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From The CEO

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The implementation of Electronic Data Interchange (EDI) has spelled a revolution in shipping and fulfillment processes.

But as the automation of processes has improved transmission of data, there is less room for mistakes. In too rigid a system, managing exceptions rapidly turns into a nightmare.

DiCentral’s proprietary system and experienced staff give you maximum flexibility. If we can’t change the process, we can find a solution to solve your issue.

In other words, we offer more than software. We offer comprehensive services and tailor-made solutions to answer your very specific needs.

If you want to learn how DiCentral works closely with customers to solve problems, ask the two companies featured in this month’s newsletter.

Thuy Mai, CEO

November 2005 Newsletter

Customer Story: Hibbett Sporting Goods

Managing Exceptions Saves Money

Hibbett Sporting Goods, Inc. is a fast growing retailer with corporate offices located in Birmingham, Alabama. Hibbett sells sporting equipment, footwear, and apparel through 500 plus stores in small to midsized markets in 22 states located predominately in the Southeast, Mid-Atlantic and Midwest.

The passage of the Sarbanes-Oxley Act of 2002 directed large organizations to confirm the effectiveness of their internal controls. Management needed to confirm there were adequate internal controls and procedures for the financial reporting of the company. Any deviation from the process must be documented. Any manual process requires proper monitoring.

When Hibbett began implementing new policies related to the Sarbanes-Oxley Act their team took a closer look at all of their internal business processes. The decision was made to implement a standardized, automated method for all procedures in order to eliminate any opportunity for redundancy and error.

Problem:

In order to process any cartons that arrived at the DC without proper ASN data or marking information, the EDI Coordinator physically went into the DC, recorded the UCC 128 carton label, PO and mark for store information, then returned to the office to request an ASN from the vendor. A chargeback would then be applied to the vendors account.

While Hibbett waited for the ASN, the cartons consumed floor space while the EDI coordinator continued to request ASN data from the vendor. Hibbett’s accounting department was in receipt of an EDI invoice for the cartons, but had to wait for proper warehouse receipt to issue the vendor payment. The process was inefficient and needed to be automated to provide greater ease and accuracy across the board. In December 2004, Hibbett contacted DiCentral Corp. to review the procedure and help design an automated process that would work with their current receiving method.

Analysis and Solution:

Hibbett worked with the DiCentral team to analyze the problem and review the options. Hibbett collaborated with DiCentral to design an RF program which would support the collection of all necessary data. Hibbett DC employees would scan the UCC carton label and carton contents, transmit the data to DiCentral Corp., and then allow DiCentral to translate the data and return an ASN for each carton. The process was soon implemented and immediately ASNs were available within hours.

“I no longer need to visit the DC to manually record information, then follow up with a vendor for one missing carton out of a thousand carton shipment. The DiCentral product works for all of our suppliers and it truly is a time saver!” Gayla Turner EDI Coordinator Hibbett Sporting Goods

“The DiCentral product has streamlined our process from receiving to AP. We have a faster process from receipt to shelf, which means our products are available when the customers want them. Our receipt match and invoice payment process has also been expedited. We started out resolving a process problem with a goal to eliminate any deviation from the operation process. DiCentral helped us automate the process, eliminate the waste, expedite the product and save resource cost. The savings of valuable time and resources has exceeded our expectations!” Kristin Cacace EDI Consultant Hibbett Sporting Goods

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Customer Success Story

Linens ' N Things

Linens ‘n Things Inc. is one of America’s largest home goods retailer. The company operates 500 superstores in 45 states and five Canadian provinces.

This retailer provides brand named merchandise at reasonable cost to the consumer.

Linens ‘n Things has reached inventory efficiency by implementing the “cross docking” method throughout their supply chain. This process instructs the supplier to pack product by carton that is store specific and then ship to the warehouse. Here the product is unloaded from the truck and loaded on to multiple trucks that are delivering to the individual stores -- all without unpacking or repacking the cartons.

Problem:

Early in August, their Distribution Center received a large shipment, from an import vendor. The purchase order had instructed the supplier to pack for store and ship to the distribution center. Unfortunately, what arrived was a large shipment packed by item. Linens ‘n Things would need to unpack and repack cartons for individual stores.

“We had a problem and DiCentral was able to solve it quickly,” says Penna. “I never had used the product before. I spent five minutes on the phone with customer support, and the process was simple. Anyone can be up and running in five minutes.” Joseph Penna, Supply Chain Information Manager for Linens ‘n Things, called DiCentral for help.

The Solution:

Linens' n Things implemented the DiCentral Web EDI solution in the warehouse. This enabled the warehouse personal to create an ASN from the Purchase Order specifically for cross docking and re-label the goods for distribution to the stores.

“We had a problem and DiCentral was able to solve the problem quickly,” says Penna. “I had never used the product before. I spent five minutes on the phone with customer support and the process was simple to understand and easy for the warehouse to use.”