Implementing Six Different 3PL's in 18 Months
Transcript of Implementing Six Different 3PL's in 18 Months
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Joe Lenard – About ME!
• Information technology professional with more than 25 years
of comprehensive and complex business systems
implementation and delivery.
• Former consultant: “Off the road” since 2004
• Employed by NCH Corporation since 2004 as Director of
Supply Chain Applications
• Supply chain solution architect establishing manufacturing,
distribution and logistics template for Oracle rollout across
27 countries worldwide including the Americas, Asia and Europe.
• Broad industry knowledge including: manufacturing, food processing,
aerospace and defense and vendor product development and sales.
• Oracle user group member and conference speaker since 1998.
• Board member at large for OAUG’s special interest groups: Process
Manufacturing (OPM) and the TX/LA regional group.
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NCH Corporation Overview
• Global leader in the production and distribution of
chemicals, water treatment, plumbing products, pet
supplies, and shop supplies
• One of the largest companies in the world with a
successful direct selling model
• Founded in 1919; Headquartered in Irving, TX
• Operations in over 50 countries including Asia, US,
Canada, Europe and Latin America
• RPG and PPG Divisions market via retail chains
such as Wal-Mart, PETSMART, Home Depot, Lowe’s,
etc.
We are the strongest and largest leading global provider of industrial maintenance solutions in the world.
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NCH Europe Supply Chain Layout – Early 2011
• Manufacturing/Distribution: Czech Republic
Spain
Turkey
• Distribution Only: Germany
Ghent/Belgium
Sweden
United Kingdom & Puresolve
Ireland
Portugal
Canary Islands
Slovenia
Italy
Romania
Poland & Puresolve
Hungary & Puresolve
Czech Puresolve
Slovakia & Puresolve
France
La Reunion
Greece
Croatia
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• Rollout of Oracle R12 and Custom Web Order
Entry Solution to all NCH Europe countries
• Implement Mobile Contract Field Service
Management for those countries in appropriate
languages
• Deploy iPads to approx. 900 service techs
• Rebrand NCH Europe
• Streamline supply chain / restructure
distribution and local country depots/repair
centers
Rejuvenating Europe Program – Starting 2013
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Rejuvenating Europe Program – Rollout Approach
EU-0 – Planning –
January 2013
EU1A Pilot – Austria,
Switzerland – July 2013
EU1B - Germany,
Belgium, Holland –
October 2013
EU2A – Finland, Sweden,
Norway, Denmark,
Estonia, Ripley UK –
March 2014
EU2B – UK, Ireland -
July 2014
EU3 – Spain, Portugal,
Italy, Slovenia, Romania –
December 2014
EU4– Czech, France,
Poland, Hungary, Slovakia
– May 2015
EU5 – Turkey and Greece
– October 2015
Leveraging ERP consolidation to enable business transformation
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MACAW Project
• Manufacturing/Distribution: Czech Republic
Spain
Turkey
• Distribution Only: Germany
Ghent/Belgium
Sweden
United Kingdom & Puresolve
Ireland
Portugal
Canary Islands
Slovenia
Italy
Romania
Poland & Puresolve
Hungary & Puresolve
Czech Puresolve
Slovakia & Puresolve
France
La Reunion
Greece
Croatia
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NCH Europe Supply Chain Distribution Plan
• Manufacturing/Distribution:
Czech Republic
• 3PL Distribution :
Spain
Canary Islands
Romania
La Reunion
Greece
Turkey
United Kingdom
* Non-Puresolve Depots
Canary Islands La Reunion
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• Identified NCH Responsibility versus 3PL Partner Responsibilities
(process flow: receiving, shipping, inventory management, etc.)
• Document 3PL differences (e.g., specific partner limitations)
• Document specific country differences (e.g., ACTUAL delivery date)
• Determine data owner (e.g., lot numbers, expiration dates)
• Management responsibilities (e.g., FEFO picking)
• Shipping document responsibilities (e.g., who generates the IMDG)
NCH – 3PL – Responsibilities (Scope)
Items
Purchase Orders
Dispatch Note
Customer Returns
Inventory Adjustments
Inventory Snapshot
PO Receipts
Ship Confirmation
RMA Receipts
Items – Data will be interfaced as defined in Oracle to support on-hand, receipts
Pick Release – Done at the Delivery Detail when released to WH
Ship Confirm – Pick Confirm, Create and Assign to Delivery and Ship Confirm
RMA Receipts can be interfaced as an Inventory Adjustment (process dependent)
Inventory Adjustments will be reviewed
Inventory Snapshot weekly
PO /IR Receipts will be interfaced with Lot Numbers, Serials
Oracle ERP 3PL
Purchase Orders / Internal Requisitions – Data will be interfaced support receipts Internal Requisitions
Pick Release
NCH 3PL Integration Approach
Expected customer returns - similar to PO/IR
Master Data
1. Items [IOX] (Outbound)
Transactional Data
1. Purchase Order [POX] (Outbound)
2. Purchase Order Receipts [AIX] (Inbound)
3. Sales Order Pick Release [SOX] (Outbound)
4. Ship Confirm [SIX] (Inbound)
5. Customer Return Order [ROX] (Outbound)
6. Customer Return Receipts [RIX] (Inbound)
7. Inventory Adjustments [AIX] (Inbound)
Validation Process
1. Inventory Snapshot [NIX] (Inbound)
2. Inventory Snapshot Exception Report
3PL Plan – Integration
NCH Europe Oracle EBS
Oracle Fusion Middleware
(OFM)
Common Server (FTP)
3PL Partner
3PL Partner
3PL Partner
FTP Folder Structure /3PLName/EPRD/in /3PLName/EPRD/out 3PLName is the actual name of the 3PL Partner e.g. alisan/EPRD/in EPRD is the name of the NCH Production Environment Other Environments EDEV (Development) / ETEST (Test) / EQA (User Test)
File Name Format ABCDDMMYYHHNNSS.csv A is File Type i.e. i=item, p=po, s=so, r=rma, a=adj, n=inv B is o=out and i=in (reference to NCH) C is country i.e. s=Spain, r=Romania, C=canary, G=Greece, t=Turkey, u=UK DDMMYY is date HHNNSS is timestamp
Technical Overview
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Inbound Interfaces
• Inbound transactions used standard APIs
• Pick confirm – Ship confirm - PO/IR receiving - Inventory Interface
• Ability to edit the transactional data when required based on user grant
• Ability to reprocess a failed inbound transaction when required
• Data mapping – transaction by transaction / field by field
Data Mapping
• IOX (Sample)
• Item Number – The Item Number as defined in NCH Oracle EBS
• Lot or Serial Controlled
• Quantity per Package (each’s per case)
• POX (Sample)
• Purchase Order (PO) Number or Shipment (ISO) Number / Line number
• Order Type – Internal or External
• AIX (Sample)
• Item & Lot/Serial
• Indicator – Add (S), Reduce (R) or Transfer (T)
• Transaction Type – CR (inbound receipt) AD (inventory adjustment) or ST (status transfer)
• Detailed Scenarios – transaction by transaction
Test Scenarios
• IOX (Sample)
• Existing Item update
• POX (Sample)
• Partial and Multiple receipts against the same PO
• Over and Under Receipt Allowance
• PO changes in quantity and cancellations
• AIX (Sample)
• PO/IR – receipt full quantity
• Inventory Adjustment Issue (Negative) no negative sign
Shipping Documents
• Define what documents are required (dispatch note, commercial invoice, etc.)
• Who generates the document (e.g., 3PL: dispatch note, NCH: SAD)
• What information is required (e.g., ADR information for hazardous shipments)
• An Inventory snapshot will be sent
from the 3PL on a weekly basis.
• Generate a report highlighting
exceptions between the two systems.
• Required for both quantity and
inventory status
• The Inventory snapshot will be sent
by Item, Lot/Serial and Material Status
No Column Name Structure Type Default Value
13PL Customer 9(3) Mandatory
363 for AZKAR
100 for others
2
Organization X(3) Mandatory
11 for AZKAR
Org Code for others i .e. 1R3
for TIBBIT and 1C3 for
ASIGNA
3 Item Number X(35) Mandatory
4 Quantity 9(9) Mandatory
5Lot number X(20) Optional
6Expiry date
DD-MM-
YYYYOptional Expiry date
7
Seria l number X(30) Optional
8Logica l s tatus X(2) Mandatory DI available
NIX – Inventory Validation Report
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3PL Integration Workbench
• For managing all outbound and inbound transactions • Specify file type (transaction type) – IOX, POX, SOX, SIX, etc.
• Specify inventory organization
• Status
• Date Range
• Enabled our two phase go live (second 90 days – complete manually)
• Ability to “retry” a failed transaction
• May update limited information
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3PL Plan – EU3 – July 2014 – Dec 2014
EU3 Project: Spain, Portugal, Italy, Slovenia, Romania
Implement a 3PL solution for
Spain, the Canary Islands and Romania
First 90 days
Automate outbound transactions
Manual entry of inbound transactions
Go Live with Order to Cash
Second 90 days
Automate inbound transactions
Eliminate manual inbound
entry of transactions
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Issues Faced
• Language/culture – Romanian, Spanish, Turkish, Greek, German
• Additional 3PL added during EU3 project (from 2 to 3)
• Asigna warehouse in Canary Islands (but Asigna IT in Madrid)
• Relocation of inventory from old NCH warehouse to new 3PL (PO to be
received)
• Relocation of inventory from old 3PL system to new 3PL system
• Item attribute differences on items/orgs
• Last minute hazmat item data required
• Who managed FEFO? 3PL partner!
• One 3PL, NCH was not allowed into the facility
• Integration scheduling – who, when, frequency
• 3PL partner’s IT project schedule vs. NCH
• Lack of FMW knowledge in the NCH IT team
at the onset of the first 3PL project
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Lessons Learned – Regrets
• EU3 projected started with two planned 3PLs in June 2014; surprise 3PL
was added in July
• Business began initial discussions without IT involvement
• NCH did not have a 3PL technical infrastructure before the project started
• MACAW project was secret and could not be discussed with other order to
cash team members
• EU3 Order to Cash CRP and
UAT did NOT have a test of
our 3PL integration
• During the EU3 project,
NCH did not treat all 3PL
partners equally – site
visits to 2 (Azkar, Tibbett)
• Formal partner contract not
signed until after project
well under way
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Lessons Learned – Successes
• NCH used our 3PL partner’s knowledge – “starter kit” from one of our
partners
• Clear SOW and project expectations
• Establish the business process along with the technical solution
• Held face to face meetings/reviews: 3PL partners, business, IT
• Group Conference Room Pilots (CRP) – everyone in one room
• Project team had clear roles and responsibilities
• We had a “3PL approach” walk through with each partner’s IT group
• NCH IT has an amazing development team!
• Two separate teams
* Oracle Implementation team
* 3PL Integration team
• On site Go Live Support (business and IT)
• Separate Go Lives for Outbound and
Inbound transactions (EU3)
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3PL Partners
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Adding a new partner now…what’s it take?
Our newest 3PL partner is Dachser!
• Business/IT/3PL Partner – Kickoff the
week of November 2-6, 2015 in the UK
• UAT Testing mid January 2016
• Go Live February 1, 2016