A consortium of consumer packaged goods manu- facturers, retailers and carriers aims to define standard processes to streamline the flow of goods from suppliers through distribution centers to stores. It is a collaborative effort to standardize key logistics activities such as appointment scheduling at distribution centers.
So, who are these guys?
This new entry on the scene is the ONE Retail Standards Board from value network services provider One Network Enterprises (ONE).
“One Network was the obvious choice as the technology platform on which to define standards for multi-company processes because of the number of suppliers, retailers and carriers who have already adopted this network,” says Greg Brady, CEO of One Network Enterprises, Dallas.
A number of top retailers have created ONE Retail value network hubs, connecting to more than 1,000 suppliers and carriers, using infrastructure and Web applications hosted by One Network Enterprises.
Most logistics executives would be intrigued. But is this the real deal? “I think their efforts at trying to get more standardized processes and communication across parties should be applauded,” says Lisa Hebert, a transportation analyst with the San Francisco office of Accenture. “That is one of the big challenges right now: carriers don’t know what manufacturers and shippers are going to want, what the retailers are going to want, and vice versa. So, to the extent that they can click them through standards in place through this network, that’s going to be a big plus. You probably can sense a little bit of my skepticism, but it is something different.”
Let’s take a closer look at what’s offered. Suppliers and carriers use the same standardized tools and processes to work with any retailer on the network. The idea is to greatly improve their efficiency. Other retailers can create new ONE retail hubs and gain instant access to several suppliers and carriers already trained in and using One Network tools and processes. Carriers can coordinate pick up and delivery schedules because both processes are done using the same network and tools.
Because suppliers, retailers and carriers share the new appointment scheduling process on the same network, all partners gain new visibility to vendor-controlled freight as well as retailer-controlled freight. This provides 100 percent visibility of freight and associated orders in the pipeline, from the supplier to the yard and through the warehouse.
Publix Supermarkets appreciates this new appointment scheduling process. The Lakeland, FL-based chain, which has been involved with the network for two years, currently uses its own in-house appointment system. But Publix plans to pilot a version of ONE’s appointment system next quarter. It will contain changes that Publix recommended.
The network provides “the opportunity to increase the visibility of different links in the supply chain by having a holistic view of the different parts from procurement to transportation to delivery,” says Richard Schuler, vice president of distribution for Publix. “It gives us the flexibility to participate in as much or as little of their suite offerings as is right for our company.”
What else has happened since the ONE Retail Standards Board debuted in April?
The company has completed process models from the order process to the DC delivery, and has built the technology behind it that spans both the software and network architecture. It has gone live with about eight hub retailers and nearly 1,000 carriers and CPG companies in the network. Some retailers include Kroger, Safeway, Publix, Spartan Stores and Food Lion, among others.
“The charter was to talk to us about the key business process—primarily from the supplier to the retailer’s DC and out to the store,” explains John Keenan, president of One Network Enterprises. “And then the key technology that we need to build, both on the software layer as well as the network layer, is the next-generation solution to lower the operating cost as well as incremental revenue primarily in the form of vastly lower stock outs.”