Concurrency: The Key To Effective 3pl Software
Those who may be seeking a suitable 3pl software package to manage all aspects of
logistics planning and operations would do well to use the concept of concurrency to help them. This term refers to concurrent functions, or the idea of multiple events happening simultaneously. In third party supply chain management this specifically refers to the idea that there are multiple events occurring within one facility (like a warehouse) all at the same time - multiple arrivals of materials, multiple shipments leaving the building, multiple items being readied to package and ship, and multiple items being stacked away into inventory.
Why is this important? The challenge is that with so many intermingled shipments of materials and products in various stages in the manufacturing process coming and going from the same warehouses and facilities at any given moment, its absolutely critical to have a system in place to manage all of it without combining and confusing the various elements of the different processes. Some software systems, particularly older ones, simply do not support simultaneous steps across multiple clients.
Take the seemingly simple example of labeling. One would think that it would be hard to get confused over the basic task of ensuring a box is properly labeled. However, with multiple clients comes the very likely scenario that there are as many different ways of labeling and marking products as there are clients. One may need a bill of lading, while others are concerned with filling out a manifest, a compliance sheet or a packing slip - and each has its own requirements.
Concurrency also is important in inventory management. Although it is not as common a practice anymore, some warehouses and customers insist on having employees fill out and sign off on paper forms along each step of the shipping, picking and packing process. However more common is the use of wireless technology and radio frequencies to enter data about inventory - with the use of a handheld scanner to scan a bar code so that a package is automatically logged into a tracking system. Regardless of which of these methodologies is used, a good 3pl technology solution is capable of handling data done both ways, and will likely need to do this, as it will encounter a mix of clients doing inventory differently.
Inventory is also identified and categorized in any number of ways, depending upon the industry and its specific requirements. For example, hard drives, motherboards and chips for a computer manufacturer may need to be itemized by serial numbers. A second client, a food company, must itemize large shipments of perishable food by expiration date, as it is focused on shipping food to stores well before it goes bad. Still another client - this one a pharmaceutical company, is primarily concerned about lot numbers assigned to its crates full of pills, so it can track and report to the FDA where certain lots were manufactured and where they were ultimately distributed, to stay in compliance with federal regulations. While all these clients worry about their individual products, a good 3pl software system will ensure that all these items are concurrently logged in and identified properly, regardless of the method needed.
Yet another example of concurrence is the ability to interface with the ERPs - or enterprise resource planning software platforms - of all of your clients. For example, one company uses the SAP system, but some of its facilities still run an older version of SAP. Still another company uses an entirely different ERP. The big challenge for many 3pl software packages is that they must recognize and communicate with all of these different systems simultaneously.
Another potential challenge is overseeing the simultaneous pick and pack operations for multiple clients all within the same facility. Imagine a warehouse that is taking in and organizing materials and products for 20 different clients. At any given moment a pallet of products for one company can be on a loading dock, while a pile of crates for another is heading toward the staging area. At the same time hundreds of items are coming out of storage and being readied for packaging and shipping. Which step is in process for which client at what point in time? If there is not a system in place that is tracking and managing each step for all 20 clients, things can get out of hand rather rapidly.
Add to all of this the very real possibility that each client likely has its own set of preferences or demands relating to various steps in their supply chain process. The first client requires that the parts you have stocked in inventory must only be shipped when you get word that their manufacturing plant across the county is running low. A second client insists that its fresh produce make it to grocery store shelves within three days of packaging, and you need to show that its happening. And a third client asks you to box all of its electronics orders with a special pamphlet inside the box. All of these things need to happen concurrently - in addition to multiple dozens of other steps, and its up to you to make sure it is all managed. A robust 3pl software solution will have the power to keep all of this straight all at once, and keep your logistics operations running smoothly.!
by: Stephen Rose
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