Part I of this blog topic introduced MCA Solutions and its flagship Service Planning Optimization (SPO) solution for planning and optimizing spare parts [evaluate this product]. That blog post also tackled MCA’s notably good times during 2007. In the meantime, an informative post on MCA was also published by the Sourcing Innovation blog.

A related 2007 milestone at MCA included a significant expansion with both new and existing customers in core markets, including aviation and defense (A&D), high-tech, and semiconductor manufacturing. Specific wins included the first joint effort with SAP for a large commercial aircraft manufacturer, expanded work with the US Navy to include planning for the entire naval aviation fleet, and successful deployments at new medical and capital equipment customers.

In addition to working with the largest corporate customers, MCA also cited growing revenue in the mid-market.  With its SPO OnDemand Software as a Service (SaaS) offering, MCA hopes to bring to smaller service organizations the same capability that service leaders in the Fortune 500 are seeing value from, but with a much lower upfront software and information technology (IT) infrastructure investment.

These benefits are attributed to lower monthly costs and faster implementations. The vendor will be expanding this offering in 2008 to make it even more appetizing and faster to deploy. The most recent win with the OnDemand SPO solution at Unisys Corporation might be a sign of succeeding with on-demand model at larger corporations as well as appealing to the mid-market. Read the rest of this entry »

Part I of this blog post analyzed the white paper entitled “Manufacturing Outsourcing: Seven Common Pitfalls to Avoid” , authored by Symphony Consulting and Arena Solutions. It also established an intrinsic connection with product lifecycle management (PLM) software technology as a global sourcing collaboration enabler.

Indeed, several macroeconomic trends seem to be helping the PLM market, starting with the rampant offshoring of facilities and/or expansion of outsourcing and contract manufacturing overseas. There are also escalating mergers and acquisitions (M&As) within multiple business sectors and the inexorable spate of regulatory and compliance mandates within many industries and geographic regions.

This dovetails into the relentless pressure for companies to innovate and bring ever more functional (if not even “ever-cooler”) products, that have ever-shorter lifecycles, ever more quickly get to the market, and thus differentiate, especially in the electronics/high-tech and consumable packaged goods (CPG) sectors. Read the rest of this entry »

A number of TEC blog posts have discussed benefits but also the inevitable caveats of white papers (including all too common vendors’ self-serving marketing fluff and buzzword verbiage), and about their (un)intended audiences. These posts have even caused some heated debates with other blogging sites and experts on white papers, and I am going to stay away from all that here.

My intention here is rather to acknowledge that, as part of my daily routine of doing research on vendors and their strategies and offerings, I’ve read a ton of white papers in the last decade or so. And yes, these have ranged from vendors’ blatant bragging about their capabilities (a la the “Every man thinks his own geese swans” proverb) to some exceptional ones that were quite educational and established someone’s expertise in something.

One latter example would be the white paper entitled “Manufacturing Outsourcing: Seven Common Pitfalls to Avoid” and authored by Symphony Consulting and Arena Solutions. Why? Read the rest of this entry »

Part I of this blog post introduced the burning issues of food safety and the ensuing need for traceability. To the end of providing entire food supply chain traceability and information visibility, mid-March, during its CUE 2008 annual user conference, Lawson Software announced the availability of Lawson M3 Trace Engine 3.0, the first version offered within the US market.

The application is designed to help companies in the food and beverage (F&B) industries improve product quality and help prevent and manage potential food safety and quality risks. It specifically helps companies strengthen and simplify the process of tracking ingredients and finished products through complex global food supply chains. Read the rest of this entry »

Besides the ongoing (seemingly never-ending) presidential campaign and celebrity scandals/gossip, food safety is very much in the news. Indeed, incidents of outbreaks, contamination, product recalls and whatnot flood TV channels as breaking news every now and then. Consumers, governments and the various members of the food supply chain are rightly concerned about food safety, and there has been increasing pressure for food and consumer product goods (CPG) supply chain traceability, in a pervasive manner.

Consumers and governments (both becoming ever-more educated and informed on one side, but still confused on the other side) are concerned about the safety of the food supply and protecting the public. While demanding more product choice and delivery speed, consumers have been voicing fears over food safety in the wake of recent salmonella outbreaks (remember the contaminated spinach or major chocolate recall cases?), cases of pet deaths due to poisonous imported pet food, lead-tainted imported children’s toys, anti-freeze tainted imported toothpaste, and so on…

The ever-longer and global food supply chain (often called “from farm to fork”) includes crop farmers/growers (utilizing fertilizers and pesticides), feed processors, livestock farmers (that might feed and treat animals accordingly [or not]), manufacturers (primary and value-add food processors), packaging and labeling sites, distributors, retailers, and food service companies (restaurants and cafeterias).

These supply chain member companies have to be concerned about the consumer safety issues, plus the potential negative and even fatal impact on their brands and businesses. For instance, high-and-mighty retailers customarily want ever higher service levels from suppliers (without any negative publicity), while the overall industry itself wants to protect “brand” value and reduce recall costs. Read the rest of this entry »

Due to increasing globalization and larger supply chains, the volume of goods passing through major seaports is increasing, leading to higher congestion of goods and a larger number of containers coming in and going out. Couple this with the slowdown caused by checking containers for terrorist-type contents and the increase by the wholesale and distribution industry in moving product from developing nations—all these factors obviously lead to stress and frustration for port authorities, as well as for distributors and manufacturers.

How can we solve this seaport problem? Transportation management system (TMS) software has been developed to help ease the growing congestion along coastlines. Able to do way more than simply schedule trucks, this software can integrate with radio frequency identification (RFID) technology, global positioning systems (GPSs), and satellite technology.
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Firms in the distribution and supply chain industries often have situations that occur within different points in the supply chain. An example would be the following: a manufacturer of computer mice may have the internal components for the product, yet not have the casings for the computer mice. This is a situation in which the order has not arrived. Supply chain and distribution managers need to make decisions on how to get the product out the door, assembled and sent to the appropriate retail locations.
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Regardless of the economic environment (and sentiments), I always think of the opportunity within the aftermarket service and support as a profitable, high-margin and customer-captive business, and yet, still underserved. General Electric (GE) would be the proverbial example of a company that has focused on aftermarket opportunities, going so far as to call itself a “services” company as opposed to a “products” company.

GE indeed, starting with Jack Welch’s long chief executive officer (CEO) tenure, has been widely reported to have significantly increased both its total revenue and profitability by focusing on services opportunities in addition to developing world-class products.

The manufacturing corporate giant has certainly proven the value of serving the product aftermarket, which has recently been purported in a quantifiable manner by many pundits as a high margin business. For instance, AMR Research reported recently that businesses earn 45 percent of gross profits from the aftermarket, yet it is only 24 percent of their revenues, while a recent article in Harvard Business Review claims that we all spend US$1 trillion every year on assets we already own.

A related software category term was mentioned in TEC’s 2003 article titled Service Lifecycle Management - Tapping into the Value of the Product Aftermarket. Namely, Service Lifecycle Management (SLM) is a business initiative focused on servicing a company’s products, and the customers that bought them, after the product has been sold. Simply put, SLM focuses on making more money from the product after the initial sale. But it is more than that — it is also a way to become a strategic part of the customer’s business after the sale is completed. Read the rest of this entry »

ERP – distribution software has been designed to meet the needs of firms with global distribution and logistics needs. Visibility in the supply chain is a crucial element of moving product between multiple locations and countries, and ERP – distribution software can give you the flexibility to track all inventory from wherever you are in the supply chain.

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