Release Date: 18 September 2006
Release ID: 907
New Warehouse and Transportation Management Integration Enables Eaton Corporation to Reduce Both Freight Costs and Customer Delivery Times
At its annual user conference, Sterling Commerce, the multi-enterprise collaboration company and a subsidiary of AT&T Inc. (NYSE:T), today announced that Eaton's electrical business has expanded its use of Sterling Warehouse Management with a new transportation management integration to enable the company to improve delivery times and optimize truckload capacity.
A worldwide leader in power distribution, power protection, and power equipment, Eaton is an early adopter of Sterling Warehouse Management, which it has had in production since 1998. The company is using Sterling Warehouse Management to view, track, and control warehousing operations across multiple facilities through the inbound, outbound and shipment cycles. With its robust planning, execution, and measurement tools, Sterling Warehouse Management helps bring operational discipline to complex warehouse environments - even ones that are continually changing.
"To stay competitive, Eaton is constantly evolving its business and developing new value-added services," said Steve Sprecher, site manager at Eaton's Memphis, Tenn. distribution center. "Sterling Warehouse Management has provided us with the flexibility we need to ensure that our warehouse operations evolve with our business and exceed customer expectations."
To help Eaton with its changing environment, Sterling Warehouse Management's open architecture allows it to easily integrate with other vendors' systems to access information that can better automate and manage logistics operations. For example, Eaton has just completed a successful integration between Sterling's warehouse management system (WMS) and a transportation management system (TMS) from FedEx Supply Chain Services.
This WMS/TMS integration has enabled Eaton to better utilize its truckload capacity and improve delivery times. With the information from the TMS, Sterling Warehouse Management orchestrates sequential loading of trailers, putting orders in a certain way that will expedite delivery. This has enabled Eaton to aggregate and consolidate shipments, allowing a mode shift from less than truckload (LTL) to full truckload (FTL) to improve capacity. As a result, the system has consolidated or aggregated 35 percent of Eaton's orders at their Memphis Distribution Center, enabling the company to reduce freight costs while decreasing lead times to customers.
"At Eaton, we strive to leverage the expertise of our vendors, and Sterling Commerce has proven itself to be committed to our success," said Sprecher. "The WMS/TMS integration went extremely well because all the parties stayed fully involved in the process, and we were able to solve 99 percent of the integration issues in the testing phase. Now, we are better positioned than ever to meet our customers' needs by tracking and managing inventory as it moves through the inbound, outbound, and ship cycle."
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