Simmons has been able to:
* Remove all area.
* Reduce the number of tractors and trailers in its private Fleet by over one third.
* Cut its freight bill from 6 percent points of revenue to only 4.7.
* Attain a 99 percent on time delivery performance.
* Insert its market share and 4 percentage points.
As this impressive list suggests, Simmons' program Brought a broad selection of advantages that finally made their way. "We cut dollars which were tied up in centers, stock, additional trucks, and extra motorists," sums up Len Smolinski, Simmons' manager of transport and distribution. "And as a consequence of those modifications, we have become an extremely profitable business."
Slimming Down
Before embracing in time techniques, the Organization's Distribution network was a"maze and also a wreck," in Smolinski's words. In the early 1980s, Simmons operated 19 production facilities across the United States, each of which produced various kinds of futon mattress products. Distribution was done out of an expansive and costly network of 67 warehouses. A fleet of 250 trailers and approximately 128 tractors managed deliveries from the warehouses.
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From the 1980s, Smolinski recalls, the Business To reduce the number of production and warehousing facilities. The objective was to shed weight for increased price and operating efficiencies. Within the endeavor, Simmons shut those plants and eliminated the warehouses.
At Precisely the Same time, Simmons adopted a new approach And shipping it called"make to order." Under this idea, production relies on the amount of orders received. Nothing is generated until it's ordered.
From a distribution perspective, the challenge was to implement a Delivery system which would complement this quick response procedure. This was a hard mission considering that Simmons establish a shipping standard which all customers would receive their product within a few days of an order.
The Best Way to meet these delivery deadlines, Smolinski decided, was to route the trucks whenever the order was received before production began. Simmons' distribution individuals found that an automated routing system gave them that capability. That application was called TruckStops 2, developed by MicroAnalytics of Arlington, Va."We saw the chance to track all shipping requirements in advance of production and then have the plant attempt to produce that product according to the routed delivery program," Smolinski states.
To understand how TruckStops works in Simmons' distribution Environment, a quick review of this"make to order" production procedure is useful. First off, orders to be sent inside the following four day deadline are obtained at most crops by 11 a.m. each day. The orders are reviewed by the crops and ascertain the manufacturing and delivery requirements.
Then the arrangement information is downloaded into the TruckStops two System, which assesses the information and prints out a navigation strategy for management review. Once approved, the routing data is packed into the manufacturing scheduling system in stop order form so that
the twin size futon mattresses can be produced in accordance.
At this point, the real manufacturing process begins. Usually, production is completed on the day. The trailers are loaded at the plant by midnight of the day that was moment the next morning and dispatching starts. This cause order production and production technique Simmons' version of just in time finally eliminated the need for warehousing.
The Right Routing
Providing the supply key is TruckStops 2. Here is how the system works in Simmons' JIT environment. Simmons creates a client file, or"prevent" document, which includes such basic data as address, telephone number, contact, etc. Coordinates for each stop could be expressed in one of two manners: latitude and longitude or mileage east.
Simmons also can program in"speed zones" that account For time required in urban or congested places for deliveries. The model comprises unloading rates into its calculations, which can be expressed in units per hour. In addition, a more"fixed stop time" field lets Simmons allocate a given amount of time to every stop over and above the loading time. This feature is used for places where trucks must wait awhile before being unloaded.
Code areas also can be entered to indicate whether a Certain vehicle could be approved by a consignee. Any special delivery"windows" or hours during which the client can receive product can be factored in to TruckStops. Prerequisites for specific equipment can be included.
The TruckStops program analyzes all of this information in Routing the private and for trucks serving Simmons' 14 plants. Five of these are served by 2 dedicated contract carriers, CTI of Jacksonville, Fla., and Ryder RDR of Miami. Simmons' private fleet handles the other plants. Based on the orders and the carriers included, the version will plan origin to origin trip, round trips, loop runs, and directly runs .
TruckStops generates the information in a number of formats. Smolinski and the managers in his department undergo a routing report on every load. If desired, the paths can be also reviewed by them graphically on maps. An route report that tells them how long it should take, and where they are going, the number of miles are involved is received by the drivers. The TruckStops app also gives the costs for every vehicle as well as complete distance traveled for many trucks routed daily.
Everybody Wins
The Advantages of in time at Simmons have been nothing short of sensational. "We do not have any warehouses," Smolinski starts. "Our plants are warehouses, even if you would like to call them that. We reduced our production centers from 19 to 14 and the average plant has been reduced from 300,000 square feet to 125,000 square feet" Plant stock consists of 1,000 or so mattresses being staged and loaded for delivery, today. This slimmed downed inventory amount is in contrast to the 50,000 mattresses placed in the plants in the past.
As the fleet, 85 tractors runs, down for Days, Out of 128 in the pre JIT. By efficiently routing and loading the vehicles, the TruckStops program enabled Simmons to use fewer, larger trucks, but also pointed out chances to create efficient utilization of contract carriers. Furthermore, because it understands delivery requirements in advance, equipment and driver requirements can be more accurately assessed by the company.
The model is used by the distribution section to constantly Monitor fleet dimensions, addressing such questions as the following tractors do we need? How many trailers? What size equipment is necessary? "We continue to simulate each centre as business changes and the climate of business changes," states Smolinski,"and this has really helped us to fine tune our fleet."
Right Now, Simmons has no plans Fleet, which is run at 100 percent capacity. The organization rents equipment when shipping demands require extra trucks. Along with bringing operational gains, the routing platform has had a positive effect on Simmons' drivers. "The drivers are now working toward a goal they must attain," Smolinski says. "They really become a valuable part in helping us enhance the navigation system."
Retailers and dealers also profit from the JIT system. Their Deliveries are much more predictable today since they know they will find the merchandise. This means the merchants, like Simmons can keep a good deal less stock.
There are many components to the success of Simmons' just in time/ "make to order" program, Smolinski believes. Not the least of these Was management's commitment to the program Chairman President Harlan Smith and Robert Magnusson. The outcome was a win win Scenario for everyone involved... dealers, retailers, carriers, and Simmons. see more twin size futon at:
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