Page 22 IMHX 2<strong>01</strong>0 - 16th-19th November 2<strong>01</strong>0Email: warehouse@flame1.com SNAPFULFILTel: <strong>01</strong>923 272960SNAPFULFIL SAAS WMS CASE STUDYhe Company - Huhtamaki (UK) distribution operation, they track a variety Snapfulfil technical and commercial offering<strong>Ltd</strong> is a global speciality and con-packaging company Time, In Full (OTIF) to ensure that their his team and most importantly the business.of Key Performance Indicators such as On proved to be a winning combination for Gary,Tsumerfocusing on moulded fibre/paper products,films, flexible packaging, foodservice paperclients are receiving the best levels ofservice in this highly competitive industry.Key business decision drivers were:cups and other products based on paperforming technology. Their main customermarkets include foodservice operators, fastfood restaurants, ice-cream and other consumergoods markets, non-food consumerpackaging, fresh food packers, pet foodpackers as well as retailers.Today, Huhtamaki employs some 14,600people in 65 manufacturing, distributionand sales facilities, in 35 countries worldwide.Net sales in 2008 amounted to EUR2.3 billion.A fast moving, 24/7 manufacturing and••••••••Non CapexNo Traditional Finance Models12 month ROIComprehensive FunctionalityMinimal IT Resource DemandsProven SolutionRapid ImplementationInterface Capability to HuhtamakiCorporate HostRequirementsLike all businesses in this difficult economicenvironment, efficiency gains were akey business driver with the warehousingand distribution operations spearheadingthe initiative. As part of this process, GaryOwen, UK Warehouse & DistributionManager determined that the operationdemanded a more sophisticated WarehouseManagement System (WMS) for its 3southern area UK warehouse facilities,capable of delivering “Tier 1” functionality,but without the headaches typically associatedwith WMS implementations. Thechallenge was to deliver these business benefits,but with the demanding additionalrequirements of the 3 warehouse facilitiesgoing live with the solution concurrently, 'NoCapex', 'No Finance' and a '12 month ROI'.Huhtamaki, as an organisation, embracesthe use of the latest in technologicaladvances to leverage competitive advantage;accordingly Gary began evaluating Softwareas a Service solutions in conjunction with themore traditional WMS software offerings.Following extensive research, he identifiedSnapfulfil as not only the right WMS, but alsothe only SaaS WMS solution that could meetall of his requirements and still meet thatdemanding ROI constraint. The comprehensiveblend of functionality present within theSnapfulfil system combined with the uniqueKey operational areas Snapfulfil wereselected to improve included:• Multi-Site control and visibility• Stock receipting from Production toverify production runs and ensurerapid visibility and availability ofinventory for despatch• Put-away of both Raw Materials, WIPneeded to be verified for accuracy andhave immediate visibility• RF driven processes increasingefficiency, accuracy and ensuring thatcorrect stock rotation was followed• Automated management of Taskallocation to warehouse operatives toreduce administration and supervision• Reporting of resource efficiency wouldhelp to maximise efficiencies in overallheadcount and highlight whereoperators required further trainingImmediate BenefitsNot only did the implementation of theSnapfulfil system significantly increase theproductivity within the warehouse environment,but Key Performance Indicators, suchas OTIF were increased to their highest everlevels.Product receiving, put away and retrievalhave all benefited as predicted andWarehouse Operative efficiency has significantlyimproved utilising the Snapfulfilsystem, with more expected within the nextfew months.With the successful launch of 3 sites concurrentlycame the ability to view inventoryacross the business, as well as in transit, thisbeing made significantly easier by theexceedingly low IT resource requirements,both in terms of physical hardware and personnel.Such has been the success of theproject, Huhtamaki are now employing theSnapfulfil system within other areas of theoperation to deliver complete inventory controland visibility across the entire business.Financial SavingsGary Owen, UK Warehouse &Distribution Manager for Huhtamaki carriedout a post-implementation review oncethe Snapfulfil system had been “Live” for 6months.This review highlighted the followingareas where savings had been realised:• Headcount Reduction• Stock Items No Longer ‘Lost’• Overtime Reduced• Reduced Error Rates• Stock Obsolescence Removed• Hardware Repairs RemovedAnd• Paperwork production andAdministration almost eliminatedThese areas of saving delivered Net savingsto the business of over £80,000 inyear one, with more expected in years 2+SummaryHuhtamaki’s warehouse and distributionoperation has benefitted enormously fromimplementing Snapfulfil, Gary Owen stated,“Snapfulfil has helped us to realise significantimprovements across the operationand save money at the same time. Really, awinning combination.”SAAS WMS - DELIVERING ON THE 2<strong>01</strong>0 EXECUTIVE AGENDAhere is no question that 2<strong>01</strong>0 is a transitionComing out of the recession unprepared for growth capital to a future stream of benefits in the hope theyear for most businesses. After a year or could lose market share and slow your recovery. Over investment produces an adequate return. A second riskTmore of aggressive cost cutting and negative investing in growth that does not develop could be just as involves the ability of the significant implementationgrowth the business environment is changing. Thefinancial crisis has abated, government sponsoredstimulus programs are beginning to have an impact,stocks have rebounded and consumers are taking hesitantsteps towards demonstrating confidence in theeconomy. However, with unemployment continuing tohover at record heights and with distressed homeprices in most markets there is still a long way to go.Executives are walking a tight-rope balancing risk andgrowth.bad.While the CEO/MD leads the executive agenda setting,each functional Director has their own unique set ofstrategic challenges or opportunities. With the level ofmarket uncertainty so high it is more important than everthat strategies are aligned and investments prioritised fortheir impact across the organisation. WarehouseManagement Systems (WMS) offered through theSoftware as a Service (SaaS) commercial model are wellpositioned to work within the context of this 2<strong>01</strong>0 reality.expense to be managed on time and on budget. A thirdrisk involves the ability of the solution to be strategicallyrelevant over time as business conditions change. Theserisks make effective purchasing practices absolutely necessary.The down side of this rigor is the cost of thepurchasing process and the length of time it takes.Ultimately it lengthens the time between a recognisedbusiness need and the realization of benefits from fulfillingthe need.Software as a Service is different….They align across the Director’s strategic objectives andnear term goals.THE 2<strong>01</strong>0 EXECUTIVE AGENDAThe pace of the economic recovery is the key point ofuncertainty. How fast will consumer confidence return?How fast will the unemployment rate drop? If you are amiddle manager you just keep your head down and grindout the work with fewer people and perhaps more overtime.However, executives have to make strategic bets onthe future despite uncertainty.RETHINKING HOW TO PURCHASEWarehouse Management Software (WMS)The saying goes in the software industry that the differencebetween selling and lying is six months. Withinsix months a solution provider might be able to developthe capabilities promised, if the customer buys. Thenagain, an enterprising implementation leader talking to aconfused customer may sell a promised change as amodification, increasing service revenue. The warehousemanagement segment of the software industry has seenmore than its share of this behaviour.The counter to these common sales shenanigans hasbeen the appropriate development of rigorous purchasingprocesses. These processes include: Requestsfor Information, Requests for Proposals, Proof of ConceptPilots, and multiple “Out” clauses in contracts. Buyersmay also engage consultants that specialise in evaluatingsoftware or be advised by software industry analysts. Allof these purchasing steps make sense in a business relationshipwhere most of the risk is on the buyer.The risks buyers face with traditional solutionproviders include justifying the upfront commitment ofSAAS WMSChanging the Rules in the Tier-One MarketSoftware as a Service Warehouse ManagementSystems (SaaS WMS) represents an innovation in thetier-one WMS market. This innovation is changing therules of the game for success. SaaS WMS solutions arereducing customers’ business risks while offering thesame benefits as traditional tier-one competitors. SaaSWMS solution providers are reducing costs as theyassume new responsibility for costs traditionally borneby the customer. These reduced costs involve the cost ofinfrastructure, solution support, and implementation.The efficiencies solution providers gain as they managethese services allow them to achieve respectable profitmargins while providing customers with a much lowertotal cost of ownership. The net result of reducing customerrisk and lowering the total cost of ownership isthat the WMS market expands as WMS solutionsbecome more affordable.SaaS WMS solutions will both grow the tier-one WMSmarket and take market share from traditional WMSsolution providers. Traditional WMS solutions providerswill be challenged by the need to shift their businessmodel and address the necessary technology changes forcompetitive SaaS performance. Shifting the businessmodel requires a multi-year transition for revenue recognitionpractices to realign. Technology changes mayrequire reengineering the solution to reduce the performancelatency potential that adding hardware alone can’taddress. This massive business restructuring will impactprofitability in the short term and will provide limitedvalue to existing customers paying maintenance.This white paper will explore the economic changes inthe WMS marketplace driven by SaaS innovators. It willaddress the reality of delivering tier-one capabilities byaddressing the necessary changes in the technical applicationarchitecture, services function, support function,and risk management.Other articles include:• Special Report on SaaS by Manufacturing andLogistics IT Magazine• Total Cost of Ownership• SaaS WMS Embracing Distribution ComplexityGo to our knowledgebase for the full copies of all of thesearticle and more. www.snapfulfil.com/knowledgbase.SYNERGY LOGISTICS LTD TEL: 0845 463 7627 WWW.SNAPFULFIL.COM
IMHX 2<strong>01</strong>0 - 16th-19th November 2<strong>01</strong>0 Page 23Tel: <strong>01</strong>923 272960THE INTERVIEW - SNAPFULFILEmail: warehouse@flame1.comSNAPFULFILBREAKING NEW GROUND IN WMS SOLUTIONSSnapfulfil, the latest award-winningsolution in SynergyLogistics’ family of WarehouseManagement Systems (WMS), is abreakthrough in WMS affordabilitywhich pays for itself the moment it is upand running and continues to generatenet positive benefits every day it isused. A unique combination ofadvanced technology, functionalstrength and a customer-centric businessmodel, Snapfulfil is acomprehensive Software as a Service(SaaS) solution, which is conceptuallyinnovative and is delivered to yourdesktop and operation using the latestweb technologies and “Real Time”Radio Frequency (RF) control.Established in 1972, Synergy Logisticsis a UK-based software company thatfocuses on delivering effective WMS forclients ranging from SME’s to globalorganisations including Coca Cola, SCA,White Arrow and Vodafone. Significantand continuous R&D investment hasensured Synergy remains at the forefrontof advances in WMS technology withSnapfulfil and other innovative solutions,whilst maintaining rock solid reliability.Synergy’s dedication to customer satisfactionand the delivery of effectivesolutions to its valued clients hasresulted in numerous business awardsfrom their peers. Their latest accolade isthe Best Warehouse ManagementSoftware of the Year 2<strong>01</strong>0, awarded byThe Institute of Transport Management.Gavin Clark, Commercial Director, spoketo Warehouse & Logistics News.Warehouse & Logistics News - Firstof all, Gavin, what does your role asCommercial Director involve? Are youpersonally involved in developing solutionsfor clients?The role of Commercial Director isvaried, which is just how I would want itto be. Being face to face with clients andprospective ones too, means that I getinstant feedback on the real needs of themodern warehouse and how people areusing Snapfulfil in different ways to meettheir own particular requirements. AsSnapfulfil is a Rules Based system, thesame software is being effectivelydeployed across diverse market verticalssuch as E-Commerce, Manufacturing,3PL and Distribution environments. Myrole allows me to contribute to theunderstanding of how we are currentlyhelping these types of client, ensuringwe maximise the benefits to prospectiveclients and to feed back to the businesswhere the system could be enhanced toour clients benefit. This understandingalso helps me in other aspects of therole, including marketing and communications,to tailor our messages andknowledge base to address the issuesthat are most current.WLN - Who were the founders ofSynergy Logistics? Are they stillinvolved in the business?Synergy was set up in 1972, and ourcurrent Chairman, Hugh Stevens wasinstrumental right from the very beginning.Hugh is still involved on aday-to-day basis and is instrumental inboth the R&D and future development ofthe business as a whole.WLN - How big is Synergy Logistics inturnover in the UK, and globally? Howfast are you growing as a company?Synergy is still what many would considerto be a small business, in terms ofturnover, but with our latest officeopened up in Charleston, South Carolinaand our client base including companiessuch as Coca-Cola, SCA, Vax andVodafone/UTL, we might be consideredto be a much larger entity. Companygrowth has been substantial since thelaunch of Snapfulfil, with the number ofrecent contract wins demonstrating thepower of the Snapfulfil offering. The economicclimate and lack of availablecapital spend has been very challengingfor many traditional software businesses,used to charging significant‘upfront’ costs for software licences andimplementation services. We believe thismodel to be an outdated legacy and itsdays are numbered, we are proud to beoffering a sophisticated solution for themodern warehouse, but with no CapitalExpenditure required. We see it as “ puttingour money, where our mouth is!”How many companies out there offer todo all of the work, without asking for asingle penny? That demonstrates ourconfidence in both the product and theway in which we implement it.WLN – How important is the UK as amarket for your technologies?The UK market is extremely sophisticatedand advanced and this is key to us,both as a business and as an environmentto understand and keep up withthe latest advances in logistics.WLN – Where is Synergy Logisticsbased in the UK? Do you have anyoffices in other countries?Synergy is centrally positioned in theUK, based in Loughborough,Leicestershire our bespoke 10,000square feet gives us the perfect environment.Our head office contains all of thedevelopment, support andtraining for our clientshere in the UK and ouroffice in Charleston,South Carolina looksafter our US clients.WLN – Your latest WMSsolution is Snapfulfil. Whatactually is Snapfulfil?Snapfulfil is an advanced,proven, award-winning ‘Tier 1’WMS solution that enablesour clients to improve theirwarehouse operationswithout investingcapital. It is fullyRF-driven andincludes all theessential scanninghardware and RF infrastructure.Snapfulfil is provided on asimple monthly subscription, and can bedelivered as a Software-as-a-Service(SaaS) solution to their desktop. What'smore, our fixed monthly subscriptionincludes dual dedicated Internet connectivity,implementation, training andsupport for the rugged RF terminals andinfrastructure.WLN – How does Snapfulfil work?Snapfulfil SaaS WMS is hosted on a"SAS 70" certified multi-site environment,with a resilient and redundantdata network to protect your businesscritical data. Its advanced 'Cloud' computingpower ensures high availabilityand security to the most exacting standards.We even ensure the client has twopoints of internet access to the hostingenvironment for resilience.WLN – What functionality does itinclude?Snapfulfil offers all of the functionalitythat you expect from a ‘Tier 1’ WMS,controlling all aspects of receiving, putaway, audit, inventory control, pickingand despatch, all in ‘Real Time’ via theinclusive Radio Frequency controlled,hand held computer or if required‘Voice’. Additionally, we also control allof the resources required to drive yourwarehouse, reporting their performanceand efficiency to management, alongwith extra topic features, such as Dockand Yard Management, PI/CI andLoading. The real strength of Snapfulfil isits ‘rules based’ architecture, this meansthat the most diverse warehouse environmentscan be managed by the samecore software with little system modificationor associated cost.WLN - For the uninitiated, what isthe difference between ‘Software as aService’ and a Fully Managed Service?Like many such phases, they will oftenmean different things to each individual.Some consider the definition of SaaS tobe software that is Multi-tenanted,meaning multiple clients on one databaseand a single instance of thesoftware for all clients. We hostSnapfulfil as a Single-tenanted solutionwhich means that each Snapfulfil clienthas its own database and its owninstance of the software, therebyensuring maximum resilience. TheSnapfulfil SaaS solution has also beendesigned and developed from the outsetto embrace the latest in available Webtechnologies and is not just a ‘Scrape’ ofa legacy solution delivered via TerminalServices or Citrix for example, which isoften the position taken by the ‘ManagedService’ vendors.So, in reality it matters little what it iscalled, it is what is behind it that matters.WLN – How does Snapfulfil fit intoyour portfolio?Snapfulfil is key, in that we believeSaaS solutions are the future of softwareand as a specialist WMS vendor,Snapfulfil significantly adds to thebreadth of offerings we have to meetour clients demands. We of coursehave a number of customers onour more traditional Client/Serversolutions, utilising ‘mature’ softwarethat continue to underpinbusiness critical operations, butI have to say Snapfulfil issweeping all before it and allcurrent enquiries are forSnapfulfil.WLN – What is the commercialmodel forSnapfulfil?We offer Snapfulfil ascost effective, no Capexbusiness model,involving no up-frontcapital or softwarecosts and no expensivecomputer infrastructureor IT overheads.Snapfulfil requires only a 12-month minimum contract, and in returnyou get a high performance system thatwould typically cost anything from£30,000 to £300,000 from a traditionalvendor. As a 'Software as a Service'(SaaS WMS) model, Snapfulfil will payfor itself the moment it is up and running,and will continue to generate netpositive benefits every day it is used.Remember with Snapfulfil you onlypay when you go live.WLN – What does the Snapfulfilpackage include?The full package includes all theessential scanning hardware and RFinfrastructure, real-time RF or voice terminalswith bar code scanning, onsiteinstallation, specification and softwareconfiguration as well as comprehensivetraining with a dedicated, user focusedsupport service. All of this within themonthly user fee.WLN - What business improvementsdoes Snapfulfil deliver?With Snapfulfil warehouse managementsoftware (WMS), picking anddespatch efficiency will typicallyimprove by 30%, order fulfilment timewill be dramatically reduced, and youraccuracy and customer service will besignificantly enhanced. You can achieveall this, whilst maximising your inventoryand resources at a monthly chargewhich, based on the returns you get, iseffectively 'self-funding'.WLN – Can customers modify theirSnapfulfil solutions as their businessgrows?Future proofing is standard withSnapfulfil. Due to its SaaS nature, allsoftware development and upgrades areautomatically deployed to all users. Anyclient specific work can be switchedon/off through configuration and shoulda particular client need something out ofthe ordinary, then our UK developmentteam will specify, test and deploy thesolution in to the clients ‘Test’ environment,for them to approve in quickly andefficiently. One of our clients needed tochange their picking methodology, andSnapfulfil specified, tested and deployedthis brand new approach in just 24hours!WLN - What is Snapfulfil like to use?The best judges of this are our clients,the feedback that we get from our usersis very positive, even enthusiastic. Builtto be web deployed from Day One, it’sarchitected to make the best use of thebrowser. As many people are used tousing the web for their day-to-day lives,picking up Snapfulfil is almost secondnature.WLN – Which people within anorganisation is it aimed at? Is there alimit to the amount of users in an organisation?The core of the Snapfulfil system isaimed at the people who need it and useit, operational members of theWarehouse. The board like the savingsand lack of capital required to deploy,but it’s the users that we really wroteSnapfulfil for. For interested partiesexternal to the warehouse we haveReports, Management Dashboards andmany different Portals to meet the informationdemands of the business. Theonly limit to the users is the licence.Snapfulfil is licensed on the number ofusers required, so if a business needsmore users, they simply order morelicences.WLN – How soon can you deliver thesystem to customers?We can have it up and running in 30working days. People often look at us asif we are mad when we tell them this, butthe proven methodology is there, Wehave deployed Snapfulfil in less time, butGavin Clark, Commercial Director.this is entirely down to the client. If theyare ready to move quickly, then so arewe. If they have work to do and want totake longer, than our project is configuredto suit.WLN – What existing IT resources doyou need to run Snapfulfil?Very little. One of the key features ofthe process is the very low impact onalready over-stretched IT resources.Many of our clients do not have their ownIT department at all, or if they do, it issomeone with other roles to fulfil and notime at all to invest in a major softwareimplementation. All we require issomeone who understand the warehouseand some time to invest in working withour project team, we do the rest.WLN – How quickly will you seethese returns?With many Snapfulfil clients, theyhave gone live in 6-8 weeks and haveseen a return from the very moment theyGo-Live!WLN – When did you launchSnapfulfil? How has it been received sofar? Who are the confirmed customersto date?Snapfulfil was launched in mid 2007,with our first clients live in early 2008.Since then we have taken nearly 20clients live, many of which we are stillunder NDA and unable to discuss withyour good selves, but the diversity ofclient has been incredible, with clients inretail, manufacturing, Third PartyLogistics, distribution and e-commerce,with turnovers from £250,000, to €2Bnand shipping from 20 orders a day, to80,000!WLN – How are you going aboutselling Snapfulfil? Are you selling itdirect, or through resellers?All of our Snapfulfil sales are direct.We are in discussions with prospectiveresellers in the Far East and Australia,but our focus has been the European andUS markets and we prefer a direct relationshipwith our clients, if at allpossible.WLN - How big is the potentialmarket for Snapfulfil in the UK?I don’t have the precise numbers, butif anyone has a warehouse that has morethan 3-4 operatives picking, packing andshipping items around the world, thenwe have a solution that can save youmoney.WLN – What awards has Snapfulfilwon? Have you won any awards for yourother products?Our most recent award was bestWarehouse Management Software 2<strong>01</strong>0,from the ITM, beating off stiff competitionfrom some of the major players inthe WMS market today. Synergy haswon a number of awards over the years,but our greatest award is when a clientrenews their contract. Snapfulfil isoffered on a 12 month contract, furtherdemonstrating our confidence in thesystem and when we know that a clientis so happy with their solution, that theyrenew, that is real praise from the peoplethat count.WLN – Finally, where do you seeSnapfulfil going from here? Have youplans for more WMS solutions like this?Well, you don’treally expect me togive away our secretsto you, do you? Butrest assured, we haveplans for much moreand all I can say is“watch this space.” STAND: 20E120SYNERGY LOGISTICS LTD TEL: 0845 463 7627 WWW.SNAPFULFIL.COM
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