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					Supply Chain Solutions for DoD from the Metals Industry




                   DoD Logistics Supply Chain Solutions:

                                   Improvement Through Technology
                                Logistics Management System (LoMaS®)
Technology Transfer Opportunity

 The competitive nature of the steel industry necessitates extremely sophisticated supply
 chain discipline. Margins are razor thin and competition is cut-throat. If DoD were to adopt
 steel industry lessons learned and steel industry supply chain technology, DoD supply chain
 efficiency would improve and costs would plummet.



 Capabilities                                                   New Opportunities
  No lost or stolen inventory                                   DoD volume buys steel, supplies
  No unnecessary inventory                                        defense industry, saves on
    buildup or over-buying                                         volume buying, eliminates
  No wasted warranty coverage                                     vendor mark up
  No ownership confusion with                                   DoD eliminates unnecessary in-
    trade ins                                                      theater buildup and knows how
  No loss of accountability                                       best to pull equipment from
                                                                   theater
  No loss of shipping prioritization
    discipline and shipping mode                                 DoD stops paying for vendor
    optimization                                                   errors and warranty item repairs
  No loss of end-to-end visibility,                             DoD knows precisely what it
    including last mile, despite inter-                            owns, where it is, what condition
    organizational hand-offs                                       its in, and how to move it 24/7.
… Commercial Users




            + Over 100 Other Comm. Users
24/7 End-to-End Inventory Control

• Inventory Control over Entire Supply Chain
  –   Ship Point, to
  –   Transport provider, to
  –   Processor, or part manufacturer, to
  –   Transport provider, to
  –   Assembly, to
  –   Transport provider, to
  –   Warehouse, to
  –   Transport provider, to
  –   User
• You know what you own, where it is, its condition, its
  warranty data, its pedigree, from end to end, at all
  times
LoMaS® Supply Chain Visibility over Multiple
Organizations for true JIT Inventory
             SHIP/BARGE
PRODUCER       VESSEL      PORT        RAIL     PROCESSING   TRUCKING   MANUFACTURING




                          Internet Connecting All Points


 •   Visibility via the web, 24/7
 •   Connectivity for supply chain without
     additional investment by suppliers
 •   Real time inventory position
     throughout entire supply chain
 •   Search by any coil identity: mill#, po#,
     part #, mill order #, …
 •   Release / Order capability on-line
 •   Triggers set to manage daily functions
     automatically
Systems Capabilities Proven Daily in Steel
Operations…(Warehousing, Trucking, Rail and Intermodal)
                              • Automated reporting of receiving
                                and shipping via variety of EDI
                                protocols
                              • Online visibility of in-house and in-
                                transit inventory
                              • Blackberry communication with
                                drivers
                              • Automated load tenders, arranges
                                truck schedules
                              • Real-time reporting of inventory
                                transactions
                              • Work instructions transmitted to
                                employee’s portable scanner / data
                                terminal
Where LoMaS® Fits with Other Systems



                   APS                    Provides capacity planning,
          (Advance Planning System)       scheduling, forecasting
                                          Provides for production
          ERP Systems                     efficiency
         (Enterprise Resource Planning)

                                          Provides all of TMS, and
                   WMS                    •   WMS
            (Warehouse Management         •   VMI
                   System)                •   EDI
   EDI
                                          •   All modes
                 LoMaS®                   •   Connectivity to ERP
                  TMS                     Provides transactional
                (Transportation           transportation
              Management System)
                                          management
Warehouse Management System (WMS) Functionality in LoMaS®



• Location within facility in X, Y, and Z dimensions
    – Intelligent staging engine
• Bar code scanning
    – I/B and O/B shipment verification
•   Inbound and outbound scheduling
•   EDI
•   Storage time calculated, and invoice creation
•   Identifies “born date” and arrival date
•   Material certifications as part of records, can print
•   Parent to child linkage
•   Web visibility- Web ordering
•   Inventory management
•   Graphical load diagrams/ instructions
Transportation Management System (TMS) Functions Provided by LoMaS®



•   All Modes of Transport- Rail, Barge, Truck are handled
•   Automated load tendering to motor carriers
     –   LoMaS® has options: best rate, specified carrier or percentages to named carriers
•   Dock scheduling for load pick up
     –   Carriers self-schedule over Web based on shipper parameters
     –   LoMaS® allows for immediate changes by dock shipper
•   Customer master information sent automatically to carrier
     –   LoMaS® contains directions, equipment specifications, driver safety requirements
•   Trucking company master information on record
     –   LoMaS® also provides insurance status, contact points
•   Load track and trace
     –   LoMaS® provides ETA based on historic data
     –   LoMaS® connects with rail CLM’s automatically, eliminating the need for separate system or services
•   Performance reporting
     –   LoMaS® provides standard reports (carrier on-time delivery, arrival to appointment, time at dock, time in transit, cost
         allocation)
•   Customized reports easily handled, either system or data download to Excel
•   Delivery information
     –   LoMaS® displays by PO or coil number, and is real time
     –   Can feed information to accounts payable systems
•   POD available over Web
     –   LoMaS® provides for fax/scan application, attached to records available to authorized users
•   Handles multiple ship-from locations
     –   Within a facility
     –   Multiple facilities (processors or other sister mills)
Data Exchange with Other Systems



• Ease of integration with whatever system the customer uses is a key
  feature of LoMaS
   – Interfaces with all common ERP systems… Oracle, SAP, JDE,
   – LoMaS also has integrated easily with home grown legacy systems
   – LoMaS can accept input from spreadsheets, parsable e-mails or the
      Web
   – LoMaS outputs data with equal flexibility … e.g., to MS Office
• Accepts input from bar codes, RFID, RF, or other hand held scanners)
    LoMaS® EDI Connectivity
                 SHIP/BARGE
    PRODUCER       VESSEL       PORT           RAIL     PROCESSING   TRUCKING   MANUFACTURING




                                     EDI Connecting All Points


•     Complete data direct from the mill
•     Front end Web interface for non-EDI users
•     Data pushed to/through supply chain
       – Reduces data entry errors
       – Time saving service to supply chain participants

•     Real time data accessibility
•     All electronic data exchange formats embraced including:
       •   XML, Compord, EDIfact, FTP, ANSI, X12, CSV
•     LoMaS is the ideal platform for multiple business partners
Plus more …

•   Material certification data / chemistry information contained in records => Warranty
    metadata goes with the product
•   All record changes are recorded => total accountability
•   User authority levels => Required approval at appropriate level
•   In house VAN for EDI messages
     – Split messages to multiple sites
•   Load building for most economic shipments
•   Algorithm to calculate best cost delivery consistent with promised delivery over
    multiple stops, and route identification
•   Carrier payment capabilities
•   AIAG bar coding
•   FIFO and “Born” date tracking of inventory
•   Creates Bill of Lading
•   Electronic messaging
LoMaS Functionality Summary

      EDI / FTP/ Web
                                    Inventory Management
      Connectivity                       •Tracking/tracing
                                             •Location
                                             •Visibility
                                             •Ordering
  Shipment Management                         •Resale                         Carrier Management
        •Load building                         •VMI                               •Rail/water/truck
     •Load aggregation                                                               •Insurance
      •Load scheduling                                                             •Rates history
    •Dock management                                                                  •Contacts
    •Rate Management                                                                •Equipment




                Document Management                             Administrative
                       •Notification                            •Freight Payment
                    •Proof of Delivery                        •Performance Metrics
                         •SED’s                                •Inventory Demand
                        •EDI/ FTP                            •Freight Cost Allocation
                                                                     •Secure
                                                                  •Web Access
LoMaS® the Tool for Vendor Managed
Inventory and Resale programs


• VMI is managed using the WMS and inventory visibility
  capabilities of LoMaS® , with bar code scanners, or RFID.
• LoMaS® allows for VMI from any, or many sources. Metals
  purchased from a variety of companies can be managed on
  one platform
• Companies can specify LoMaS® as the platform which their
  metals suppliers use to implement effective VMI for inbound
  metals
• Can manage all partners and data to run a resale program
What benefits can be expected from
VMI?
•   Typical major benefits:
     – Minimize the “Bull Whip” effect
     – Increase inventory turns AND
        increase in-stock coverage
     – Decrease stock-outs AND
        decrease premium coverage charges
         • Increase revenue and reduce assets => improve ROA
•   Requires fundamental changes in relationship between trading partners
•   Enables fundamental changes in relationship between trading partners
•   Proven in numerous consumer and industrial marketing applications
•   Requires very low cost information system to manage very frequent inventory
    position updates and replenishment orders (releases)
Resale, a Cost saving idea enabled by LoMaS


• MMNA (Mitsubishi Motors North America) example:
   – MMNA goal to streamline the steel supply chain
   – MMNA goal to volume-buy steel from suppliers and “resell” to their parts
     manufacturers at MMNA cost
      • Results in no cost markup on the material used to make the part
   – MMNA goal to automate business processes where possible
   – MMNA requirement to reduce errors and disruptions
• LoMaS provides the tool for:
   – Enhanced Inventory Management capability
   – Visibility of material & material movements
   – Tactical planning & execution
   – Longer-term management (trends/patterns, etc)
MMNA Example (con’t)



• LoMaS:
  – Collects all resale information in one location through a common, web-
    based system
  – Collects and displays MMNA EDI Release information
  – Enables projection of steel needs based on Release Requirements
  – Entire supply chain can access all pertinent information
  – Enables on-line ordering of steel
  – Enables audit of released needs vs. actual ordered
  – Enables regular updates of parts data through regular MMNA Host
    downloads of ADDs and DELETEs
Sales/Customer Service Benefits of using
LoMaS®
• Transactional efficiency = cost savings
• Know inventory locations, whether at rest or in transit,
  and ETA
• Easy to trace product in the logistics pipeline by
  product ID, sales order #, customer part #,
• 24-hour access to information over Web
• Enhanced customer service,
• Customers can be granted access to see only their
  product
• Proof of delivery on the Web
• One platform from which all modes of transportation
  are managed
Logistics Management Benefits of using
LoMaS®
• One platform through which all material is managed
    – Provides for exception management
• ETA based on history, not just carrier projection
• Automated track and trace across all modes, updates locations
• Performance reports.
• Location and scheduling of empty equipment
• POD’s are attached to system records
• Carrier rate negotiation/rate histories are in the system
• Carrier destination and potential availability for a next load is
  known . . . leverages available equipment
• Rates and releases are capable of unique application to lanes
  or customers, ultimately flexible to leverage the best cost
  opportunity consistent with the service criteria
• Automated scheduling and dispatch of truckloads
Why LoMaS® Solution- Now

• SUPPLY CHAIN MANAGEMENT
    – COST BENEFITS
    – IMPROVE CUSTOMER SERVICE
    – REDUCE INVENTORY
•   RAPID TIME TO BENEFIT
•   START WITH FUNCTIONALITY NEEDED, EXPAND LATER
•   NO CAPITAL INVESTMENT
•   INTEGRATION WITH MANY SYSTEMS/ PARTNERS
•   ADS IS AN INDUSTRY PROXY
•   APPROVED SECURITY
•   IBM APPROVED
Examples: Inventory Position Report
Example: Resale Program and VMI
Management
Example: Inventory Demand vs.
Inventory On Hand (Carrying Cost Control)


                                                                      In ven to ry an d S ales R eal T im e In fo rm atio n
                                                                     b y an y d im en sio n (p ro d u cer, p lan t, p art, etc)
             1 ,4 0 0




             1 ,2 0 0




             1 ,0 0 0


                             IN V E N T O R Y
               800
      Tons




                                                                                                E X C E S S IN V E N T O R Y
               600




                                                                                                              M AX C O N S U M P T IO N
               400




               200




                                                                                                                      AC T U AL C O N S U M P T IO N
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                                                                                                              W eek
Supply Chain Solutions for DoD from the Metals Industry



                                       Contact us at:
                                rob.jenks@intelesistech.com
                                tunderwood@delreysys.com

				
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posted:10/25/2011
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