Implementing Six Different 3PL s in 18 Months! Joe Lenard NCH Corporation
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1 Implementing Six Different 3PL s in 18 Months! Joe Lenard NCH Corporation
2 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 Board member at large for OAUG s special interest groups: Process Manufacturing (OPM) and the TX/LA regional group.
3 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.
4 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
5 Rejuvenating Europe Program Starting 2013 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
6 Rejuvenating Europe Program Rollout Approach Leveraging ERP consolidation to enable business transformation 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
7 Supply Chain Confidential Project MACAW Move And Close All Warehouses
8 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
9 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
10 NCH 3PL Responsibilities (Scope) 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)
11 NCH 3PL Integration Approach Oracle ERP 3PL Items Purchase Orders Internal Requisitions Items Data will be interfaced as defined in Oracle to support on-hand, receipts Purchase Orders / Internal Requisitions Data will be interfaced support receipts Pick Release Customer Returns PO /IR Receipts will be interfaced with Lot Numbers, Serials Pick Release Done at the Delivery Detail when released to WH Ship Confirm Pick Confirm, Create and Assign to Delivery and Ship Confirm Expected customer returns - similar to PO/IR RMA Receipts can be interfaced as an Inventory Adjustment (process dependent) PO Receipts Dispatch Note Ship Confirmation RMA Receipts Inventory Adjustments will be reviewed Inventory Snapshot weekly Inventory Adjustments Inventory Snapshot
12 3PL Plan Integration 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
13 Technical Overview 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 3PL Partner NCH Europe Oracle EBS Oracle Fusion Middleware (OFM) Common Server (FTP) 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 3PL Partner EPRD is the name of the NCH Production Environment Other Environments EDEV (Development) / ETEST (Test) / EQA (User Test)
14 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
15 Data Mapping Data mapping transaction by transaction / field by field 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)
16 Test Scenarios Detailed Scenarios transaction by transaction 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
17 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)
18 NIX Inventory Validation Report 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 1 3PL Customer 9(3) Mandatory 363 for AZKAR 100 for others 11 for AZKAR Organization X(3) Mandatory Org Code for others i.e. 1R3 for TIBBIT and 1C3 for 2 ASIGNA 3 Item Number X(35) Mandatory 4 Quantity 9(9) Mandatory Lot number X(20) Optional 5 6 Expiry date DD-MM- Optional YYYY Expiry date Serial number X(30) Optional 7 Logical status X(2) Mandatory DI available 8
19 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
20 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
21 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
22 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
23 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)
24 3PL Partners
25 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
26 Questions??
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