In their July 2015 publication of the Hype Cycle for Supply Chain Execution Technologies, Gartner has observed a recent trend in the Slope of Enlightenment part of the Hype Cycle where companies are adding Distributed Order Management (DOM) and Slotting to their existing Supply Chain Management (SCM) applications. If a company buys and installs DOM and slotting to use them together with their WMS, then that would be an example of an application on the Supply Chain Hype Cycle. This change improves control of inventories, space utilization, order flow and customer service. It is particularly effective in complex Supply Chain environments with relative stock-keeping units (sku), such as apparel with style, size and color, as well as books, tires, chemicals, components and light assembly. It can also be equally valuable in e-commerce and order fulfillment environments.
An experienced software provider can help guide implementation and best-practice training, assuring a low risk / high reward investment.
Distributed Order Management (DOM)
The addition of DOM allows greater control and management of the complex relationship of orders. Dependent on inventory availability and position, customer demands, transportation selection and preferred mode DOM can drive order flow to maximize order fulfillment, lower freight cost and increase overall customer satisfaction. DOM functionality can be applied locally in one warehouse and/or globally across all DCs, in-transit inventories, manufacturing locations and other inventory positions. The system allows for delaying and mixing orders to assure “ship-to” addresses ship and travel together. Substitutes can be readily applied to orders when customers approve and prefer substitutes to out-of-stock, back-orders or delayed orders. Order priority can be preplanned to achieve all transportation, marketing and customer objectives. DOM can assist you current production planning to assure high productivity while best covering customer orders.
Slotting is designed to maximize inventory position in the DCs. It can interact with WMS to maximize productivity in inventory flow, assure high-volume inventory is positioned in the best locations to maximize inventory flow, ergonomics and assure peak productivity. It can also identify slow moving products that may need management attention. Special marketing or product plans can be measured from an inventory flow stand-point. It can be a valuable tool replenishing pick positions and managing Vendor Managed Inventory (VMI).
DOM and Slotting added to your SCM environment utilizing Cloud Technology
Gartner has listed Softeon as a sample vendor capable of delivering this solution. Softeon can train your organization in the Best Practice processes necessary to take full advantage DOM and Slotting functionality. DOM and Slotting coupled with your current SCM environment provides the tools needed to assure greatest efficiency in inventory, labor and transportation. Integrated with your other inventory management applications, DOM and Slotting can produce substantial reduction in major distribution costs and strong improvement in measurable Supply Chain Key Performance Indicators.
Softeon is also identified as a leading provider of Cloud technology in the delivery of Supply Chain solutions. Softeon can provide a Cloud based solution providing an effective, low cost and high performance solution.
Gartner, Hype Cycle for Supply Chain Execution Technologies, 2015, C. Dwight Klappich, 21 July 2015
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