Implementing Six Different 3PL’s in 18 Months!

Joe Lenard

NCH Corporation

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Joe Lenard – About ME!

• Information technology professional with more than 25 years

of comprehensive and complex business systems

implementation and delivery.

• Former consultant: “Off the road” since 2004

• Employed by NCH Corporation since 2004 as Director of

Supply Chain Applications

• Supply chain solution architect establishing manufacturing,

distribution and logistics template for Oracle rollout across

27 countries worldwide including the Americas, Asia and Europe.

• Broad industry knowledge including: manufacturing, food processing,

aerospace and defense and vendor product development and sales.

• Oracle user group member and conference speaker since 1998.

• Board member at large for OAUG’s special interest groups: Process

Manufacturing (OPM) and the TX/LA regional group.

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NCH Corporation Overview

• Global leader in the production and distribution of

chemicals, water treatment, plumbing products, pet

supplies, and shop supplies

• One of the largest companies in the world with a

successful direct selling model

• Founded in 1919; Headquartered in Irving, TX

• Operations in over 50 countries including Asia, US,

Canada, Europe and Latin America

• RPG and PPG Divisions market via retail chains

such as Wal-Mart, PETSMART, Home Depot, Lowe’s,

etc.

We are the strongest and largest leading global provider of industrial maintenance solutions in the world.

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NCH Europe Supply Chain Layout – Early 2011

• Manufacturing/Distribution: Czech Republic

Spain

Turkey

• Distribution Only: Germany

Ghent/Belgium

Sweden

United Kingdom & Puresolve

Ireland

Portugal

Canary Islands

Slovenia

Italy

Romania

Poland & Puresolve

Hungary & Puresolve

Czech Puresolve

Slovakia & Puresolve

France

La Reunion

Greece

Croatia

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• Rollout of Oracle R12 and Custom Web Order

Entry Solution to all NCH Europe countries

• Implement Mobile Contract Field Service

Management for those countries in appropriate

languages

• Deploy iPads to approx. 900 service techs

• Rebrand NCH Europe

• Streamline supply chain / restructure

distribution and local country depots/repair

centers

Rejuvenating Europe Program – Starting 2013

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Rejuvenating Europe Program – Rollout Approach

EU-0 – Planning –

January 2013

EU1A Pilot – Austria,

Switzerland – July 2013

EU1B - Germany,

Belgium, Holland –

October 2013

EU2A – Finland, Sweden,

Norway, Denmark,

Estonia, Ripley UK –

March 2014

EU2B – UK, Ireland -

July 2014

EU3 – Spain, Portugal,

Italy, Slovenia, Romania –

December 2014

EU4– Czech, France,

Poland, Hungary, Slovakia

– May 2015

EU5 – Turkey and Greece

– October 2015

Leveraging ERP consolidation to enable business transformation

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Supply Chain Confidential Project

MACAW

Move

And

Close

All

Warehouses

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MACAW Project

• Manufacturing/Distribution: Czech Republic

Spain

Turkey

• Distribution Only: Germany

Ghent/Belgium

Sweden

United Kingdom & Puresolve

Ireland

Portugal

Canary Islands

Slovenia

Italy

Romania

Poland & Puresolve

Hungary & Puresolve

Czech Puresolve

Slovakia & Puresolve

France

La Reunion

Greece

Croatia

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NCH Europe Supply Chain Distribution Plan

• Manufacturing/Distribution:

Czech Republic

• 3PL Distribution :

Spain

Canary Islands

Romania

La Reunion

Greece

Turkey

United Kingdom

* Non-Puresolve Depots

Canary Islands La Reunion

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• Identified NCH Responsibility versus 3PL Partner Responsibilities

(process flow: receiving, shipping, inventory management, etc.)

• Document 3PL differences (e.g., specific partner limitations)

• Document specific country differences (e.g., ACTUAL delivery date)

• Determine data owner (e.g., lot numbers, expiration dates)

• Management responsibilities (e.g., FEFO picking)

• Shipping document responsibilities (e.g., who generates the IMDG)

NCH – 3PL – Responsibilities (Scope)

Items

Purchase Orders

Dispatch Note

Customer Returns

Inventory Adjustments

Inventory Snapshot

PO Receipts

Ship Confirmation

RMA Receipts

Items – Data will be interfaced as defined in Oracle to support on-hand, receipts

Pick Release – Done at the Delivery Detail when released to WH

Ship Confirm – Pick Confirm, Create and Assign to Delivery and Ship Confirm

RMA Receipts can be interfaced as an Inventory Adjustment (process dependent)

Inventory Adjustments will be reviewed

Inventory Snapshot weekly

PO /IR Receipts will be interfaced with Lot Numbers, Serials

Oracle ERP 3PL

Purchase Orders / Internal Requisitions – Data will be interfaced support receipts Internal Requisitions

Pick Release

NCH 3PL Integration Approach

Expected customer returns - similar to PO/IR

Master Data

1. Items [IOX] (Outbound)

Transactional Data

1. Purchase Order [POX] (Outbound)

2. Purchase Order Receipts [AIX] (Inbound)

3. Sales Order Pick Release [SOX] (Outbound)

4. Ship Confirm [SIX] (Inbound)

5. Customer Return Order [ROX] (Outbound)

6. Customer Return Receipts [RIX] (Inbound)

7. Inventory Adjustments [AIX] (Inbound)

Validation Process

1. Inventory Snapshot [NIX] (Inbound)

2. Inventory Snapshot Exception Report

3PL Plan – Integration

NCH Europe Oracle EBS

Oracle Fusion Middleware

(OFM)

Common Server (FTP)

3PL Partner

3PL Partner

3PL Partner

FTP Folder Structure /3PLName/EPRD/in /3PLName/EPRD/out 3PLName is the actual name of the 3PL Partner e.g. alisan/EPRD/in EPRD is the name of the NCH Production Environment Other Environments EDEV (Development) / ETEST (Test) / EQA (User Test)

File Name Format ABCDDMMYYHHNNSS.csv A is File Type i.e. i=item, p=po, s=so, r=rma, a=adj, n=inv B is o=out and i=in (reference to NCH) C is country i.e. s=Spain, r=Romania, C=canary, G=Greece, t=Turkey, u=UK DDMMYY is date HHNNSS is timestamp

Technical Overview

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Inbound Interfaces

• Inbound transactions used standard APIs

• Pick confirm – Ship confirm - PO/IR receiving - Inventory Interface

• Ability to edit the transactional data when required based on user grant

• Ability to reprocess a failed inbound transaction when required

• Data mapping – transaction by transaction / field by field

Data Mapping

• IOX (Sample)

• Item Number – The Item Number as defined in NCH Oracle EBS

• Lot or Serial Controlled

• Quantity per Package (each’s per case)

• POX (Sample)

• Purchase Order (PO) Number or Shipment (ISO) Number / Line number

• Order Type – Internal or External

• AIX (Sample)

• Item & Lot/Serial

• Indicator – Add (S), Reduce (R) or Transfer (T)

• Transaction Type – CR (inbound receipt) AD (inventory adjustment) or ST (status transfer)

• Detailed Scenarios – transaction by transaction

Test Scenarios

• IOX (Sample)

• Existing Item update

• POX (Sample)

• Partial and Multiple receipts against the same PO

• Over and Under Receipt Allowance

• PO changes in quantity and cancellations

• AIX (Sample)

• PO/IR – receipt full quantity

• Inventory Adjustment Issue (Negative) no negative sign

Shipping Documents

• Define what documents are required (dispatch note, commercial invoice, etc.)

• Who generates the document (e.g., 3PL: dispatch note, NCH: SAD)

• What information is required (e.g., ADR information for hazardous shipments)

• An Inventory snapshot will be sent

from the 3PL on a weekly basis.

• Generate a report highlighting

exceptions between the two systems.

• Required for both quantity and

inventory status

• The Inventory snapshot will be sent

by Item, Lot/Serial and Material Status

No Column Name Structure Type Default Value

13PL Customer 9(3) Mandatory

363 for AZKAR

100 for others

2

Organization X(3) Mandatory

11 for AZKAR

Org Code for others i .e. 1R3

for TIBBIT and 1C3 for

ASIGNA

3 Item Number X(35) Mandatory

4 Quantity 9(9) Mandatory

5Lot number X(20) Optional

6Expiry date

DD-MM-

YYYYOptional Expiry date

7

Seria l number X(30) Optional

8Logica l s tatus X(2) Mandatory DI available

NIX – Inventory Validation Report

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3PL Integration Workbench

• For managing all outbound and inbound transactions • Specify file type (transaction type) – IOX, POX, SOX, SIX, etc.

• Specify inventory organization

• Status

• Date Range

• Enabled our two phase go live (second 90 days – complete manually)

• Ability to “retry” a failed transaction

• May update limited information

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3PL Plan – EU3 – July 2014 – Dec 2014

EU3 Project: Spain, Portugal, Italy, Slovenia, Romania

Implement a 3PL solution for

Spain, the Canary Islands and Romania

First 90 days

Automate outbound transactions

Manual entry of inbound transactions

Go Live with Order to Cash

Second 90 days

Automate inbound transactions

Eliminate manual inbound

entry of transactions

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Issues Faced

• Language/culture – Romanian, Spanish, Turkish, Greek, German

• Additional 3PL added during EU3 project (from 2 to 3)

• Asigna warehouse in Canary Islands (but Asigna IT in Madrid)

• Relocation of inventory from old NCH warehouse to new 3PL (PO to be

received)

• Relocation of inventory from old 3PL system to new 3PL system

• Item attribute differences on items/orgs

• Last minute hazmat item data required

• Who managed FEFO? 3PL partner!

• One 3PL, NCH was not allowed into the facility

• Integration scheduling – who, when, frequency

• 3PL partner’s IT project schedule vs. NCH

• Lack of FMW knowledge in the NCH IT team

at the onset of the first 3PL project

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Lessons Learned – Regrets

• EU3 projected started with two planned 3PLs in June 2014; surprise 3PL

was added in July

• Business began initial discussions without IT involvement

• NCH did not have a 3PL technical infrastructure before the project started

• MACAW project was secret and could not be discussed with other order to

cash team members

• EU3 Order to Cash CRP and

UAT did NOT have a test of

our 3PL integration

• During the EU3 project,

NCH did not treat all 3PL

partners equally – site

visits to 2 (Azkar, Tibbett)

• Formal partner contract not

signed until after project

well under way

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Lessons Learned – Successes

• NCH used our 3PL partner’s knowledge – “starter kit” from one of our

partners

• Clear SOW and project expectations

• Establish the business process along with the technical solution

• Held face to face meetings/reviews: 3PL partners, business, IT

• Group Conference Room Pilots (CRP) – everyone in one room

• Project team had clear roles and responsibilities

• We had a “3PL approach” walk through with each partner’s IT group

• NCH IT has an amazing development team!

• Two separate teams

* Oracle Implementation team

* 3PL Integration team

• On site Go Live Support (business and IT)

• Separate Go Lives for Outbound and

Inbound transactions (EU3)

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3PL Partners

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Adding a new partner now…what’s it take?

Our newest 3PL partner is Dachser!

• Business/IT/3PL Partner – Kickoff the

week of November 2-6, 2015 in the UK

• UAT Testing mid January 2016

• Go Live February 1, 2016

Questions ??