Jewson, the UK’s largest timber and builders’ merchant, has started a major pilot with Internet e-supply chain fulfilment software provider Wesupply, which it expects to improve inefficiency, save time and cut costs. Brian Tinham reports
Jewson, the UK’s largest timber and builders’ merchant, has started a major pilot with Internet e-supply chain fulfilment software provider Wesupply, which it expects to improve inefficiency, save time and cut costs.
The system, which enables real-time sharing of demand and fulfilment information, is to be used first for placing orders on Jewson’s suppliers, providing real-time alerts on changes and exceptions across the supply chain by email and SMS text messages.
Subsequently, Jewson intends to use Wesupply to expand on this, by improving communication and management of everything from order amendments, to despatch, transportation and goods receiving information.
Wesupply will also allow invoices to be processed electronically, eliminating scanning, re-keying and so forth, while the system’s self-billing is expected eventually to enable Jewson to cut both invoice queries and three-way invoice matching.
Mike Nugent, Jewson’s e-business director, says: “Before finding [Wesupply] we already knew that the supply chain was an area with the potential for significant improvement via e-business.
“Our aim was to allow all of our suppliers, big and small, to work smarter by using the Internet to share demand and fulfilment information. Wesupply allows us to do exactly that and since it simply automates current business processes we can implement it quickly with minimal disruption.”
And he adds: “Its feasibility and business benefits are applicable to suppliers of all sizes and IT capability – because Wesupply hosts the solution there is no software to implement, maintain or support.”
In fact, he says the benefits for Jewson’s suppliers will include cutting out manual reconciliation, paper-based acknowledgements and invoices and the rest. Additionally, since the system turns Jewson’s raw data into real-time information, automatically highlighting demand changes by comparing purchase orders, shipping instructions and forecast details, there should be a considerable data management and administration burden reduction.
Beyond this, the Wesupply system will enable bar coded label production without suppliers having to invest in software or printing equipment for this.
In terms of hard benefits, Nugent expects suppliers to see reduced emergency overtime, less clerical effort, cut processing costs, fewer emergency transport incidents, reduction of buffer stocks, fewer customer disputes, quicker payment and ultimately better cash flow.
Wesupply’s system was launched last year and already boasts some substantial and very successful implementations in the UK – including IMI Norgren, TI Group Automotive Systems, Lear Corporation and Cott Beverages.
Paul Heaven, managing director of Wesupply, says the success is due to its pragmatic revaluation of supply chain realities. “In recent years a great deal of emphasis has been placed upon achieving ‘price-down’ either by placing pressure upon suppliers to reduce their prices or by broadening the competitive tender process,” he explains.
“The Wesupply Chain Solution is different as it focuses exclusively upon ‘cost-down’ and seeks to do so for the customer and also their supplier. By eliminating certain duplicated processes the solution saves time, improves accuracy and efficiency as well as reducing cost for both parties.”