2. Electronically-Enabled
Supply Chain Management
(e-SCM)
Streamlining the procurement and order fulfillment process
between suppliers and their customers in the chemical and
process industries, is critical to a companies success in today’s
increasingly competitive marketplace.
A number of case-studies have found that manual ordering
processes cost companies an average of $75 (60 EUR) per Proven Results
order and can yield processing errors on the average of 5 to
Companies using ”Electronically-
10% processes. Add on rush order costs, shipment costs and
Enabled Supply Chain Mana-
emergency manufacturing runs, and the cost of a manual
gement” have found up to an:
supply chain management process becomes substantial.
80% reduction in order entry time
Electronically automating this process is the key. Depending
on the supplier’s and customer’s needs and infrastructure, this
20% reduction in expedited
could start with the automated reading of inventory levels of
shipments
product at the customer facilities, and continue throughout the
entire ordering, manufacturing, fulfillment and invoicing pro-
60% reduction in order
cesses.
processing time
e-SCM is normally accomplished by using ”Vendor Managed
20% reduction in number of order
Inventory” (VMI).
changes
30% reduction in safety stock
e-VMI
75% reduction in invoice errors
Electronically-enabled ”Vendor Managed Inventory” can be
defined as: ”A partnership-based concept of supply in which
the vendor (supplier) controls the delivery process for the buyer,
based upon the electronic interchange of inventory and planning
data.”
The benefits of a ”collaborative VMI relationship” between
suppliers and their customers can be very substantial for both
parties.
Potential Benefits
Potential Benefits
Reduced risk of ”stock outs” | Elimination of expedited shipments
Reduced risk of ”stock outs” | Elimination of expedited shipments
Reduced operating costs | Improved operating efficiency
Reduced operating costs | Improved operating efficiency
Improved inventory management | Reduced inventory balances
Improved inventory management | Reduced inventory balances
Better customer retention | Instant information availability
Better customer retention | Instant information availability
Faster recognition of stock level deviations | Elimination of safety stock
Faster recognition of stock level deviations | Elimination of safety stock
Elimination of tank monitoring labor costs | Increased customer satisfaction
Elimination of tank monitoring labor costs | Increased customer satisfaction
3. Orbit Logistics’ Data
Management Network
”Reducing the complexity and increasing
the accuracy of the ordering Process.”
Sophistication
The Orbit Logistics’ Data Management Network is very flexible
and easily adaptable to supplier and buyer requirements.
Sophistication can range from basic to fully automated. A basic
setup could be called an ”Information Only” system and might
have the ability to automatically read inventory levels and issue
reports to the buyer and supplier.
At the other end, the most sophis-ticated setup could be a ”Totally Customized
Integrated, Automated System”. It could have the ability to com-
pletely interface with both the supplier’s and buyers ERP systems
to your
for automated inventory level readings, history, demand fore- requirements!
casting, order-creation, order-change, ship notice, shipment status,
delivery receipt, and even invoicing and reconciliation. Even an Orbit has many unique options
emergency E-mail, SMS, pager alerting system with built-in available to make your job easier.
requirement for acknowledgement can be incorporated. For example, the ”Consigned Stock
Billing Module” (CBS) can very
accurately keep track of the
Turnkey System Installation and consumption of product for the
needed billing cycle. This eliminates
Service the inaccuracy of flow gauges and
scales and substantual record
Orbit Logistics is unique in this industry, in its capability to supply keeping.
a complete ”turn-key” system. This is a very important point, as
it means there is a single company responsible for the entire The ”Automated Multi-Reorder-ing
system. In addition to supplying the ”Data Management Network”, Module” allows a second de-livery
Orbit Logistics will design, install and maintain all equipment to automatically be ordered, even
needed at the customer’s sites. And Orbit Logistics stands alone when there is an ourstanding order,
in being able to supply this worldwide. not yet delivered.
Combine innovations like this and
Worldwide Coverage your own specialized needs custom-
designed into the system will allow
Europe, North America, South America, Asia and even Africa, the Orbit Logistics Data Manage-
Orbit Logistics has installations in all these places. Today, it’s ment Network to lower your pro-
common for suppliers to deliver product on multiple continents; cessing errors and operating costs
we have some utilizing our system on 4 continents. Doesn’t sound and increase your productivity and
too difficult, until you realize all the differences from country to your customer’s satisfaction.
country...
Different Networks
Different Global Standards
Multiple System Language Requirements
Different MES, ERP SCADA, DCS Systems
,
4. www.o rb itlo g .c o m
Who we are
Orbit Logistics is one of the leading international solution
providers for remote, real-time data acquisition, processing User Benefits
and management. The company specializes in end-to-end
solutions for inventory control and management. Real-time Orbit Logistics offers their custo-
remote monitoring and control solutions for plants, and systems mers a customized solution tailored
for improving plant operation and service are other areas of to their individual requirements.
expertise offered by Orbit Logistics. All tasks within a project and even
beyond are covered, from process
Orbit Logistics has offices in Europe and North America. measurement, communication,
Orbit Logistics Europe GmbH, located in Leverkusen, Germany, IT-service, data base design, and
utilizes an experienced team of about 40 highly trained data mapping to field service. Even
Engineers and Technicians to offer a broad and comprehensive with Orbit Logistics’ comprehensive
solution to the process industry. offering, high investment costs can
be avoided by utilizing a lease
program based on a low, monthly
What we do fee. This eliminates unforeseen
expenditures.
Acquiring accurate data in a timely manner is a prerequisite
for the successful implementation of VMI – Vendor Managed
Inventory.
Measurement systems as well as Bar code and RFID solutions
are employed as needed to meet this requirement. Standardized
communication technology such as Ethernet, WLAN, analogue
and digital modems, and GSM/GPRS are used in combination
for the remote data transmission process. Secure data access
is possible via the Internet as well as through local Intranet
networks. The Orbit Logistics system offers a broad variety of
options for the processing and integration of data joining existing
infrastructures with their standard ASP software solution. The
offering is scalable from only Internet-portal visibility and alert
functions up to fully automated reordering and invoicing for
consigned inventory by integrating with commercial software
systems such as SAP ®. Strategic partnerships can provide
direct ERP connections to more then 200 trading partners.
References
More than 200 corporations from different
process industry markets rely in Orbit Logistics
solutions today. A few examples are:
Bayer Material Science | BASF | Celanese |
Dow Chemicals | Degussa | PolyOne | DSM | Orbit Logistics Europe GmbH
Maybachstraße 27
Siegwerk | UPM | 3M | Brenntag | Lanxess | Ciba |
D - 51381 Leverkusen
Elemica | Polymer Latex | Johnson Diversy | Phone + 49 (0)21 71 - 360-0
Oxxynova | Johnson Polymers | Omya | Rheinkalk | Fax + 49 (0)21 71 - 360-500
E-Mail: europe@orbitlog.com
Orbit Logistics Americas, LLC.
2620 Chandler Grove Drive
Buford, GA 30519
Phone +1 678 - 608 3196
Fax +1 866 - 365 5584
E-Mail: americas@orbitlog.com