solutions

How can I track inventory positions and shipments from contract manufacturers, 3PLs and VMI hubs that ship directly to my end customers?

For companies who rely on third party logistics providers (3PLs), VMI hubs and contract manufacturers to ship product directly to end customers, maintaining visibility to shipment quantities and on-hand inventory positions can be extremely difficult. Trading partners who rely on manual communication processes, such as phone, fax and email, have dated and incomplete information on recent shipments to end customers, recent receipts of inbound materials and current inventory available to meet upcoming demand. Manual processes and lack of information can lead to excessive administrative costs, higher inventory holding charges, and revenue recognition issues — especially for crucial quarter-end transactions.

ClearOrbit’s Supply Network Gateway for SAP

ClearOrbit’s Supply Network Gateway (SNG) provides companies unprecedented visibility and control over the activities of remote trading partners who receive product, carry inventory and conduct shipments on their behalf. SNG enables a comprehensive process to capture critical inventory movements at the VMI hub, with real-time access to SAP as the single system of record for all transactions. SNG provides a web-based portal or B2B connection for trading partners to track receipts, shipments and cycle counts, providing real-time visibility and control over key activities.

The SNG automates the communication of replenishment signals between the manufacturer, VMI hub and brand owner, replacing manual methods and multiple “versions of the truth” regarding shipments and inventory. All transactions are immediately captured in the SAP solution, linking VMI hub receipts, inventory transactions, inbound receipts and end-customer shipments. SNG leverages the SAP solution in real time to perform critical customer and product validation checks prior to shipment, preventing errors and increasing supply chain control. Users have a complete record of financial transactions as material movement is completed, eliminating revenue recognition delays.

By eliminating manual processes with automated linkages to the SAP solution, SNG reduces inventory holding costs, improves efficiencies and increases customer service levels.

Benefits and Capabilities