Lennox

“Productivity Heats Up”

Lennox said: Provide IT expertise to implement an integrated transportation and warehouse management system. Our goal is productivity increases of at least 10-15%.
Scott Sheldon engineers said: We can do that.

Project background

Lennox initially engaged Scott Sheldon for a network-wide implementation of Manhattan’s Open System integrated transportation and warehouse management system. For Lennox, implementation of the technology was critical to support their redesigned distribution and wholesale store network. This technology provides automated dynamic transportation routing, rating and invoicing. It also provides seamless integration between both the Manhattan TPE and WM modules. The solution was to be replicated throughout the network and become the supply chain “backbone” for the company. Plans called for nine sites to be rolled out over two years.

The “ah-ha” moment

Our initial investigation, consisting of interviews and a systems audit, revealed the need for global design and implementation expertise.

Action

Scott Sheldon engineers performed a three-week TPE/WM implementation assessment of the people, process, methodology, timing and design. We developed a list of recommendations to lower risk and improve success in all areas.

The output of the analysis resulted in Scott Sheldon being asked to oversee the WMS portion of the implementation, starting with Lennox’s Atlanta, Georgia regional distribution center. The Atlanta DC was successfully launched in May 2010. Today, we are working on global design to validate processes before moving to the next site. We’ve added subject matter experts to supplement internal resources and help provide implementation knowledge transfer to the operations and IT team members.

Results

For the Lennox WM module, a reduction in RDC labor will occur, even as the network volumes increase. Our initial data indicate a trend toward a reduction in overall labor cost-per-order as a result of improvements in internal efficiencies.

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