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TEAM 1 Section 3 - Software Selection Methodology TEAM 2 Executive Summary Section 1 - Introduction Appendix TEAM 3 Section 2 - Literature Review References TEAM 4 Section 4 - Analysis of Results 4.2.3 and 4.2.4 only TEAM 5 Section 4 - Analysis of Results 4.2.2 only Conclusion TEAM 6 Section 4 - Analysis of Results 4.1 and 4.2.1 only | [email protected] | |||||||||||||||||
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ACKNOWLEGEMENTS 2 EXECUTIVE SUMMARY 3 I. INTRODUCTION 4 A. PROJECT BACKGROUND 4 B. PROJECT SCOPE 4 Software Review 4 Supplier Survey 4 Software Selection 4 Written Report 4 Oral Report 4 Project Organization 5 Develop a Project Plan 5 Develop Project Monitoring & Control System 5 Develop and Analyze Product Database 5 Develop an Apply Software Selection Heuristics 5 Develop and Analyze Software Supplier Database 5 Co-ordinate Preparation of Final Written Report 5 II. LITERATURE REVIEW 6 A. SCM SOFTWARE ? AN OVERVIEW 6 B. SCM SOFTWARE SURVEYS 6 III. SOFTWARE SELECTION METHODOLOGY 7 A. PROPOSED SELECTION METHODOLOGY 7 B. DECISION MODELS 8 C. DECISION MODEL 9 D. PRELIMINARY TESTING 11 D. PRELIMINARY TESTING 12 E. SCENARIO ANALYSIS 12 IV. ANALYSIS OF RESULTS 12 A. OVERVIEW 12 B. SUPPLY CHAIN MANAGEMENT SOFTWARE 13 C. DEVELOPMENT & APPLICATION OF SELECTION HEURISTICS 13 D. SOFTWARE SUPPLIER SURVEY 14 Supplier Software Information Guide 14 V. CONCLUSION 24 A. MAJOR FINDINGS 24 B. BASIC LIMITATIONS 26 C. FURTHER WORK 26 VI. REFERENCES 27 A. INTERNET ADDRESSES 27 VII. APPENDIX 28 A. LIST OF APPENDICES 28 ACKNOWLEGEMENTS This research project was conducted during the Summer 2000 semester by the students enrolled in the five-year professional MBA program at the School of Business and Industry, Florida Agricultural and Mechanical University: The project was completed as a partial requirement for satisfactory completion of Course TRA 5723, Global Logistics II, which examines the application of advanced management tools and techniques in enhancing the effectiveness and efficiency of decision-making in the supply chain. My sincere appreciation is extended to the students who, despite busy schedules, took the lead in directing and implementing all phases of this project and in ensuring timely completion of this study. Colin O. Benjamin, CEng, MBA, PhD Professor of Engineering Management School of Business & Industry, FAMU EXECUTIVE SUMMARY Supply Chain Management (SCM) solutions is the integration of all activities associated with the flow and transformation of goods through improved supply chain relationships, to achieve a sustainable competitive advantage. A wide range of SCM software is available to progressive Logistics Managers to enhance global competitiveness. The Summer 2000 Global Logistics II class conducted a study to develop a methodology to enable managers to identify the SCM software which represents the best fit with their company?s needs. Forty students were separated into six teams and each team was assigned specific roles and responsibilities to facilitate timely completion of the SCM software project. The key phases of the project included: 1) Software review May 18 2) Supplier review June 13 3) Software selection June 27 4) Written report July 13 5) Oral report July 18 The class selected an IIE survey to devolop a supplier database of SCM software alternatives and their operational characteristics. The database also provided a profile of the facts of the supplier and contact information, in which nineteen software products were analyzed with prices ranging from $7,500 for single-module systems to $1,500,000 for multi-module systems. During our research, it was ascertained that most of the SCM companies are small, private firms located in the Northeast. It was also discovered that the firms are similar in that Windows and Unix are the dominating operating systems. Many of the larger SCM firms built an interactive website where customers can purchase the software online. The top three firms selected by the class using an Analytical Hierarchy Process model (AHP) based on content, style, and process were: Lilly Software Associates, Logility, and Industri-Matematik. The class concluded that further research was necessary so that a wider range of SCM software would be taken into consideration. Moreover, better use of the class website as a communication focal point is pertinent for future success. Lack of resources prohibited the class from purchasing SCM softwareto conduct independent, ?hands-on? software evaluation. I. INTRODUCTION A. Project Background A wide range of Supply Chain Management (SCM) software is available to progressive Logistics Managers to enhance global competitiveness. These software options range from simple, low-cost vehicle routing software such as Truck Stops for Windows supplied by MicroAnalytics to comprehensive, high-end systems such as RoutePro Designer supplied by Caps Logistics, Inc. When effectively deployed, these SCM software options can facilitate the design and implementation of efficient business processes, which can result in cost savings, quality improvement, and enhanced customer service. These factors will ultimately have a significant impact on a company's survival and long-term growth and profitability. The literature periodically provides surveys, which contain profiles of commercially available SCM software. However, few guidelines are available to permit a systematic evaluation of the many SCM software options and enable a logical determination of the alternative, which represents the best fit with a company's needs. B. Project Scope The Summer 2000 Global Logistics II class reviewed the range of SCM software available to Logistics Managers and developed a methodology for software selection. This project was implemented through five phases: Software Review Review recent software surveys to identify software trends, product leaders, and innovative corporate leaders Supplier Survey Solicit product information from software suppliers e.g. prices, literature, demos, software, videotapes etc. Software Selection Formulate a methodology for software selection and illustrate its application Written Report Analyze and summarize these findings Oral Report Present these findings to the class Project Organization The class was organized into six teams that tackled the various phases and other administrative tasks to ensure the success of the project. The specific team assignments were as follows: Develop a Project Plan Create task list, network diagram, Gantt & milestone Charts (see Appendix B) See Appendix for project schedule and further reference Project Plan Handout (see Appendix A) Project Task List Project Network Diagram (see Appendix C) Monitor & control project implementation Co-ordinate participation by teams in final oral presentation to faculty Develop Project Monitoring & Control System Develop project website http://members.fortunecity.com/global2class/index.html Propose use of email Give oral and written progress reports to control implementation Develop and Analyze Product Database Include price, operating system, features, primary users, etc. Provide appropriate tabular and graphical summaries Develop an Apply Software Selection Heuristics Propose "rules-of-thumb" appropriate for selecting this category of software Develop test scenarios to illustrate the application of these heuristics Develop and Analyze Software Supplier Database Include size (sales, employees), URL, product mix, location, major users, etc. Provide appropriate tabular and graphical summaries Contact suppliers and request product information e.g. videotapes, product bulletins, software demos, academic versions of software Co-ordinate Preparation of Final Written Report Prepare draft Table of Contents of final report Complete Introduction and Literature Review sections of final report Co-ordinate preparation of assigned sections of the Review sections of the Final Written Report Co-ordinate References, Appendices, Tables, Figures, etc. II. LITERATURE REVIEW A. SCM Software ? An Overview Supply Chain Management (SCM) - delivering the right product to the right place, at the right time and at the right price ? is one of the most powerful engines of business transformation. By choosing an effective SCM solution manufacturers can reduce inventory, stockouts and planning costs. SCM software is used to plan product purchases or sales, and keep track of ordered items through the shipment and billing processes. Supply Chain Management Software is categorized into two types by analysts. The first type is ?supply chain execution,? which includes order management, transportation scheduling, and warehouse packaging and shipping. The second type is ?supply-chain planning,? which is for forecasting demand, inventory replenishment and manufacturing/production scheduling. Companies that provide software that fall into the first category include Manhattan, EXE Technologies, Industrial-Matematik International and International Business Systems. I2, Manugistics, and Ilog are companies that provide software that falls into the second category (www.nwfusion.com). Both of these categories together generated revenue last year of $3.1 billion, a number that is expected to grow to $4.5 billion this year. When a buyer is selecting software they must consider several things. They must consider exactly what type of software their company needs, whether it should be ?supply chain execution? or ?supply chain planning.? This depends on their line of business and which type will most optimize their processes. They must also be aware of how Web-based e-commerce is leading to a transformation in SCM and choose the appropriate software (www.nwfusion.com). This transformation is happening because retailers, distributors and manufacturers want to share logistics information by giving trading partners and even consumers direct Web access to SCM systems. B. SCM Software Surveys There are surveys that have been done by many companies to help a manufacturer to decide on what is the best software to obtain and use for their company. Magazines such as APICS send out survey forms to companies to find out about their SCM software and then publish the results in their magazine, which can be viewed online. These results are helpful to give a manufacturer a good idea about what the software does and to decide whether it is what their company needs. Other sources that a buyer can look in to find information about SCM software is in the Software Buyer?s Guide and Destination Magazine. There are many types of software that are available for supply chain management. These include mySAP.com by the number one software supplier SAP. MySAP.com provides an open collaborative business environment of personalized solutions on demand (www.sap.com). This program allows companies of all sizes and industries to fully engage their employees, customers and partners to capitalize upon the new Internet economy. People are allowed to use the power of the Internet to work smarter, better and faster by optimizing supply chains, managing strategic relationships, reducing time to market, sharing virtual information, and increasing productivity and shareholder value. Another product that is being offered is by Oracle, which is the number two supplier in the industry. The most productive tools for building Applications and Business Intelligence Solutions that exploit the Internet. Oracle offers their Supply Chain Management Suite Release 11i. In Release 11i Oracle expands their global presence by introducing many new global features such as country of origin, which allows a person to track the country of origin for import (www. Oracle.com). Oracles Manufacturing and Supply Chain Applications are designed to help their customers transition to an e-business by expanding markets, reducing costs, improving quality and customer service as well as streamlining operations across the extended supply chain. Oracle?s e-business supply chain solution is expanded by Release 11i to transform the entire business process. From demand capture, supply chain planning, procurement, manufacturing, to delivery logistics and customer service, enabling one to improve responsiveness and customer service, optimize their global supply chain, source all materials and services at lowest total cost, increase operational efficiency and velocity and improve performance management (www.oracle.com). Others include SKEP by Adapta Solutions, Inc., AIM Vision by AIM Computer Solutions, Inc., MIMI by Aspen Technology, Inc., Vivaldi by Industri-Matematik International and many others. III. SOFTWARE SELECTION METHODOLOGY A. Proposed Selection Methodology A systematic approach can be applied to the process of software selection. In the following, there are seven recommended steps for selecting software will be explained. The first step is to understand the need. A need exists when there is a discrepancy between the actual outcome and the desired outcome. Initially, it must be decided that a computer program is the correct intermediary to fulfill the particular need. Once that has been confirmed, the second step in the selection methodology is to identify the requirements of the desired software. The software requirements should have a direct correlation with the fulfillment of the specified needs. It is important to be aware of the software's cost, ease of use, compatibility with existing software, level of interaction, the necessary technical support, and the accessibility of that support. The most important qualification is that the software complies with its intended use. The criteria identified are rarely equal in importance. So the third step is to weigh the requirements in order to properly prioritize them in the whole scheme of selecting the optimal software. The fourth step requires the generation of possible software alternatives. No attempt is made in this step to appraise the alternatives--only to list them. Software can be found in industry catalogs, journals, books, magazines, and most conveniently, online. Once the alternatives have been generated, each one must be critically analyzed and evaluated. This leads to the fourth step in the selection process: rate each alternative based on each requirement. The strengths and weaknesses of each alternative become evident as they are compared to the requirements and weights that were established in previous steps. The best way to decide if the software is compatible with a job is to preview it. Several software vendors allow free previews and demonstrations of software programs, which can be obtained via CD-ROM or downloaded from the Internet. The selector of the software should take these opportunities to review as many programs as possible that are in accordance with their requirements. The optimal software can be recommended by evaluating each alternative against the weighted criteria and selecting the alternative with the highest total score. This task may by accomplished by creating a quantitative method for rating each alternative against the selection criteria. (i.e.- a scoring model). Next, a written report should be generated, detailing the reasons for or against the selected software for purchase. Finally, the last step in selection methodology is the continuous process of feedback. How did it work? Now that the software has been implemented, does it meet or exceed expectations or fall short? Some of the objectives that were not met could be rectified by use of a supplemental software program. Selecting software can be simplified if these seven steps are followed. B. Decision Models Multi-criteria decision models can be utilized to compare and score software alternatives by linking quantitative information with qualitative software attributes. A frequently used scoring model is the Quality Function and Deployment model. With QFD, the idea of quality is presented in the early stages of the selection process and reevaluated throughout the software's life cycle. QFD uses several matrices to identify interrelationships between consumer requirements and product attributes. The following steps are included in creating a QFD model: Characterize the customer Identify customer preferences and non-preferences about the software Pinpoint the technical attributes of the software Outline the HOW's and WHAT's Design a House of Quality (HOQ) Analyze Results Another effective multi-criteria decision-making technique involves the analytic hierarchy process (AHP). AHP allows for the consideration of objective and subjective factors in selecting the best alternative. This approach is used to arrive at a cardinal ranking of alternatives for multi-attribute decision problems. AHP has gained widespread popularity among decision-making methodologies due to its flexibility and ease of use. The process is explained by the following steps: Identify the attributes to be used in the evaluation of criteria Organize the attributes in a hierarchy-- from general to specific Determine the relative importance of each criteria Conduct a pair-wise comparison of criteria Compute column sums Divide each entry by relevant column total Calculate criteria weights Compute score based upon total weighted sum of criteria weights multiplied by ratings of alternatives Assign ranks to alternatives based on score Choose alternative with the highest rank C. Decision Model The methodology for selecting software begins with an assessment of the software candidate. This is accomplished through the development of an extensive list of possible vendors. From this list it is necessary to derive software profiles for each vendor. Factors to be analyzed include cost, operating system, lead time, and key features. At this point, it must be determined whether the software is acceptable. If not, it should be eliminated from the list. If the software is acceptable thus far, it should be evaluated with a scoring model. A scoring model is a quantitative tool used to measure qualitative attributes among a series of alternatives. Again, the user must assess the software. If it is unsatisfactory, it should be eliminated from further analysis. If the software is adequate, then an assessment should be made to determine the financial feasibility of implementing the software. The evaluation may be conducted by calculating the payback period and rate of return or by employing discounted cash flow and risk and uncertainty techniques. If the software is inadequate, then further analysis is discontinued. If the software is deemed sufficient, then the user may proceed with the actual selection scoring models to choose the optimal software. D. Preliminary Testing This phase is used to ascertain whether the designated software selection methodology yields the desired results. It necessitates the creation of simulations that change variables such as cost, product utility, and application in order to choose software that fulfills all needs. The testing should incorporate scenarios that will result in choosing a product that best satisfies all constraints. The process should be applied to all of the scenarios and the result should be the best product. After testing the selection methodology, one should be able to conclude whether the process that was formulated adequately facilitates the selection of software that satisfies the most important decision factors. E. Scenario Analysis The end result should be the focal point in every situation. A scenario analysis can be used in determining the best, worst, and most likely outcomes. This information enables the user to determine if the software will be the ideal choice for its predetermined needs. A scenario analysis should not be confused with a sensitivity analysis. A scenario analysis only generates information for final outcomes. It does not consider the fluctuations due to percentage changes based on the amount and types of information involved. Its purpose is solely to provide the user with the final best, worst and most likely outcomes. These outcomes can determine whether the risk of the worst case outweighs the potential benefits of the best case. It also suggests how to minimize the risk of selecting the worst possible outcome. IV. ANALYSIS OF RESULTS A. Overview In this phase of the project, we developed an SCM software product database, software selection heuristics, and a software supplier database. The database was developed through Microsoft Access and lists 14 companies and their software products. This database is fully operational by providing the user with the company, price of the product, the product, and the features associated with the purchase of supply chain software. Each of these systems is run mainly on the Windows 95, 98, and NT operating systems. The development of this database allows the user to link into a product and sort by price and company. Also, in this section is the development of software heuristics. ?Rules of thumb? were developed in showing the user how to select software in this category. Test scenarios were developed to illustrate the application of these software heuristics. (See Appendix J) Lastly, a software supplier database was established. The size (sales, employees), URL, product mix, location, and major users are displayed in graphical summary for the program users. Suppliers were contacted and supplier information requests were submitted to each company for reply. (See Appendix K) B. Supply Chain Management Software The supply-chain management software database (see appendix H) database was developed using Microsoft Access and lists the 14 companies and their 19 software products. This database is fully operational and provides the user with the company, price of the product, the product, and the features associated with the purchase of supply chain software. Each of these systems is run mainly on the Windows 95, 98, and NT operating systems. The development of this database allows the user to link into a product and sort by price and company. The supply chain-pricing graph (see appendix H) gives an A, B, C, and D ranking of the software prices. Prices range from the least expensive ($7,500) to the most expensive ($2,000,000). (See Appendix D) An operating system table is enclosed that shows each specific product and their most frequently used operating systems for each software product and the number of products using an exact operating system. The pie chart shows that UNIX, Windows 95, and Windows NT are the most frequently used operating systems for supply chain software. Also, there is a pie chart representing the software products the amount of operating systems each uses. (See Appendix H) This data shows that Manguistics5 (10%) and Optimum SCE Series (12%) have the most variety in operating system availability and several programs follow suit with 5%-7% variety in operating systems. C. Development & Application of Selection Heuristics The information used in the selection heuristics process came from a software survey in IIE Solutions magazine, June 1999. The survey gave explanations of the usage, price, platforms, and manufacturers of the software. In reviewing the software, one can see that supply chain software is not limited to a particular usage. Supply chain software can be used for many such as planning, warehousing, distribution, and order processing. Of the many uses of supply chain software the survey identified planning, warehousing, distributing, and order processing. Supply chain software is utilized more often in a manufacturing type industry. Supply chain software can be used on a variety of software platforms. Some of these platforms are NT, Windows 95 and 98, and UNIX. There are other platforms, but these were the most common platforms. This software is very helpful to the present and future success of many manufacturing companies. This software will help those in upper management as well as the hourly wage-workers. Supply chain software will continue to grow and become easier to use. Accompanying illustrations of the scenarios are in PowerPoint. D. Software Supplier Survey Supplier Software Information Guide (Appendix I) Adapta Solutions Founded in 1985, DynaSys is a leading European provider of comprehensive Supply Chain Planning Solution tools and domain expertise designed to manage the demands of the Supply Chain. DynaSys offers a technology that meets the needs of today?s manufacturers and delivers real value rapidly. DynaSys? products and team provide effective decision-support to world-wide customers and enable them to reach dramatic results quickly: increase business efficiency reduce inventory levels reduce production and distribution costs improve customer service and market demand responsiveness facilitate decision making The firm is headquartered in Strasbourg (France) and maintains offices, subsidiaries and agents in the USA and all over Europe to provide the best possible support to its customers. Over 130 companies across France, Europe and the rest of the world currently use DynaSys? solutions, mainly in food processing, pharmaceutical and medical supplies, and in the textile industry. With rapid growth and success, DynaSys remains close to its customers, improving its services and the user-friendliness of its software suite to provide them with the highest level of business value at the lowest possible cost. The SKEP eXt Solutions is a comprehensive suite of decision-support software modules in Supply Chain Planning that covers the areas of Planning, Forecasting, Purchasing, Multisourcing and Scheduling. SKEP eXt Solutions enables process manufacturers to achieve strategic objectives through comprehensive capabilities. SKEP eXt Solutions: the Benefits improving delivery times and customer service levels reducing inventory levels reducing production and distribution costs improving reactivity to changing environments increasing capacity utilization optimizing resources improving communication In order to guarantee a total integration with its clients? information technology, DynaSys has developed certified interfaces and complementary solutions with major ERP vendors like SAP, BPCS, ORACLE Application, and MARCAM. DynaSys provides a wide range of consulting services to implement SKEP eXt and integrate the Solutions with its clients' information technology environment. DynaSys also offers technology transfer and training courses that cover the conceptual and technical aspects of SKEP eXt Solutions. Post-implementation support is also provided to ensure that business continues running smoothly. AIM Computer Solutions, Inc. AIM Computer Solutions, Inc. is a leading software developer of the manufacturing solutions package AIM Vision for use by repetitive manufacturers. AIM Vision consists of five completely integrated application groups: Electronic Order Processing Bar Code Technologies Manufacturing Control Scheduling Applications Financial Applications Collectively, they offer complete Supply Chain Management. AIM Vision has seamless EDI integration into Release Accounting for both 830 Material Releases and 862 Shipping Schedules. Their unique design provides further integration through Production Scheduling, MRP and CRP. Daily use of Bar Code Technologies, such as Bar Code Labels, Bar Coded Container Movement, Bar Coded Shippers, Bar Code PO Receiving, Production Posting and Warehouse Transfers saves time and increases accuracy. Their solution also includes integrated financial applications in which Accounts Receivable is updated from their Shipping application and Accounts Payable is updated from their Purchasing and Bar Code Purchasing applications. Other financial applications and shop floor automation round out the solution. AIM Vision runs on Windows 95, Windows 98, Windows NT or UNIX. It?s developed using Client/Server technology with Progress Software as the backbone of their complete solution. The service provided by AIM Computer Solutions, Inc. is as important an asset as their products. The implementation process is approached as a partnership between AIM and the customer. AIM Account Managers are APICS-certified CPIM's and assist in every step of the implementation process. The Account Manager will help identify project objectives and work with the customer in using software to meet stated goals. Both companies develop a detailed work plan to provide a guide for the process, and to indicate all of the activities that must take place in order to ensure a smooth implementation. Feedback from customers occurs at regularly scheduled Users' Group meetings, where common issues and questions are discussed. Ideas discussed are then used as a basis for future revision levels of application products, allowing the customer to take an active part in their own product support cycle. Lilly Software Associates Lilly Software Associates is comprised of an exclusive network of businesses that distribute and support Lilly Software products worldwide. This network includes sales/services offices in over 30 countries on 5 continents, including USA, Canada, UK, Asia, South America, Europe, Australia, and South Africa. Lilly started Lilly Software Associates in 1992 and created VISUAL Manufacturing, the first true Windows-based, client/server solution for the manufacturing community. Today, Lilly Software continues its market leadership with its complete supply chain product line and its US patented technology that allows organizations to schedule both materials and resources concurrently. With Richard Lilly's strategic planning, corporate direction, and executive decision-making, Lilly Software Associates has seen 100% sales growth in each of the last six years. Visual Manufacturing Visual incorporates Enterprise Resource Planning (ERP), Advanced Planning and Scheduling (APS), Manufacturing Execution Systems (MES), and Quality Management capabilities. With this variety of fully integrated products, you can move seamlessly between all facets of your company, from engineering, to the shop floor, to accounting. Whatever your planning and production strategies?custom, make-to-order, assemble-to-order, make-to-stock, or mixed?mode Visual Manufacturing helps you run your business more effectively. Visual Supply Chain Lilly Software Associates, continues to break today's technology barriers by providing the pragmatic and innovative solutions that distributors and manufacturers need for success. Lilly Software offers a complete line of integrated Supply Chain products that includes Enterprise Resource Planning (ERP), Advanced Planning and Scheduling (APS), Manufacturing Execution Systems (MES), Quality Management System (QMS), and Warehouse Management System (WMS) capabilities. LSA offers manufacturers and distributors the tools they need to increase their enterprises profitability and compete successfully in the global marketplace. Visual Distribution As the demands in the marketplace rise, you need a software solution that combines: Order Management, Inventory Replenishment Control, Transportation Management (TMS) World Class Financials, E-Commerce and Warehouse Management (WMS). Lilly Software's VISUAL Distribution software gives you the power to organize your enterprise to increase throughput and profit. The VISUAL Distribution initiative includes both VISUAL Distribution - Front Office and VISUAL Distribution - Warehouse. Complete integration between applications provides up-to-the-second data for use when you forecast and plan inventory replenishment, establish unit sales goals and manage order entry and purchasing. Visual Manufacturing The patented scheduling capabilities of VISUAL Manufacturing are now available to users of most other ERP systems. VISUAL APS delivers schedules that respect both resource and material constraints and provides bottleneck identification and throughput management. The system is easy to use and intuitive to navigate. Users can easily understand how VISUAL APS creates each schedule. With a focus on both on-time deliveries and increased profits, VISUAL APS delivers for the customer in a timely manner. Aspen Technology, Inc AspenTech was founded in 1981 to commercialize technology developed by the Advanced System for Process Engineering (ASPEN) Project at the Massachusetts Institute of Technology. AspenTech went public in October 1994 and has acquired 15 industry-leading companies as part of a strategy to offer a complete integrated solution to the process industries. Some of these companies include: Treiber Controls, Inc.; Chesapeake Decision Sciences, Inc.; Zyqad, Ltd.; CIMTECH S.A.; Contas Process Control S.r.L.; IISYS, Inc.; Special Analysis and Simulation Technologies, Ltd.; Neuralware, Inc.; PIMS business group from Bechtel Corp.; and B-JAC International, Inc the Process Control Division of U.K.-based Cambridge Control Ltd, AspenTech at a Glance www.chesapeake.com Revenues totaled $219.6 million for the fiscal year ending June 30, 1999 More than 1,500 employees in 22 countries worldwide Headquarters in Cambridge, Massachusetts, USA Offices throughout the Americas, Europe, Middle East, Africa, and Asia Distributors or representatives in India, Kuwait, Malaysia, Russia, Saudi Arabia and Thailand. Aspen Technology, Inc. is the leading supplier of integrated software and solutions that enable process manufacturers to automate and optimize their plants and extended supply chains while enabling eBusiness. AspenTech offers the industry's broadest family of scaleable solutions allowing its customers to be successful in the Internet economy. The Enterprise Optimization and Plantelligence solutions are comprised of three fully integrated suites -- the Aspen eSupply Chain Suite, Aspen Manufacturing Suite and the Aspen Engineering Suite -- built on the Aspen Framework. AspenTech's e-Business enabled Enterprise Optimization solutions to provide process manufacturers with an edge, enabling them to: 1) View the actual capabilities of their plants in real-time; 2) Implement business processes, supported by current and accurate information, that facilitate rapid decision-making; 3) Optimize their extended supply chains to improve performance and reduce costs, while integrating their internal business processes with those of their trading partners The AspenTech Engineering Suite can streamline and accelerate the product and process engineering lifecycles so you can respond faster to the need for new and customized products, new processes, and improvements to existing processes. In addition, the Aspen Engineering Suite integrates with the AspenTech eSupply Chain and Manufacturing product suites. The result is an unprecedented opportunity to build a comprehensive enterprise optimization strategy that enhances performance and drives value for your organization and your customers. With the Aspen Manufacturing Suite, you can execute production plans faster, minimize deviation from those plans, and revise plans in real-time, based on actual asset performance. Caps Logistics, Inc. Founded in 1978, Baan Company is a global software product company defining the market for high volume, packaged enterprise applications by delivering the most comprehensive portfolio of integrated, Year 2000 compliant, software components to address the core business processes common to companies of all sizes and industries. CAPS Logistics, Inc., A Baan Company is a software development firm specializing in providing quality logistics decision support systems. Incorporated in 1979, CAPS Logistics has become the premier vendor of logistics planning and scheduling optimization software. Caps Logistics at a Glance www.caps.com Grew from 30 people in 1992 to 100 people in 1996 Revenue growth of 400% over those five years. Hardware requirements: An Intel Pentium, Pentium Pro, or Pentium II microcomputer; 1 GB - 3.0 GB Hard Drive; 32 MB or more; CD-ROM drive; 3-1/2" High density diskette drive; Parallel port; VGA, or higher resolution monitor & card (64-bit, 2 MB RAM recommended); a mouse pointing device; any printer device supported by Microsoft Windows; 28800 Baud modem strongly recommended for CAPS Logistics support Software requirements: Microsoft Windows 95, Windows NT 4.0 or higher; Modem Software or Internet Access, PROCOMM for Windows by Datastorm; E-mail, FTP and WWW access Recommended Options: Microsoft Visual Basic v5.0 or Borland Delphi v1.0 or higher; Database and ODBC drivers; Microsoft Excel 7.0 or higher; Novell 3.x or higher; Windows NT Server 4.0 or higher Supply Chain Planning Suite Supply Chain Designer?: for supply chain modeling and optimization; used to model and optimize design and planning of global logistics supply chains including infrastructure design, facility location and sizing, resource allocation, transportation and inventory strategies, service level analysis, and profitability studies. Supply Chain Coordinator?: a tactical manufacturing and distribution planning tool which optimizes the tradeoffs among production, inventory and transportation over multiple time periods. Transportation Suite BidPro?: a strategic planning tool for shippers and third parties who must analyze and negotiate pricing bids from carriers. It inputs are shipping requirements and carrier bid responses that handle selected lanes of freight. It optimally chooses the least cost set of carriers to fulfill the shipping volumes TransPro?: for transportation planning; optimizes planning & operational transportation decisions involving freight consolidation, mode/carrier selection, and pooling. This product is for companies that use 3rd party carriers in addition to or instead of using their own or dedicated fleets. Routing & Scheduling Suite RoutePro Designer?: this strategic route planning tool optimizes fixed or master routes, designs territories, balances and optimizes customer service frequency over days of the week, and sizes fleets. RoutePro Dispatcher?: for optimization of the routing & scheduling of transportation assets, usually private or dedicated trucking fleets. RoutePro Residential?: optimizes routes that must cover a large number of customers in concentrated areas, such as meter reading, waste collection, postal delivery and collection, and newspaper delivery. RoutePro VMI?: both a planning and operational dispatch tool for situations where transportation and vendor-managed inventory replenishment should be optimized together. The CAPS Logistics Toolkit�s: rapid application development environment for building memory-resident optimization models of supply chain systems. Logility, Inc. Headquartered in Atlanta, Logility Inc. provides state-of-the-art internet-designed business-to-business collaborative commerce solutions that optimize operations throughout the value chain. Logility's mission is to enable the optimization of their customers value chain by providing solutions that collaboratively integrate their business processes with their trading partners. Logility's Voyager Solution Logility is an integrated suite of business-to-business Internet value chain management solutions that enable manufacturers, distributors and retailers to more effectively optimize the activities along their respective value chains and enhance collaboration among trading partners. Logility also provides collaborative commerce solutions to expand the number of business processes that can be executed via the Internet. Logility's services include applications hosting and applications management through the i-Connection SM for those companies who prefer that Logility host their value chain management applications. The key benefits of the Company's software solutions and services include the following: Integrated End-to-End Value Chain Solution The Company's Voyager Solutions provide functionality that addresses both the flow of information and the flow of products throughout the value chain. By synchronizing its comprehensive planning solutions with its supply chain execution solutions, the Company's applications can more efficiently and accurately coordinate the delivery of products to the customer. This end-to-end approach allows maximum synchronization of activities along the value chain. Comprehensive Planning Solution The Company's planning solution is comprised of demand, inventory, event, manufacturing, replenishment and transportation planning modules that balance demand opportunities with supply constraints through the synchronization of information gathered from value chain participants. A key component of the Company's planning solution is its emphasis on addressing the full range of complex demand planning requirements of its customers, including comprehensive forecasting capabilities that take into account each user's unique perspective of the value chain. Advanced Collaboration Functionality The Company's products allow for internet-based collaboration among the various levels within an organization and among external constituents throughout the value chain. The architecture of Logility Voyager Solutions enables key constituents to participate in the planning process, including marketing, sales, manufacturing, procurement, logistics and transportation personnel, so that the requirements of all groups are factored in to create one consensus plan. The Company's collaborative planning functionality is further enhanced with Collaborative Commerce solutions such as Logility Voyager XPS which leverages Internet technology to facilitate information sharing directly with trading partners. Through the Company's I-Community collaborative network of trading partners, customers will be able to exchange information and conduct collaborative planning, forecasting and replenishment. Robust Warehouse Management Solution The Company's integrated Warehouse PRO solution is designed to optimize operations within the warehouse by improving inventory turnover, increasing inventory accuracy and customer service and reducing inventory levels. The solution's object-oriented design and user-configurable architecture allows for flexible and rapid implementation. In addition, the solution features a comprehensive library of industry best-practice workflows that can be configured by the customer, thereby minimizing the need for custom programming. Rapid Deployment The Company's products utilize Internet technologies and a modular design, thereby streamlining implementation and allowing deployment in a relatively short time frame. The comprehensive functionality of each application generally permits customers to implement the solutions with nominal modifications. In addition, the applications combine sophisticated techniques and tools with an intuitive, Windows-based, internet-designed interface to reduce training requirements and implementation tasks. MicroAnalytics MicroAnalytics is a privately held international company managed by its owners. J. Michael Hooban and Kenneth Mitchell, the principals of MicroAnalytics, are authorities in computer modeling, quantitative analysis, and logistics management systems. Combined, they have over fifty years experience in distribution and decision support systems. They have been developing PC-based software since 1980. The company operates offices in Arlington, Virginia; Toronto, Ontario; and London, England. The company also works with a growing network of distributors in the United Kingdom, Europe, South America, and Africa. MicroAnalytics software is an easy-to-use computerized routing program that builds the most cost-effective routes and schedules in minutes. Now in its fourth year in Windows, TruckStops is used to route millions of deliveries each week at more than 1,800 customer sites worldwide. This powerful, user-friendly tool helps cut transportation costs and increase driver productivity while improving customer service. It contains powerful cost minimization routines. MicroAnalytics customers include: 7-Eleven, Inc. Merchant?s, Inc. Advanced Auto Parts Miller Distribution Airborne Express Parmalat Beatrice Foods Frito-Lay, Inc. Pepsi-Cola Bottlers UPS Worldwide Logistics Westinghouse Samsung Electronics America Ryder, Inc. GATX Logistics Optum, Inc. Optum, Inc. provides the fulfillment engine for B2B2C commerce. Its solution set aggregates inventory information to align supply and demand for both buyers and sellers. The industry innovator in fulfillment. Optum delivers a highly configurable e-commerce infrastructure to manage inventory visibility and availability across the enterprise and trading communities. With its core warehouse, transportation and inventory visibility capabilities, fulfillment operations for both traditional and e-commerce companies. Optum?s unique strength in B2B2C commerce is its understanding of both the complex relationships between companies and their trading communities, and the flow of goods and information from order to final delivery. The Optum approach helps traditional and e-commerce companies optimize fulfillment from order inception through final delivery and payment. The solution set combines robust product capabilities with strategic consulting services to bring clients comprehensive fulfillment solutions required for success in the Internet economy. Optum software is successfully used by manufacturers, distributors and retailers in both traditional and e-commerce environments. Industry verticals include automotive, electronics and high technology, and consumer products. Sage Tetra (Tetra CS/3) Sage CS/3 is an industry leading, web enabled financial, distribution and manufacturing system, designed for mid range and larger organizations. Based on the Unix platform, CS/3 offers reliability, scalability and international coverage. Sage CS/3 is developed from an established and proven solution with the addition of the latest leading edge technology. A CS/3 system will provide an advanced level of functionality that can be fully adapted and configured to meet an organization?s requirements. For companies in manufacturing, distribution and business services sectors, Sage CS/3 provides a huge range of options, enabling your system to expand as business needs change and develop. These options are available as discrete modules, allowing firms to tailor the package to their exact needs. The Internet is presenting huge opportunities for businesses around the world to broaden market coverage, increase customer satisfaction and enhance communication. CS/3 offers easy and effective integration with web technology via the Web Enterprise suite of products. It operates with Microsoft and IBM e-business technologies and can enable businesses to be online in weeks. Sage CS/3, together with Web Enterprise, provides a total web enabled solution with a robust and seamless link between web transactions and the back office systems. Web Sales With Web Sales, a company will benefit from a real-time means of transacting and creating value by connecting buyers with suppliers quickly and efficiently. Web Sales provides an online, integrated web store that allows customers to order goods and services anytime of the day or night. Web Sales provides tight integration between CS/3 and the e-Commerce web site. This means that customers can use the Internet to dynamically browse product information, gain access to customer and product inventory information and create and track orders. Web Client The Web Client option provides a low cost, remote access solution for CS/3 users. Business information can be accessed using an Internet browser through a central resource, thereby lowering administration costs. SynQuest Company Profile SynQuest, Inc. is headquartered in Atlanta, Georgia, with offices around the world. SynQuest enables profitable One-to-one e-business solutions across the supply chain. They're recognized worldwide for helping companies: Make every customer feel like their most important customer Get the best financial answer while meeting customer experience and order fulfillment goals Expand seamlessly from supply chain to Web-based solutions Achieve dramatic performance results quickly SynQuest experts have helped companies including Ford, Moore, Nordstrom, Chesapeake Packaging, Titleist-Footjoy Worldwide and Herman Miller manage their businesses for outstanding supply chain and e-business results. CONCLUSION Major Findings The Summer Global Logistics II class performed the aforementioned tasks in an effort to select the appropriate supply chain software for given entities. As analysts, they performed the structured sequential tasks in order to develop a methodology for software selection. By exploring software reviews and reading software surveys, the group familiarized themselves with current supply chain software and the industry?s trends and market leaders. Multi-criteria decision models (such as AHP and QFD) were used to compare and score software alternatives by linking quantitative and qualitative information. This approach took into account the organization?s size and budget, their requirements of the software, and the ability of that software to meet the demands of the organization (software function, cost, and compatibility with existing operating system and software). While most available software runs on numerous operating system platforms, overwhelmingly, most software ran on Unix and the Windows systems (Windows NT, NT 4.0, Windows 98 and Windows 95). The Optum SCE Series (Optum, Inc.) operates on 7 of the given operating systems. Manugistics (Manugistics, Inc.) operates over 6 operating systems. Value Chain Solutions (Logility, Inc.), Tetra CS/3 (Sage Tetra), and SynQuest Supply Chain Performance Suite (SynQuest, Inc.) each operate on 4 of the given operating systems. A majority of the firms surveyed were small-to-medium sized, privately owned firms. This is a strong indication of the newer breed of technological innovators that have planted themselves in the market to threaten leading software developers like Oracle, Inc. and SAP AG. Most of these small firms have limited product offerings, with a great number of them offering only one product. Fifty percent of the software providers were based in the Northeastern region of the country. However, a great number of the organizations do have international offices. There was not a significant pattern between the different companies and their product price listings. Depending on the area of focus: Order Processing, Distribution, Warehousing and Planning, the price of the software ranged from as little as $7,500 for TruckStops for Windows by MicroAnalytics (Distribution function) to $1.5 million for Caps Logistics? suite of products, including Supply Chain Planning Suite for planning, and TransPro and RoutePro for distribution. However, it cannot be clearly defined that higher-priced product suites offer an increasingly substantial benefit, as most product packaged performed similar functions. To illustrate, TruckStops for Windows contains the most powerful cost minimization routines available in a commercial routing system. Customers who have compared TruckStops to other routing software tell them that TruckStops equals or betters the performance of anything they've seen. TruckStops routinely produces results 3% to 10% better than competing systems in benchmark studies. Clients include Airborne Express, 7-Eleven, Ryder, Frito-Lay and UPS Worldwide Logistics . Depending upon organizational needs, budget and operating systems, and the amount of research time exerted to investigating potential suppliers, there are numerous available software product offerings by state-of-the-art organizations that employ the newest technology and availability across the globe. B. Basic Limitations Basic Limitations of the study included limited resources, such as time and funding, an excess of personnel resources and the reliance on findings of existing surveys. An adequate amount of time would have improved at least five areas: 1) a more in-depth study; 2) the ability to conduct surveys, instead of reliance on findings of existing surveys; 3) exploration and discovery of more software sources; 4) an opportunity to actually write the firms in an effort to obtain company information, products, audio/visual aids and brochures; 5) and the ability to actually test the software (tangible evaluation). A lack of funding hindered the project due to lack of financial compensation incentives and inability to actually test the products. An excess of personnel limited the group?s efforts, as it escalated confusion and reduced leadership efforts. C. Further Work In the future, the project can be improved most notably in the following areas: adequate amount of time, funding, better use of the available technological tools, and the focused effort put forth by a small group of analysts. More time would have given the group the opportunity to use their own survey, instead on relying on outside software surveys. Furthermore, more time would have permitted the group to obtain company products and test them and would have also permitted the analysts to explore other software sources. Available funding would have eased the project in terms of flexibility and testing. Additionally, the group should have capitalized upon the Information Technology tools that were available, such as better use of the group website, project management software and email. Finally, a smaller, more focused group of analysts could be more beneficial for this project. Too large of a group easily increased confusion and decreased responsibility. Once smaller group meetings and inter-group collaboration transpired, with 1 key person from each group being the ?contact person?, the project flowed much more smoothly. VI. REFERENCES Messmer, Ellen. Supply-chain management retailers, distributors and manufacturers aim to share logistics data via the 'Net. Network World Fusion News. www.nwfusion.com/archive/2000/94511-05-01-2000.html A. Internet Addresses www.adaptasolutions.com www.bestroutes.com www.chesapeake.com www.caps.com www.harrisdata.com www.im.se www.lillysoftware.com www.logility.com www.manhattanassociates.com www.manugistics.com www.nwfusion.com www.optum.com www.oracle.com www.sap.com www.tetraworld.com www.synquest.com VII. APPENDIX A. List of Appendices Appendix A?????????? Project Network Diagram Appendix A-2?????????. Project Gantt Chart Appendix B?????????? Multi Criteria Decision Making Model of Website Scores in Supplier Software Evaluation Appendix C?????????? Software Pricing Appendix C-2?????????. Software Contact Info Appendix C-3?????????. Software Operating Systems Appendix D?????????? Software Selection Heuristics: Distribution Appendix D-2?????????. Software Selection Heuristics: Order Processing Appendix D-3?????????. Software Selection Heuristics: Warehousing Appendix D-4?????????. Software Selection Heuristics: Planning WEBSITE PHONE NUMBER PRODUCT/PRICE PRODUCT/ PRICE PRODUCT/PRICE PLATFORMS/OPERATING SYSTEMS Adapta Solutions, Inc. www.adaptasolutions.com 800-423-2782 SKEP N/A N/A Windows 95 $20,000+ Windows NT AIM Computer Solutions, Inc. 810-254-4241 AIM Vision N/A N/A Unix $50,000+ Windows NT Aspen Technology, Inc. www.chesapeake.com 908-464-8300 MIMI N/A N/A Unix $250,000+ Windows NT Caps Logistics, Inc. www.caps.com 770-432-9955 Supply Chain Planning Suite Transportation Suite Asset Routing & Scheduling Windows 95 $150,000- $1.5 million $150,000- $1.5 million $150,000- $1.5 million Windows NT 4.0 HarrisData www.harrisdata.com 414-784-9099 HarrisData Mft Enterprise (ERP) HarrisData Mgmt Systems (DMS) N/A AS/400 $60,000+ $50,000+ OS/400 Industri-Matematik International www.im.se 609-797-3200 Vivaldi N/A N/A MS NT, HP/UX $1 million Digital, Solaris, AIX Lilly Software Associates, Inc. www.lillysoftware.com 603-926-9696 Visual Distribution N/A N/A Windows 95/98 $125,000+ Windows NT 4.0 Workstation Logility, Inc. www.logility.com 800-762-5207 Valu Chain Solutions N/A N/A MS Win NT or 95 $250,000+ UNIX LAIX, HPUS, Solaris Manhattan Associates, Inc. www.manhattanassociates.com 770-955-7070 PkMS N/A N/A IBM AS/400 $100,000+ UNIX, NT Manugistics, Inc. www.manugistics.com 301-984-5000 Manugistics5 N/A N/A UNIX, OS/1, VMS $100,000+ Windows 95/98/NT MicroAnalytics www.bestroutes.com 703-841-0414 TruckStops for Windows N/A N/A $7,500+ Windows 95/98/NT Optum, Inc, www.optum.com 914-993-3400 Optum SCE Series N/A N/A UNIX, Windows NT Platforms $200,000+ Windows and Web-based clients Sage Tetra www.tetraworld.com 713-782-4000 Tetra CS/3 Sage CS Sage Premium UNIX $100,000+ Windows 95/98/NT SynQuest, Inc. www.synquest.com 770-447-8667 SynQuest Supply Chain Performance Series N/A N/A Client/Server environments $100,000+ UNIX, NT-based servers OPERATING SYSTEM PRODUCTS Win 95 Win 98 NetWare Win NT NT 4.0 AS/400 OS/400 UNIX Digital AIX HPUS OS/1 VMS Web-based Clients # of Operating Systems used by Product SKEP X X X 3 AIM Vision X X 2 MIMI X X 2 Supply Chain Planning X X 2 Transportation Suite X X 2 Asset Routing & Scheduling X X 2 HarrisData Manufacturing Enterprise (ERP) X X 2 HarrisData Distribution Management Systems (DMS) X X 2 Vivaldi X X X X 4 Visual Distribution X X X 3 Value Chain Solutions X X X X 4 PkMS X X X 3 Slot-It X X X 3 Manugistics5 X X X X X X 6 TruckStops for Windows X X X 3 Optum SCE Series X X X X X X X 7 Tetra CS/3 X X X X 4 SynQuest Supply X X X X 4 # of Products using the Operating System 11 6 2 12 6 3 2 9 1 1 1 1 1 2 | ||||||||||||||||||
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