Optimization Maximizing Transportation Efficiencies More Effective Warehousing growth innovations solutions While optimizing existing supply chain technology isn’t a novel concept—Manhattan Associates’ approach is. Our commitment to helping customers leverage our solutions begins with the team of PhDs we have on staff and extends to the significant investment we make each year in research and development. Because of these efforts we were able to file for patent protection on various optimization algorithms that help maximize efficiencies within our Transportation Management Systems (TMS) application suite. We also developed several advanced algorithms in our Warehouse Management Systems (WMS) application suite. The TMS algorithms touch both the shipper and the carrier side of transportation. Shippers benefit from our Transportation Planning & Execution and Transportation Procurement applications. The Transportation Planning & Execution application considers a variety of business restrictions, costs and physical network factors—cross-dock needs, pooling points, zone skipping options, etc.—and uses this information to dynamically produce the best shipment plan to meet order delivery requirements. The fourth generation shipment planning optimization algorithms address the largest and most complex transportation networks, which traditionally could not have been handled using less-advanced algorithms. The result is reduced transportation spend and greater shipment efficiency. The algorithms built into the Transportation Procurement application help to optimize a shipper’s strategic routing guide. Once a company has determined its high-level transportation strategy, this application can help a shipper determine the specifics. It does this by optimizing which carriers to use and where to use them based on each carrier’s rates and the shipper’s business constraints. This means reducing transportation spend, while acting within those pre-established business constraints. Always looking for ways to reduce costs and improve operating ratios, carriers also benefit from our optimization efforts. The Carrier Management application helps carriers answer key operational questions such as which drivers should be used to transport which loads, which routes should be taken and where drivers should stop for fuel. Powered by industry-leading algorithms, the decision support offered by this application determines the best options based on the carrier’s business objectives. This helps maximize overall operational efficiency while meeting customer service objectives. Optimization algorithms were also built into the WMS application suite. Cartonization, inventory allocation, cross docking, reserve storage utilization and back-order processing are some of the areas that are impacted.  Our cartonization logic utilizes the latest 3-D cubing algorithms to reduce transportation spend. It does this by more efficiently combining goods to reduce the number of containers that a warehouse must ship to complete an order. Storage and space are always issues at warehouses. That is why our reserve storage optimization is so critical to effectively utilize a facility. By optimizing the path of goods through the warehouse, this functionality can reduce the travel time required for inventory moves and improve space utilization, allowing companies to get the most out of their facilities. Inventory allocation and cross-docking algorithms both impact labor. By determining the most optimal way to pick goods, our allocation algorithms have been enhanced to reduce the number of pick tasks required per unit shipped, maximizing throughput and minimizing labor costs. Cross-docking algorithms help increase throughput and inventory turns by reducing the total number of moves a product makes. This allows for better use of warehouse space and improves customer service. Another algorithm that benefits customer service levels focuses on back-order processing. Optimizing this area increases the availability of goods and improves the overall order fill rate. This ultimately boosts customer satisfaction, while improving revenue targets. 12 Manhattan Associates Annual Report 2003