Many companies have seen measurable improvements within their warehouse operations, but Supply Chain Execution (SCE) goes beyond the four walls to address other improvements and benefits. In fact, tangible results can be seen everywhere, including the financial and customer service areas of your operation.

The tangible benefits of an SCE application include reductions in inventory, staffing, transportation costs and customer chargebacks. You can also realize increases and improvements in space utilization, customer service, communication, accuracy and accountability. Along with the tangible benefits, SCE brings several intangible benefits as well, such as improved decision-making abilities, reduced ‘firefighting’ and improved employee satisfaction. Supply chain execution can take your distribution operation to a new level. What used to be achieved only within the four walls of the warehouse can now extend across your entire operation. By being aware of the current supply chain execution trends and best practices, and by utilizing the software, systems and resources available, you can achieve maximum results across your entire supply chain, especially in productivity and profitability.

SCE Industry Trends

In all cases, Supply Chain should be an IT priority. IT should implement new SCE solutions and the solution should integrate with your trading partners with EDI or a direct connect model, leading to cost reductions. (i.e. in accounts payable or receivable). The use of open standards will also reduce integration costs. The gap between supply chain planning and execution is closing and over time information learned from SCE may change SCP. Traditionally, SCP reports weekly, monthly and quarterly, while SCE transactions are recorded in days, hours and minutes. SCP systems are gathering SCE information via intelligent agents, filters for ‘exception’ execution data, and data gathering tools from carriers, suppliers, customers and plants. You can optimize your supply chain by using analytical information. Historically, SCE solutions (since each product was initially developed as an execution system) do not have solid reporting. While detailed data exists within the application, many tools have not yet been created for more detailed inventory analysis, historical reporting, and flexible productivity tracking. However, in the last few years, SCE solutions have been improving in this area using traditional reporting and business intelligence concepts. Utilizing the data to create more flexible reporting will improve decision support and knowledge management, resulting in a strategic advantage over your competition.

SCE Best Practice Trends

A logistics/fulfillment focus involves continued collaboration with suppliers, customers, and carriers. Such collaboration solutions result in the ability to integrate data from carriers, consolidators, freight forwarders and customs brokers. Having this collaboration increases operational productivity through information flow and improves management of Homeland Security requirements. From a distribution perspective (especially in the consumer goods and retail industries), Distribution Center (DC) management is being located near manufacturers, often in the Orient. Then, container loading is being handled direct-to-regional-DC and direct-to-store to reduce shipment and handling costs.

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