HighJump Software announced Foster Farms Dairy has selected the HighJump warehouse management system (WMS) to optimize its operations. The company processes a wide variety of dairy products at three plant locations and distributes throughout northern and central California from multiple branch facilities. In the project’s first wave, the HighJump WMS will be implemented in the company’s three manufacturing locations and one of its distribution centers.
Foster Farms Dairy recently began a search for a warehouse management system as part of its commitment to continuous process improvement and satisfaction of customer quality and service needs. Lon Nebiolini, Technology & Systems Director Foster Farms Dairy, said “We selected HighJump Software because of its strong reputation in the marketplace, successful applications in the food and beverage industries, and its full suite of supply chain execution solutions, which Foster Farms Dairy plans to take advantage of in the future. Another important factor was HighJump
Software’s adaptable architecture, which will maximize flexibility with respect to changing business requirements without excessive costs or business disruption.”
Read more about Foster Farms Dairy's selection of the HighJump warehouse management system (WMS).
I’m enjoying my second cup of coffee while learning about HighJump’s product strategy in our second day’s opening session at Innovation 2009. Sitting at my table with me are HighJump customers from the consumer goods, manufacturing and wine and spirits industries. Quite a representation!
HighJump’s Vice President of Product Strategy, Chad Collins, explains that HighJump plans to continue with the expansion of direct store delivery footprint into other geographies (HighJump is already the largest provider of DSD technology in North America), and deepen manufacturing execution and transportation capabilities.
As we get deeper into the presentation, we’re getting live demonstrations of some of HighJump’s most impressive new product offerings, including:
- HighJump Performance Advantage – HighJump’s new business intelligence dashboarding solution for supply chain products that provides quick visual representation of key operational data/metrics
- HighJump RouteCenter – HighJump’s go-forward route accounting system for the beverage industry has some pretty sophisticated drilldown, search and adaptability capabilities and many customers are already converting from older systems onto this modern platform.
- GPS – HighJump’s DSD customers get more than just dots moving around a screen. This new real-time tool is great for any companies operating in a dynamic sales environment and creates staff coaching opptys and helps with fuel consumption – it’s already being used in the rendering and dairy DSD industries
- HighJump Supply Chain Advantage 11.0 – our newest release is coming later this year and includes some pretty cool cloud computing and interoperability capabilities. Stay tuned!
- Unique upgrade process - HighJump's upgrades stand apart from our competitors in that our customers can choose to include only the workflows they need when they upgrade, and keep existing configurations! See how it works at www.highjump.com/easy_upgrade
I'm highly caffeinated and ready to hit my first product session!
I recently visited one of HighJump’s manufacturing customers in Iowa. Their shop floor makes up several product lines, is very complex and spans over 900,000 square feet. They run our manufacturing execution system software (MES) to manage the shop floor and direct over 600 employees. While their throughput is down due to the macro-economic conditions, it was refreshing to see complex manufacturing alive in the United States.
Every time I read an article about manufacturing, the drum seems to get louder about manufacturing getting outsourced and its inevitable departure from the United States. A recent Business Week article postulates that we might have entered into a permanent ‘invented here, industrialized elsewhere’ environment. While I do not necessarily disagree for industries that have already completely left the cost to bring them back will be too high; I think there are other factors to help mitigate the transfer of industries that still have manufacturing in the United States:
Regulations and Protectionist Policies
Increasing regulations and risk of protectionism will drive up the costs of manufacturing elsewhere. Contrary to the promises of the G-20 about commitments to free trade, we recently slapped a 25-35% duty on tires from China. As the economic recovery starts, if countries resort to more protectionist policies this will need to be factored into an outsourced manufacturing decision. In addition we see additional regulations around imports; 10+2 being the most notable regulation scheduled to go live early next year. While there could be long-term savings from automation, the data collection effort can be significant and difficult depending on the technology infrastructure of companies in the supply chain so the corresponding upfront cost is not insignificant.
Demand Variability
Many companies moved manufacturing to Asia because of the significant cost benefits. One of the common trade-offs was the long lead times to ship the product to the United States. For companies that have a hard time predicting future demand (I am guessing there are a few out there) this creates a situation of either losing out on sales or loading up more inventory at different points in the supply chain. The more working capital tied up in inventory; the less money there is for the rest of the business. I think you will see more companies move toward a ‘near-shore’ strategy where they move non-strategic manufacturing to lower cost countries that are closer to the target market. In the case of the United States, Mexico fits the bill. Our customer has done exactly that by opening up a manufacturing plant in Mexico for the lower-end product lines while keeping the strategic product lines in the Midwest.
Government Incentive
One factor that has been absent up to this point but that I would greatly applaud would be for the US government to perform a review of our manufacturing capabilities and determine which are of strategic importance from a national security and ability to innovate standpoint. Then provide the right incentives to keep/enhance our core competencies in these areas, it sure beats the short-term incentive to pay people to pick up a shovel to build a road.
Hopefully our customer is not the only company that can make the proper assessment of what is strategic and what is not when it comes to manufacturing capabilities.
There has long been debate about off-shoring or near-shoring manufacturing capabilities and whether this is good for the United States. While I will not delve into the heart of that lengthy debate, “Made in the US” has long been an important buying criteria for large segments of the American population and has become even more important in the economic downturn as a renewed emphasis has been made on buying American, albeit with protectionist risks.
However, a recent study by the American Small Manufacturers Coalition (ASMC) states “over a quarter of American manufacturers – representing over 90,000 firms – are at risk because they are not at or near world-class in any of the six strategies.” So what exactly are Americans buying if a product is “Made in the US”? The ASMC study details six strategies that are required for global competiveness:
- Customer-Focused Innovation (CFI)
- Engaged People/Human Talent Acquisition, Development and Retention (EPT)
- Superior Processes/Improvement Focus (SPI)
- Supply-Chain Management & Collaboration (SCM)
- Green/Sustainability (GS)
- Global Engagement (GE)
This is particularly concerning as companies in China, Eastern Europe and elsewhere continue to build out more robust manufacturing capabilities. Of specific concern are our deficiencies in Supply Chain Management and Collaboration. A key component of world-class supply chain infrastructure is an investment in modern technologies such as manufacturing execution system software or manufacturing data collection. If our manufacturing companies, due to macro economic factors or industry specific dynamics are under-investing, it is unlikely they will be able to compete in an increasingly global marketplace. While this is concerning, we need to heed the warning bell that the ASMC raises and use this as a catalyst for action, rather than let it become a leading indicator to a decline in the “Made in US” moniker.
You can read the full report here.
Image via Flickr user shawdm.
A company that is a manufacturer and distributor of baked goods recently put out an RFP for WMS Warehouse Management System. During the process HighJump Software and a few other best of breed WMS providers were considered. What became apparent during the sales process was the company needed more than just a WMS system. Expiration date and batch tracking are critical with bakery products and having their manufacturing process inter-linked with the distribution processes was vital to prevent inventory waste.
Many other systems would optimize the processes and inventory within the warehouse but this could result in an overall sub-optimal result by not taking into account raw material inventory and finished goods at the manufacturing sites. They needed a solution that could optimize their manufacturing processes while providing inventory visibility from raw materials to finished goods. HighJump Software is one of the few software providers that can provide a Manufacturing Execution System Software and WMS Management built on the same platform. This allows companies to have inventory visibility throughout their supply chain.
In the end, I am happy to say the company saw the value of an integrated solution and selected HighJump Software.
Image via Flickr user loop_oh
About 24 months ago at our midyear sales meeting I unveiled HighJump’s strategy to more aggressively target logistics service providers with our supply chain management software solutions. The reaction from the sales team was mixed. Logistics service providers are notoriously highly variable sales processes because the system purchase is typically tied to the acquisition of a new client for the logistics service provider. The market data supported our strategy. Use of logistics service providers is increasing worldwide as more companies outsource all or a portion of their logistics capabilities.
Times have changed. The sales team now loves this strategy as logistics service providers are turning to HighJump Software for their supply chain logistics software. The most recent logistics service provider to select HighJump is Cresent, a leading logistics outsourcing partner for a number of consumer goods companies. Read the HighJump news release regarding Cresent.
HighJump WMS Warehouse Management System will automate many of Crescent’s previously manual warehouse processes and optimize the movement of goods throughout Crescent’s distribution centers, boosting productivity and inventory accuracy. The system will also enable the company to meet customer traceability requirements for batch and lot code tracking. Crescent will also be able to interface to customer ERP systems, a requirement that often previously hindered new business wins. The company will utilize HighJump’s Manufacturing Execution System Software in its co-packing operations, where it assembles product multipacks and builds product displays.
Why are so many logistics service providers turning to HighJump Software for their supply chain logistics software? Here are few of the contributing factors.
Billing Management
HighJump Billing Management helps ensure maximum revenue and minimal billing cycle time by enabling activity-based billing of each client according to their distinct attributes. Appropriate charges are automatically generated for storage of goods and any other services you perform as a logistics services provider.
HighJump Billing Management’s capabilities extend far beyond billing and reporting. This comprehensive solution can also help make your business more attractive to current and potential clients by enabling you to offer more value-added services, superior inventory control and overall cost reduction—making you stand out in a commoditized logistics marketplace.
Dynamic Inventory Attribute Tracking
Logistics Service Providers have complexities of handling a variety of products with complex tracking requirements. The same facility may manage perishable products that require best before date tracking, apparel that requires style color size tracking, and electronic products that require serial tracking. With HighJump WMS Solutions all these attributes can be tracked in the same inventory model. In fact, as the logistics service provider encounters uncommon data tracking requirements they can configure the solution to track these inventory item attributes. Additionally any of these attributes can be shared with end clients through inventory visibility portals.
Integrated Transportation Management
Many logistics service providers in traditional public warehousing or in contract warehousing are branching into managed transportation services. HighJump Software provides a transportation management solution used by many logistics service providers and is fully integrated with WMS warehouse management system. The TMS support management of buy-side and sell-side contract rates allowing a logistics service provider to manage rates for contract carriers and separate rates for the price they sell the transportation service to their end client.
Flexibility to Meet the Changing Needs of Clients
The most important business differentiator for a logistics service provider is flexibility. Existing clients frequently have new requirements and winning new business often requires changes to the operations and supporting systems. HighJump has developed an out-of-the-box rules based architecture to allow logistics service providers to create unique rules that influence how a process works in the warehouse. The rules can then be assigned to a client, an item, a vendor, or any attribute within the WMS warehouse management system. Additionally if a standard rule cannot meet the specified requirement, a new rule may be created using Advantage Architect, HighJump’s workflow management adaptability tool.
Image via Flickr user
tomsaint11
Crescent, a leading outsourcing partner for consumer packaged goods companies, will implement several HighJump solutions to support its logistics and contract packaging operations. Crescent will utilize HighJump solutions for:
To learn more,
read the full press release.
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Food Safety in the Nut Supply ChainI will admit that most of my snack nut consumption occurs when accompanied by a cold beer. I think the combination of a cold beer and salted snack nuts is fantastic. Frankly, I hadn’t thought much about safety issues with the nut supply chain until recent news about peanut butter contamination.
Given the concern about the safety of nuts in the food supply chain, the recent cover story in Modern Materials Handling “Fisher Nuts: WMS cracks into manufacturing success” was quite newsworthy. The article explains how John B. Sanfilippo & Sons, the manufacturer of Fisher Nuts, is using the HighJump Software WMS warehouse management system to enable supply chain management best practices, improve inventory accuracy, and increase tractability in their manufacturing and warehousing operations.
Fisher Nuts uses the warehouse inventory management system to track both finished products in the warehouse but also delivery of raw materials to manufacturing lines, much like manufacturing execution system software.
The results have been positive. Fisher Nuts has full product traceability using the WMS warehouse management system. They have also improved inventory accuracy to 99.7% in the warehouse and 99% accuracy in the production area.
One of the most interesting things about Fisher Nut’s WMS warehouse management system implementation is the unique stock rotation and storage rules required to support the company’s allergen and contamination program. Because nut allergies can be fatal, there are strict rules that define how product is mixed. For example, cashews are not permitted to be stored on racking above pecans or almonds. These complex product mix rules are supported through configurable stock rotation algorithms in the HighJump Software WMS warehouse management system.
Rest assured, next time you have Fisher Nuts with your cold beer you know the product was managed with a state of the art WMS warehouse management system to help facilitate the safe storage and delivery of the product. Cheers!
Don’t you just hate starting a new job and getting assaulted by a never ending stream of acronyms? I know when I started my supply chain career; it took me a while to sort out the difference between WMS solutions (warehouse management systems), WCS (warehouse control systems, TMS (transportation management systems), MES (manufacturing execution system software), etc.
If you are new to outsourced logistics, the bevy of terms can be equally confusing and overwhelming. Below is some clarification about some common terms you will see as you start to explore this area:
• Third party logistics (3PL): Organizations that provide outsourced logistics services, typically specializing in integrated warehousing and transportation services, although the portfolio of services offered continues to expand and can include additional services, such as freight forwarding and customs brokerage.
• Logistics Service Providers (LSPs): An umbrella term for independent organizations that provide, for a fee, various logistics services, such as shipping, forwarding and contract warehousing. Can include 3PLs, 4PLs, freight forwarders and carriers.
• Fourth-Party Logistics (4PL)/Lead Logistics Provider (LLP): In practice, this is a 3PL comprised primarily of computer applications and knowledge workers that manages other 3PLs and logistics service providers that supply logistics services to customers. A 4PL is often viewed as the same as a non-asset-based 3PL or lead logistics provider. A 4PL also can manage other 3PLs to provide a global solution to customers.
• Non-Asset Based: Provides logistics services, such as coordinating transportation, tendering/booking, routing and freight auditing/payment, but these firms do not typically own the warehouses, vehicles or other forms of transportation assets. These firms typically only have applications/systems, operational best-practice methodologies and logistics expertise in areas such as logistics operations, freight negotiations and customer service.
Hopefully this can help mitigate some of that initial frustration of outsourced alphabet soup.
Have you ever anxiously awaited the results of an exam wondering if you had even received a passing grade? I must admit that there were a few electrical engineering courses in college where I hoped the “curve” put me into passing range. I had a similar feeling when reviewing HighJump Software’s direct to store delivery software capabilities against a list of “next generation” technology capabilities to support direct to store distribution processes.
I recently had the opportunity to participate in a panel discussion at the Grocery Manufacturer’s Association Information Systems/Logistics Distribution conference. The panel was chaired by Lora Cecere from AMR Research and consisted of leaders from several software companies that provide direct to stored delivery (DSD) software.
The GMA has a committee of DSD manufacturers who have identified “next generation” technology capabilities to support their DSD processes. I will highlight a few of these next generation capabilities and explain what HighJump Software is providing in these areas.
In Store Survey Assessment for Competitive Information – in Mary 2008, HighJump Software launched HighJump™ Survey Management. This new product integrates with existing HighJump mobile pre sell technology and allows competitive information to be collected in the field and analyzed at headquarters by sales and marketing professionals.
Return and accounting for marketing materials, coolers, display units – management of non-product assets in the direct to store delivery supply chain is critical. These items could be point of purchase merchandising materials, branded coolers, or beer tap handles. In the battle for consumer mind share, the proper tracking and delivery execution of these materials is as important as the product itself. HighJump’s route accounting systems (RAS) have capabilities to manage and track these promotional materials.
Near real time synch – significant technology advancement has occurred in this area. As rugged mobile computers have advanced with cellular data connectivity, the ability to leverage real time information in the direct to store delivery process has increased. With HighJump direct to store delivery solutions, the mobile workforce has the ability to view inventory and place orders in real time. Additionally, with the HighJump™ Usable GPS management can gain real time visibility to the location of their mobile workforce and view progress against a previously scheduled route.
Based on these emerging trends in direct to store delivery technology, I would have to say that HighJump Software receives a passing grade (likely better than just passing). It seems that our over 500 direct to store delivery customers have helped steer our product in the right direction.
I recently had the opportunity to participate in a panel discussion at the Grocery Manufacturer’s Association Information Systems/Logistics Distribution conference. Although the event featured an attendee list of CPG supply chain heavyweights, the venue is what really caught my eye when I received the initial invitation. The Marriott Doral in Miami is home to one of the most famous holes on the PGA tour, the 18th hole on the Blue Monster course. My schedule did not permit me to squeeze in a round on the famous course, but I was able to wander around the famous finishing hole at dusk and image the many professionals who blew their chances at PGA tour win as they hit their tee shot in the water at this famous hole.
The next morning I suited up and got ready for the panel discussion on technology trends in direct to store distribution. The panel was hosted by Lora Cecere of AMR Research. Lora and the GMA have recently partnered to create a report titled “Powering Growth Through Direct Store Delivery.” The report highlights the impact of direct to store distribution for retailers and manufacturers including the following key metrics.
- Direct to store delivery (DSD) products represent 24% of the volume for grocery retailers
- Direct to store delivery (DSD) products represent 52% of the retail profits in the grocery value chain
- 7 of the 10 largest grocery categories are managed through direct to store delivery (DSD) processes
- Direct to store delivery (DSD) products have a replenishment cycle that is 5 times faster than traditional retail distribution
With benefits like this, it is clear that the direct to store delivery (DSD) model is here to stay. The key question for the future is “how well can the process be executed going forward?” Over the next few blog postings I will provide some insights into the technology trends in direct store delivery software and collaboration between retailers and suppliers in the direct to store delivery business process.
Considering that one of the first records I ever bought was “Heartbeat City” by late 70’s/early 80’s New Wave heroes, The Cars, I thought it appropriate to pay a little homage in my first ever HighJump Software blog posting. While those of you familiar with the song “Magic” will (with good reason) wonder how a catchy little love song relates to Agile Software Development; I can tell you that you needn’t look any further than the title (yes, I am that obvious).
As Agile Software Development becomes more and more main-stream, you will find countless hordes of consultants and authors, all extolling the magical virtues of adopting this process. And naturally, for a fee, these consultants and authors will be more than happy to share with you the secret of this silver bullet. While I’m the last guy who wants to stand in the way of someone making a buck, I can assure you that there is nothing magic about this. Agile will not slay your Werewolves; and this is precisely why it works.
Agile Software Development is a process that is firmly grounded in common sense. While I fully acknowledge that Agile, much like other methodologies, has its own language and its own complexities, it is a simple process that aides in building a solid understanding of cause and effect and helps establish repeatable practices around teamwork, creative collaboration, incremental development and individual accountability. Here at HighJump Software, we have been using this process to manage all development for our direct store delivery software, manufacturing execution system software and supply chain management software solutions projects. I have experienced life before our process adoption, I’ve seen the transformation and have enjoyed the benefits since, and would never dream of going back.
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