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
 No lost or stolen inventory
 No unnecessary inventory
buildup or over-buying
 No wasted warranty coverage
 No ownership confusion with
trade ins
 No loss of accountability
 No loss of shipping prioritization
discipline and shipping mode
optimization
 No loss of end-to-end visibility,
including last mile, despite interorganizational hand-offs
New Opportunities
 DoD volume buys steel, supplies
defense industry, saves on
volume buying, eliminates
vendor mark up
 DoD eliminates unnecessary intheater buildup and knows how
best to pull equipment from
theater
 DoD stops paying for vendor
errors and warranty item repairs
 DoD knows precisely what it
owns, where it is, what condition
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
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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
PRODUCER
SHIP/BARGE
VESSEL
PORT
RAIL
PROCESSING
Internet Connecting All Points
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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
TRUCKING
MANUFACTURING
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 intransit 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
(Advance Planning System)
ERP Systems
(Enterprise Resource Planning)
Provides capacity planning,
scheduling, forecasting
Provides for production
efficiency
Provides all of TMS, and
WMS
EDI
(Warehouse Management
System)
LoMaS®
TMS
(Transportation
Management System)
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WMS
VMI
EDI
All modes
Connectivity to ERP
Provides transactional
transportation
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
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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®
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All Modes of Transport- Rail, Barge, Truck are handled
Automated load tendering to motor carriers
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Dock scheduling for load pick up
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LoMaS® displays by PO or coil number, and is real time
Can feed information to accounts payable systems
POD available over Web
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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
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LoMaS® provides ETA based on historic data
LoMaS® connects with rail CLM’s automatically, eliminating the need for separate system or services
Performance reporting
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LoMaS® also provides insurance status, contact points
Load track and trace
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LoMaS® contains directions, equipment specifications, driver safety requirements
Trucking company master information on record
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Carriers self-schedule over Web based on shipper parameters
LoMaS® allows for immediate changes by dock shipper
Customer master information sent automatically to carrier
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LoMaS® has options: best rate, specified carrier or percentages to named carriers
LoMaS® provides for fax/scan application, attached to records available to authorized users
Handles multiple ship-from locations
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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
PRODUCER
SHIP/BARGE
VESSEL
PORT
RAIL
PROCESSING
EDI Connecting All Points
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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:
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XML, Compord, EDIfact, FTP, ANSI, X12, CSV
LoMaS is the ideal platform for multiple business partners
TRUCKING
MANUFACTURING
Plus more …
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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
Connectivity
Inventory Management
Shipment Management
•Load building
•Load aggregation
•Load scheduling
•Dock management
•Rate Management
•Tracking/tracing
•Location
•Visibility
•Ordering
•Resale
•VMI
Document Management
•Notification
•Proof of Delivery
•SED’s
•EDI/ FTP
Carrier Management
•Rail/water/truck
•Insurance
•Rates history
•Contacts
•Equipment
Administrative
•Freight Payment
•Performance Metrics
•Inventory Demand
•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?
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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
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Requires fundamental changes in relationship between trading partners
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Enables fundamental changes in relationship between trading partners
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Proven in numerous consumer and industrial marketing applications
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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, webbased 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
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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
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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 v e n to ry a n d S a le s R e a l T im e In fo rm a tio n
b y a n y d im e n s io n (p ro d u c e r, p la n t, p a rt, e tc )
1 ,4 0 0
1 ,2 0 0
1 ,0 0 0
Tons
IN V E N T O R Y
800
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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Supply Chain Solutions for DoD from the Metals Industry
Contact us at:
rob.jenks@intelesistech.com
tunderwood@delreysys.com