Balance your Supply Chain

Having multiple KPIs in supply chain result in sacrificing one or multiple of them. As in all optimization problems, optimizing the supply chain is a balancing act. Logiwa allows balancing various KPIs such as productivity and accuracy through instant configuration switch.

Bottleneck Solver for your Warehouse

 

We balance your supply chain by unblocking your bottlenecks and planning your resources. Logiwa offers “Bottleneck Solver” functionality, a state-of-the-art technology, to monitor, plan and manage your order fulfillment processes. By unblocking bottlenecks of the processes, reduce your cycle time. Logiwa allows you ship more.

Accuracy vs Productivity

As sales and marketing policies and customer requirements change, the idea of adapting supply chain to these changes is completely a configuration switch for the system. There may be more number of orders than you can handle with your existing configuration. Logiwa allows you sacrifice e.g. from accuracy and be as productive as you can be with existing resources. So e.g. your users pass item barcode scanning and only scan location or pallet barcode. Also, it shows the sensitivity between accuracy and productivity such as; reduce accuracy by 5% and productivity will hit 100%. The configuration can be switched instantly and can be changed back instantly. In all these cases, it’s crucial for the system to guide the users at every step of the transactions without leaving anything to their judgement.

 

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3 Elements of Omni-channel Supply Chain

 

In the omni-channel model, without geographic boundaries, the customer likes the product in any sales channel, orders through any sales channel and gets the product delivered anywhere within any time slot and return it through any sales channel. An Omni-channel supply chain solution should provide an efficient and proactive supply chain infrastructure and technology for the companies to apply omni-channel model effectively and seamlessly. Supply chain solutions enable management of warehousing, order fulfillment, picking, packing and reverse logistics processes through Warehouse Management Software and Order Fulfillment Solutions.

 

Integration

The omni-channel model requires all channel orders to be consolidated in a single platform. Logiwa integrates to all marketplaces and shopping carts to capture all channel orders and fulfills these orders with the related committed service level. Omni-channel success also goes through integration with carriers for the seamless shipment process. Logiwa offers a combined wave and job planning and inventory allocation system to synchronize order fulfillment processes.

Inventory Sharing

The most challenging and critical process in the omni-channel is inventory sharing throughout all sales channels. Required priorities, allocations and reservations should be included in the system through this cooperative infrastructure. Logiwa Omni-channel supply chain software organizes and directs users to execute multi-channel tasks in syscron.

Traceability

In the omnichannel model, various sales channels and delivery options are offered to the customer in sync. Therefore, inventory and all processes should be shared and be in cooperation through all channels. Traceability and transparency of inventory are crucial. From marketplace merchants to suppliers, store back offices and distribution center we can monitor and trace all the items.

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SCM Impact of Omni-commerce

The history offers a big deal of changes where at certain points in time, several forces gather to spur significant change. The industrial revolution, the age of computers, and the internet, are all examples of these landmarks that rapidly shift the trajectory of the world. The supply chain is in the middle of one such landmark caused by a retail model called omni-channel. The companies and brands who can transform their supply chains fast to offer omni-channel shopping experience for the consumer will be the ones who deserve to move forward. Those who don’t are destined to extinct.

Why is omni-channel causing a landmark? In omni-channel, there are changes in three key areas—the role of the store, the role of the DC and the way product is positioned.

The changing role of the store is obvious when offering superior services such as shipment or pickup of online orders is considered. However, stores are also now being used by consumers as research sources. Before ordering online, consumers want to see, touch and try on the product or ask questions. This change definitely affects how product is positioned; how store staff is trained, equipped and compensated.

Omni-channel model also has dramatic impact on distribution centers. As mentioned above, when e-commerce channel is first embedded into the sales model of a brand, order fulfillment was mostly done in separate operation centers. In order to simplify fulfilling the increasing volume of omni-channel orders and benefit a single pool of stocks and operations and, workforce; fulfillment operations are being gathered in single operation centers. However, fulfilling small e-commerce orders and shipping small parcels requires totally different processes than replenishing stores with pallet and picking algorithms and truckload shipments. The way of doing business in the distribution centers need to be reengineered, workforce needs to be retrained, and maybe automation equipment needs to be implemented. All of these similar changes must be implemented together to provide seamless and superior shopping experience for consumers.

Merchandising should also change with the rise of omni-channel. The omni-channel model represents the radical state of the consumer-driven economy and the consumer-driven economy will never be satisfied with the traditional push strategy based on the product and channel. The consumer and his/her preferences should be understood well, responded fast.

The combination of the change in the store, distribution center and merchandising cause the landmark in retail and supply chain management.

 

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End-to-end Value Chain Design – Aligning the Extended Supply Chain behind Customer Delight

Who is the most important part within your Extended Supply Chain? Obviously it is the customer! But how do you keep your customer happy? What do you do in order to keep customer loyalty? When looking at getting your products from your supplier’s supplier to the customer’s customer you need to think ‘Value’.

In order to make sure your customers think that you are providing ‘Value’ you need to build your end-to-end supply chain around their requirements. The customer always comes first so making sure you deliver your products to your customer right first time means you need to know what right actually is before you design your supply chains!

  • How to design a ‘Value’ chain around customer delight
  • Why delight can come from many different places in your supply chain
  • How to engage partners and employees around the delivery of customer delight

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Supply Chain IT Subway MAP 2016 has been released

This year’s Supply Chain IT Subway Map has been released by Supply Chain Media. Logiwa took its place on the map once again with WMS and TMS solutions.

Supply Chain Media releases the Supply Chain IT Subway Map as an overview of the different types of supply chain software (ERP, WMS, TMS, etc.) that is available, and to help locate their various vendors. Companies have been allocated positions on the map based on the number of implementations and the share of revenue for each software type.

There are some key updates in 2016 version of the map. One of the significant changes is seen on e-commerce supply chain vendors. As e-commerce advances, companies with an omni-channel approach are increasingly implementing specific order management systems. In addition, the continuing growth in outsourcing is making global businesses ever-more susceptible to disruption; so supply chain risk management software is also on the rise.

The advance of e-commerce is forcing companies with an omni-channel B2C and/or B2B approach to utilize a specific order management system. Logiwa is an advanced system that enables those companies to fulfill orders flexibly by dispatching goods from various inventory sources (e.g. directly from their suppliers, from their own warehouse or even from a retail store). The rise in popularity of sales & operations planning software is on the rise this year. Also, software suppliers are inevitably increasing their offerings on the cloud.

Sources:

http://www.itsubwaymap.com/

http://www.supplychainmovement.com/updated-it-subway-map-major-acquisitions-in-supply-chain-software/

 

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Top 3 reasons to have a dedicated IT team in logistics facilities

In most companies around the globe, central IT team is taking care of all functions’ IT and software requirements. These IT teams are located in the central offices as do Finance, Accounting, Sales and other functional teams. Hence, logistics facilities and operations are not located in the central offices, they are spread around the geography that the company operates.

Proximity

The first reason that logistics facilities should have a dedicated IT team, is proximity. The Warehouse IT team will be able to sort out fixes, bring reliable solutions to business needs. Speeding up the operations in a distribution center may also be crucial at peak times and this requires software configuration changes. Hence, logistics processes require continuous improvement and this should be handled by IT and operations teams hand-in-hand.

Expertise

The second reason is logistics expertise of the IT team. The IT people who are dealing with logistics operations and challenges, eventually happen to be logistics experts. And with logistics know-how, IT people are able to bring fast and more effective solutions to logistics challenges.

Priority

The third reason is not to add logistics needs and problems to the end of the long queue of IT tasks. IT task list includes many tasks from ERP, CRM etc. software for sales, financial functions. Logistics runs 7/24 in most cases and it can’t handle long down times or inefficiencies. Otherwise, sales, financials, customer service and more will get affected negatively anyway.

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Logiwa and EazyStock Join Forces to Optimize Supply Chains

EazyStock, a division of Syncron, announced today that it has entered into a strategic partnership with Logiwa, a warehouse management system and solution provider based in Chicago, Illinois.

Logiwa was founded in 2004 and is a leading supply chain technology company serving global enterprises, as well as, small businesses in the distribution, wholesale, e-commerce and retail industries. Logiwa provides innovate warehouse management solutions that empower companies to achieve more by optimizing costs, increasing profitability and reducing time to value.

Logiwa’s warehouse management system is designed to help businesses manage multiple sales channels more seamlessly across e-commerce platforms, shopping sites and 3rd party carriers. The software optimizes inbound receiving, storage and fulfillment management to deliver more efficient operations for less cost than other warehouse management systems. Users of the software are able to pick and pack orders faster, ship larger volumes and access real-time warehouse data to track transactions, orders and inventory statuses on desktops and mobile devices.

“The partnership with Logiwa is really exciting for us,” explains Mark Grimes, Global Head of Sales for EazyStock. “Logiwa’s warehouse management system is a powerful tool that optimizes shipping, handling and order fulfillment processes for inventory managers. Their system is proven to increase shipment capacity by up to 30% while decreasing the cost to manage order fulfillment by 20% or more.”

“From an inventory optimization partner perspective, EazyStock is designed to help inventory managers make smarter decisions regarding what to order, how much to order and when to order based on customer demand patterns to keep inventory levels lean. Between EazyStock and Logiwa, the entire supply chain can be optimized from beginning to end, supplier to end customer. The supply chain efficiency and cost savings are significant. Our joint customers can pass those savings down to their customers to maintain strong profit margins while also creating a sizable competitive advantage in the market place.”

“The Eazystock partnership lets us contribute more to our customers’ businesses.” said Cagdas Yildiz, EVP of Logiwa. “Eazystock is a state-of-the-art inventory optimization tool that helps companies find the right balance between customer service level and inventory holding costs. Logiwa customers reduce logistics operational costs and enhance customer service by allowing them to sell more. With Eazystock, our customers will finally be able to achieve the delicate sensitivity between inventory level and customer service level.”

Cagdas further explains, “The biggest challenge of inventory optimization solutions is gathering accurate historical data. Logiwa Warehouse Management Solution records all transnational data including shipments, purchasing, returns, fulfillment. Now our customers can enjoy the real value of this data through Eazystock. Eazystock is such a powerful tool that proves its value in corporate financial statements right away by cutting down excess inventory holding costs.”

 

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The Rise of Omni-Commerce and Its Reflections on Supply Chain

As of today it’s obvious that evolution in technology has a direct and breakthrough impact on evolution of retail. No doubt internet coming into our lives deeply and the unlimited no of customer touch points for people have the primary impact in this evolution. Retail is facing a more demanding and more powerful customer every day. As a result of evolution in technology and change in consumer behaviors, many different sales channels have risen to access the consumers. The evolution of retail from a channels point of view can be examined in 4 different groups. These groups represent the variety of channels and also how channels are treated as a whole. These groups are Single Channel, Multi-Channel, Cross-Channel and Omni-Channel.

Single channel is called to be the brick-and-mortar companies who operate only in physical stores. The physical stores are the only touch point between the brand and consumer and the consumer shops in the physical stores with no other alternatives.

In cross channel which was an inevitable consequence of multi-channel, the consumer is able to go through shopping experience in multiple channels of the same brand. Besides, the brand can offer logistics services with common stocks and operations for the all channels. E.g the order of e-commerce channel can be fulfilled by physical stores depot.

On the other hand, cross-channel offers use of mobile devices and applications in shopping experience and allows time saving for the consumer. The evolution of retail from a channels point of view can be examined in 4 different groups. These groups represent the variety of channels and also how channels are treated as a whole. These groups are Single Channel, Multi-Channel, Cross-Channel and Omni-Channel. Single channel is called to be the brick-and-mortar companies who operate only in physical stores. The physical stores are the only touch point between the brand and consumer and the consumer shops in the physical stores with no other alternatives.
In cross channel which was an inevitable consequence of multi-channel, the consumer is able to go through shopping experience in multiple channels of the same brand. Besides, the brand can offer logistics services with common stocks and operations for the all channels. E.g the order of e-commerce channel can be fulfilled by physical stores depot. On the other hand, cross-channel offers use of mobile devices and applications in shopping experience and allows time saving for the consumer.

Omni-commerce

We live in a fast-changing world. The number of customer touch points is exploding. Innovation and agility are critical factors for business success. Today, companies need to be able to sell and communicate consistently across online stores, smart phones, tablets, social networks, and any internet-enabled devices. New customer touch points are emerging every day and no one knows which touch points will be respected by consumers.

That’s why companies need to keep up with new innovations and they should be ready to take advantage of those as they emerge. However, there are some challenges:

The pace of innovation accelerates dramatic: Leading brands such as Apple and Samsung, as well as growing social media phenomena like Facebook, Twitter and Instagram are innovating continuously at dramatic speeds. Customers are also keeping pace with the innovation speed hence often pushing these channels for innovation. However, many retailers are struggling to keep up with evolving expectations and the exponential increase of customer touch points.

Channel and product based processes and infrastructure fail to respond to innovation: Many companies have developed processes and systems with the channel and the product, not the customer. Furthermore, they are mostly standalone solutions with no communication with other systems. The ultimate result is that they fail to deliver value to the customer and lack the functionality required in today’s omni-channel world.
Cumbersome IT inhibits agility: It is difficult to come with a conclusion that which touch points will be widely welcome by the consumers and which ones are destined to extinct. It is also difficult to estimate the potential business benefits of a new touch point. This brings out the conclusion that companies can’t afford to invest in lengthy, cumbersome IT processes to integrate each new touch point.

Commerce Universe: Unique Shopping Experience through Different Retail Parties

The most outstanding feature of omni-commerce is providing a seamless shopping experience to the consumer across all channels. This means that when the consumer purchases an item of a brand from any channel, he/she will encounter the standard service personalized for him/her. Many retailers create their own e-commerce sites without considering that it’s a challenging business case without adequate scale of fulfillment business. The alternative of selling through e-Retailers such as Amazon.com and other consolidator sites can bring large amount of sales potential. Today, many retailers are doing this well since they fail to develop extensive strategies for collaborating with e-retailers. As a matter of fact, omni-channel model and its ultimate purpose to offer consumers unique service will push retailers to collaborate with e-retailers, department stores and any consolidated businesses.

As a result of this collaboration, the consumer will get the same level of standard service for the same brand in different retailers; hence wherever he/she buys the item of the brand, he/she will face the same service and standards. E.g when a consumer a purchases an i-phone at consolidator sites such as amazon.com, he/she will be able to return it at an Apple Store in Atlanta or the other way round. Omni-channel will push all parties of retail for a tight and extensive collaboration thus the competition between brands will run through their overall retail chains. This is called “Commerce Universe” that means collaboration between brands and retail parties letting them taking the full responsibility of another brand.

Not an Extension Of Brick-and-Mortar

Many brick-and-mortar retailers try to setup their e-commerce, m-commerce businesses and many others. Most of these companies address e-commerce and other channel businesses as an extension of their brick-and-mortar business, keeping it in the center. With ignoring the different processes and strategies required for different channels, they do a completely wrong startup.

In order to leverage the sizeable opportunity in different channels and compete profitably, the retailers need to orient their organizational capabilities, internal processes, and content. Besides, they must do these without jeopardizing their relationships with their traditional channel partners. The retailers must embrace a truly omni-channel strategy

SCM Impact of Omni-commerce

The history offers a big deal of changes where at certain points in time, several forces gather to spur significant change. The industrial revolution, the age of computers, and the internet, are all examples of these landmarks that rapidly shift the trajectory of the world. The supply chain is in the middle of one such landmark caused by a retail model called omni-channel. The companies and brands who can transform their supply chains fast to offer omni-channel shopping experience for the consumer will be the ones who deserve to move forward.

Those who don’t are destined to extinct. Why is omni-channel causing a landmark? In omni-channel, there are changes in three key areas the role of the store, the role of the DC and the way product is positioned. The changing role of the store is obvious when offering superior services such as shipment or pickup of online orders is considered. However, stores are also now being used by consumers as research sources. Before ordering online, consumers want to see, touch and try on the product or ask questions. This change definitely affects how product is positioned; how store staff is trained, equipped and compensated.

Inventory Management System - Retail

Omni-channel model also has dramatic impact on distribution centers. As mentioned above, when e-commerce channel is first embedded into the sales model of a brand, order fulfillment was mostly done in separate operation centers. In order to simplify fulfilling the increasing volume of omni-channel orders and benefit a single pool of stocks and operations and, workforce; fulfillment operations are being gathered in single operation centers

However, fulfilling small e-commerce orders and shipping small parcels requires totally different processes than replenishing stores with pallet and picking algorithms and truckload shipments. The way of doing business in the distribution centers need to be reengineered, workforce needs to be retrained, and maybe automation equipment needs to be implemented. All of these similar changes must be implemented together to provide seamless and superior shopping experience for consumers. Merchandising should also change with the rise of omni-channel.

The omni-channel model represents the radical state of the consumer-driven economy and the consumer-driven economy will never be satisfied with the traditional push strategy based on the product and channel. The consumer and his/her preferences should be understood well, responded fast. The combination of the change in the store, distribution center and merchandising cause the landmark in retail and supply chain management.

The King or More?

The retail is evolving with new technologies and innovative players continuously. The players in the market such as Amazon are developing superior technologies to be closer the consumer. Amazon’s dash button lets you stick a wireless button on your washing machine for you to order washing detergents as soon as you need it. There are innovations such as fast delivery drones, delivery to lockers, NFC, scan as you shop, buy online pickup in store, hologram, augmented reality, virtual store etc. that simplify the shopping experience for the consumer.

What’s There Around The Next Corner?

Parallel to the acceleration of the rate of change in the world and in business, the next landmark is coming right on top of the current one. The emergence of the Internet of Things (IoT) and 3D printing will drastically change supply chain operations faster than you might think. The retailers will need to complete their omni-channel transformation before facing this next step.

 

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LA Software will be at Chicago Loyola University Supply and Value Chain Center​​ in May the 10th​

We are an international player with a wide network of partners around the globe and we will be at Chicago Loyola University Supply and Value Chain Center in May the 10th. Throughout this event, we would like to get together and focus on practical aspects and new opportunities for your company’s supply chain and warehousing software strategy.

Join our breakfast presentation to discuss solving the bottlenecks in warehousing through cutting-edge technology and improved performance.

Date: Tuesday, May 10
Time: 8 a.m. to 10 a.m.
Location: Schreiber Center 1001
Cost: Free
Registration required, please take a moment to fill your information out here .

Gamification in Logistics as a Workforce Motivating Tool

Logistics and supply chain management can use gamification to improve workforce motivation in warehouse operations especially in order picking. As automation become more popular in logistics, manual order picking is still the most common method. It is known that repetitive and intensive labor require more efforts from the physical workers. The typical order-picker activities involve combining items from receipt, storage, packing, labeling, equipment operating etc. – orders have to be fulfilled under time constraints, with as minimum no of errors as possible. Based on these challenges and the fact that order-pickers are mostly not the high-paid workers, it is known that staff motivation is a recurrent problem for efficiency in warehouse logistics – employees are exposed to the monotonous fulfillment of steady, recurring tasks, which leads to fatigue and even maybe psychological problems in the long-term. Mostly, motivation increases with extrinsic monetary incentives, those are commonly considered short-term. On the other hand, incentive tools such as job rotation, job enlargement, job enrichment and teamwork are rarely used in warehousing and logistics. There are a few projects that are focusing on solution of those problems.

Logistics, gaming and psychology are the essentials of these inter-disciplinary approaches that merge perceptions and analytical-thinking. These implementations in logistics contain missions (e.g. order fulfillment), trophies for completed tasks, trophies for lifetime points (e.g. levels), and trophies for specific roles (e.g. packing). Through these implementations workers are more competitive; they’re encouraged for healthy participation in the challenges and they’re motivated for higher speed of completing the job.

Motivation is an essential component for providing someone discover his/her potential skills. Gamifying a system could improve motivation and leverage the level of satisfaction among all logistics workforce. The new functionality of the new generation warehouse management and logistics systems is to allow companies design and configure gamification scenarios and challenges to motivate and better manage logistics task-force.

 

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