FUTURE ELECTRONICS

The Challenge:

INNOVATION AND CUSTOMIZATION

The company’s operations span multiple distribution centers across the globe. While members of the same Future Electronics family, each center differs in its national culture, operational style and specific work flows when getting the job done. This presents certain challenges for any software tools to maintain operational performance, integrity of data and generate a “single version of the truth” for management in such a large enterprise.

Moreover, typical systems for transportation management and ERP are focused on cost savings. Future Electronics, however, has developed a world-class operation by focusing on supply chain velocity and throughput as the cornerstones for exceeding customer expectations.

Future’s unique – and successful – approach means no out-of-the-box transportation management system (TMS) fits the bill. In fact, by 2007, when Future Electronics began a search for alternatives to their existing provider, they already had a highly customized EMS solution integrated with their Witron WMS. They had tailored the system to handle their SKU scheme, custom shipping and compliance documentation, carrier sets, and routing information, and they continuously innovated to stay ahead of their competition. For example, they were the first FedEx client to use FedEx’s International Priority DirectDistribution (IPD) Multi-Port service into Canada, including in-air customs clearance for single-origin shipments destined for multiple in-country locations.

The Solution:

MORE THAN A "PROVIDER"

When Future Electronics’ contract for its EMS system was nearing renewal, they took the opportunity to evaluate other providers and solutions for their needs. They found their existing provider becoming increasingly resistant to their customization needs and slow to make changes that supported their operational innovations. While claims of voided warranty and sluggish support became the norm, Future Electronics recognized the burden the current solution was placing on their IT teams who were spending more time with user level “how-to” support than with important system customizations, improvements and upgrades.

Enter QAD GTTE. Between 2007 and 2008, Future Electronics undertook a thorough assessment of new options for their EMS/TMS solution. QAD participated in the process with two other solution providers and ultimately won the opportunity to partner with Future Electronics. Chris Lindsay, Transportation Manager at Future Electronics in Montreal, said “We wanted a partner that wanted to move forward with us. The decision to partner with QAD was largely influenced by their spirit of innovation and the resources they bring to bear in creating customized implementations of their solution. It felt a bit like we were soulmates.”

Future Electronics closely examined both the products and each company’s customer support structure before choosing QAD GTTE. The evaluation and selection process was just the tip of the iceberg. Upon choosing QAD GTTE in August, the initiative was left with only 4 months for implementation before the planned launch in December. Even Future Electronics was skeptical about the chances of meeting the schedule.

“The resources QAD threw at our implementation were remarkable,” said Lindsay. “They kept to their word and did what it took. We were pleasantly surprised at the diligence of on-time delivery of their solutions, the system flexibility, and the supportive and knowledgeable team that QAD has.”

The initial rollout comprised three centers in Memphis, Tennessee; London, England; and Singapore with the platform hosted and managed from the Montreal headquarters. The centers were using different infrastructure that would be migrated to one unified system. For example, one center had integrated its WMS with TMS whereas another had integrated their ERP and TMS solutions. QAD moved the disparate systems into one cohesive platform.

The Benefits:

PARTNERSHIP FOUND

Future Electronics immediately recognized the partnership nature of the relationship with QAD. Not only were innovative customizations embraced by QAD for Future Electronics’ tailored implementation, some of the features ended up back in the QAD GTTE core product. Future had found its long-term solution partner in QAD.

Future’s operations have attributed a variety of improvements to the switch to QAD GTTE. From a technology perspective, they immediately observed a 20% reduction in server rebooting times which significantly contributes to their uptime performance and maintenance of supply chain velocity. Likewise, the deep integration with Future’s ERP platform has streamlined processes across the organization, leading to significant efficiency improvements over their already stellar metrics. For example, Future’s team has visibility on manual shipments now that waybill calls are reflected right in the QAD GTTE system alongside restricted and denied parties screening information. Small improvements like this, as well as the larger system integration features, mean Future Electronics is now processing orders faster, with fewer errors, and has a unified worldwide view of operations via integrated data and reporting.

The operations groups have gained new capabilities through the adoption of QAD Transportation Execution as well. The highly customized routing guides make complex cross-border shipments easy for all international distribution centers, and the shipping work flows ensure a high throughput without adding to the data processing burdens.

Future Electronics appreciates the capability to customize their restricted and denied parties lists right in the QAD GTTE system, making them available for every international shipment. Moreover, they maintain dynamic flexibility through the distribution chain, being able to modify scheduled shipments before they leave a distribution center or in transit after departure. Flexibility is a key element of Future’s world-class supply chain velocity metrics.

An ancillary benefit Future Electronics has experienced is an overall increase in user group independence. Chris Lindsay notes “The GTTE UI has taken the burden off IT and allowed functional groups to use more of the system, becoming more self-reliant.” That means the system is driving productivity at the source of action and freeing up IT resources to focus on other initiatives to improve the business.

After a successful deployment at the initial centers, Future Electronics is deploying QAD GTTE to the rest of the organization and has already brought its Leipzig, Germany facility into the fold.


*QAD Global Trade and Transportation Execution (GTTE) was formerly known as Precision Software