly competitive environment. Big Red Group therefore selected the Snapfulfil SaaS WMS to help it achieve this.
The solution Due to its fully-managed Software as a Service model and rich functionality, Snapfulfil ticked all of Big Red Group’s boxes. The company’s head of operations, Andrew Gilbert, said: “We chose Snapfulfil as the entry costs are extremely competitive for a new business venture, yet provide a comparable level of performance and flexibility to the more expensive WMS options out there. It was also a one-stop-shop where all aspects of the system, including software, hardware and infrastructure, were taken care of, resulting in a simple monthly charge which was efficient to fund and easy to account for.” 42
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He continued: “Importantly, Snapfulfil also provide a system and infrastructure which is scalable at short notice - critical to us as we bring on more and more clients to Platform Retail. All of these attributes are critical when you start a business and need to control costs at the outset. However, we’re not just thinking about the initial days and months of Platform Retail – we needed a partner with the ability to react quickly to our needs as the business grows.” Snapfulfil easily manages the wide variety of tasks and customers within Big Red Group’s warehouse, from pallet storage and distribution to case and item picking and e-fulfilment, by creating specific rules for each client, while employing RF and barcode technology through each touch point, ensuring visibility, accuracy and control across the entire operation.
Benefits The project aims were to achieve a high accuracy, low cost performance from the warehouse team, by eliminating paperwork and automating decision-making. By providing full visibility of order status, Snapfulfil also allows Big Red Group to ensure that all of its customer expectations are being met or
exceeded and provides data to support accurate and timely billing. Since implementing Snapfulfil, order accuracy has increased from 98.9 per cent to 99.3 per cent and it is expected that this vital metric will continue to improve.
The future In order to bring in more clients and support growth in both its customers’ and its own sales, Big Red Group is planning to increase the capacity of Platform Retail and anticipates that this will necessitate a multi-site operation. Gilbert concludes: “We chose Snapfulfil because their Cloud-based solution, combined with the costing of the infrastructure set-up provides a ‘plug and play’ solution for multi-site operations. Of course, the key to our continued growth is ensuring that our clients’ needs are met, that we are able to tailor solutions for them and that we can underpin their and our own competitive advantage and profitability. What we offer is a blue-print for success for emerging and growing e-Commerce retailers, providing them with a flexible service that actually meets their requirements. Because of this, it is important for us to have a partner like Snapfulfil to support us in our journey.”
www.logisticsit.com
Warehouse Management
I
Success story
Snapfulfil is the multi-award winning warehouse management system from Synergy Logistics. Established in 1972, Synergy is a software house specialising in the development of innovative, cost-effective technology solutions which help streamline warehousing and fulfilment operations for clients ranging from global organisations to fast-growing SMEs. For more than 40 years, Synergy’s systems have been powering the warehousing operations of some of the world’s most successful companies. Synergy was one of the first companies to recognise the potential of Cloud technology as a platform for a best-in-breed warehouse management system. The company’s Snapfulfil SaaS WMS was architected for web in 2007 and is now deployed in warehouses through Europe and America. Synergy believes that to stand still is to move backwards and never stops innovating to make its software better and develop new solutions to customers’ problems. Solutions offered Snapfulfil is a functionally rich, best-in-breed warehouse management system which can be deployed in a variety of ways to meet the needs of any company, large or small.
The Snapfulfil fully-managed SaaS WMS Edition bundles the software licence, essential RF hardware, access infrastructure and services, along with the implementation services and training into a solution with no capex required, allowing customers to immediately benefit from driving through savings, increased service levels and, in nearly all cases, an instant ROI. Synergy’s new Snapfulfil Starter Edition offers all the same functionality as the SaaS WMS, with increased flexibility around user numbers and hardware provision and is available either as a paper-based and/or real-time RF barcode scanning system. Snapfulfil Enterprise Edition is Synergy’s on-premise solution, for companies who prefer to host and manage the software using their own resources. Industrial markets served eCommerce, retail and wholesale, food & beverage, CPG, thirdparty logistics, manufacturing, electrical and electronics.
Corporate Profile
Snapfulfil - Warehouse Management System
Countries served UK, Europe and North America.
Website: www.snapfulfil.com
IS YOUR WAREHOUSE READY FOR CHRISTMAS? If not, our proven warehouse mangagement system with no setup costs or initial investment, could be the gift that keeps on giving.
Unwrap Instant ROI
For more info call 0845 463 7627 email sales@snapfulfil.com p
w w w. s n a p f u l f i l . c o m
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Warehouse Management
I
Company news
Outperforming traditional order fulfilment methods with Automated Case Picking Vanderlande will be exhibiting at the international trade fair, LogiMAT 2016, to be held in Stuttgart from 8 to 10 February, displaying and discussing its wide range of warehouse automation solutions on stand 1J21 in hall 1. eatured products at the event will consist of a small selection from Vanderlande's extensive range of innovative and ergonomic solutions for these segments.
F
Automated Case Picking (ACP) Food retailers have to manage conflicts arising from the different value-creation chains in stores and distribution centres. Optimising the value-creation chain in stores often has an adverse effect on the value-creation chain for the distribution centres, and vice versa. Vanderlande's ACP concept creates a perfect balance between opposing goals in the valuecreation chain. It also helps food retailers to optimise customer perception, ergonomics, and reduce CO2 emissions and costs. The ACP solution is designed to allow modular growth and parallel activities that guarantee availability.
Adapto 3D shuttle concept Increasing labour costs, limited space and many small orders with short delivery times
are just some of the various challenges currently facing warehouses and distribution centres. This means a continuous search for solutions to reduce operating costs, increase productivity, maximise space and offer an elevated level of service. According to Vanderlande, the highly flexible Adapto storage, retrieval and transport concept offers unique flexibility and availability, enabling warehouses to optimise the service levels offered to customers.
Pick@Ease: a range of value-added service functions for multipurpose use Adapto is offered in combination with the highly ergonomic Pick@Ease workstations. The introduction of Pick@Ease to the market several years ago was proof of Vanderlande’s pioneering position within the industry. A Vanderlande study – certified by TÜV Nord – with focus on the end-user, looked into the influences and effects of different concepts on body movements and postures, muscle groups, circulation and mental aspects. The results of this study were incorporated into Vanderlande’s goods-to-person picking
systems. Pick@Ease workstations have been designed to cope with a range of functions and enable value-added services.
Airtrax: ‘The next step in warehouse solutions for hanging goods’ Airtrax is an innovative and reliable concept for transporting, sorting and storing hanging goods. Designed primarily based on customer feedback, it offers unrivalled benefits throughout any hanging goods handling operation. This unique concept allows significant volumes of goods to be moved over long distances while coping with changing elevations and complex paths. It also allows sorting to both left and right exits. Modular by design, the system is a directdrive concept that contains one base on to which all types of carrier modules are fitted. This is referred to as ‘Click & Go’. The concept consists of interchangeable modules that facilitate various functions, such as upgrading from manual to fully automatic high-speed sorting. Each module is easy to install, service and modify.
44
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www.logisticsit.com
Warehouse Management
Vanderlande is a global market leader in baggage handling systems for airports, and sorting systems for parcel and postal services. The company is also a leading supplier of warehouse automation solutions. Established in 1949, Vanderlande has more than 3800 employees, all committed to moving its customers’ businesses forward at diverse locations on every continent. With a consistently increasing turnover of more than 1 billion euros, it has established a global reputation over the past six decades as a highly reliable partner for value-added automated material handling solutions. Solutions offered The company focuses on the optimisation of its customers’ business processes and competitive positions. Through close cooperation, it strives for the improvement of their operational activities and the expansion of their logistical achievements. Vanderlande’s extensive portfolio of integrated solutions – innovative systems, intelligent software and lifecycle services – results in the realisation of fast, reliable and efficient automation technology.
Industrial markets served Vanderlande’s systems are active in 600 airports including 17 of the world’s top 25. More than 20 million parcels (300 packages per second) are sorted by its systems every day. These have been installed for a variety of customers including the four largest parcel and postal companies in the world. In addition, 12 of Europe’s top 20 e-commerce companies and many distribution firms have confidence in Vanderlande’s efficient and reliable solutions. Countries served Vanderlande serves customers worldwide from its headquarters in the Netherlands and Customer Centres in many countries worldwide.
Website: www.vanderlande.com
Corporate Profile
Vanderlande
Reliable partne n r for o value-added warehouse automation
Vanderlande is a major player in the warehouse automation market and specialises in solutions for food retail, fashion, parts and components and e-commerce. It cooperates closely with its customers to optimise their supply chain and enhance the efficiency off the processes in their distribution centres. The company is a one-stop shop for innovative systems, intelligent software and life-cycle support. This integrated approach results in an optimum performance throughout the system‘s lifetime. Curious to find out how your warehouse processes can be optimised? Contact Vanderlande today. Email: info@vanderlande.com. > vanderlande.com
Special Report
Voice/Warehouse Management Systems
Taking stock Manufacturing & Logistics IT spoke to a number of key spokespeople from the vendor and analyst communities about recent developments in the world of Voice-directed software and hardware and warehouse management systems – including those involving mobility, Cloud/SaaS and Big Data. ome of the most dynamic and
completes the next one queues up etc. With
because of price stagnation or price deflation
fast-changing technology areas
RF and Voice you have the capability to in
in retail, which is putting pressure on cost,” he
have to be the ones deployed in
some cases insert new orders directly into the
said. “And now with the living wage there’s an
warehouse and distribution
current pick waves, depending on where the
increased level of pressure being put on the
centre operations – helping
worker is. We call this task interleaving.”
cost base, which has meant that there’s a
S
renewed focus on how to get that cost back
companies to better serve increasingly
under control.”
demanding consumer expectations while
Heaney explained that there are other
also aiming to improve business profitability.
advanced techniques – within the picking
So, what are some of the key discussion
process, for instance – that also demand
points in terms of current and ongoing
more interactive communication with the
Driving a single stock pool
innovations and developments within this
actual worker. “For example, there is
The second main trend Wilson is seeing
space? Bob Heaney, research director,
something we refer to as cluster picking,
involves the integration of store replenishment
principal analyst – retail & consumer markets
whereby workers can pick to a batch cart or
and e-commerce into a single operation. He
at Aberdeen Group, observes that omni-
pick to light system,” he said. “It’s not discrete
explained: “The purpose of this is primarily to
channel is a major current trend. “The web is
order picking necessarily; it’s about picking
drive a single stock pool; i.e. one location that
now much more prevalent as an ordering
multiple carts. Therefore there’s a little bit
contains all of the inventory in a logical way
mechanism,” he said. “If a customer places
more interaction as workers pick an item,
so that if it’s needed for e-commerce it can be
an order through an e-commerce site
scan it, use the Voice mechanism to indicate
sent to e-commerce customers, or if it’s
typically there is now often a one- to two-day
the pick has been completed, and as they
needed for the replenishment to store it can
delivery expectation. So, if I have work that is
move through the instructions the next ones
be used for
flowing out into my distribution centre that
queue up on their device or they receive a
replenishment to store.”
has been batched up prior to these orders
verbal instruction on their Voice system to
coming through I’ve now got to determine
proceed to the next. So by having a way of
where I’m going to insert those extra orders
communicating in near real-time with workers
The third key trend
into the flow throughout the day.”
you are able now to address some of the
Wilson is seeing is
more event-driven needs.”
where a number of
Heaney continued: “Typically, any company
retailers in Europe
handling a reasonably high volume of
Steve Wilson, vice president, practice lead –
have started to use
products is already going to be using some
operational excellence at Capgemini,
augmented reality
form of picking waves and replenishment
considers that one key talking point is driving
technology for
waves where the day is broken up into, say,
rugged proactivity from WMS controlled
picking. He
two-hour sections of work. When one wave
operations. “That’s really coming about
explained: “With
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*# / -, &'/+.% *,%)$ #,-.%+(-'/
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Voice/Warehouse Management Systems
Special Report
Voice, workers have
and provide greater rewards,” he commented.
du Preez also comments that new commercial
the commands
Riviere added that Zebra has a large portfolio
models – including Subscription and Software
coming into their ear,
of Android devices such as Android versions
as a Service (SaaS) – are becoming popular
but there is now
of the MC92, MC32 and the all touch TC75.
with companies that have Capex constraints
software available
“Going forward, we will see more capabilities
but want to get the benefits of Voice today.
that allows the picker
for supporting Android in the warehouse and
to wear augmented
linking to Voice picking from Zebra,” he said.
In addition, du Preez explains that retail and FMCG companies – driven by omni-channel,
reality glasses that include an earpiece
Riviere also sees a growing interest for non-
convenience retail and changing retailer order
– so it offers the
proprietary solutions that can be opened up
profiles – are having to manage more case
benefits of Voice, but
and more easily managed. Additionally, he
and piece picking to even tighter deadlines.
on top of that
sees a key user need in having Voice
workers can see the
solutions that require zero training. “This is
instructions on a
especially important for seasonal workers but
Business intelligence
small screen in the eyepiece. They still have
also for reducing re-training requirements for
Business intelligence and predictive analytics
two free hands and it allows workers
all workers,” he explained, adding that a key
(now often revered to as Big Data) are also
potentially to pick more quickly than if they
enabler in this regard is the growing
attracting a lot of interest from Voiteq
were picking with Voice or handhelds.”
capabilities of speaker independent systems.
customers, explains du Preez. “They want
) ,*/ $)- ' %(!!.-%,)$/#,-.%+(-'
clear, actionable visibility of their operations Happy marriage
Anton du Preez, group sales director for
and want their systems to predict and
Ed Spotts, senior ERP consultant for
Voiteq, is seeing an increase in the use of
manage issues before they occur,” he said.
Panorama, considers that if ever a need
Voice beyond picking. This, he says, is
“Our Voice solutions have always captured
existed to marry two technologies, it is
something that has been talked about for a
low-level process data and we’re now using
warehouse management systems and Voice
number of years, but the rate of uptake has
this data to provide higher-level visibility and
recognition solutions. “Even in highly
accelerated. “This is being driven by the
control of the operation.”
automated warehouses, the warehouse
maturity and breadth of product integration
worker is frequently called on to move
and pressure on warehouses to use their
Vision-based systems are being talked about
objects, large or small,” he said. “In more
existing assets to drive additional cost
and are something that Voiteq has trialled with
manual warehouses, the typical warehouse
savings,” he remarked.
customers. However, du Preez considers that
worker often wears heavy gloves and moves
they have a number of challenges still to
heavy boxes. For that same person to then
In terms of other key developments, du Preez
overcome before they will be viable
turn to a computer, even a rugged handheld
points out that quality ‘screen to Voice’
alternatives to current, proven technologies.
device, requires the worker to stop the work
solutions – which take the text prompts
they were doing, focus on the device, and
displayed on handheld terminal screens to be
Andy Briggs, technical director for BEC,
enter or scan data into the warehouse
translated into Voice and which then enter the
considers that one of the main current key
management system. The appeal of Voice
user’s spoken responses back into the screen
discussion points is the spread of Voice
recognition systems is that they free the
– have enabled companies with legacy
applications, i.e. not just for picking but for
worker’s hands and arms. If the worker can
systems or limited IT resource to implement
doing every task within the warehouse using
communicate to the warehouse management
Voice into a range of warehouse processes.
Voice to get the best out of a company’s
system through speaking the hands of the warehouse person can continue to conduct the warehouse work without the interruption of typing or scanning information into a computer.” Bart Riviere, business development director for speech solutions at Zebra Technologies, points out that Zebra has seen an increase in multi-modal Voice picking – both hardware and software elements. “Devices with easierto-read screens and more intuitive interfaces using the latest operating systems will also make it easier to support multi-modal devices
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Special Report
Voice/Warehouse Management Systems
technological investment and the solution as a
Darrel Williams, region director, Northern
whole. “Door-to-door Voice applications – as
Europe, Vocollect Solutions, Honeywell,
Gavin Clark,
well as picking – can include dispatch, stock
considers that Voice is now firmly established
commercial director
counting, quality transactions, stock rotation
and recognised as the optimum work
at Snapfulfil,
and stock control, i.e. any movement or
interface for delivering productivity and
observes that
transaction which can be done should be
accuracy benefits in the warehouse. The
Software as a
done with Voice as it has so many
most interesting change he sees today over
Service (SaaS)
advantages,” he explained.
previous years is the acknowledgement of
continues to gain
this fact by WMS and ERP vendors who have
traction, not only with
Andreas Finken, president of topVOX US,
adopted Voice as a value-added mechanism
the company’s
managing director topVOX UK, reflects that
to their offerings. “Understanding that a
traditional SMB
there are always new developments in WMS
seamless delivery of all types of instructions
customer base who
and Voice. He commented: “And because of
to the worker is paramount to achieving
are embracing the
the way technology is moving forward it is
today’s warehouse challenges has led the
Cloud as a competitive differentiator, but also
important for us as a Voice solutions provider
WMS community to offer Voice-ready systems
among Enterprise companies who have fixed
to be very adaptable to these changes in a
in much the same way that barcodes were
IT budgets and are adopting SaaS solutions
way that will maintain performance of the
adopted over 20 years ago,” he said.
to help subsidiaries accelerate speed to
*+(*/# / -.. ' -( "/&)$.&/#,-.%+(-'
value.
Voice system itself and also to add real benefit to the end user.” Finken added that
Williams believes the trend and differentiation
with the ever increasing speeds and reliability
is now more about the scope of the Voice
of high-speed Internet worldwide, the
offering rather than the availability. This, he
increasing interest in SaaS/Cloud, topVOX
maintains, is driven into even sharper focus
Real-time management information
continues to provide and enhance its Voice
with the need for business agility driven by
Martin Eppert, product manager for
as a Service offerings in line with these
surge in omni-channel and click and collect
Vanderlande, believes one key driver for
trends; something it has continued to do for a
type operations. “Late ordering for next-day
change is the requirement for real-time
number of years.
delivery, for example, relies heavily on timely
management information. “Presenting the right
execution of work instructions – doing job
information to warehouse managers in an
Additionally, with the movement to lower-cost
right first time in good time to meet demand
appropriate way, whenever they would like to
highly flexible mobile OS such as android
and greater visibility of order progress,
see it, is still a hot topic in WMS development,”
and iOS, Finken believes it is essential for
whether click and collect, timed or next day
he said, adding that this will increase visibility
both WMS and Voice providers to not only
deliveries,” he said.
over warehouse processes. Eppert also
move with this technology but also to allow
considers that dashboards are becoming
customers flexibility in transition between
Bill Tomasi, VP product management at IBS,
more prevalent, combining WMS and process
platforms.
comments that because the WMS market in
information from the system; for example the
general has evolved well into the maturation
lower control levels due to automation. This,
cycle, the key topics in IBS’s discussions
he explains, enables supervisors to make the
with customers haven’t changed
most of available resources and reduce costs
substantially over the past 10 years or so –
within the entire logistical process.
but the focus on the details behind the
48
IT
MANUFACTURING
&LOGISTICS
December 2015
questions has. He added: “For example,
Another key driver for change, according to
customers have long recognised the need
Eppert, is the continuous growth of
for real-time visibility into operations within
ecommerce. He commented: “The e-
their fulfilment facilities (and indeed no WMS
commerce market continues to influence WMS
solutions provider can exist nowadays
developments. Orders are becoming smaller
without this functionality). However, more
while lead-times are getting shorter. In
recently the discussions have focused on the
addition, same-day deliveries are on the rise.
format of retained information, faster and
The number of SKUs in a warehouse is also
easier retrieval of this information, and
growing. Distribution centres need to be able
intuitive UI (user interface) design
to support multi-channel processes, which
approaches. All of these drive not only end
increases the overall operational complexity.
user productivity but also are imperative with
WMS has to support these developments with
the new government regulations being
suitable planning and scheduling
placed on businesses.”
functionalities to maintain warehouse
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+. ./ ,$&(*'/ ,%./"-.&,#.*+'/ "-)%+,%./$.)#/ (".-)+,(*)$/. %.$$.*%.'
efficiency.
short order throughput times,â&#x20AC;? he said. â&#x20AC;&#x153;A state-
As a result, Riviere pointed out that Zebra
Consumers expect to
of-the-art WMS has to support this in a very
customers have very much driven these
be informed in more
efficient way.â&#x20AC;?
changes to meet these underlying needs:
detail â&#x20AC;&#x201C; and at short
Chris Pass, consultant for BCP, believes
â&#x20AC;˘
notice â&#x20AC;&#x201C; about the
some of the key drivers are transparency
delivery status of
and rigorous fulfilment procedures to
Non-proprietary hardware to increase flexibility.
their order.
accommodate the demands of the
Therefore, the WMS
multi/omni-channel market. He commented:
training requirements and also grow the
of the future has to
â&#x20AC;&#x153;The warehouse management system must
capabilities of these systems, which,
support increasing
be able to handle orders of all sizes â&#x20AC;&#x201C; from
claims Riviere, are now outperforming
track and trace
single items to more substantial orders â&#x20AC;&#x201C;
speaker-dependent ones.
demands.â&#x20AC;?
from a myriad of different sources,
â&#x20AC;˘
Speaker independent systems to reduce
alongside a much wider choice of delivery options â&#x20AC;&#x201C; plus the flexibility to mix and
Integration
increasing demand for ergonomic working
match those options in whatever
Have ways of best integrating WMS and/or
environments is also a pertinent subject. â&#x20AC;&#x153;This
combination the customer demands. Key to
Voice-directed systems with other systems
can be achieved through a combination of
success is business-wide transparency â&#x20AC;&#x201C;
developed to any notable extent over the past
user-friendly interfaces and optimised
stock availability, stock location, delivery
year or two? Finken believes this question
workstations,â&#x20AC;? he said. â&#x20AC;&#x153;Enhanced working
data and the whole spectrum of orders that
depends on the customer organisations and
conditions have a positive impact on both the
are being placed â&#x20AC;&#x201C; through all channels â&#x20AC;&#x201C;
what they want. He commented: â&#x20AC;&#x153;If they want
motivation of operators and their performance
and using that information, alongside
to have a system that can add functionality
while reducing absenteeism due to sickness.
accurate forecasting, sophisticated pricing
then a database and middleware can do this.
An ergonomic and user-friendly interface also
matrices and rigorous fulfilment operations
If they want a direct real-time connection to
requires shorter learning curves for
to deliver a seamless omni-channel
their host system then there are many ways
employees, which is especially important in
experience for customers at a cost which is
that this can happen depending on their host
dynamic workforce environments.â&#x20AC;?
economical for the business. Thatâ&#x20AC;&#x2122;s where
system. A database, telegram, html or .NET
truly integrated systems come in.â&#x20AC;?
type of communication can do this. If they
Eppert believes the
In Eppertâ&#x20AC;&#x2122;s view, the experience for customers
want total freedom to develop their own
is also crucial. â&#x20AC;&#x153;Online reviews and easy
Pass also observes that the new Alcohol
system changes then training them to do this
ordering procedures mean there are many
Wholesaler Registration Scheme (AWRS) is
and providing a development kit and support
factors to consider in ensuring consumer
shining a new light on Bonded warehousing
would be appropriate.â&#x20AC;?
satisfaction,â&#x20AC;? he said. â&#x20AC;&#x153;To facilitate this, same-
as alcohol wholesalers of all sizes have to
day deliveries, at the lowest cost, with zero
check compliancy with regulations. He said:
Riviere considers that integration of Voice
errors in order fulfilment are essential. Also
â&#x20AC;&#x153;This process does seem to be raising
and WMS is quite stable today. â&#x20AC;&#x153;However,
store-friendly deliveries can help turn this
awareness of the cash flow and
Zebra has added more support for faster and
trend into a solution, allowing for shelves to be
administration benefits that can flow from
easier integration over the past few years,â&#x20AC;?
replenished quickly, while reducing â&#x20AC;&#x2DC;out of
setting up a Bonded facility; benefits which
he pointed out.
stockâ&#x20AC;&#x2122; notifications to customers. This requires
are magnified if they are also involved in
distribution centres to reassess their
exporting activities. Voice technology is an
Andy Briggs points out that BEC has various
processes and look for ways of optimising
ideal tool for running a Bonded warehouse,
integrations into all
their supply chain. Important decisions need
with its unmatched traceability capabilities â&#x20AC;&#x201C;
the major ERPs
to be made relating to the entire logistical
provided it has been thoughtfully designed
(SAP, Oracle, Infor,
process. For example, in altering the stacking
into the solution.â&#x20AC;?
Dynamix, IFS &
pattern of a delivery pallet to match the
many others). â&#x20AC;&#x153;There
unpacking sequence of a certain store, the
Riviere considers that increased pressure on
is no need for
individual layout of the shop must be taken
warehouse and logistics in general has been
bespoke
into account within the WMS.â&#x20AC;?
driven by ecommerce, and the evolving
development to add
supply chain means warehouses need to
Voice to a
As a result of the factors he cited above,
cope with increasing demands; including
businessâ&#x20AC;&#x2122;s ERP
Eppert maintains there is a trend towards the
more SKUs, greater returns and stock
system â&#x20AC;&#x201C; we have
automation of more warehouse processes.
visibility. â&#x20AC;&#x153;This has meant that warehouses
proven technology
â&#x20AC;&#x153;This will not only reduce running costs, but
and DCs need to continue to evolve to
connectors,â&#x20AC;? he
also increase process quality and facilitate
increase accuracy and efficiency,â&#x20AC;? he said.
said.
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IT
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December 2015
&LOGISTICS
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Special Report
Voice/Warehouse Management Systems
to receive training on their new system and Wilson thinks things have become
prepare for a smooth commissioning phase.”
increasingly standardised in the sense that
According to Clark, the main challenges
most of the packages now have standard
Heaney makes the point that the price-point
when integrating with
connectors to the leading ERP systems. “That
for Voice is now lower and integration within
existing business
makes the whole process easier, however this
WMS has become simpler over the past few
systems usually rest
is not something that is in my view plug and
years. According to Tomasi, the current trend
with the ERP
play at this point,” he said. “This is because
in inter-solution communications is to
systems, as they are
an ERP normally is a configured solution, so
generate open and transparent
often older versions
the specific way a company has set up its
communication layers. “This trend results in
and not configured
ERP solution can have an impact on how the
easier, faster, and less expensive integration
for connecting to
interfacing works. That’s why there has always
as more and more companies adopt
external systems. He
been a degree of tailoring required to make
technological standards and publish their
commented: “The
the interfaces work. Nevertheless, it is now a
interface requirements,” he remarked.
advances the
much easier process than it used to be
,$$/ (!)&,'/ "-(# %+/!)*) .!.*+'
vendors of these systems have invested in
because a lot of the integration is more
Spotts considers that in some ways
have really made the difference, allowing the
standardised – it’s now more a case of
integrating the Voice-directed system with the
use of real time web services, APIs and other
tailoring rather than building from scratch.”
WMS is straightforward. “Because of the real-
real-time transport methods. Obviously the
time nature of Voice-directed systems, using
providers of WMS and Voice systems have
Eppert has observed a strong trend towards
middleware may not be effective – a direct
had to ensure they can accommodate as
adopting responsive, near real-time interfaces
integration may be the best choice,” he
many options as possible, providing flexible
such as web services, over the more
remarked. The good news, according to
methods for each new client system.”
conventional and less reactive batch-oriented
Spotts, is that if a direct interface is written
communication methods. “This allows for
between the WMS and the Voice-directed
Williams believes that, undoubtedly, more
closer process integration; for example, being
system, the quantity and variety of data
business systems have wider ranging
able to automatically print and add a delivery
exchanged will likely be very predictable and
integration to Voice systems than ever before.
note – or invoice – and shipping label
limited in scope. “That is because the
He adds that Honeywell Vocollect solutions
reflecting the latest pick results and parcel
transactions conducted by the Voice-directed
integrates with over 200 business systems,
weights,” he explained.
system must be limited in order to maintain its
often with several at the same time, with the
accuracy and speed,” he said.
emphasis on seamless integration to deliver
Eppert added that customers are becoming
the best performance possible. “However,
more aware of the value of their software
Pass argues that integrating Voice into WMS
with the ever-changing demands from the
solutions and, moreover, the risks involved if
continues to be more challenging than is often
market there still remains the need for
they do not work as expected. “Therefore,
represented by middleware providers “who
functionally-rich applications or middleware
integration tests of a new system within the
simply aim to bolt Voice hardware onto an
that is truly attuned to the business in hand,”
customer’s existing IT network have become
existing WMS”. In Pass’s view, a totally
he said.
more important,” he said. “To test whether
integrated Voice WMS still, in general, offers
integration will be effective before the
( / .)*. '/-.&.)-% #,-.%+(-'/"-,*%,")$ )*)$ &+/ /-.+),$/ %(*& !.-/!)- .+&'
50
IT
more functionality while being more robust
du Preez makes the point that, today, there is
software goes live a
and less risky. “It’s important to appreciate
a wider range of Voice integration options than
special test
that Voice is now a mature technology with
ever before. “The larger WMS vendors have
environment is
customers much more aware of the potential
more deeply embedded Voice into their latest
established. This
benefits it can deliver and the need to
versions and companies with older versions
includes remote
integrate it fully and sensitively to other
now have access to high quality screen-to-
connections that
business systems if those benefits are to be
Voice solutions to voice-enable any of their
mimic the dynamic
realised,” he said. “This applies equally,
screen-based processes,” he said. “There is
behaviour of the
whether it be a Warehouse Execution System
still strong demand for Voice warehouse
existing material
to Voice empowering an existing WMS or a
execution systems that enhance the lower
handling system.
full Voice WMS interfacing to other business
level operational processes of traditional WMS
More customers are
systems.” The key, says Pass, is to choose a
systems. For example, Voiteq’s VoiceMan
participating in this
supplier with a proven pedigree of
warehouse execution system enabled
test phase, which
implementing Voice and a full understanding
Kellogg’s to realise a 40 per cent productivity
gives them an
of what is involved so that Voice can be made
improvement by better managing workload
excellent opportunity
to ‘work for you’.
and pallet building using Voice.”
MANUFACTURING
&LOGISTICS
December 2015
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Voice/Warehouse Management Systems
Special Report
According to du Preez, there is also growing
Eppert has seen few notable requests for a
leverage their WMS
interest from SAP customers for Voice
SaaS model so far. â&#x20AC;&#x153;In the context of
or their Voice system
solutions that connect directly to SAP and a
automation projects, WMS is seen as an
etc. more in the
number of these solutions have gone live in
additional investment to the traditionally more
Cloud and then take
the past 12 months in the UK and Europe â&#x20AC;&#x201C;
expensive equipment,â&#x20AC;? he said. Eppert has
advantage of a
particularly as the adoption of SAPâ&#x20AC;&#x2122;s
observed little interest in a â&#x20AC;&#x2DC;public Cloudâ&#x20AC;&#x2122;
common system
Extended Warehouse Management (EWM)
approach; however, he has witnessed a
across their
grows.
greater focus on â&#x20AC;&#x2DC;private Cloudâ&#x20AC;&#x2122; solutions
warehouses facilities.
within small- to mid-size systems warehouses.
Then, rather than
He commented: â&#x20AC;&#x153;The benefits of Cloud-based
having dedicated
SaaS and Cloud
approaches are well-known: IT setup and
servers and
Has the Software as a Service (SaaS)/Cloud
maintenance costs are reduced and the
differences in how
model had any notable level of impact on the
scalable nature of the solution allows
things are
WMS and/or Voice-directed software solutions
customers to respond quickly to changing
implemented, they can take advantage of a
market so far? du Preez comments that it is
market needs, without compromising
more common broad-brush solution that is
first worth distinguishing how a Voice solution
response times.â&#x20AC;?
easier to maintain and also satisfy their needs.
-,&/ )&&'/%(*& $+)*+'
Therefore, we are seeing the tendency for
is hosted and provided (which could be in the
people to start moving that way.â&#x20AC;?
Cloud) from the commercial model for acquiring it (which could be pay-per-user-per-
Going smaller
month). He commented: â&#x20AC;&#x153;New commercial
Spotts reflects that publications often focus on
Finken thinks it is clear that SaaS models do
models such as Subscription and SaaS were
gigantic organisations with massive
work and are growing. He commented: â&#x20AC;&#x153;There
accelerated in the economic downturn when
warehouses and large information technology
are major strengths to this model as they
capital was hard to come by. Interestingly, the
staffs. â&#x20AC;&#x153;In todayâ&#x20AC;&#x2122;s environment, there is a
generally do not require large capital
appetite for these has not diminished now that
growing number of small boutique and
investment and have flexible contract terms
the economy is stronger.â&#x20AC;?
specialty retailers who manufacture and
so it provides a low risk option to companies
warehouse their products,â&#x20AC;? he said. â&#x20AC;&#x153;These
providing they have resilient and reliable
du Preez explains that Voiteq offers all three
organisations do not have the resources to
connectivity. With the massive growth over the
hosting models: Cloud, data centre and on-
maintain an ERP or warehouse management
last few years of mobile communications I
premise. â&#x20AC;&#x153;Primarily due to the mission-critical
system. For a growing number of such small-
think there are some real opportunities here.â&#x20AC;?
nature of Voice systems, most of our
and even medium-sized businesses a Cloud-
customers opt for high-availability
based solution can be desirable.â&#x20AC;?
deployments under their control in data
Tomasi believes SaaS is definitely becoming more of a topic for discussion with customers
centres or at their warehouse sites,â&#x20AC;? he said.
Heaney explains that many multimodal units
as they see the benefits. â&#x20AC;&#x153;I donâ&#x20AC;&#x2122;t believe we
â&#x20AC;&#x153;Examples of internet services being
have the Voice engines and the software
have fully crossed the chasm and entered into
unavailable, such as the recent Skype outage,
kernels that drive most of the heavy activity on
the Early Majority phase yet, but I see the
are often quoted by companies when we
the devices themselves. He commented:
market as definitely trending in this direction,â&#x20AC;?
speak to them about a pure Cloud service.
â&#x20AC;&#x153;They can send messaging back to either the
he said. â&#x20AC;&#x153;Much as we saw back in the 1990s
The cost and impact on customer service of a
local host servers for Voice or to the Cloud
when real-time visibility crossed the chasm,
picking system being unavailable for a few
etc. So, by decoupling where a lot of that
we will see a shift as some of the providers
hours is not
heavy processing is and then putting many
who failed to adopt the prerequisite
something theyâ&#x20AC;&#x2122;re
cases right on the device you are now able to
technological underpinning fall to the wayside
willing to risk. That
support largely Cloud-ready type operations.â&#x20AC;?
and new start-up companies burst onto the scene. This is good news for the WMS market
being said, some of
)-+,*/ "".-+'/ "-(# %+/!)*) .-'
our larger customers
Heaney continued: â&#x20AC;&#x153;The same thing is true on
in general as historically these events drive
have opted for
WMS. Today, there is a lot more bandwidth
the market forward.â&#x20AC;?
Cloud-like solutions
and less latency between how quickly the
(centrally hosted with
systems can receive information. In some
According to Clark, the acceptance of SaaS
a browser user
cases we have seen SaaS-based WMS
systems for CRM and ERP has opened the
interface) in resilient
providers actually doing high-speed sortation
floodgates for other pioneering system
data centres that
where units pass by a scanner at rates of
vendors to create SaaS products that can
they can select and
2000 to 3000 per minute. As a result of that
stand shoulder to shoulder with the
hold to high service
capability we are seeing many more people
established on-premise solutions.
levels.â&#x20AC;?
opting for a solution that allows them to
â&#x20AC;&#x153;Increasingly, our SaaS WMS is being
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&LOGISTICS
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Special Report
Planning/Forecasting/S&OP
evaluated alongside
)-+/ , ,.-.'/ &,*.&& #. .$("!.*+/#,-.%+( (-/&"..% /&($ +,(*&'/
operations as businesses modify their models
and chosen above
Looking to the future
to allow shipment direct to end customer. â&#x20AC;&#x153;We
on-premise solutions
What might be the next innovations and
are experiencing a growing number of
and not simply
developments to look out for in the world of
customers asking us to enable â&#x20AC;&#x2DC;Pick and
because it is a lower-
WMS software and Voice-directed systems
packâ&#x20AC;&#x2122; within their operations, and this has
cost option,â&#x20AC;? he said.
over the next year or two? Eppert believes
been a built-in option on our â&#x20AC;&#x2DC;Lydia Plug and
â&#x20AC;&#x153;On this basis, we
one area of development will be the
Playâ&#x20AC;&#x2122; system for quite a while now,â&#x20AC;? he said.
predict that Cloud
integration of new technology such as
will overtake the
automated shuttle systems allowing for
popularity of on-
scalable storage or automated mixed
Wearable technology
premise WMS within
palletising solutions. These, he sayd, will need
Pass believes wearable technology is one area
the foreseeable
specific WMS support in order to get the
that will become more prevalent within the
future.â&#x20AC;?
maximum benefit.
Voice space, while Clark considers that WMS systems will continue to become more
Pass explains that several of BCPâ&#x20AC;&#x2122;s Voice
Another challenge for WMS software,
sophisticated, with the ability to handle greater
WMS customers have been operating private
according to Eppert, will be handling the
levels of exceptions without requiring any
Cloud systems to manage multi-depot
conflict between the impressive speed of
manual intervention or administration by
operations for years, but BCPâ&#x20AC;&#x2122;s own research
innovation and release cycles from the
operators. This, he believes, will essentially
and experience shows that customers prefer
consumer market and the demand for future-
make the system smarter while keeping the
being able to see their own hardware and
proof investments in the world of logistics.
user experience simple and straightforward.
control their own data. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s still an
â&#x20AC;&#x153;For example, mobile terminals in a
Briggs considers that Voice could spread
inherent discomfort about the data ownership
warehouse are often in operation for many
further from warehousing into manufacturing for
issue which comes with the SaaS/Cloud
years, while the capabilities of an average
assembly, inspections etc. (for more comment
model,â&#x20AC;? he said.
smartphone and its apps are improving
in this area, see pages 30 and 31).
monthly,â&#x20AC;? he said. Also, Eppert reflects that Riviere comments that Zebra is seeing
the discrepancy between the â&#x20AC;&#x2DC;always
Within the next year or two Tomasi thinks we
increasing interest in SaaS as it is easier to
connectedâ&#x20AC;&#x2122; trend in the consumer market and
will see improvement in the SaaS adoption,
deploy and get up and running and offers a
the demand for IT security within a warehouse
clarity of purpose in the Big Data arena,
different investment model for customers.
will be an interesting topic to work on as a
emergence/improvement of augmented reality
Williams points out that term â&#x20AC;&#x2DC;SaaSâ&#x20AC;&#x2122; has been
product manager.
technology, and improved adoption of existing
around for many years, and its impact and
development technologies. All of this will, he
interpretation can vary widely depending on
Finken comments that topVOX is now
believes, lead to a rejuvenated and much more
oneâ&#x20AC;&#x2122;s perspective. He commented: â&#x20AC;&#x153;To some it
deploying solutions that combine new
dynamic WMS market, which will be good for
means renting licensed software or pay to use,
hardware with the use of â&#x20AC;&#x2DC;Voice and Visionâ&#x20AC;&#x2122;.
vendors and customers alike.
to others it represents having a hosted system
â&#x20AC;&#x153;This is very real now and I think this will be a
that is run and managed by someone one else
big growth area over the next two years,â&#x20AC;? he
Heaney makes the point that because
and to yet another group it represents an
said.
companies are adding extra complexity they
alternative cash flow profile.â&#x20AC;?
are also adding more cost. â&#x20AC;&#x153;So one of the next Finken pointed out that customers are
frontiers is to become more profitable,â&#x20AC;? he
Williams adds that Honeywell Vocollect
continually demanding more flexibility.
said. â&#x20AC;&#x153;One way to
solutions have been able to provide hosted or
Therefore, he thinks the use of android in
achieve this is
remote systems for many years with a variety of
warehouse operations will be a very
through more
licensing models. â&#x20AC;&#x153;However in order to
noticeable development as the hardware can
effective labour-
maximise returns, Voice solutions often need to
be much lower cost than traditional
management,
be configured, personalised or tuned to
ruggedised devices. â&#x20AC;&#x153;The key here is how we
which can, for
individual requirements, so as to deliver the
enable customers to have this flexibility,â&#x20AC;? he
instance, help to
most significant returns,â&#x20AC;? he said. â&#x20AC;&#x153;As such, the
said. â&#x20AC;&#x153;So we will be developing our Lydia
take out non-value-
astute client will usually invest in a solution that
Voicewear to help with this in keeping low-
added work. Some
differentiates him in his market, whilst delivering
cost devices protected and therefore viable in
vendors now offer
an outstanding ROI, typically within a year.
the harsh environments of warehouses.â&#x20AC;?
labour
SaaS remains an option for Voice that
management
stimulates interest but doesnâ&#x20AC;&#x2122;t always deliver
Also, Finken believes the market will continue
solutions that are
the best results.â&#x20AC;?
to see the growth of â&#x20AC;&#x2DC;Pick and Packâ&#x20AC;&#x2122;
independent from
52
IT
MANUFACTURING
&LOGISTICS
December 2015
)--.$/ ,$$,)!&' -. ,(*/#,-.%+( (-+ .-*/ -(".'
www.logisticsit.com
Planning/Forecasting/S&OP
their primary WMS solution, so that if a user
Special Report
still,â&#x20AC;? said Williams.
has a legacy system it can bolt on a labour-
Changing demands
â&#x20AC;&#x153;We continue to
management solution. The idea is to provide
du Preez comments that ever changing
make small and
an effective way to become more profitable in
demands on warehouses â&#x20AC;&#x201C; driven by
subtle improvements
your work processes as you turn on these new
consumers, retailers and regulation â&#x20AC;&#x201C; will force
and refinements that
more labour-intensive modes of fulfilment.â&#x20AC;?
them to consider flexibility and rapid return on
still add significant
investment as key factors when choosing
value to costly
Heaney also sees a growing trend towards
technology. â&#x20AC;&#x153;With the range of proven
operation.â&#x20AC;?
being able to take Big Data, analyse it and
integration options available from experienced
determine what the workload is going to look
vendors, it will be easier than ever for
Williams explained
like tomorrow, the next day or the day after
customers to implement Voice into their
that some of
that based on what has been seen today. He
operations,â&#x20AC;? he said. â&#x20AC;&#x153;Existing users will seek
Honeywell Vocollect
commented: â&#x20AC;&#x153;If you think about an event like
ways to further leverage their investment in
Solutionsâ&#x20AC;&#x2122; more
Black Friday, orders are coming in, data is
Voice and will extend its use into warehouse
recent innovations are the inclusion of â&#x20AC;&#x2DC;hands-
being collected and the orders are being
processes beyond picking. We therefore
freeâ&#x20AC;&#x2122; scanning into a Voice device; allowing all
processed â&#x20AC;&#x201C; but there may be a certain
expect continued strong growth from the
of the benefits of Voice-directed work with the
amount of backlog at the end of the day.
warehousing Voice market.â&#x20AC;?
additional option of automatic data collection.
There may be an indication in the data itself
#/ "(++&'/&.*,( /%(*& $+)*+'
Additionally, Williams points out that the
that some items are nearly out of stock,
du Preez also believes the market will see the
company has produced advanced wireless
meaning you may need to get extra stock
use of Voice rapidly expanding into non-
headsets with â&#x20AC;&#x2DC;sound senseâ&#x20AC;&#x2122; noise cancellation
from your supplier. You can now turn this Big
warehousing markets; particularly inspection
that has further pushed the performance
Data into intelligence in order to be a little
and in-store retail. â&#x20AC;&#x153;This will bring new device
boundaries of industrial Voice-recognition
more proactive about where your next failure
and headset form factors as well as advances
systems, whilst also offering even more ability
point may be. For example, you might need to
in the underlying Voice recognition engines,â&#x20AC;?
to integrate into multiple systems concurrently.
bring in more temporary workers tomorrow
he said. â&#x20AC;&#x153;These innovations will positively
because the order levels are so huge and the
impact the established warehouse Voice
He added that, in line with the â&#x20AC;&#x2DC;keeping it
popularity of some of these items is
market and provide more options for existing
simple for usersâ&#x20AC;&#x2122; philosophy, Honeywell
outstripping the pick face.â&#x20AC;?
users.â&#x20AC;?
Vocollect Solutions continues to implement
Riviere considers that more warehouses and
du Preez added that, much like RFID, vision
integration, ergonomics and ease of use.
distribution centres will be using multimodal
systems need to pass through their hype
Williams also explains that the company has
devices over the next year or two. He also
stage before their particular business case
already witnessed the use of Voice into areas
believes we there will be a sizeable increase in
becomes credible. â&#x20AC;&#x153;We do believe that vision
such as MRO, healthcare and in-store and he
all touchscreen devices being deployed in the
systems, combined with quality Voice
sees its usage expanding into even more
warehouse. Finally, he anticipates further
recognition, will offer innovative solutions to
diverse environments.
interest in SaaS.
certain data-rich processes,â&#x20AC;? he said.
practical improvements in both WMS
â&#x20AC;&#x153;However, we donâ&#x20AC;&#x2122;t expect them to displace current warehouse technologies any time
Augmented reality
soon.â&#x20AC;? Finally, du Preez believes the
Wilson reiterates his earlier point; that we are
availability of new commercial models such
going to see a growth in augmented reality
as subscription will give customers the ability
technology in the warehouse. â&#x20AC;&#x153;The reason for
to select and implement Voice within their
that is with the amount of pressure on cost
budget cycle by shifting the costs from capex
people will be looking very aggressively at
to opex.
how to do things that can reduce operating costs,â&#x20AC;? he said. â&#x20AC;&#x153;I think we will probably see
www.logisticsit.com
In Williamsâ&#x20AC;&#x2122; view, todayâ&#x20AC;&#x2122;s advances in
more of an interest in warehouse automation
technology and systems, coupled with the
because people who are reconfiguring their
increasing professionalism of the industry,
networks or building new distribution space
means that many things are being executed
will be taking account of the living wage and
well in the logistics and warehouse arena. As
the impact of that over the medium to long-
such, he believes that occurrences of â&#x20AC;&#x2DC;game-
term. Therefore automation may start to pay
changingâ&#x20AC;&#x2122; innovation are less common.
back a bit better than it has done in the past
â&#x20AC;&#x153;However that does not mean that we stand
in the UK.â&#x20AC;?
IT
MANUFACTURING
December 2015
&LOGISTICS
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