From time to time we receive calls that remind us of how many DCs are falling behind in their order processing capability. Although we have written previously about the need for faster processing time (see: The Need for Speed – New Ideas to Increase Your Supply Chain Velocity), DCs should be focused on something that is a bedrock issue - the need to compress transaction times all along the supply chain.

Why? Why does Intel keep making faster computers? It isn’t just to make video games more lifelike. No – it’s because being able to succeed at the compression of time really is a key component enabling a company to win out over its competitors.

From the Katrina hurricane to the earthquake in Haiti, we know that real time logistics data is critical in responding to national or international emergencies. Where moving huge stockpiles of material and resources quickly can be a decisive factor in the fight to survive. Companies, especially DCs, must emulate this and have the courage to change, compete, and win with a supply chain that moves at the speed of the Internet.

In today's environment, individual consumers and business customers alike want to check the availability of inventory and the status of their order on-line without calling a customer service representative. Synchronizing the activities of multiple warehouses, or multiple partners in the supply chain, to provide a seamless real-time view of inventory and order status beyond the four walls of the DC is what transaction speed is all about.

That may mean integrating your system with your trading partners systems so you can monitor their activities in real-time. Or, it may mean distributing or deploying your solution over the Internet to manage their facilities for them.

This is tough to do in the best of times. Now, however, many logistics operations are at risk of falling behind.

Defining A Winning Logistics Project For Your Supply Chain

It is critical to understand what you are doing, have a plan, and use the latest advances in material handling automation (MHA) and computer technology to make something happen faster than ever before.

We know that materials move swiftly in a DC controlled by a Warehouse Management System (WMS). We also know that in a truly integrated system, operational decisions can be made quickly by managers based on real-time information from a Warehouse Control System (WCS) - faster than those by a competitor not so equipped.

In addition, visibility tools allow users across the supply chain to receive alerts and notifications when events occur or don't occur so that a user can take proactive steps rather than just react.

So, as it relates to transactions, here are some questions to ponder. Given that a successful strategy involves a blend of concept and technology, what makes a winner?

• Is it sending electronic data interchange (EDI) and advance shipping notices (ASN) over the Internet?
• Maybe it’s a customer friendly order entry voice recognition system?
• Is it a bar coding system that can increase inventory accuracy and reduce picking and shipping errors?
• How about an automated manifesting system to speed packing and shipping?
• If receiving and/or shipping accuracy is an issue – consider incorporating an automatic check weighing system to speed up the process.
• Is it time to step up to a higher level WMS and/or maybe adding a WCS?
• Or, perhaps it’s just the ability to electronically take and place orders, and receive payments?

The truth is that each of the above involves tested and proven strategies that really work to speed up transactions throughout the supply chain and are deployed in the top performing logistics operations. But they need to be put in the context of your environment and your corporate need for speed.

Final Thoughts

If you are not working on a project that makes things happen faster, it’s not likely to be a winner. Go to your boss and ask for a different project. If he or she doesn’t understand why you are asking, you’ve just uncovered an internal supply chain “speed bump”!

Agree or disagree with Holste's perspective? What would you add? Let us know your thoughts for publication in the SCDigest newsletter Feedback section, and on the website. Upon request, comments will be posted with the respondent's name or company withheld.

You can also contact Holste directly to discuss your material handling or distribution challenges at the Feedback button below.