Sunday, July 6, 2008

Manhattan Associates, SAP and IBM : What’s the connection?


Everybody knows that IBM’s WebSphere and SAP’s NetWeaver are competing software solutions in the integration field. So which one is chosen by Manhattan Associates, an SCM best of breed vendor.
Literally both!
For its IPS(Integrated Planning Solutions) and ILS(Integrated Logistics Solutions), IBM’s WebSphere is the preferred choice.
For its WMS(Warehouse Management System) software, Manhattan Associates has got a “Powered by SAP NetWeaver® “ certification.

Let’s understand how both would help MA(Manhattan Associates) in expanding its business.
Being an IBM WebSphere partner, MA and IBM sales team are working together in almost all the markets.
Being a SAP certified vendor means MA WMS would instill more confidence in customers due to the seamless integration with the SAP business suite which many customers use.

Saturday, July 5, 2008

Basics of Warehouse Layout : How to strategize ?


A warehouse is used to buffer inbound shipments and outbound customer orders. How much should be stored in a warehouse depends on the difference between the incoming shipment and the outgoing order.

How does one go about in designing a warehouse? The catch lies in understanding how picking and storage is going to happen in the warehouse. Both have opposite requirements and are the two most important deciding factors for a warehouse designer.

Remember, if you go for efficient storage, picking becomes complicated. If you go for efficient picking which normally means having a small number of fast moving or high-flying goods(as I like addressing them) in nearby locations, storage efficiency is reduced.

Let’s put it this way. The design of a warehouse would depend on which activity is going to dominate once the warehouse becomes functional.

If picking dominates, you need to have a compact picking area. You can go for some amount of automated picking.

If storage dominates, you need to have multi-levels and high bays .Picking can even be manual.

If both picking and storage are dominant activities, go for large DCs (Distribution Centres). You need to automate handling using MHEs(Material Handling Equipments) and also automate picking using either scanning devices or pick to light or voice picking.

If both picking and storage have low requirements, then a simple warehouse having pallets, shelves, racks with manual picking would suffice.

Friday, July 4, 2008

Warehouse Management concept: Choosing between voice picking and pick to light



Many of you have mailed me asking which is better : voice picking or pick to light . In a Warehouse, order picking can be done in a number of ways, namely paper based picking, scanning (through RF guns), pick-to-light and voice technology.

I stumbled upon a video which pretty much is biased towards voice picking but then as I have always repeated, don’t form opinions based on this video alone.

The real advantage of voice picking which people tend to overlook is that the warehouse floor staff which feels burnt-out doing the same monotonous job of order picking, now look forward to an exciting day in the warehouse because they get to work on something new and consequently job satisfaction increases. Because at the end of the day, its the people and not any technology and software that is driving the warehouse.

Some voice picking software applications are VoCollect’s Talkman®, Lucasware, Vulcan Voice™ by CTG, and Voxware .

Here’s the video about voice picking vs pick to light.

Wednesday, July 2, 2008

Is the debate on Best of Breed vs ERP or is it on Functionality vs. Integration?


Almost everyone has an opinion on the question of best of breed vs ERP. Alas, not many have the answers.
SAP and other big ERP players have this habit of browbeating the best of breed competition .SAP had once famously talked about the perils of buying best of breed .Well, the logic put by the ERP players is that integration is always an issue with best of breed software. But then, I am at a loss as to why the best of breed vendors have never hit back on their strong point of functionality. In terms of functionality, best of breed would win hands down.
So which is better, best of breed or ERP, which people have termed as best of suite. There are no clear winners and there are no clear answers. There is ample space for both for many more years. The criteria which normally hold the key are functionality, integration, implementation and technology. Price comes at the last which does suggest that this is an extremely profitable domain. Functionality and integration have the same priority on the wish-list of buyers.
But beware! Lots of buyers are opting for ERP and their decision is based on the presumption that they have the incumbent ERP installed and hence it’s the natural choice. Not necessarily a correct decision. The incumbent ERP may not have the requisite functionality ,required by the customers business, packed in it. If the customer just wants the industry standard process ,maybe a vague example could be inventory management module and normal functionality, they can very well opt for their current ERP. But if their functionality is rapidly changing, they need to look further and here the balance tilts in favour of best of breed.
Best of breed SCM software vendors are investing a lot in technology as well as adding more and more functionality to their base product. With most shifting to SOA(Service Oriented Architecture) , ERP vendors won’t have any grounds to complain about integration.
In SCM, business runs technology and not vice-versa. Its time for the ERPs to come up with their own best of breed versions.