x-Chain Inventory

X-Chain represents our software platform for the integration of Supply, Fulfillment, Retail and Value chains into a congruent Merchandising system. The X-Chain platform provides the essential work flow requirements of a growing and diverse product centric enterprise in addition to the standard inventory and sales requirements which are expected.

The primary objective of the X-Chain platform is to provide for many different sales channels into a common and uniform work flow for your product development and distribution enteprise by encapsulating internet presence requirements, retail store front requirements and the logistics and supply chain requirements into the right places of the Merchandising effort.

The X-Chain platform comprises a collection of Standard Applications, Web Interfaces, Workflow Applications, Maintenance Applications and Analysis Interfaces.

Workflow Applications in x-Chain are applications which provide for spcialized automation and integration capabilities that are expected in a chain level and multi center product distribution environment.

X-Chain workflow applications include, Automated Inventory Models and Replenishment, Electronic Data Interchange, Store Based Receiving, Operational Center Logistics and Chain Based Inventory Counting and Adjustment.

Supply Chain

The Line of Business Organizational Model and the Replenishment and Distribution Models within the system combine to form the Supply chain for the business. The models form linkages between business entities that define the relationship they have with each other. Vendors can supply stores and/or warehouses. Warehouses can supply each other and stores within lines of business. Stores within LOB’s can be organized in groups such as Plan-o-gram groups, Basic Merchandise Sales Demand Groups, etc. Distributions can be planned for merchandise receipts and all of these models can exist in unlimited number and unlimited combinations. The same facilities can support the fulfilment of customer orders from multiple lines of business.

Replenishment and Distribution Models

Replenishment Models exist at a central level and define a PUSH or PULL product scenario. The nature of these models is that they are vendor based or operational center based and the end result is inventory purchase orders by vendor or transfer oriented orders by source and destination.

The system can take into account any level of information that you define within the model, from back up stock to basic sales demand to a fluctuation in that demand during a periodic interval, allowing you to create a demand curve for the product that is geared towards lead time, destination and the sales of that product as well as sales of like product.

Replenishment Models exist at a central level and define a PUSH or PULL product scenario. The nature of these models is that they are vendor based or operational center based and the end result is inventory purchase orders by vendor or transfer oriented orders by source and destination.

Distributions define the manner in which product is to be distributed upon receipt of that product which is typical of a cross dock type of environment. Here the facility in use defines the distribution requirements and defines the flow of that merchandise to the intended destination with controls and intelligence.

Rest assured that no matter what supply chain model your business employs the tools to deal with it exists within the system. Purchase Orders and Transfer Orders are integral parts of the supply chain and are the beginning of the operational flow. The balance of the transactions are performed by the operational center application.

Store Organizations

Store organizations are defined under each Line of Business Level and are used in the organization of a chain of stores/departments so that they may be treated in the same fashion. Smaller enterprises may wish to place single stores into their own groups where larger enterprise would place similar stores within the same group under a particular organization.

The system can manage an unlimited number of organizations under each line and an unlimited number of groups under each organizations with no limit to the contents of each group.

Some examples of groups are a reporting organization for stores that is geographic in nature, a plan-o-gram organization that places stores in groups that are square footage oriented for the definition of basic stock minimums and maximums, a basic demand organization that defines a median sales expectation for product during a period defined in a replenishment model. In these examples it would be important that any new stores are defined in the groups that are defined. The system automatically performs a group consistency check that forces the user to place the stores in organizations that are defined. In this way new stores are not left in harms way. There are two organizational definitions, Multi groups and Forced groups. The above are examples of forced groups where it is important that each store is defined in a group for each organization. Multi organizations allow stores to be present in multiple groups or none at all. Multi groups are used in areas where stringent control is noT required and flexibility is the key. This is used in cases where you create a shipping group and some stores may have a higher frequency of shipment than others.

Replenishment Scheduling

The supply chain is further defined by the replenishment scheduler that provides a detailed view of the replenishment schedules and permits the user to control the rules associated with the individual replenishment runs. Runs may be added or removed, told to use sales values or a declining demand percentage. Run results are also controlled and in cases where the job needs to be re-run, the system permits results to be canceled and re-produced after model modifications have been made.

The system can be configured to run the replenishment jobs automatically based upon their schedule with manual execution permitted at any time.

The results are then used in the creation of pending vendor Purchase Orders or pending Transfer Orders, which then follow the normal course for those documents where they may be altered and ultimately released into the system.

Replenishment Model en mass

Replenishment models can be altered en mass with all product displayed within the Model Control. Columns within the model can be exported and imported using the clipboard so that your favorite spreadsheet application can assist you in the definition of minimums and maximums, basic demand or the periodic fluctuation (flux) in demand, yet another power tool in the Enterprise arsenal.

Logistics

Whether your Operational Centers perform Customer Order Fulfilment (Picking), Inventory Replenishment or Inventory Distribution using cross dock, staging, pick faces or all of these activities and organizations, the single system solution for your facilities is CapeTown Enterprise Logistics. The system provides the management tools necessary regardless of the product being handled, hard goods or soft goods, consumer unit or case pack, case or pallet. The logistics system is geared for the use of a multiple client environment and creates an operational framework within the entire system that interfaces well with the Enterprise Commerce system and other Merchandising System available on the market today.

Line of Business Dynamic

CapeTown Enterprise Logistics defines the logistics environment at a physical level with the creation of a facility. A facility then is segmented into zones. Zones are further segmented into physical location codes dependant upon the storage structure supporting one, two and three dimensions. The physical definition of the facility allows the operation to incorporate performance oriented logic to the locations for the purpose of reducing effort and enhancing control. The product in the facility is then managed at the location level. Zones and locations can be predefined for use with a given Client or Warehouse code where necessary. The Warehouse code is actually the same as STORE in the enterprise organization architecture. The Line of Business is always OPC, so encoded for operational center. This allows multiple business entities with different sets of books to use the same facilities for their operations. This warehouse or store is used in order to segment the inventory and define independent operations for the inventory bearing entity. Distributions would be managed by a particular warehouse/store, Order Picking would be managed by another, and this would then define the operations that took place when goods move through the operational center, while always keeping CapeTown Enterprise Commerce up to date. Terminal codes operate as guidance systems that define the ultimate carrier of the product and how it is to be managed. All stores in the enterprise that take part in replenishment or distribution have a default terminal code that relates to the carrier and level of service that will be used to move the product to its ultimate destination. Terminal codes are also used in the management of customer order picking/fulfillment, since in many cases customer orders are filled from the same facility as retail store replenishment and distributions take place.

Flexible Physical Environment

The logistics environment allows for inventory transfers between locations and the redefinition of the entire location structure including the dimensions of said locations. This was accomplished through the use of simple mathematics when dealing with locations where each element rack, column, tier is stored in decimal form and may be presented in same or alphabetic form. 001-001-001 is also A-1-A and logic assigned to the structure provides for ease of use and management.

Order Picking

The Order Picking Module provides the means by which customer orders are filled and remote store/OPC inventory replenishment is executed. Orders come in through all interfaced system areas or non-interfaced areas such as those not running CapeTown Enterprise and can be combined into picking waves. This picking can be performed using a paper based system or Radio Frequency Portable Data Terminal environment.

Either way the logic of the system organizes the fastest way to complete the order using locations sequence and vicinity logic encoded into the location structure.

Radio Frequency terminals are used to allow the operation to move without having to wait for paper, however the accuracy levels between a Radio Frequency vs a manual paper based system remain the same until an outbound scanning environment is employed.

Outbound Scanning Stations provide several advantages over Radio Frequency. The single most important advantage is the ability for the system to know the precise contents of each shipping container in a multi-carton shipment, instead of multiple cartons that share the same packing slip. This allows for 100% shipping container accuracy. Product that is picked for a customer order is scanned while it is being packed and the system notifies the operator of overages, missed picks, picking errors and can then be told to print a packing slip by case.

Pick Face Replenishment is provided through the creation of a replenishment model that interfaces two operational center warehouses and thus allows for product from a High Bay Racking warehouse (most likely case and case pack oriented) to replenish a consumer unit oriented pick face.

Ongoing Inventory Verification is provided by providing the quantity of stock that should be remaining in a location after a pick is completed in it. Thus operators can spot check locations and identify problems before they become catastrophic.

Confirmation and Invoicing allow for outbound completion of the transaction, whereby Invoices can be generated or confirmation data may be communicated to another source for processing such as an external system. A combined CapeTown Enterpise Commerce and Logistics environment can automate the process completely all the way into the finance stream.

Receiving

Product is received against purchase order data, specifically data that is imbedded into the system either through a direct PO interface (as in the case of CapeTown Enterpise Commerce) or a file transfer interface where a clients system is interfaced with the CapeTown Logistics system. The ultimate result is product received and cataloged into the system for storage or immediate operations. Immediate operations are defined by the warehouse definition and that is normally a department code (store number, etc) as in the case of distribution of goods. When product is stored for later picking the receiving system assists with the retrieval of a home for the product in either the default location (a.k.a. Low-level or forward picking zone) or in backup storage locations.

Distribution and Cross Dock

Distributions come from the client source system and identify the quantity to be allocated to each of the clients destinations. Distribution can produce unique shipping labels for each carton or distribution worksheets can be created to allow the product to be placed in staging areas for each of the destinations, in addition distributions orders can be stacked order by order and then combined into multi-product pick sheets (store pick) for each destination.

Shipment Container Tracking (SSC-18)

Each of these operations creates distinct and trackable shipping containers within the logistics system and thus provides the source for both inventory in transit, shipment tracking and manifesting, carrier reporting, etc. Each container is maintained at this unique level with a complete recording of its contents. The label follows standard guidelines for a 4 by 6 inch shipping container label and includes a unique serialized shiping container code also known as SSC-18. This is also standard with current EDI ASN (advanced ship notice) transactions.

Staging, Outbound Scanning and Shipment Manifesting

Each shipping container is destined for some transportation method that is defined by the terminal code. Each terminal code reflects a scheduled pick up and delivery operation that is performed. Once again product can be scanned using an automated scanner for the purposes of automated diversion into a shipment vehicle in a conveyor system or outbound scanned by loaders into the shipment vehicle, thus marking the shipping container as shipped and accumulating them into a manifest and bill of lading.

The outbound scan can also be assumed with the use of a cut-off at a scheduled time. Manifests and bills of lading can also be produced automatically and electronically sent to the carriers.

Terminal codes also provide the interface to carrier and level of service rating tables that create the costs of shipping the product and provide the essential linkage required to provide your carrier with an electronic manifest and in some cases your destination with the same.

Packing Slips, Manifests, Distribution Proofs, Carton MH10 Labels, Pallet Labels, Bills of Lading (BOL) and Invoices are all capable outputs of the Logistics system.

Store Receiving

When CapeTown Enterprise Logistics is combined with CapeTown Enterprise Commerce/Retail a fully automated in transit inventory and store inventory receiving environment is created for the retail chain.

This allows the retail store to receive inventory on the basis of the shipping container label and process adjustments at the same time. This is a completely paperless system and the communications stream for inventory receipts and adjustments is the same as that of store sales and merchandise maintenance information.

This allows for the automated management of inventory throughout the entire enterprise.

Inventory Verification

Inventory verification is maintained through the Inventory Count process where Full and Cycle counts are requested by an external system or CapeTown Enterprise and fulfilled by the Operational Center. The operational center would provide a warehouse and location breakdown of the inventory so that not only stock counts could take place but also a stock by location count would take place. This allows for a complete verification of stock levels and the physical presence of product in the Facility for a given enterprise. The adjustment process is also automated where locations and stock levels are adjusted automatically and adjustments are communicated to a higher level system which is CapeTown Enterprise or another Merchandising System.

Carrier EDI

When coupled with EDI, carrier notifications can also be received that indicate the receipt of goods at the required destination and can also be used in the comparison of transportation cost analysis and verification done by the carrier vs internal pre-calculations. In addition this allows for receipt verification when said is not present from the destination in question.

EDI Compliance

The Enterprise Logistics system is fully capable of processing EDI transactions from established trading partners in an orderly and compliant manner. Both single destination and multi-destination orders are managed with the same efficiency and organization along with the appropriate documentation and EDI verification transactions such as the 856 Advanced Ship Notice transaction and corresponding MH10 shipment container labels that would support automated receiving and payment at the receiving locations. The system has already been proven in the following environments; Sears, Zellers, The Bay, Home Outfitters, and Canadian Tire.

In each of the above environments the same Enterprise Logistics process is interfaced with the use of multiple terminal/process definitions that support the nuances of each environment, while making the operational center an even running environment. This flexibility is required even though EDI is a standard all trading partners require subtle differences in the communication of transactions within their content.

EDI Implementation

The CapeTown Enterprise system is designed in such a manner as to interface with any EDI Mapping Software. Currently the Paragon/Harbinger Trusted Link environment is supported. This environment was chosen due to its market presence at the high and low end as well as its ability to work in a client/server and non-client/server environment. It also supports the development of an automated environment where human intervention is dependant upon the configuration that you choose.

CapeTown Enterprise can be interfaced with any EDI Transaction Mapping system through the use of interface files that exist between the mapping software and the CapeTown Enterprise Commerce and Logistics Systems. These files are self sustained buckets of inbound and outbound data that your systems professionals or ours may use to create new application maps without changing the operational environment and at the same time fulfilling the specific requirements of your trading partners.

The environment supports both fulfillment and the supply chain configurations. This allows you to use EDI with trading partners that supply products to your enterprise as well as with trading partners that purchase products from your enterprise.

CapeTown Enterprise can be interfaced with any EDI Transaction Mapping system through the use of interface files that exist between the mapping software and the CapeTown Enterprise Commerce and Logistics Systems. These files are self sustained buckets of inbound and outbound data that your systems professionals or ours may use to create new application maps without changing the operational environment and at the same time fulfilling the specific requirements of your trading partners.

Internet Orders

The CapeTown Enterprise B2B and B2C modules provide the internet access to the system and the connection to Enterprise Logistics is as ingrained into the system as the Enterprise Commerce connection where the three spheres of the system come together to form the complete enterprise of today.

Internet orders flow as you define them to. either to the bricks of your retail chain or the bricks of your operations center where they are treated as any other orders but recognized as a discrete line of business within your enterprise and with that comes other factors such as the assurance of completeness of shipments and overall turnaround.

The logistics system also updates customers on the status of their orders in a manner that allows them to see orders in the channel and completed orders with shipment information and tracking numbers, so their purchase on the net is supported in the same environment rather than Internet and Phone combinations.

Inventory Counts

Inventory counting and adjustment processing is integrated into the system in support of maintaining an operating chain while counts are taking place at various inventory store locations. The ability to start, release and process inventories while the chain is in motion is what makes this a workflow application in the X-Chain system.

Staged Receiving and Compliance

In distribution environments, where inventory is moving all the time, intransit inventories are all too importantm. The system houses the ability to manage intransit and in store receiving processes for the purposes of ensuring internal inventory movement from operational facilities to receiving centers.

The TOKENIMPORT application provides the means by which transaction source data is injected into the web and workflow system database. This is driven by a token data exchange interface which processes transaction data using a discrete one token per transaction interface (or one small file for each transaction). A token is a data file representing a single transaction triggered by an update event in the billing and administrative system of the enterprise. The token is processed and used to update the web and workflow system in real time (or near real time) fashion. The application operates in a service mode whereby it is running at all times and should it fail at any point it will restart and pick up where it left off. The application can use any protocol such as the FTP protocol (not limited to) for movement of tokens from the source system to the web and workflow system and processes them as they are acquired.

The circumstances whereby a token is generated for a given transaction are dependant upon the source system such as but not limited to; transaction creation, release, consolidation, status update, assignment, document creation, customer release, and any general update of the transaction information would trigger the production of a token.

The process occurs in real time. A real time data stream provides for distinct advantages in the overall web and workflow process because information is presented on an as is available basis and appears as if directly linked to the billing and administrative system of the enterprise. This create a more robust environment which allows for real time reporting and display of information which would otherwise be less useful as the timing would lag too far behind the physical and administrative processes of the enterprise.

Another benefit is the self healing nature of the overall process. Problematic data is removed from the data stream and narrowed down to the transaction level due to the nature of the process and permits the overall process to continue, while the problem token/data are diverted for treatment. In many cases future tokens may correct prior problem tokens. In the event of a system failure on either side of the processing equation the system will bring itself back into line upon recommencement.

The data stream is a one-way channel for the movement of data into the web and workflow system. Another ancillary benefit would be the inclusion of redundancy data such as consumer/customer/user information with each token transaction, whereby changes to this information would also trigger updates in the web and workflow system database, eliminating maintenance activities.

The ability to automate communications processes out to transaction sources and destinations is an integral web and workflow application in that these communications must occur and in the event that they do not that there is a record of the failure for automated retry or manual intervention where information change is to occur.

Remote locations in a distributed environment that have volumes over and above standard consumer use would require additional capabilities beyond that of the casual consumer user. This would include the establishment of a virtual channel that would provide processing and print production capabilities at this location whereby the location would be able to process tasks such as billing runs and bill production for output or simply submit the request to the central system and the central system would direct the output to the virtual circuit established by a Remote Agency Application.

When dealing with distributed environments and their ability to span great distances it is important to communicate processing steps such as billing runs and prints as remote requests and output generation requests. This creates a central processing with remote look and feel scenario whereby central processing power can be used in cases where remotes lack the ability or time to perform the function but do require the output.