The Triangle Group implemented the LogFire WMS for a premier fashion retailer at its Secaucus, NJ, distribution center. Within the first three months of go-live, production efficiencies have increased significantly and are expected to double by the end of the year.

This unique alliance transforms the traditional 3PL supply chain model using LogFire’s cloud-based option that provides a single advanced solution with EDI (Electronic Data Interchange) capabilities. As a result of LogFire WMS and supply chain expertise, The Triangle Group has decreased client on-boarding time, increased customer satisfaction, and ultimately given the Triangle group the competitive edge in the marketplace.

Caryn Blanc, managing partner at the Triangle Group agrees, “LogFire really has created what I view to be an innovative model in supply chain, and the Cloud is just one piece of it. I see LogFire as being a flexible application that provides us the ability to move data, not only for ourselves, but more importantly for our clients, which also gives us a competitive advantage over other 3PLs. “

That competitive advantage is what founder and CEO, Diego Pantoja-Navajas, sees LogFire bringing to the 3PL industry. “Historically, the 3PL industry has been hit by high software costs that prevent them from providing competitive pricing without affecting their bottom line. Our cloud-based solutions and SaaS (Software as a Service) pricing model combined with Tier 1 WMS functionality provided Triangle with an even greater edge to compete. We lowered their cost per unit and allowed them to handle complex retail requirements. “

About The Triangle Group

The Triangle Group is a leading global provider of logistics and supply chain management for retailers and manufacturers. The Triangle Group manages logistics for a variety of companies in their facilities all across the United States. The company is dedicated to delivering the highest level of service through the use of innovation, detailed operational procedures and a well trained staff. The Triangle Group provides a full spectrum of supply chain services including: Trucking, Distribution, Logistics and Fulfillment. For more information, visit www.thetrianglegroup.com.

The implementation of LogFire WMS only took four (4) months until go-live and provides SPSA with complete, Tier 1 capabilities. During that period, LogFire also worked on redesigning logistical processes and integration with SAP’s existing ERP system. Since then, SPSA has increased their efficiency levels, including productivity and service.

“The selection of LogFire’s WMS for SPSA was the right fit for us as they exceeded our expectations in three major areas of importance: performance, security and pricing. LogFire provided us a mature, robust solution with the right scalability for our future growth”, states SPSA’s CIO, Fernando De Los Rios.

SPSA’s Vice President of Supply Chain, Gabriel Ortiz, agrees, “LogFire’s SaaS model provided us the necessary flexibility to extend our supply chain and implement a new distribution center with a Tier 1 WMS solution right before the end of year peak season, which was our major goal. LogFire was able to train and certify our operators with new functionality and processes never before used at SPSA.”
These new processes also included running LogFire’s WMS on mobile tablets that are used throughout the warehouse, which allowed an increase in the quality of communication and the elimination of work stations, improving efficiency and productivity.

According to LogFire’s Founder and CEO, Diego Pantoja-Navajas, “LogFire was able to meet the tight timeline required to complete SPSA’s project; this challenge allowed us to demonstrate our determination and the aspects that make us different from traditional companies in these industries. Benefits in decreased start-up costs, reduced implementation timelines, continuous system upgrades at no additional cost and quality customer service, are evident.”

About Supermercados Peruanos S.A. (SPSA)
Supermercados Peruanos S.A. (www.supermercadosperuanos.com.pe) is the second largest supermarket chain in Peru, with annual sales that reach almost $1 billion USD. Over the last few years, SPSA has experienced rapid growth, increasing market share with many different store formats appealing to the different market segments, from high-end specialty shops as the well-known Plaza Vea and Vivanda, to discount stores like Mass and Economax. SPSA’s overall mission is to be the first choice in shopping for all Peruvians. SPSA is part of the successful Grupo Interbank that has additional retail operations such as pharmacies, department stores, and home improvement among others.

“India is one of the fastest growing countries in the world and an important site for expanding our presence in the Asia Pacific region. The country provides us with high quality software engineers and supply chain experts to add to our already talented group of LogFire employees,” comments founder and CEO of LogFire, Diego Pantoja-Navajas.

The highly innovative Bangalore office will include a cutting edge research and development facility and progressive customer call center to enhance LogFire’s technology as well as support global customers. Managing director, Ramamurthy Swaminathan, comes with over 15 years of global supply chain experience. Using his expertise along with a strong technical and functional team, LogFire India will provide clients with highly experienced onshore and offshore knowledge.

The LogFire India office is located 56/3, Vakil Square, Ground Floor, Gurappanapalya, Bannerghatta Road, Bangalore, India. The office can be reached by phone at +91 80 41260854 and by email at Info@LogFire.com

After setting up operations in strong retail markets such as Chile, Peru and Colombia, US IT firm LogFire, which specializes in supply chain solutions, is shifting focus to Brazil, where it expects to launch operations officially during the first quarter of 2012.

US IT firm LogFire expects to launch operations officially in Brazil during the first months of 2012, company CEO Diego Pantoja-Navajas told BNamericas.

“The subsidiary was legally created, and we’re in the process of hiring and training the staff,” the executive said.

The office will be located in Curitiba, in Paraná state. “Obviously we’re targeting the São Paulo market, but due to commercial reasons it was more viable for us to open the office in Curitiba,” he said.

“The Brazilian retail market has a different profile compared to the other markets where we operate; its volume is significantly bigger,” Pantoja-Navajas added. “We have high expectations and are looking to have a strong entry in this market.”

LogFire also has field offices in Chile, Peru and Colombia. “The criteria we used to launch operations in these three markets had to do with the weight of the retail segment. As you know, the retail segment in these markets is very important, especially in Chile, where it is very developed compared to other markets in the region,” the executive said.

Pantoja-Navajas expects Latin America could account for 35-37% of the company’s total revenues next year, compared to some 25% this year.

Headquartered in Atlanta, Georgia, the company also has an office in India, from which it serves Asian markets.

See below for the full interview with Pantoja-Navajas.

To find out more about the firm’s outlook for 2012 and its plans for the region, BNamericas spoke with LogFire CEO Diego Pantoja-Navajas.

BNamericas: What is the company’s outlook in terms of international expansion for next year?

Pantoja-Navajas: LogFire is a company with headquarters in Atlanta, Georgia. Taking into account our international operations, we have subsidiaries in certain Latin American countries such as Chile, Colombia and Peru, as well as in some Asian markets through our subsidiary in India. For 2012, our plan is to consolidate our operations in the markets where we already operate and to focus on Brazil and India.

BNamericas: Are you expecting to open a field office to target the Brazilian market, or do you plan to do business there through an existing subsidiary in another Latin American country?

Pantoja-Navajas: We will have local presence through a subsidiary [in Brazil]. We always prefer to operate through local offices rather than through a partner network, and we always set up local operations in a country where we have business activity. That’s what we did in Chile, Peru and Colombia in Latin America.

BNamericas: When are you expecting to open the Brazilian office? Where will it be located?

Pantoja-Navajas: We’re already working on this project. The subsidiary was legally created, and we’re in the process of hiring and training the staff. The Brazilian office will be officially launched in the first few months of next year. We’ve already appointed a country manager. The office will be located in Curitiba, in Paraná state. Obviously we’re targeting the São Paulo market, but due to commercial reasons it was more viable for us to open the office in Curitiba.

BNamericas: Why did the company decide to launch operations initially in Chile, Colombia and Peru, and not in other markets in the region?

Pantoja-Navajas: The criteria we used to launch operations in these three markets had to do with the weight of the retail segment. As you know, the retail segment in these markets is very important, especially in Chile, where it is very developed compared to other markets across the region.
Once we had set up the office in Chile, we started to see that the Peruvian market was also experiencing significant activity in this segment, so we decided to open our field office in Peru. Many Chilean retailers decided to go to Peru to expand their business, and this is why the retail market in Peru grew significantly over the last years. We opened the office in Chile in 2008, while our Peruvian and Colombian branches were launched during 2009.

BNamericas: And why have you decided to target Brazil now?

Pantoja-Navajas: The Brazilian retail market has a different profile compared to the other markets where we already operate, but its volume is significantly bigger; retail in Brazil has a larger operational volume than these three countries combined. We have a lot of positive expectations and are looking to have a strong entry in this market.

BNamericas: Are you also planning further openings in Latin America?

Pantoja-Navajas: Argentina is always an attractive market, but it, as well as other countries such as Uruguay, could be very well covered through our existing subsidiaries. Once we launch our Brazilian operations, we will cover the remaining markets in the region through the four existing offices.
From Colombia, we can serve Venezuela and Central American markets, from Peru we can provide coverage to countries such as Bolivia, and from our Chilean office we can cover Argentina and Uruguay.

BNamericas: Taking into account that the company is expecting to expand its business in Asian markets, could you give an indication of the Latin American operations’ weight in the firm’s overall revenues?

Pantoja-Navajas: Our operation in Latin America will contribute with approximately 25% of the company’s overall revenues. For next year, we have a very aggressive goal for the region: We’re expecting Latin America to account for approximately 35-37% of LogFire’s global revenues in 2012.

BNamericas: Given the huge volume of Brazil’s market, are you expecting the country to become your largest revenue contributor next year?

Pantoja-Navajas: No. In 2012, our Chilean and Peruvian operations will still account for much of our regional revenues. We’re seeing very high growth in Peru and are very surprised with our performance in this market. The Peruvian retail market is expanding year by year and is also becoming more competitive. After some uncertainties during the presidential elections, the scenario is clear regarding the economic outlook in the country.

BNamericas: How big is the company’s current base across the region, and by how much does this base expand each year?

Pantoja-Navajas: We currently have a client base of approximately 10-12 large clients. This year we expect our client base to expand approximately 40%.

BNamericas: Taking into account LogFire’s portfolio, which specific solutions are you seeing the most potential for across Latin American markets?

Pantoja-Navajas: We’re seeing demand for all of our solutions. The demand we see in Latin America has a similar profile compared to the demand we’re seeing from Asian markets.

Integrating Logistics from Factory to Shelf
Many have discussed the advantages of integrating management of inventory and replenishment across the retail supply chain, from the factory through the manufacturer’s DC, the retailer’s DC, all the way to the store shelf and POS (Point of Sale). But what about integrating logistics from the factory to the store shelf? That represents an opportunity for innovative and agile efficiency that I call ‘extending the DC’. The concept of extending the DC evolved from an enlightening conversation I had on this topic with Diego Pantoja-Navajas, CEO and founder of LogFire, at the recent CSCMP conference in Philadelphia.

LogFire is a software development and supply chain execution company specializing in SaaS WMS. When their customers started asking if they could also manage inbound and outbound transportation and even putaway in the store, LogFire responded. When talking about extending the DC, it is instructive to look at automotive manufacturing plants where the best ones have very tight (15-minute) delivery windows for inbound trucks carrying the parts that feed the production lines. They are treating their inbound trucks almost as if they were conveyor belts feeding the lines in the factory. Retailers have been doing something similar, constantly trying to shorten delivery windows and transit times (receipt-to-ship time) through the warehouse/DC. This is especially true in cross-dock and flow-through operations, such as in grocery, where freshness is a concern. Even in other sectors, such as apparel or hard goods, additional speed and precision are being strived for.

Inbound—Starting with the Order
LogFire’s WMS, which is easily configured to meet user needs, is one of the most advanced in the industry. Though the flow of products to and through the DC begins at the factory, LogFire’s system starts even further back in the process by managing the sourcing processes: sending RFQs to potential suppliers, evaluating responses, selecting suppliers, and then issuing POs specifying precise quantities and delivery times. The order thus becomes the basis for managing shipments from suppliers’ factories.

LogFire’s system has portals for the supplier (shipper), carriers, consolidators, and deconsolidators. The information for the order is already in the system and each of the participants simply adds their piece of new information about the disposition of the shipment against the order. This creates more visibility, control, and automation of the end-to-end process. For example, once a container is on the water you can plan your deconsolidation. An ASN is automatically sent, triggering a dock appointment request at the DC. There is now a flow of information between all the participants in the inbound process from factory door to DC door. This reduces errors and creates opportunities for streamlining operations and improving efficiencies. With this increased inbound visibility, you have high confidence that the product will arrive in the allotted receiving window, enabling the cross dock or flow-though DC to run more smoothly with fewer exceptions and delays.

Outbound
Outbound is only as good as the receiving process. For a flow-through facility, if you have good, timely information about what is being received, then things flow smoothly and you can reduce average transit times. By extending the reach of the system to include delivery confirmation at the store, you can close the loop all the way from factory/source to delivery at store. LogFire’s system also supports home delivery with confirmation. And if returns are needed from the store, such as damaged or excess merchandise, the entire process is simpler and more reliable because you are using the same system being used to run the DC. The information is already in place.

In the Store
LogFire can manage receiving at the store, performing all the checks and balances. Once received and in the back store, the system can trigger putaway to the sales floor, using the same basic technology used for putaway in the DC. Locations can be as specific as desired, down to individual shelf-location-level on the sales floor and in the back store. It is straightforward also to pick from back store locations and send to a customer loading location, for example when ordering a TV or other large items.

Using the same system for ordering, inbound, DC, outbound and store, provides traceability of products within one system. This helps tremendously in many areas that are traditionally challenging, such as reverse logistics—the system simply creates an ASN for items being returned into the warehouse. The number of integration points required between systems is dramatically reduced, as are maintenance, support, and training efforts.

SaaS Development Advantage
While we have written much about the advantages of SaaS with regard to speed of implementation, flexibility, and aligning solution provider incentives with end user goals, the LogFire story adds another angle to the ‘SaaS Advantage.’ LogFire started out as a WMS vendor. As a SaaS vendor, it was easy to incrementally extend their solution bit-by-bit to fulfill customer requirements as those needs became apparent. Instead of having to build or acquire a separate TMS module, LogFire has selectively implemented the inbound, outbound, and now store logistics functions, that were the highest priority for their customers. These become simply an extension of their existing system, rather than whole new modules. Through this, they have successfully extended the reach of the warehouse/DC to go end-to-end from factory to shelf. That has provided their customers with important new value via more granular, timely, accurate visibility, enabling more streamlined and optimized logistics processes.

The LogFire Chile street address in the city of Santiago is: Marchant Pereira 150, Offices 1501 and 1502 (Metro Pedro de Valdivia, Providencia).

According to Diego Pantoja-Navajas, LogFire founder and CEO, the Inc. 500 recognition is especially meaningful because it recognizes LogFire as an innovative leader in the supply chain software execution industry. “Over the past three years, we have attracted the most talented team of supply chain industry experts and technologists to create a strong company foundation. We have broken from traditional methodologies by using the latest technological advances to provide cloud-hosted SaaS applications to all size clients around the world. Our team is committed to our clients to continue developing advanced technology products rather than customized solutions.”

Every August, Inc. editors recognize the top 500 fastest growing private companies in the US. As an Inc 500 honoree, LogFire shares a prestigious pedigree with such notable companies as Intuit, Zappos, Under Armor, Microsoft, Jamba Juice, Oracle, and others major companies.

Inc 500 companies appear in the publication’s September 2011 issue, as well as online at www.inc.com.

About Inc.
Inc. magazine, founded in 1979 and based in New York City, is a monthly publication focused on growing companies. The magazine publishes an annual list of the 500 fastest-growing private companies in the U.S., the “Inc. 500.”

LogFire earned a position on this list based on the successful deployment of its WMS (Warehouse Management System) for Prolimit, the largest extreme sports retailer in Latin America, representing more than 60 brands. The implementation of this system made a significant contribution to the explosive growth of the retailer. During a 263% increase in inventory flowing to stores, LogFire’s WMS actually reduced costs by 40%.

“The rapid expansion of our company and our escalating needs presented immense challenges for our operations. LogFire simplified everything and took Prolimit into the future of WMS with a SaaS hosting model that got our massive warehouse up and running in under four weeks,” remarked Gonzalo Aluz, General Manager/COO for Prolimit. “Most critical for our situation, LogFire helps our operation stay lean and agile with a high-performance Tier I WMS that is simple to use and easily configured to our changing needs. With advance features such as a mobile interface and a graphic dashboard, our inventory is always full view.”

According to Diego Pantoja-Navajas, LogFire founder and CEO, the SupplyChainBrain recognition is especially meaningful because it is generated by what matters most to LogFire— delivering effective, innovative and affordable solutions to our clients so that they may achieve higher performance and productivity levels. “Our suite of products was designed with cutting-edge technology that enables us to deliver our clients competitive advantages for their supply chain management,” says Pantoja-Navajas, and adds, “we made a break from traditional companies in our industry and developed a new SaaS pricing model, options for Cloud or on-site hosting and dynamic features that will usher in a new era for WMS.”

Innovative features of Logfire’s products include browser-based mobile interface; enhanced functionality for reverse logistics and a dynamic, graphic dashboard that gives clients 360-degree visibility into their inventory, from warehouse to store. “The major aspiration of LogFire is to build a long-term relationship with its clients and help them be the best they can be by developing their own strengths,” says Pantoja-Navajas.

SupplyChainBrain magazine received nominations for trading partners in every aspect of supply chain management, building a short list comprised of those companies who, according to the magazine spokespersons, so impressed the magazine’s readers that they deserve to be singled out and to be held up as examples for others in the industry. The ten case studies were chosen as representatives of partners that work to achieve excellence and superior results.
Now in its ninth year, this prestigious industry list is driven by nominations from supply chain industry professionals singling out those service providers who have made the highest impact on their business operation. Final winners are selected following six months of research and evaluation by SupplyChainBrain magazine’s editorial staff. Criteria for rankings include the nominated company’s efficiency, customer service and overall supply chain performance.
SupplyChainBrain’s 2011 100 Great Supply Chain Partners list will be released in the July/August issue (digital and print) of the publication, slated for release on July 29, 2011.

About SupplyChainBrain – www.supplychainbrain.com
SupplyChainBrain, the world’s most comprehensive supply chain management information resource, is accessed year round through a wide range of ever evolving multi-media formats by hundreds of thousands of senior level industry executives. In addition to addressing the fundamental principles of supply-chain management, SupplyChainBrain identifies emerging trends, technologies and best practices, forward thinking ideas and cutting-edge solutions, and continues to write and report about these as they evolve and mature.

The WMS business feels like 1999 all over again. Back then, there were a couple hundred application providers and start ups were popping up all the time. After the tech crash, many of those companies went away, were gobbled up by larger competitors like Manhattan Associates, RedPrairie and HighJump or rolled up into new companies such as Accellos and Cadre Technologies.

Now, the startups are back, but the focus for many of these new companies is the cloud. The other day I spoke to Neil Thall, executive vice president of strategy for one of these new players, LogFire.

Now about 4 years old, LogFire was started as a consulting firm that focused on implementations and upgrades of traditional software systems, including Manhattan Associates. The company counts Home Depot, Macy’s and Hot Topic among its roster of clients.

LogFire’s pedigree is impressive. Company founder Diego Pantoja-Navajas, Thall and many of LogFire’s consultants have experience with brand name supply chain management companies. Pantoja-Navajas, for instance, was a senior consultant at Manhattan Associates and a manager at Aldata. Thall was an executive vice president at Manhattan and CEO of Aldata Solution.

While the company began as a consulting firm, LogFire soon realized there was an opportunity to provide add-on software applications to its existing customers and to provide a full-blown WMS to 3PLs, mid-size retailers and mid-size suppliers to retailers who weren’t being served by the traditional WMS market. Although LogFire will implement behind the firewall, like a traditional WMS, or host a system, the focus is on a cloud strategy. “Technology in the cloud can be developed much faster than traditional software,” says Thall. “What’s more, traditional software has to be updated every three years and that has priced many end users out of the market.”

After a consulting gig or two south of the border, it also led to a focus on South America. “South America is a Greenfield opportunity that was not being mined,” Thall says. “The Chilean and Brazilian economies are doing very well and we’re seeing opportunities in Colombia and Peru.” For example, LogFire is installing a WMS in the largest super market chain in Peru.

“On of the things we heard going in is that it’s hard to do business in South America,” says Thall. “That is true. But that doesn’t mean we shouldn’t do it. You have robust economies that respect what we’re doing in the US and want to learn more. We’ve taken the time to learn how to do business there and to do it right.” Today, he adds, half of LogFire’s business is coming from South America.

While cloud solutions have traditionally been less robust that conventional WMS, Thall argues that is changing. “We have full inbound and outbound functionality with visibility. We are RF and voice enabled. And, we can install our systems in a retail store as well as a DC to give full visibility across a supply chain.”

LogFire has also developed “cool guy” functionality, such as interfaces to smart phones and iPads.

“We can install a system in six to eight weeks in a complex distribution center,” he says. “The up front costs are low, there are no licensing fees and our billing model is based upon your volume. That’s attractive to 3PLs because we can match our costs to their revenues.”

Cloud solutions are certainly the fastest growing space in supply chain software, but still a relatively small slice of the revenue pie. Long term, it’s hard to say which model will prevail. But it’s a fascinating space to watch as it develops.

This is Supply & Demand Chain Executive Magazine’s ninth year in creating its Top 100 Listing. In putting together the list, the magazine collected data on supply chain transformation projects, including information on the objectives, scope, timeline and results of the project. The submissions were then evaluated by the magazine’s editorial staff primarily based on: ambitiousness/scope of the project (30%); creative application of technologies/solutions/services used (20%); extent of the business results/impact (40%); clarity of submission (10%). More than 200 projects were submitted for consideration.

“LogFire is thrilled to be recognized for excellence by this very reputable resource,” stated Neil Thall, Executive Vice President, Strategy for LogFire. “We always focus on extracting the full potential of each client’s supply chain. And, we always look for ways that our customers can achieve more with less whether that is through the deployment of our SaaS WMS solution or the use of our supply chain consulting services. It is really gratifying when a highly respected organization recognizes the value we deliver to both large and small companies on a daily basis.”

Supply & Demand Chain Executive 100 will appear in Supply & Demand Chain Executive’s June 2011 issue and online at: www.SDCExec.com.

About Supply & Demand Chain Executive
Supply & Demand Chain Executive is the executive’s user manual for successful supply and demand chain transformation, utilizing hard-hitting analysis, viewpoints and unbiased case studies to steer executives and supply management professionals through the complicated, yet critical, world of supply and demand chain enablement to gain competitive advantage. For more information, please visit www.SDCExec.com.

About LogFire
LogFire provides innovative supply chain execution software and services for retailers, consumer goods companies and third party logistics providers worldwide. The company combines deep supply chain domain expertise with the first truly flexible, cost-effective SaaS (On-Demand) WMS technology. If you are seeking to purchase, implement, upgrade, or optimize a warehouse management system, LogFire can help you extract the full potential of your supply chain.  Customers include The Home Depot, Hot Topic, Macy’s and ARAMARK.