HighJump Software

We have hit another month end and I can’t help but sympathize with those warehouse managers and accountants working in the DSD arena. It seems that in nearly every operation running a legacy route accounting system (RAS) for its inventory solution that I have been involved with, the challenge remains the same, month end. The tasks associated with this event have grown over the years, and mean the same thing to all. In a word…Extra! Whether it is time warehouse staff spend counting and re-counting, or effort spent trying to figure out what report supports your reconciliation trouble shooting requirement, it is this “extra” effort that is tying up resources that could be used elsewhere!

After a month of daily sales / loads transactions (and of course the corresponding adjustments to both) it seems a lot can go wrong in that calculation of expected quantities for your on hand inventory! Rather than leaving this challenge for another day of “extra” at month end, here are some simple (and decidedly low-tech) steps that I have seen some of our HighJump customers use to help remedy this situation.

UPC Scanning: yes I know that your warehouse staff can recite product numbers off the top of their head, but what about that temporary receiver filling in when the regular is out sick? Or perhaps the inventory clerk who missed his morning cup of coffee? This simple act limits the exposure to human error…and it is exactly that human error that can create headaches when trying to figure out why numbers bounce all over the place during the month.

Cycle Counting: a daily count, whether it be of a select few packages of high movers, a scheduled percentage of inventory like 20% of SKU’s per work day (typically by brand/package) or a full scale review of your on hand (as required). No other single act can offer as much valuable information as this assessment. Using this information to identify potential problems and acting to resolve them now, reduces the effort significantly.

Watch the Trend(s): by watching where your inventory numbers are heading you may be able to catch the single events that are distorting your results, or perhaps even identify systemic issues present in your operations. Whether you are looking at day over day, or month to date style data, clues are waiting to be discovered that will help you trigger further investigation! Identifying that sudden spike in variance or worrying baseline trend may be step #1 in saving your company from a costly shrinkage write off in the coming weeks.

Sweat Equity: forgive me for stealing a term from one of those home renovation shows, but HighJump inventory management provides you with all sorts of tools and reports to dig further into inventory variances…the trick is, you have to use them! As a customer I have worked with for years recently said “I want to learn to fish for myself”. This request was a perfect example of wanting to work smarter rather than harder and we spent time after that learning how to dig deeper into data with tools available. Rather than using the same reports that partially satisfy your requirements, and then merging data to investigate, why not ask about alternative tools and techniques? Spending time learning how to troubleshoot your inventory challenges is a valuable investment in yourself and your company.

You can decide to continue with your status quo as your month end rapidly approaches. Or you could try to avoid that phone call from your spouse asking whether they should eat alone while you struggle to reconcile variances generated weeks ago and ask yourself – is there a better way? I certainly think so…
 

Many new phrases have become part of our everyday lingo as a result of the recession. One of my favorites is "Shovel Ready" It’s not nearly as cryptic or technical as "TARP" aka, Toxic Asset Relief Program, but it’s catchy! It’s a term that was used by President Obama in a Dec 7^th airing of Meet the Press when he talked about the kinds of projects that the stimulus bill would help most. It wasn’t long after that when we began to hear every local politician use the term on the nightly news! Congress made the term quasi official when it incorporated the spirit of the phrase in legislation that provided stimulus money to construction projects that could be started within 90 days of receiving the funds. Meaning only those projects that had already completed the necessary preparatory tasks  before the project could actually begin.  Being an system implementation project manager, I’ve developed affection for the term! 

Not all projects require a ‘shovel’ in the toolbox of things needed to get the job done, but all projects do indeed require a period of preparation before executing them.  So, I ask… is your WMS - Warehouse Management System implementation project "shovel ready"? Perhaps you’ve just purchased a new WMS system to replace a technologically outdated one or to replace a paper based system.  Either way, there are many things you can/should do to prepare for this life changing event!  One of the more fruitful yet least desirable tasks in preparing a warehouse for a new system is general housekeeping! 

• Got inventory that is aged or obsolete still gathering dust on your shelves? Write it off, toss it, donate it, recycle it, return it to the vendor, but by all means get rid of it! Got the same item located in seven different locations around the warehouse? Consolidate it to as few locations as practical.  
• How about inventory sitting at the ends of the aisles, or on the  office supply racks, or sitting on the floor of someone’s office? (really, I’ve seen this). Move it to where it should be - even if that means out the back door! 
• How about old torn and faded shelf/bin labels that are now unused residue of a re-slotting project? Get the goof-off out and remove them, as it’s likely you’ll be doing some bin re-labeling as part of your WMS Management System implementation.  
• Got any racking, shelving, material handling equipment like wobbly carts in need of repair? Do yourself a favor and include repairs as part of your ‘shovel ready’ preparations - it’ll be a visible demonstration of management’s commitment to change.
• Then there’s the data scrubbing task.  Everybody has ‘junk’ in their item files – discontinued or obsolete items, duplicate items, and even non-existent items! Have your IT folks clean the data ‘house’ before you convert. 

I could go on, but you get the idea. A ‘shovel ready’ WMS implementation will go a long way in smoothing the often bumpy road to a successful transition.

While at Duke I took a graduate course entitled “Environmental Economics”.  It was a fascinating course that detailed ways we could assign value to public goods/externalities (air, water, public parks, etc.). One of the concepts we discussed was an approach to limit greenhouse gas emissions via a similar approach to the current Cap and Trade legislation for carbon emissions. First to level set for those of who are not familiar with the Cap and Trade, Wikipedia defines it as:

• A central authority (usually a governmental body) sets a limit or cap on the amount of a pollutant that can be emitted. Companies or other groups are issued emission permits and are required to hold an equivalent number of allowances (or credits) which represent the right to emit a specific amount. The total amount of allowances and credits cannot exceed the cap, limiting total emissions to that level. Companies that need to increase their emission allowance must buy credits from those who pollute less. The transfer of allowances is referred to as a trade. In effect, the buyer is paying a charge for polluting, while the seller is being rewarded for having reduced emissions by more than was needed. Thus, in theory, those who can reduce emissions most cheaply will do so, achieving the pollution reduction at the lowest cost to society.

In the classroom this seems like a great approach, but after further consideration I believe there are several flaws with this approach:

• The management of a cap and trade market with so many participants (several more than the acid rain market) would be very onerous. The cost alone to create/administer/regulate the market would be significant.
• There will still be a lot of variability and unpredictability to the amount a company must pay for a credit versus the trade-off of reducing their output (look at the stock market over the last few years). When a company cannot understand how much something costs, this makes it harder for them to assess investing in solutions to reduce their carbon footprint. This is particularly acute for companies’ supply chains that have a large transportation component. As an example: how do they properly analyze the trade-off between switching to hybrid transport vehicles versus staying with traditional fleet and buying up several carbon credits?
• The more complex this system, the more likely there will be certain “exceptions” granted to special interest groups with large lobbies. A simple transparent approach allows for a small government solution giving little leeway for those with the deepest pockets.

Another solution, proposed by Thomas Friedman in his book Hot, Flat, and Crowded has more appeal. He proposes setting a floor on the price of a barrel of oil, for example something in the range $125 - $150/barrel (You could do something similar with the price of a gallon of gas). The price floor could be tied to CPI so we avoid another AMT debacle. The price of oil would still trade at the market rate, but if the market rate is below the price floor then the company buying the oil would have to pay the price floor. The remaining amount would be the tax collected. If the market rate is above, then no tax would be collected. This tax would go specifically to funding projects/start-ups/etc. that are focused on either alternative energy sources (solar, wind, etc.) or on making existing energy sources more efficient (i.e. smart grids, high efficiency heating/cooling, etc.). Not only is this transparent, it removes a high degree of variability from a major cost center for supply chains. Granted either approach will result in cost increases, but with the price floor the cost increase will be known and able to be projected with a lot more certainty. Shippers could predict total freight spend with more accuracy since the accessorial fuel surcharge from the carrier should be less variable. Another important benefit is that this will spurn innovation and investment to develop viable alternatives. No longer will investors and large corporations have to worry whether oil oscillates between $40 - $80/barrel but will know if they can make a more cost-effective alternative if oil is at least $125/barrel it removes risk from them deciding to fund a project. Many of these projects require billions of dollars of investment and long time horizons, without some additional certainty on their viability they become almost impossible to fund.

I know there are several more facets and trade-offs to this debate, but let us move forward with a solution that is transparent, easy to administer, and removes uncertainty to clear the way for additional investment.

I spent some time last week with a HighJump Software customer who is considering further expansion of HighJump WMS solutions in their distribution centers. The customer is undertaking a massive ERP program that will allow the ERP system to be the IT backbone of their worldwide operations. They are also evaluating WMS solutions from this ERP provider.

In a meeting with senior IT leaders of this organization, I explained that I was highly confident the outcome of their pending due diligence regarding total cost of ownership (TCO). I contend that a best of breed solution will result in lower long term costs for this IT organization. Here are a few things that make me confident in my position:

Best in Class Functionality

While ERP-based WMS solutions have advanced significantly, they are limited to the “classical” warehouse operations including receiving, put-away, inventory control, picking and loading. Supply chain best practices such a labor management, slotting management, advanced wave planning, and last mile delivery are not traditionally supported with ERP WMS solutions. This means that when supply chain operations teams demand these capabilities, IT organizations are forced to address them with expensive customizations or bolt-on solutions with multiple integration touch points.

Upgrades

A WMS solution typically has a 10 year lifespan. In this lifespan a WMS could be upgraded five times. ERP upgrades are generally more expensive to upgrade because of the interdependencies between modules and re-application of source code customizations. Additionally, corporate IT governance and change management processes often make it difficult to upgrade a single module. Therefore the business users may be forced to wait for new features because of dependencies on modules that have nothing to do with distribution and logistics. View this video to learn more about HighJump’s approach to simplified upgrades.

Adaptability Tools

If your organization views distribution as a source of competitive advantage, then ERP-based WMS could be problematic. By definition, a competitive advantage must be unique to the organization. Business processes available in commercial off-the-shelf software packages (like ERP) therefore cannot contain business processes that are sources of competitive advantage.

To really ensure you have the flexibility to maintain and create further sources of advantage in your distribution operations, your supply chain logistics software must have the ability to create processes that are unique to your business.

HighJump has a unique approach that allows customers to define unique workflows that does does not involve any source code modifications. I am not aware of any ERP based WMS solutions with a similar architecture.

Without this architecture it can be very expensive for IT organization to deliver these workflow changes.

In a recent letter to their suppliers (full letter here courtesy of ARC), Wal-Mart outlined a new policy about the enforcement of the MABD (must arrive by date). The gist of the policy is that all purchase orders (POs) must arrive within a four day window preceding the MABD. If a supplier is out of compliance over a period of time, they will be subject to a fine which equates to 3% of the cost of goods sold (COGS). How is that for a chargeback? While it is common place for retailers to have some chargebacks in place if certain conditions are not met (labels, timing, packaging, etc.), this new program raises the risk and cost exposure to shipping to Wal-Mart. Wal-Mart’s go to market strategy is largely competing on price, and to achieve their price superiority they lean heavily on suppliers to lower their COGS so they can pass some of that savings onto consumers. Many suppliers will have no choice but to accept these terms since Wal-Mart represents so much of their business, but this new policy will make it less profitable to sell their wares to Wal-Mart.

I wonder if Wal-Mart cannot see the proverbial forest for the trees when it comes to their extended supply chain costs? Anytime we chose to measure/manage/incent on a metric it is quite likely to improve. I have no doubt that the number of POs that arrive within the MABD window will increase, but at what cost? Just last Spring when Best Buy was reporting their Q1 financials they stated they lost potential sales because some vendors had simply not supplied the expected merchandise. I can see a similar situation unfold in the case of Wal-Mart. The more constraints that are introduced into a situation, the less the situation can be optimized. If the supplier has these strict delivery windows they might be less inclined or dis-incentivized to consolidate loads. This could result in out-of-stock conditions on the store shelf, something that clearly costs Wal-Mart money. To the degree this new policy raises the overall cost for the suppliers the less they will be able to work with Wal-Mart on additional price concessions or Wal-Mart could push them to the brink of bankruptcy, neither of which is a good outcome for Wal-Mart.

While I am all for management of key metrics, it is always important that the metrics enforced in one division/department support the overall corporate strategy otherwise a sub-optimal result is likely. This new policy is now in effect as of February 1, 2010. It will be interesting in the coming months to see the impact this has on Wal-Mart’s extended supply chain and if it goes the way of the RFID mandates…

I recently received a direct mail marketing piece from a HighJump Software competitor. The mailer included a press release announcing that this company had “enhanced direct store delivery integration” and a one page datasheet which described a direct store delivery value chain as manufacturing + regional warehouse + mobile resources + retail shelf.

HighJump Software is the North American market leader for direct store delivery software solutions. If our primary competitor in the warehouse management systems market had encroached on our market position I needed to know. Perhaps they had acquired a route accounting solutions provider or acquired a provider of mobility solutions for mobile selling and delivery at the retail location. I consulted a trusted industry analyst who confirmed my suspicions… this was marketing hype and this company’s approach to direct store delivery still had significant “holes.”

Anyone familiar with the value chain of direct store delivery companies knows there are some specific complexities that must be addressed in order to have “comprehensive coverage across the extended supply chain.” Here are some things companies should consider when search for direct store delivery software solutions:

Certified Route Accounting Systems

Route Account Systems are unique software systems to manage the complexities of route-based sales and delivery. They typically manage the entire order-to-cash cycle and are geared toward the world where sales, inventory, and business metrics are all tied to a “route.” Although traditional ERP systems can be used for route accounting systems, they typically require customization to deal with complex pricing/promotion, cash settlement, truck inventory, and supplier e-commerce integration. To further understand the complexities in the beverage value chain read It is Hard for Anheuser-Busch to be Procter and Gamble.

Mobile Sales and Delivery Applications

Success or failure in a direct store delivery business is determined at the store shelf. Direct store delivery companies have large workforces of mobile sales and delivery professionals who need to be equipped with mobility technology for them to effectively accomplish their objectives. HighJump Software provides a comprehensive suite of mobility products which support industry best practices for order capture, goal-based selling, delivery tracking and cash settlement. For more details on these solutions read about our latest mobility suite product release HighJump Software Enhances Mobility Solutions With New Release of Mobile Route Sales and Delivery Software Suite.

Load Optimization

Optimized loading of side bay beverage trucks can be complex. While there are numerous packages for creating optimized load plans of traditional van trailers or flatbed trailers, optimizing for side bay beverage trucks is another animal. Additionally, this business problem becomes even more complex when you have a “peddle” environment (driver selling off truck without pre-sold orders) and driver preferences must be taken into account at the load and pallet level.

I think the moral of the story is “don’t believe the hype.” Direct store delivery software solutions are specialized for the unique needs of this industry. Direct store delivery software solutions deal with complexities of supplier integration, cash settlement and truck inventory. A WMS, TMS and retail workforce solution will not meet the needs of most food and beverage distributors in their direct store delivery operations.

HighJump Software was recently named to the annual Food Logistics 100. The FL100 is a listing of technology solution and service providers selected by the editorial staff of Food Logistics magazine that are helping food, beverage and CPG companies gain a competitive logistical advantage.
 
“HighJump Software empowers food manufacturers, distributors and retailers to tackle a number of critical challenges, including increasingly complex regulations, rising costs and slim margins,” said Timothy Campbell, President and CEO, HighJump Software. “We’re honored to have been recognized by Food Logistics once again as a technology provider of choice for the food industry.”

Read the press release to learn more about how HighJump Software helps food and beverage companies with supply chain improvement.

A trendy term bandied about for years by process analysts, project managers and business managers in general is ‘best practice’. You’ve all heard it, but I wonder if everyone knows what the term really means? I use it all the time and was recently challenged as to what I meant when I said it.  I offered my professional explanation, but afterwards wondered if my definition was correct.  So, remembering my childhood instruction on how to find out about something - I ‘looked it up’.

Wikipedia’s definition is: “A best practice is a technique, method, process, activity, incentive, or reward that is believed to be more effective at delivering a particular outcome than any other technique, method, process, etc. when applied to a particular condition or circumstance”.

I choose to quote Wikipedia’s definition because it provided validation for the point I’m about make. The operative phrase in Wikipedia’s definition is ‘believed to be’… the best. Ah ha! That indicates a best practice may or may not be the best, or worst.  Let me illustrate – Is it better to put peanut butter on both sides of the bread with the jelly on top of the pb or put all the peanut butter on one side of the bread and just jelly on the other when preparing a PB&J?  Which would be considered the “best practice” for this task?  Both methods achieve the desired outcome; neither requires significant extra effort, time, or materials and each is suitable to the maker’s personal preference and skill. In this case both methods can be considered a ‘best practice’.

So the next time you’re told that how you’re doing something in your warehouse isn’t ‘best practice’, don’t hesitate to challenge the teller! Clearly there are proven methodologies that are better than others, but the ‘best practice’ isn’t always applicable to every circumstance. A supply chain best practice is often suggested by the eye of the beholder who is not the doer!
 

Today HighJump announced that our latest route accounting system (RAS) has received certification with Anheuser-Busch InBev for use by their wholesalers. The result of this certification is that HighJump RouteCenter receives the highest level of compliance, Level 1 ISV – Strategic Partner. The news release: HighJump Software Named Strategic Partner by Anheuser-Busch InBev.

The role of route accounting systems in Anhueser-Busch InBev’s value chain is critical. In order to fully understand the importance of this software, it is important to contrast the value chain of the large four beverage suppliers from a traditional CPG value chain. Let’s explore the differences …

Traditional CPG Value Chain

The traditional CPG value chain is largely vertical. A vertical value chain is one where each component of the chain including source, make, deliver and sell is controlled by the same company – in this case the brand owner. This allows retailers and brand owners to collaborate about every aspect of the product including quality, new product introduction, price, promotions, and electronic commerce. With today’s sophisticated supply chain software it is possible for most CPG companies and retailers to know exactly what was sold (and at what price) at every retail location every day.

Additionally, most traditional CPG companies have the following inventory flow: manufacturing/production -> regional distribution center -> retailer’s distribution center -> retailer. In this scenario the retailer is primarily responsible for managing the inventory that is shipped from the manufacturer to the retail distribution center (ordering) and the flow from retail distribution center to store (although there are certainly evolving collaboration techniques to share this responsibility across the manufacture and retailer).

Big Beverage Value Chain

The value chain of the big 4 US beverage suppliers (AB InBev, MillerCoors, PepsiCo and Coca-Cola) are more fragmented than the traditional CPG companies. In the case of the beer suppliers, they manage the manufacturing/production process and then resell their beer to independent wholesalers/distributors that distribute and sell to the retail location. In the case of the large soft drink suppliers, they do not even manage the production process but leave make, deliver, and sell to independent bottlers.

Additionally, in most situations beer and soft drink products are delivered directly to the retail location and by-pass retail distribution. This approach benefits the retailer because they are not forced to handle and transport beverage products which are significantly heavier than most food products. The beverage companies benefit from the ability to merchandise themselves and manage promotions at a local level.

Why Retailer Collaboration is More Challenging in the Beverage Value Chain

Retailer collaboration through e-commerce initiatives is more complex in the beverage value chain. This is because unlike the traditional CPG chain which has full visibility to transactions with the retailer, the big 4 beverage suppliers are reliant on their independent distributors who transact with retailers. AB InBev needs to have the same level of visibility over their independent wholesalers as Proctor and Gamble has over its distribution centers….no easy task.

How the Route Accounting System Helps

The route accounting system is the core back office system for independent beverage distributors (think ERP for beverage distributors). Best-of-breed route accounting systems have certified integration back to the large beverage supplier organizations. Through this integration, the large beverage suppliers are able to have transaction visibility throughout their distributed value chain. This collaboration allows product, pricing, and promotional information to flow from the supplier to the independent distributor. It also allows sales transactions to flow from the independent distributor back to the supplier so that the supplier can provide this information to the large (and demanding) retailers. Therefore, it is really the route accounting systems which allow the large beverage supplier organization to provide retailers the e-commerce supply chain collaboration they demand.

Being in the handheld based solution business for quite awhile now, there is this voice in my head that keeps saying that there is more to the whole Smartphone thing than simply changing the device we capture our mobile sales, service and delivery transactions on. The fight for the mobile desk top is still raging on and there is no clear winner in sight. Open architectures that can span the operating systems will have a definite advantage. In the ruggedized space, at least for the near term, Microsoft rules the way. However, that cannot be said for what is being carried in the pockets of executives, sales people and even the man on the street.

Route Accounting and DSD systems are fantastic at collecting data. They collect information about sales, location, inventory, trends, specials, lost sales, movements and the list goes on. Then this little light goes on; what about creating a data push model to the outside world? The new killer app may not be in changing the way we collect the data but what we do with it. Some of this requires software, other parts of it are just implementation.

•  IMAGINE: The CEO receives up to the minute sales vs. expected data on his iPhone with drill down data against individual line items or categories that are not meeting the plan.

• IMAGINE: Pre-sending the predicted “Suggested” or “Perfect” order calculated by the Route Accounting System to the customer’s BlackBerry and having them pre-approve or edit the orders and add special instructions.

• IMAGINE: After a driver makes a delivery stop, alerting the merchandiser and the customer AP team that the order is on-sight and is ready for the next step.

• IMAGINE: Your customer can push orders and requirements based on current stock levels from his Android phone to update stock levels and recalculate suggested order levels.

The answer here is that we can completely change the customer interaction paradigm from a push only environment to an interactive environment. The “web” based customer portal is the past already. The new battleground is in the pocket of the businessman. Two years ago, I did about 20% of my email on my phone and I would never surf the web. Today I use my phone and my desktop interchangeably. Our market is changing, the users are much more technically able. This is the most exciting time ever to be involved with handheld technology. There is a revolution underway. It will be a game of leading or dying as the way customers interact with suppliers evolves to a new reality in all facets of business.

I suspect, although it wouldn’t be admitted to in mixed company, that the presumption has oft been made that having any sort of route accounting software in place puts that direct store delivery business ahead of most. Quite a stretch, considering the increasing complexity of food and beverage distribution processes and requirements, and the extreme range of RASs out there (think old pick-up vs. shiny new SUV).

Now, that old pick-up was, in its day, the envy of many. It could even drive through some bumpy terrain. But now, although it [usually] starts, and can [almost] reach highway speeds, it’s not too reliable, and you need to visit salvage yards to find replacement parts. Not exactly the chariot you want your precious cargo riding in, and not exactly cost-effective. Not the most inspired metaphor, but not too far off?

So how do you know if you’ve got a route accounting system akin to that old pick-up? 
 

• Your processing times seem to be getting slower and slower. 
• You spend days trying to extract data for reports you need to run your business.
• It’s tough to get applications to work together and you’re spending a lot of time and money making integrations work.
• There’s only one person there who understands the necessary workarounds of your RAS – and he’s retiring next fall. 

No, we haven’t been shadowing you. The fact is: the symptoms you’re experiencing are quite common to DSD businesses running on dated technology. While your system may still work at a basic functional level (the pick-up still starts and runs, remember?), modern technology can provide new features, better access to company performance and smoother integration with other systems. 

You may even be interested in the “full maintenance plan” (to extend the vehicle metaphor painfully further) for a modern route accounting system – otherwise known as an on-demand, or hosted system. This option removes the maintenance headache completely by having your supply chain management software vendor host your system for you. There is no hardware to purchase or maintain and patches and upgrades are done automatically. 

This year may be the best yet for your direct store delivery business – do you have a swift, reliable and easy-to-maintain “vehicle” to get you there?
 

HighJump Software announces the latest release of its market leading mobility solution for mobile sales and mobile delivery. HighJump Mobile Sales Advantage, HighJump Virtual Cooler, and HighJump RouteXpress have been enhanced based on evolving technology and industry needs.

The HighJump mobile suite for direct store delivery (DSD) extends the route accounting system into the field for real-time visibility of sales and customer data. HighJump’s mobile products help integrate selling, marketing and delivery efforts across the organization. The HighJump mobile delivery system combines order processing, delivery, peddle sales, invoice management and comprehensive settlement capabilities to streamline daily delivery activities.

Read the full press release.

In the technology world we hear a lot about “best practices.”  This is usually a carefully couched catch phrase that means “we did it our way and you should do it that way.”  This is one of those over abused phrases that needs to be added to everyone’s Board Room Bingo game and never used again.  With that said, there are truly best of breed methods that lead the industry.  However, the application of these methods needs to be highly personalized.  There is more than one way to do things and the term “best” depends on many factors that influence that particular situation.

In software, if there was a best then we wouldn’t need multiple vendors and we certainly wouldn’t need consultants to understand the business and implement solutions that maximize the business benefits to the company.  Solutions need to be highly configurable to adapt to the “best fit” for each and every customer. There are many ways to do that. You can take the workflow modeling process or you can take a flag driven process.  Direct Store Delivery environments are highly dynamic and business processes may need to change on a dime.  Unfortunately, many DSD organizations don’t really have the luxury of IT departments to run their route accounting systems and mobile delivery software. The tools built into the system need to be deployed so that normal business people can change, test and deploy them without the luxury of techie folks.

We hear people talk about “best practices” as a way to combat “highly configurable” as an implementation approach. It sounds so good and it looks great on a PowerPoint slide. After all, it’s the “best.”  Believe me that anyone who is in the business can configure the industry standard methods.  They simply wouldn’t survive in the business if they couldn’t.  Let’s start with that as a given.  The real trick is finding partners and software providers who can reflect your business in the software and help you grow.  Making it a practice is best, not a best practice.

Since launching our blog earlier this year, it’s been exciting to watch the number of visitors to the blog soar since its inception. As we close out 2009, it’s fitting to take a look back and see which posts were the most popular in terms of page views.

1. What Makes a Good Metric?

2. When Choosing Metrics, Start at the Top

3. Be Careful What You Ask For With ERP Based WMS Warehouse Management Systems

4. What Really is in a WMS to ERP interface?

5. When Metrics Turn Evil

6. My Friends Are Getting Old, Your WMS May Be Getting Old Too!

7. Is RFID Dead? Should it be?

8. Don’t Underestimate the Value of an Integrated Manufacturing and Warehouse Solution

9. Is SKU Reduction Good for Consumer Goods Supply Chains?

10. Another Logistics Service Provider Chooses HighJump

We’ve enjoyed providing insights on supply chain best practices and hearing your thoughts and opinions too. Here’s to more great conversation in 2010! 

Change is something we all live with but often makes us very uncomfortable.  People in general like to have things stay the way they are; not for any other reason that that it is what they are used to. Even the worst way of doing something in the world can seem better than change. Sometimes, the worst critics of a given way of doing something will all of a sudden be big supporters of the original way of doing things as soon as you try to change it … odd but true.  I have even seen cases where a person left one company because they hated the systems they had in place, went to the new company to implement a new solution and put the same one in because he knew it … crazy, but it happens more often than you would think.

I couldn’t help but notice the parallel between the environment we implement new Direct Store Delivery systems and the environment in which we serve our customers. We recently had the opportunity to realign our support and account management strategies to provide a single point of contact for each of our customers.  There is no more trying to find the right office and the right person for each and every contact point at HighJump.  There is normal resistance to this process as our customers are used to calling around to find the right people.  After awhile you can’t pass the ball down the line any faster so you need to find a new way to pass the ball. Change comes at a price.  See the example above.

Thankfully we are meeting with a lot of support for our changes. One place to call for problems, one account manager for each customer who is also responsible for all other customers in that industry or customer group. People are uncomfortable none the less; we expect and respect that. Change takes time and effort.  We can’t wait for 2010 and the promise it shows in delivering a new level of support and service to our customers.  Under the “old way” we simply couldn’t do it.

Our customers go under a tremendous amount of change when they deploy our systems. We are undergoing tremendous change as we re-organize to offer a world class organization.  We are so appreciative for our customers and the willingness to work with us. It takes all of us working together to be truly great. The customer relationship is a key and we hope to bring that to a new level in 2010.

HighJump Software just announced the dates for Innovation 2010, which will take place at the Fairmont Scottsdale in Arizona. Mark your calendars for HighJump's user conference, October 24-27.

HighJump Innovation gives our customers a chance to network with industry peers and gain valuable insights into how to better leverage their HighJump solutions to achieve ongoing success. Attendees expand their understanding of successful supply chain management best practices in today's demanding environment.

Visit the Innovation website for more information.

There is an interesting term I have heard over the years about people who do the actual direct store delivery job. It goes something like, “If you are smart enough to do the job you may be too smart to take it.” The implication is that to do a really good job you need to have a kind of personal discipline and commitment to success as well as skill with people and sales that are not often found in industries where there is such a physical component. I have had the pleasure of working with and meeting many superstars in this industry; they are truly one of a kind individuals and are very talented. There is a true disconnect between the incentives put in place for many of these talents and a kind of regimented distrust that is prevalent in the DSD industry.

This brings us to the topic du jour. Much of the incentive in the industry is sometimes based around a relative distrust of the workforce. This can be demotivating in many cases. One of the most interesting strategies I have seen is by taking the normal performance metrics and including the route people in a kind of daily planning. The route supervisor meets each route man at the end of every day with a pile of reports: sales, returns, missed stops, time reports etc. and having a daily meeting. You change this meeting from being a performance meeting to being a planning meeting to go over what went right and what went wrong. Out of that, you develop strategies to improve tomorrow. Then you pay the route people on performance improvements.

Posting any great ideas or trends on a weekly board creates a kind of buzz around improving the sales. The people on the road are often quite bright and often underutilized. This experience can be used for the good of the company as long as you just ask. Of course there are exceptions. By and large, the biggest improvements in your very particular world are sitting at your fingertips for the asking. Often the man on the street simply feels no one would listen if they suggested something. What great opportunities lie out there. Our mobile delivery customers that have done this are getting spectacular results. Just a thought: turn the punitive controls into positive affirmation and change the culture.