A New Chapter in WMS
Publisher Simon & Schuster serves a wide variety of customers--from giant bookseller chains to wholesale distributors to small book store owners. To help meet the different needs of these diverse customers more efficiently, Simon & Schuster has invested in supply chain technology including a warehouse management system that helps ensure shipments get to the right destination at the right time.
The New York-based company, which is part of the entertainment operation of Viacom Inc., is one of the largest general interest publishing companies in the world, providing books in printed, electronic and multimedia formats. The company ships more than 150 million books each year throughout the world, to wholesale distributors, big bookstore chains such as Barnes and Noble and Borders, online booksellers such as Amazon.com, and small independent booksellers.
The Exploration Begins
Simon & Schuster first began exploring commercial warehouse management software about three years ago as a way to improve productivity in its distribution centers and enhance service to customers, says Dave Schaeffer, vice president of distribution and fulfillment. The company had been using its own proprietary warehouse management software, but that system did not provide the flexibility Simon & Schuster needed to serve its customers, Schaeffer says. For example, every time a customer requested something such as the creation of customized shipping labels or the placement of labels on each carton rather than on each palette, the publishing company had to reprogram its software.
Simon & Schuster in 2004 hired AL Systems Inc., a provider of integrated solutions that improve the flow of merchandise through distribution centers, to integrate the WM Warehouse Management System from Manhattan Associates to Simon & Schuster's material handling systems. The Manhattan Associates software was selected because it provided the features Simon & Schuster was looking for based on the requirements of its customers, Schaeffer says. He says the publishing company had worked with AL Systems on other technology initiatives during the previous 12 years -- including the integration of Simon & Schuster's proprietary software and the development of its conveyor system -- and was pleased with the results. AL Systems provides the expertise, support and technology needed to meet the challenge of moving large quantities of products through Simon & Schuster's distribution centers, Schaeffer says.
Meeting Integration Challenges
The latest integration project took about 10 months to complete and the new warehouse management system was up and running in February of this year at Simon & Schuster's New Jersey and Pennsylvania distribution centers. The project included some hurdles, such as adjusting processes to take advantage of the new systems, Schaeffer says. "Any installation of this size is challenging, but we were able to maintain a fairly good level of customer service throughout the transition," he says. The new software, which runs on AIX Unix-based servers, interacts on a real-time basis with three shipping carton sorters, four quality assurance weight check sortation systems and an AL Systems' pick-to-light system.
AL Systems integrated the data requirements of warehouse management system applications with the control of high-speed sortation, in-motion weight check and the automated printing and applying of labels, Schaeffer says. This enabled Simon & Schuster to optimize the warehouse management system for its own environment without the need for extensive modifications in the software. With the upgraded warehouse management system and integration software from AL systems, the publishing company can better address the specific needs of customers from both distribution centers, Schaeffer says.
Accuracy Improvements
The new system enables Simon & Schuster to better manage workflow in the centers, says Young Yoo, director of logistics operations. For example, the company can more easily plan for near-term and future orders, so distribution floor space is used more efficiently and work loads are balanced. The accuracy of shipments has improved because the software verifies all orders before cartons of books are shipped out, Yoo says. Simon & Schuster is receiving ongoing support from AL Systems for the warehouse system and integration software, Schaeffer says.
These and other process improvements made possible by the upgrade have led to hard dollar savings, Schaeffer says. For example, Simon & Schuster has sharply reduced its use of pre-printed forms and other documents, saving in paper and printing costs. Other savings have come from increased productivity.
New Tech Chapters
Simon & Schuster plans other technology initiatives to improve its supply chain management. For example, the company is deploying a transportation component of the Manhattan Associates software, which will help to enhance the management of its shipping operations and create reports about shipping processes. The publishing company is also exploring the use of radio frequency identification (RFID) technology and monitoring the price of RFID tags, Schaeffer says. It's too soon to tell how Simon & Schuster would use RFID systems, he says. But if the company implements RFID it will likely begin by tagging pallets first and then possibly cartons. The extent of RFID deployment will depend largely on the price of tags and the needs of Simon & Schuster's customers, Schaeffer says.