Intelligent Manufacturing € August € 1996 € Vol. 2 € No. 8

Xerox Installs Supply Chain System

Xerox Corp. (Stamford, Conn.), a manufacturer of photocopiers and other business document systems, has replaced several of its primary global tracking and monitoring processes with a neutral, fully integrated logistics information management system and database provided by Encompass (Cary, N.C.), a provider of supply chain information systems.

The central information source and enhanced pipeline visibility provided by the Encompass system has replaced multiple, non-integrated tracking systems and processes previously used by Xerox, according to Dave Mountan, Xerox's supply chain project manager. The new system also allows Xerox to obtain a complete supply chain picture on transit costs, the use of traffic lanes and trading partner performance.

The Encompass system provides access to all shipment and product line-item data, and transmits information to and from the company's trading partners and internal Xerox facilities along the supply chain. This improved access to information has enabled Xerox to develop more consistent plans for the manufacture, movement and distribution of products from supplier to customer. "The new system gives us better visibility into where materials are at any point in the supply chain process, and how they are flowing between facilities on a daily basis," Mountan said.

The supply chain information system provides electronic links with Xerox's trading partners, establishing supply chain event milestones (which are updated by their trading partners throughout the shipment lifecycle) and a central database that enables multiple users to access the information on a real-time basis. The new system supplies Xerox with more accurate and timely data, which enables the company to better forecast and plan manufacturing and distribution processes through more enlightened decision making.

Xerox has begun expanding its use of the Encompass system to include a domestic tracking and monitoring system within Europe, which is also saving the company money while measuring cycle times and identifying expedited traffic lanes. Xerox is also planning to further expand the scope of the Encompass solution to Latin America.

Future plans might also include the linkage of Xerox suppliers into the supply chain information system, and building ties to the receiving and planning systems operated at all Xerox facilities through EDI, according to Mountan. "This would be the next step toward achieving a `cradle to grave' global supply chain management system for Xerox."

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