3. Dynamics AX is Beyond ERP…the Next Evolution
• Business process platform
• End to end capabilities
• A platform to defeat competitors
• Consortium of domain experts
• Next evolution of solutions…
FUNDAMENTALS OF LOGISTICS
4. Dynamics as the Process Platform
FUNDAMENTALS OF LOGISTICS
Powerful
embedded
analytics and BI
Applications that
are an asset
Simplicity and
agility
Works the way you
need it to
Simple to use
Get the right data
to decision makers
Complete industry-
specific solutions
Manufacturing
Distribution
Retail
Services
Public Sector
Tailored to meet your
needs
5. Broader View of Supply Chain/Logistics
FUNDAMENTALS OF LOGISTICS
Company
7. Radio Frequency Can Actually Hurt Productivity
• Order picker with paper can be faster than Radio Frequency Picker
– Some gains on searches, errors, etc.
• Key: Strategies that leverage technology like RF, but reduce labor and travel time
– Multi-order picking
– Work flow (Walk paths)
– Material handling integration
– Zone picking
– Pick/sort
– Integrated transportation
– Value added services
– Etc.
FUNDAMENTALS OF LOGISTICS
13. Supply Chain Solutions Benefits Examples
• Reduction of Inventory Carrying Costs
– 8 to 15% Increased Inventory Turns
– Source: Gartner Group
• Eliminate Some Safety Stock
– For a $100 Million dollar company, a 3% reduction in inventory achieves $500,000 in savings.
– Source: APICS
• Reduction in Customer Returns
– 11 to 25%
– Less Picking Errors
– Source: Gartner Group
FUNDAMENTALS OF LOGISTICS
15. Key Questions Example (Value Mapping)
FUNDAMENTALS OF LOGISTICS
COGS What % of COGS is logistics costs?
CFO, CLO, COO, VP
Dist.
COGS
Is COGS in line with expectations? How does
your compare with competitors? CFO, CLO, COO
Logistics
What metrics do you use to measure
logistics performance? How does your
current performance compare with company
goals?
CFO, CLO, COO, VP
Dist.
Logistics
What metrics do you wish you could track
but cannot? Why?
CFO, CLO, COO, VP
Dist.
Fill Rate
What is your order fill rate, and how does it
compare with company goals?
CFO, CLO, COO, VP
Cust. Serv., VP Dist.,
VP Sales
Fill Rate
How do you measure the impact of unfilled
orders on revenue?
CFO, CLO, COO, VP
Cust. Serv., VP Dist.,
VP Sales
Growth
Can your logistics capabilities handle all
existing and planned channels? If not, why?
CFO, CLO, COO, VP
Dist.
On-Time
What is your on-time delivery %, and how
does it compare with company goals?
VP Cust. Serv., VP
Dist., VP of Trans.,
Director of Dist.,
Director of Transp.
Inventory
How do your inventory turns and inventory
accuracy compare to company goals? What
are the reasons for the differences?
CLO, CPP, VP of Distr.,
Director of Dist.
Inventory
Could safety stocks be lowered with better
inventory accuracy (knowing what you have,
where it is, especially when needed)?
Chief Logistics Officer,
VP of Distribution,
Director of
Distribution
Labor
How do you track labor productivity? Are
your tracking capabilities sufficient?
VP of Distribution,
Director of
Distribution
Charge
backs
Do you incur chargebacks from customers?
What are the primary violations?
VP of Distribution,
Director of
Distribution
Inv.
Accuracy
What is your current inventory accuracy
(perpetual and location level)? How does this
compare with company goals?
VP of Distribution,
Director of
Distribution
Inv.
Accuracy
How does inaccurate inventory affect your
business (warehouse productivity, order fill
rate, inventory turns)?
VP Distr., Director of
Dist.
Physical
Cost
Do you perform an physical inventory? How
long does it take and what are the total costs
associate with a PI?
Director of
Distribution
Trading
Partner
Do you have a compliance program with
suppliers? How effective is it? CLO, VP of Dist.
Order
Accuracy
What is the cost to correct an order filled
incorrectly? What makes up those costs?
VP Cust. Serv., VP
Dist., VP of Trans.,
Director of Dist.,
Director of Transp.
22. Key Concept
• Ability to deal with concepts separately:
–Where – Selecting the optimal putaway/picking location
–How – Best way to perform the work
23. Order Picker’s Time (non-WMS) - Typical
PRESENTATION TITLE
Travel
50%
Search
20%
Setup
10%
Extract
15%
Other
5%
24. Different Zones for Different Purposes
FUNDAMENTALS OF LOGISTICS
Pick Zone
Locate Zone
25. Units of Measure Matter
• Each unit of measure means different equipment, labor, etc.
• Unit picking should not be done out of the same location as pallet picking
• Items may need to live in multiple bin locations
• Reservations, putaway logic, replenishment, etc. need to be smart about UOM
• Different channels drive different behaviors (direct to consumer vs. B2B)
PRESENTATION TITLE
26. Pick / Pack Catch Weight FlowLTL Batch Case Pick
Workflow
Pick
Catch
Weight
Print
Label
Stage
Load
Pick Stage
Pallet
Build
Dock
Check
Load
Group
Pick
VAS
Labeling
Pack by
Order
Example Configurable Workflow based on Criteria…
29. Supplier Management
THIRD PARTY LOGISTICS / FREIGHT FORWARDERS
TRANSPORTATION PROVIDERS
Small
Domestic
International
Contract
In-House
Large Domestic
FACTORIES SUPPLIERS DISTRIBUTION
Branded
Warehouse
International
Retail
Cross-Dock/
Flow Through
Business
Manufacturing
INBOUND SUPPLY CHAIN VISIBILITY
End-to-End Event Management
DIRECT DELIVERY
Purchase Order
Shipment ASN
PO Confirm (Qty, Price, Dates)
Customs Documents
Shipment Status
44. Dock Management
Shipping Dock Workflow Controlled…
• Shipment Staging
• Quality Checks
• Pallet Building
• Dock Door Assignment
• RF Loading
• Ship Confirm
45. Post Freight – Landed Cost – Cost of Goods
• Post freight costs to invoice
• Configurable posting to G/L
• Freight accrual/expense
• Freight revenue (bill to customer)
46. Freight Reconciliation
• Automate the Freight Bill Match and Pay process
• Electronic Freight Bill Invoice (210) from carriers
• Match Rules with Tolerance
– Match down to Accessorial Charges
– Proof of Delivery prior to Pay
• Payment Rules
– GL Coding
– Freight Accrual and Apportionment
Valid
Shipment?
Duplicate?
Cost within
Tolerance?
Accessorial
Fees Valid?
Delivered
on Time?
50. C-Level Executive Value Proposition/Questions
• What if we could reduce your warehouse labor cost (usually one of, if not the single highest
cost to do business) by 20%? Would that enable you to do more business with the same staff,
or reduce staff to save costs?”
• “How many Physical Inventories do you complete per year and at what cost?” “2 per year, and
they cost $20K each
• Equipment that is needed can be utilized longer due to better cube utilization and flow of
goods design (less run time = longer life).
• What would it mean to your company to reduce your inventory cost by 1%?”
FUNDAMENTALS OF LOGISTICS
51. Key Questions Example (Value Mapping)
FUNDAMENTALS OF LOGISTICS
COGS What % of COGS is logistics costs?
CFO, CLO, COO, VP
Dist.
COGS
Is COGS in line with expectations? How does
your compare with competitors? CFO, CLO, COO
Logistics
What metrics do you use to measure
logistics performance? How does your
current performance compare with company
goals?
CFO, CLO, COO, VP
Dist.
Logistics
What metrics do you wish you could track
but cannot? Why?
CFO, CLO, COO, VP
Dist.
Fill Rate
What is your order fill rate, and how does it
compare with company goals?
CFO, CLO, COO, VP
Cust. Serv., VP Dist.,
VP Sales
Fill Rate
How do you measure the impact of unfilled
orders on revenue?
CFO, CLO, COO, VP
Cust. Serv., VP Dist.,
VP Sales
Growth
Can your logistics capabilities handle all
existing and planned channels? If not, why?
CFO, CLO, COO, VP
Dist.
On-Time
What is your on-time delivery %, and how
does it compare with company goals?
VP Cust. Serv., VP
Dist., VP of Trans.,
Director of Dist.,
Director of Transp.
Inventory
How do your inventory turns and inventory
accuracy compare to company goals? What
are the reasons for the differences?
CLO, CPP, VP of Distr.,
Director of Dist.
Inventory
Could safety stocks be lowered with better
inventory accuracy (knowing what you have,
where it is, especially when needed)?
Chief Logistics Officer,
VP of Distribution,
Director of
Distribution
Labor
How do you track labor productivity? Are
your tracking capabilities sufficient?
VP of Distribution,
Director of
Distribution
Charge
backs
Do you incur chargebacks from customers?
What are the primary violations?
VP of Distribution,
Director of
Distribution
Inv.
Accuracy
What is your current inventory accuracy
(perpetual and location level)? How does this
compare with company goals?
VP of Distribution,
Director of
Distribution
Inv.
Accuracy
How does inaccurate inventory affect your
business (warehouse productivity, order fill
rate, inventory turns)?
VP Distr., Director of
Dist.
Physical
Cost
Do you perform an physical inventory? How
long does it take and what are the total costs
associate with a PI?
Director of
Distribution
Trading
Partner
Do you have a compliance program with
suppliers? How effective is it? CLO, VP of Dist.
Order
Accuracy
What is the cost to correct an order filled
incorrectly? What makes up those costs?
VP Cust. Serv., VP
Dist., VP of Trans.,
Director of Dist.,
Director of Transp.
52. Dynamics as The New Evolution of Systems
• The Power of One
• The Power of Experience Domain Experts
• Beyond ERP
• Beyond Four Walls
FUNDAMENTALS OF LOGISTICS
