Supply Chain and Order Management

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SUPPLY CHAIN/ ORDER MANAGEMENT SYSTEMS FOR WINGIT
INNOVATIONS
Kim Boggio
March 4, 2013

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Executive Summary
Wingits Innovations is a Limited Liability Corporation headquartered in Bradley
Beach, NJ. WingIt Innovations manufactures and markets the Wingit patented
fastening solutions and structural bath accessories to the hospitality, health care
and government verticals. The Wingit product line provides a means to comply
with the Americans with Disabilities Act (ADA) guidelines. Additional markets
might include Education, Residential and ―In-house‖ online order systems.
There is a need for an integrated Supply Chain/ Order Management (SCM)
System as Wingits continues to grow. This system will reduce inventory costs,
provide for improved material flow, and increase customer satisfaction through
more efficient order fulfillment.
Currently, Wingits uses SQL Server, MS Access, and MS Excel to manage the
SCM function. A new integrated SCM system will utilize the current SQL and
Access databases as the basic data to manage the enterprise operations.

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1. Supply Chain Management (SCM)
The Supply Chain Operations Reference SCOR®
model is the global standard
model for supply chain management. SCOR is organized around the five
primary management processes of Plan, Source, Make, Deliver, and Return.
Supply Chain activities can be grouped into strategic, tactical and operational
level of activities
A firm’s Supply Chain Management efforts start with the development and
execution of a long-term supply chain strategy. This strategy should:
Identify what supply chains the firm wants to compete in
Help managers understand how the firm will provide value to the supply
chain
Guide the selection of supply chain partners, including suppliers,
subcontractors, transportation providers, and distributors
As Wingits understands what supply chains they compete in, it is valuable to map
the physical flows and information flows that make up the supply chain. From
these maps, Wingits can determine how they add value, and what information is
needed to make the supply chain work in the most effective and efficient way.
The supply chain strategy must be consistent within both the overall business
strategy and within such areas as purchasing, logistics, manufacturing and
marketing. The Supply Chain activities have to be clearly delineated for each
operational function.
Strategic activities:
Strategic network optimization, including the number, location, and size of
warehouses, distribution centers and facilities.
Strategic partnership with suppliers, distributors, and customers, creating
communication channels for critical information and operational
improvements such as cross docking, direct shipping, and third-party
logistics.
Product design coordination, so that new and existing products can be
optimally integrated into the supply chain, load management
Information Technology infrastructure, to support supply chain operations.
Where to make and what to make or buy decisions
Align overall organizational strategy with supply strategy

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Tactical activities:
Sourcing contracts and other purchasing decisions.
Production decisions, including contracting, locations, scheduling, and
planning process definition.
Inventory decisions, including quantity, location, and quality of inventory.
Transportation strategy, including frequency, routes, and contracting.
Benchmarking of all operations against competitors and implementation of
best practices throughout the enterprise.
Milestone payments
Operational activities :
Daily production and distribution planning, including all nodes in the
supply chain.
Production scheduling for each manufacturing facility in the supply chain
(minute by minute)
Demand planning and forecasting, coordinating the demand forecast of
all customers and sharing the forecast with all suppliers.
Sourcing planning, including current inventory and forecast demand, in
collaboration with all suppliers.
Inbound operations, including transportation from suppliers and receiving
inventory.
Production operations, including the consumption of materials and flow
of finished goods.
Outbound operations, including all fulfillment activities and transportation
to customers.
Order promising, accounting for all constraints in the supply chain,
including all suppliers, manufacturing facilities. distribution centers, and
other customers.
Performance tracking of all activities

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Overview of SCOR Process Reference Model
2. The first step in implementing a Supply Chain Management System
is to evaluate the business needs and processes to establish a
baseline.
Elements of the business process analysis include:
o Systems currently in place
o What IT systems are end users comfortable with
o Forecasting
o Planning/ Scheduling
o Material sourcing/ Purchasing
o Inventory Management
o Pricing
o Order fulfillment
o The seven R’s of customer satisfaction:
The Right product
Delivered to the Right place
In the Right condition and packaging
In the Right quantity
At the Right cost
To the Right customer

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At the Right time.
Business process analysis also guides the selection of supply chain partners,
including suppliers, subcontractors, transportation providers, and distributors.
2. The SCM implementation will integrate the current Wingit databases:
Supply chain/ order management migration and integration – SQL (Structured
Query Language) Server as database for SCM.
SQL Server Integrations
Several methods are available to integrate SQL Server with an another
system — i.e. SQL Server integration with MS Access, MS Excel, and
commercial accounting and Supply Chain/ Enterprise Resource Planning
(ERP) systems. Proper integration with SQL Server can significantly
streamline business workflows.
SQL Server Management Studio - A Microsoft Product.
3. After establishing a baseline for Wingits processes the SCM vendor can
be selected.
Business Process Integration: supply chain and order management software
and implementation vendors:
o Oracle
o SAP
o JDA
o Ariba
o Manhattan Associates
o IBM
o UPS
o Quickbooks Enterprise

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The Top Five Supply Chain Management Software Vendors in 2010
4. After the integration vendor is chosen, the last step of SCM
implementation and database integration is the actual deployment of the
SCM system:
Establish the Implementation Team
Ensure that the team clearly understands the elements of
SCM and fully recognizes why SCM implementation is
necessary.
Implement new business processes.
SCM and software training.
Deploy new software system and integrate SQL
database.
Measure performance of SCM system and make
adjustments as necessary.
The Top 5 SCM Revenues/ Market Share
1. SAP $1.33 billion / 19.5%
2. Oracle $1.22 billion / 17.9%
3. JDA Software $370 million / 5.4%
4. Ariba $250 million / 3.7%
5. Manhattan Assoc. $140 million / 2.0%
(Note: 2010 Gartner estimates)

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5. Software Vendor SCM Models
Oracle Supply Chain/ Order Management Model

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Manhattan Associates Supply Chain/ Order Management Model
Manhattan SCALE, Supply Chain Architected for Logistics Execution, is an ideal
blend of features, functionality and technology for organizations looking for a
high-performing, affordable, and low-risk supply chain solution. Built on the
Microsoft .NET development platform and the Microsoft Windows Server® and
Microsoft SQL Server family of products, Manhattan SCALE’s ―scaled to fit,
ready to run‖ infrastructure integrates Trading Partner Management, Yard
Management, Optimization, Warehouse Management and Transportation
Execution to create Whole-Chain Awareness -- a cost-effective, optimized supply
chain solution suite with synthesized processes, data and workflows that offer
end-to-end supply chain integration and visibility.

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New Wingits Markets
Distributors: Lowes, ACE Hardware, Plumbing Distributors (i.e. L&H
Plumbing)
Homebuilders (i.e. Hovnanian)
Nursing Homes
―In-House‖ Wingits website online ordering system
Education Market: K-12; Higher Education
State of NJ Term Contract
NY State Term Contract