We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
Home » What's hot in software this year?
techwatch

What's hot in software this year?

January 13, 2014
James A. Cooke
No Comments

As logistics and supply chain managers get down to work in the coming year, they should keep an eye on developments in the supply chain software world. In particular, they should stay on top of what's happening with three specific types of software, as wider use of these applications could affect the way they run their DCs in the next 12 months and beyond. These applications are as follows:

Inventory optimization. Each year as part of its annual "Outlook" survey, DC Velocity asks readers what types of software they plan to buy in the coming year. This year, inventory optimization systems came in third on the list (cited by 16 percent of the respondents), right behind transportation management systems (17 percent) and not all that far behind the top choice, warehouse management software (25 percent).

That's no surprise. As more companies look to free up working capital by eliminating excess inventory, they're realizing the value of inventory optimization. Today's systems offer highly sophisticated analytical capabilities. So-called multi-echelon applications can look across all locations in the supply chain—both factories and distribution centers (DCs)—and calculate inventory needs throughout the entire network, helping users determine how much stock to hold at the factory, at the regional DCs, and at the central DC. Broader deployment of these solutions could result in less stock being held in some DCs and a different product mix in others.

Network design. In the past, companies typically turned to network design software when they wanted to solve a specific problem. But today, more companies are starting to view network design as an ongoing process. As the business climate becomes increasingly volatile, they're re-evaluating their networks on a regular basis to determine whether they have the right locations to meet the dual objectives of serving their customers while keeping transportation costs low.

For distribution managers, network design tools are a mixed blessing. Although a network analysis might validate the use of a location, it could just as well recommend shutting down a DC or relocating the facility. Long-term stability of DC locations in the supply chain network could become a thing of the past.

Demand planning. More companies are coming to the realization that the best way to avoid excess inventory is to adopt a demand-driven supply chain strategy. Instead of making products to a forecast and pushing them on consumers, the manufacturer uses information from the retailer on what's selling as the basis for production and replenishment decisions. The ideal data come from sales transactions at the cash register, although drawdowns in inventory levels at the store or the retailer's distribution center can be used as the demand signal. No matter the information source, the data have to be interpreted, and a number of vendors have developed special software that schedules replenishment shipments based on demand signals.

As supply chains become more demand-driven, distribution managers can expect to see changes in their DC operations. By definition, a demand-driven supply chain dictates that the distribution center pick and ship stock in response to sales activity. That could necessitate higher throughput and more frequent replenishment delivery runs. Another likely change would be the need to build more "rainbow" pallets, which contain an assortment of items rather than a single type of product. Shipping mixed-case pallets allows the company to keep a variety of items in stock at the store. However, building rainbow pallets requires more work on the part of the DC.

As with any technology, it's hard to predict how quickly these applications will catch on with shippers. But the potential for big change is there. These systems could someday become as common in DC operations as warehouse management and transportation management systems are today.

Technology
  • Related Articles

    Software survey: What's hot in today's DCs?

    Where's the payback in software?

    in a (software) class by itself?

Jamescooke
James Cooke is a principal analyst with Nucleus Research in Boston, covering supply chain planning software. He was previously the editor of CSCMP?s Supply Chain Quarterly and a staff writer for DC Velocity.

Recent Articles by James Cooke

Getting smart about using software intelligence

Where's the payback in software?

R is for "robot": interview with Tom Bonkenburg

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Relaxed regulations for drone parcel delivery to take effect in March

  • IBM survey says digitalization trends will sweep trucking industry by 2030

  • Gartner survey signals increased investment in resilience over the next two years

  • Increasing Urgency for Vaccine Supplies Drives Launch of New Vaccine Manufacturing Resources on Thomasnet.com

  • What Level of Automation is Right for Your Warehouse?

Now Playing on DCV-TV

Ef7899d1 1c83 487b 9291 8af692931c96

myQ Dock Management

DCV-TV 4: Viewer Contributed
Introducing myQ Dock Management. Connect your loading dock equipment and iDock Controls from Poweramp, McGuire, or DLM to the cloud and view your loading activity online with myQ Dock Management.Facilities with myQ can monitor the real-time status of their docks and be proactive in improving efficiency and safety. ...

FEATURED WHITE PAPERS

  • Time to rethink your lift truck power

  • Warehouse Management System Project Toolkit

  • Solving Talent Management Challenges Now and In the Future

  • Shaping Up Last Mile Delivery to Surpass Customer Expectations

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing