A Web portal for communicating order and shipping information improved visibility, timeliness, and accuracy for a pet products company and its contract manufacturers.
The ability to see which orders are coming through the pipeline is vitally important for any company. But when contract manufacturers play a critical role in a supply chain, it's imperative that those outside suppliers have up-to-the-minute order visibility.
Until late last year, though, Doskocil Manufacturing Company could not provide real-time order visibility to the contract manufacturers it hired to make some of its pet care products. As a result, orders that shipped directly from the factory to customers did not always go as smoothly as Doskocil would have liked. But new software and a Web-based portal that allowed the company to quickly exchange order and shipment information with its contract manufacturers saved the day. Not only do Doskocil's customers now have a seamless order experience regardless of where their merchandise originates, but both shipper and contractors also have eliminated order uncertainty and unnecessary administrative costs.
Pet care pioneer
Based in Arlington, Texas, USA, Doskocil Manufacturing makes pet care products and sells them to both distributors and retail chain stores. The company was founded in 1962 when Ben Doskocil developed a plastic kennel for transporting dogs and cats on airplanes, the first such pet carrier approved for airline use. Today Doskocil Manufacturing makes a wide variety of products under the Petmate name, such as pet bedding, animal feeding and watering bowls, and dog kennels. Sales for the privately held company totaled some $200 million in 2008.
Doskocil operates a manufacturing plant and a distribution center, both housed under one roof in a 1.1-million-square-foot building in Arlington. The company makes about 60 percent of the products it sells in the United States and imports the remaining 40 percent from suppliers in China. The contract manufacturers in China produce such items as food bowls, wire kennels, and water dishes. Imported products cross the Pacific by container ship, usually entering the United States at the Port of Long Beach and continuing via intermodal rail service to the Arlington facility.
The Texas distribution center ships merchandise throughout the United States, moving an average of 200 to 250 outbound truckload shipments every week. Doskocil has arrangements with about 20 motor carriers to haul its product to customers.
About three years ago Doskocil added three more contract manufacturers, this time in the United States. Terry Lemley, manager of customer satisfaction and traffic, says the company decided to outsource the manufacture of pet bedding to contractors because of capacity constraints at its Texas plant. Two of the new manufacturers are located on the U.S. East Coast, and one is on the West Coast. They ship orders directly from their factories to Doskocil's customers. The pet products company chose those particular contractors in part because their proximity to key retail accounts would reduce shipping costs.
Central control, local action
Working with the U.S.-based contract manufacturers did achieve Doskocil's goal of cutting its freight costs, but the new arrangement imposed other expenses on the company. For one thing, Doskocil needed extensive manual workarounds to communicate order information to the manufacturers through its Oracle enterprise resource planning (ERP) system. For another, order volumes sometimes were so large that one employee could spend an entire day sending e-mails and faxes containing order information, shipping instructions, and labels to the contractors. What's more, someone on Lemley's staff had to gather and key the order releases, inventory pick confirmations, and shipment information from the contractors into Doskocil's ERP system.
The shipper eliminated those time-consuming burdens—along with the likelihood of errors that arise with manual data entry—by establishing a Web portal for sharing information with its contract manufacturers. To do that, the company bought the Xtended Process Control (X.PC) software solution from TAKE Supply Chain (formerly ClearOrbit) and installed the application on its inhouse servers. Doskocil already had a working relationship with the vendor, as it had been using TAKE's warehouse management system in its Texas distribution center for 10 years. The X.PC installation and integration took 10 weeks, and the system was up and running in October 2008.
Much has changed since then. The X.PC system helps Doskocil gather important information more quickly and accurately than before. Through the portal, the contract manufacturers now can print shipping labels, confirm shipment quantities, and automatically receive shipping documents, thus eliminating the need for phone calls or faxes. Because Doskocil's Oracle transportation management system assigns carriers and routes the delivery, the selected carrier information is attached to the order, and the contract manufacturer sees those instructions in X.PC. And since the software is connected with Doskocil's ERP system, it even prevents the outside manufacturer from shipping to a customer with a credit hold.
The system also simplifies compliance with the end customer's labeling requirements. Doskocil now centrally manages label formatting and all changes in a centralized library of approved formats. This guarantees that the manufacturers will ship the orders with compliant labels printed at their own sites.
It's no longer necessary for a Doskocil employee to gather data from the contract manufacturers and key it into the ERP system. Now those suppliers immediately submit order and shipment details, including the carrier name, trailer and seal number, and number of pallets, directly to the ERP system through the portal. With such up-to-date information, Doskocil can keep its customers informed of actual order and shipment status. "It was very efficient to turn this over to the contract manufacturer, and it freed up labor here," says Lemley.
Mutual benefits
Thanks to the Web-based portal, both the contract manufacturers and the shipper now get accurate, upto- date information. "The increased visibility helps the manufacturers immensely," Lemley says. "When the orders come in now, the contract manufacturers can see them almost immediately. They know what orders are coming up. They know the volume.
They know what the stocking levels have to be." Having that data available makes it possible for the manufacturers to meet Doskocil's requirement that its contractors fill 100 percent of orders and deliver them on time. "This system gives the outside manufacturers all the visibility they need to process an order," Lemley adds.
Moreover, the enhanced visibility lets Doskocil create a seamless supply chain and promotes customer satisfaction among Petmate distributors and retailers. Among the biggest benefits for Doskocil's customers is the consistency and predictability the new system brings. Now, says Lemley, "From the customer's point of view, there's no difference between something we ship from our facility or an order that our partner assembles and ships."
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
The U.S. manufacturing sector has become an engine of new job creation over the past four years, thanks to a combination of federal incentives and mega-trends like nearshoring and the clean energy boom, according to the industrial real estate firm Savills.
While those manufacturing announcements have softened slightly from their 2022 high point, they remain historically elevated. And the sector’s growth outlook remains strong, regardless of the results of the November U.S. presidential election, the company said in its September “Savills Manufacturing Report.”
From 2021 to 2024, over 995,000 new U.S. manufacturing jobs were announced, with two thirds in advanced sectors like electric vehicles (EVs) and batteries, semiconductors, clean energy, and biomanufacturing. After peaking at 350,000 news jobs in 2022, the growth pace has slowed, with 2024 expected to see just over half that number.
But the ingredients are in place to sustain the hot temperature of American manufacturing expansion in 2025 and beyond, the company said. According to Savills, that’s because the U.S. manufacturing revival is fueled by $910 billion in federal incentives—including the Inflation Reduction Act, CHIPS and Science Act, and Infrastructure Investment and Jobs Act—much of which has not yet been spent. Domestic production is also expected to be boosted by new tariffs, including a planned rise in semiconductor tariffs to 50% in 2025 and an increase in tariffs on Chinese EVs from 25% to 100%.
Certain geographical regions will see greater manufacturing growth than others, since just eight states account for 47% of new manufacturing jobs and over 6.3 billion square feet of industrial space, with 197 million more square feet under development. They are: Arizona, Georgia, Michigan, Ohio, North Carolina, South Carolina, Texas, and Tennessee.
Across the border, Mexico’s manufacturing sector has also seen “revolutionary” growth driven by nearshoring strategies targeting U.S. markets and offering lower-cost labor, with a workforce that is now even cheaper than in China. Over the past four years, that country has launched 27 new plants, each creating over 500 jobs. Unlike the U.S. focus on tech manufacturing, Mexico focuses on traditional sectors such as automative parts, appliances, and consumer goods.
Looking at the future, the U.S. manufacturing sector’s growth outlook remains strong, regardless of the results of November’s presidential election, Savills said. That’s because both candidates favor protectionist trade policies, and since significant change to federal incentives would require a single party to control both the legislative and executive branches. Rather than relying on changes in political leadership, future growth of U.S. manufacturing now hinges on finding affordable, reliable power amid increasing competition between manufacturing sites and data centers, Savills said.
The number of container ships waiting outside U.S. East and Gulf Coast ports has swelled from just three vessels on Sunday to 54 on Thursday as a dockworker strike has swiftly halted bustling container traffic at some of the nation’s business facilities, according to analysis by Everstream Analytics.
As of Thursday morning, the two ports with the biggest traffic jams are Savannah (15 ships) and New York (14), followed by single-digit numbers at Mobile, Charleston, Houston, Philadelphia, Norfolk, Baltimore, and Miami, Everstream said.
The impact of that clogged flow of goods will depend on how long the strike lasts, analysts with Moody’s said. The firm’s Moody’s Analytics division estimates the strike will cause a daily hit to the U.S. economy of at least $500 million in the coming days. But that impact will jump to $2 billion per day if the strike persists for several weeks.
The immediate cost of the strike can be seen in rising surcharges and rerouting delays, which can be absorbed by most enterprise-scale companies but hit small and medium-sized businesses particularly hard, a report from Container xChange says.
“The timing of this strike is especially challenging as we are in our traditional peak season. While many pulled forward shipments earlier this year to mitigate risks, stockpiled inventories will only cushion businesses for so long. If the strike continues for an extended period, we could see significant strain on container availability and shipping schedules,” Christian Roeloffs, cofounder and CEO of Container xChange, said in a release.
“For small and medium-sized container traders, this could result in skyrocketing logistics costs and delays, making it harder to secure containers. The longer the disruption lasts, the more difficult it will be for these businesses to keep pace with market demands,” Roeloffs said.
Jason Kra kicked off his presentation at the Council of Supply Chain Management Professionals (CSCMP) EDGE Conference on Tuesday morning with a question: “How do we use data in assessing what countries we should be investing in for future supply chain decisions?” As president of Li & Fung where he oversees the supply chain solutions company’s wholesale and distribution business in the U.S., Kra understands that many companies are looking for ways to assess risk in their supply chains and diversify their operations beyond China. To properly assess risk, however, you need quality data and a decision model, he said.
In January 2024, in addition to his full-time job, Kra joined American University’s Kogod School of Business as an adjunct professor of the school’s master’s program where he decided to find some answers to his above question about data.
For his research, he created the following situation: “How can data be used to assess the attractiveness of scalable apparel-producing countries for planning based on stability and predictability, and what factors should be considered in the decision-making process to de-risk country diversification decisions?”
Since diversification and resilience have been hot topics in the supply chain space since the U.S.’s 2017 trade war with China, Kra sought to find a way to apply a scientific method to assess supply chain risk. He specifically wanted to answer the following questions:
1.Which methodology is most appropriate to investigate when selecting a country to produce apparel in based on weighted criteria?
2.What criteria should be used to evaluate a production country’s suitability for scalable manufacturing as a future investment?
3.What are the weights (relative importance) of each criterion?
4.How can this methodology be utilized to assess the suitability of production countries for scalable apparel manufacturing and to create a country ranking?
5.Will the criteria and methodology apply to other industries?
After creating a list of criteria and weight rankings based on importance, Kra reached out to 70 senior managers with 20+ years of experience and C-suite executives to get their feedback. What he found was a big difference in criteria/weight rankings between the C-suite and senior managers.
“That huge gap is a good area for future research,” said Kra. “If you don’t have alignment between your C-suite and your senior managers who are doing a lot of the execution, you’re never going to achieve the goals you set as a company.”
With the research results, Kra created a decision model for country selection that can be applied to any industry and customized based on a company’s unique needs. That model includes discussing the data findings, creating a list of diversification countries, and finally, looking at future trends to factor in (like exponential technology, speed, types of supply chains and geopolitics, and sustainability).
After showcasing his research data to the EDGE audience, Kra ended his presentation by sharing some key takeaways from his research:
China diversification strategies alone are not enough. The world will continue to be volatile and disruptive. Country and region diversification is the only protection.
Managers need to balance trade-offs between what is optimal and what is acceptable regarding supply chain decisions. Decision-makers need to find the best country at the lowest price, with the most dependability.
There is a disconnect or misalignment between C-suite executives and senior managers who execute the strategy. So further education and alignment is critical.
Data-driven decision-making for your company/industry: This can be done for any industry—the data is customizable, and there are many “free” sources you can access to put together regional and country data. Utilizing data helps eliminate path dependency (for example, relying on a lean or just-in-time inventory) and keeps executives and managers aligned.
“Look at the business you envision in the future,” said Kra, “and make that your model for today.”
Turning around a failing warehouse operation demands a similar methodology to how emergency room doctors triage troubled patients at the hospital, a speaker said today in a session at the Council of Supply Chain Management Professionals (CSCMP)’s EDGE Conference in Nashville.
There are many reasons that a warehouse might start to miss its targets, such as a sudden volume increase or a new IT system implementation gone wrong, said Adri McCaskill, general manager for iPlan’s Warehouse Management business unit. But whatever the cause, the basic rescue strategy is the same: “Just like medicine, you do triage,” she said. “The most life-threatening problem we try to solve first. And only then, once we’ve stopped the bleeding, we can move on.”
In McCaskill’s comparison, just as a doctor might have to break some ribs through energetic CPR to get a patient’s heart beating again, a failing warehouse might need to recover by “breaking some ribs” in a business sense, such as making management changes or stock write-downs.
Once the business has made some stopgap solutions to “stop the bleeding,” it can proceed to a disciplined recovery, she said. And to reach their final goal, managers can use the classic tools of people, process, and technology to improve what she called the three most important key performance indicators (KPIs): on time in full (OTIF), inventory accuracy, and staff turnover.