Integrated software platform supports supply chain redesign

Platform unites transportation, warehouse management and labor management systems for national manufacturer/distributor.
By Josh Bond, Senior Editor
May 01, 2014 - MMH Editorial

Lennox International is a manufacturer of high-efficiency HVAC systems for commercial and residential customers. After evaluating its supply chain, the company adopted a software platform (Manhattan Associates, manh.com) that provides end-to-end supply chain commerce integration.

Since Lennox owns all of its distribution, it is a manufacturer as well as a national distributor. Lennox implemented an enterprise resource planning (ERP) system but still needed a distribution system to support strategic changes. Lennox redesigned its supply chain to move from a national distribution network to a more regional distribution, hub-and-spoke network to support more than 6,000 dealers and 140 company-owned service centers.

“We needed an integrated system that would work with the transportation system, warehouse management system and labor management. This new system drives our processes to be more disciplined and that, in turn, improves our accuracy,” says Keith Nash, vice president of supply chain logistics. “Because of the redesign, our quality is higher, our costs are lower and our customer cycle time is definitely lower.”

Nash says the software dissolves operational silos, breaks down the walls between channels and promotes holistic and strategic decision-making. In the three years since the redesign, the company has seen a more than 50% increase in productivity, an improvement in shipping accuracy from 98% to 99.97% and an increase in inventory accuracy from 97.5% to 99.53%.

Nash says the company is moving into using the supplier’s supply chain event management system, which will give customers visibility to milestone events including the exact arrival time of the product.



About the Author

Josh Bond
Senior Editor

Josh Bond is Senior Editor for Modern, and was formerly Modern’s lift truck columnist and associate editor. He has a degree in Journalism from Keene State College and has studied business management at Franklin Pierce University.


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

83% of surveyed manufacturers either already have IoT implementations in place or plans to deploy within a year.

While the Port of Oakland agrees that Saturday gate operations might ease congestion, they have a few "concerns" of their own

The four international marine container terminals at the Port of Oakland have announced they are developing a program to operate their terminal gates on Saturdays to reduce weekday congestion at the port.

Private fleet managers are facing a remarkable set of challenges in today's demanding business environment. The "from any place at any time" omni-channel fulfillment mindset is just one significant development that companies have had to adapt to in their quest to keep customers and business partners happy.

This is the first guaranteed weekly service direct to the U.S. from Singapore as part of the company’s initiative to enhance its LCL offerings serving Trans-pacific needs.

Comments

Post a comment
Commenting is not available in this channel entry.