Publisher Uses Software to Improve Distribution

Abstract

Addison-Wesley Publishing Co., in overhauling its software systems, is focusing first on the customer-oriented ones. Anchoring the change is The Warehouse Boss Version 2.0, an automated warehouse management system from Pansophic Systems Inc. running on an AS/400 Model B45 at Addison-Wesley's national distribution center. A new order-processing system from Cambar Software will also be joining the renovation, running on an IBM 3090 mainframe at Addison-Wesley's corporate headquarters. The company believes that, with the new software and the new AS/400, it will cut its in-house cycle time in half and improve productivity by 25%. Reducing errors in picking and shipping should be another windfall of the new system. "Slot level" inventory control was a key attraction for Addison-Wesley. The only missing piece in Boss was a module to handle returns, so the publishing firm had one custom-designed by another vendor.

INDIANAPOLIS -- Addison-Wesley Publishing Co. was poised on "the eve of a great adventure" last week as it fired up new warehouse management software and launched a complete renovation of its national distribution center.

"We are involved in a broad-gauge overhaul of all our bread-and-butter systems, focusing first on the customer-oriented ones," said Bob Smallman, vice president of operations at the publishing firm. "Hopefully, what our customers will see is better service time from us."

Anchoring the change is The Warehouse Boss Version 2.0, an automated warehouse management system fron Pansophic Systems, Inc. running on an Application System/400 Model B45 at Addison-Wesley's national distribution center here. A new order-processing system from Cambar Software will also be joining the renovation, running on an IBM 3090 mainframe at Addison-Wesley's corporate headquarters in Reading, Mass.

Orders will be processed on the mainframe and then downloaded to the AS/400, which manages the distribution process and passes data back to the mainframe.

Worth Its weight

With sales in excess of $300 million in 1990, Addison-Wesley specializes in college and school textbooks and a variety of trade books and publications. Its distribution center last year shipped more than 16 million units, 1 million mail and UPS packages and 25 million pounds of truck freight, Smallman said.

"We've enjoyed considerable growth. In the last four years, we've literally doubled in size," he noted. "With the new software and the new AS/400, we think we'll cut our in-house cycle time in half and improve productivity by 25%." Reducing errors in picking and shipping should be another windfall of the new system, he added.

Last November, Addison-Wesley completed the addition of 137,000 sq ft to bring the size of its distribution center up to 400,000 sq ft. "We are totally changing our material handling systems, with all new conveyers and freight (sorting devices)," Smallman explained. "Boss is making the physical side of it all hang together."

Pansophic announced this new version of Warehouse Boss earlier this month, adding an order pool management module to the six other key warehouse functions: inventory control and management; receiving; locating with confirmation; pick planning and confirmation; packing and shipping; and replenishment.

Lower costs, greater inventory accuracy and better customer service are the aim of the enhancenments made to Boss 2.0, company officials said.

"Slot level" inventory control was a key attraction for Addison-Wesley. "That allows us to get rid of our annual physical inventory," Smallman said, explaining that stock will now be inventoried more frequently, keeping a kind of running tally on where everthing is located.

"It gets rid of that operational disruption. Customers don't like to hear they won't get their shipment for three or four days while we count," he added.

The only missing piece in Boss was a module to handle returns, so the publishing firm had one custom-designed by another vendor. Aside from the hardware and software, however, the biggest challenge in such a far-reaching renovation is managing the change from the users' perspective, Smallman said.

"I've had a number of calls from other IS departments that are thinking of installing Boss, and it occurs to me that if the push is coming from the IS part of the organization, that company may be in a lot of trouble," Smallman said. "This is a product that very much has to be user-driven from the distribution side because it's going to re-engineer the way you do business."

New boss

The Warehouse Boss by Pansophic Systems, Inc. is going on-line this week at Addison-Wesley Publishing Co.'s distribution center

* Version 2.0 of the Warehouse Boss, an automated warehouse management system on the IBM Application System/400 platform, has been released.

* Enhancements in Version 2.0 include interfaces with a wide range of warehouse tools and equipment, such as bar coding systems, radio frequency terminals and other manufacturing business planning systems.

* Boss also interfaces with The Pansophic Resource Management System, an integrated business planning and operations system now offering Electronic Data Interchange capabilities.

* Addison-Wesley expects fewer errors in the picking and shipping process and especiaily likes the ability to integrate with other manufacturing packages, such as order processing software that resides on its corporate IBM mainframe in Reading, Mass.

* One notable lack: There is no module in Boss 2.0 for handling returns, so Addison turned to an outside vendor to custom design one. Pansophic claims over 50,000 installations at more than 15,000 mainframe and midrange sites.