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SageData supply warehouse systems, and a growing segment of this market is 3PL, or third party logistics.
One of our clients provides services to a manufacturing operation, storing
raw materials that are delivered from the manufacturing facility in bulk,
part manufactured, and then called off in smaller quantities as required for
the finishing process.
The 3PL uses our technology. Items are scanned as they are received, and the
web site is updated in real time. The manufacturer can confirm receipt, check
stock levels, and place call-off orders from the web site. 3PL personnel immediately
receive those orders on mobile RF devices, and are guided through the picking
process, with each pick confirmed as it is made. The process is fast, accurate
and efficient.
In this case, problems began to arise with discrepancies between the 3PL system,
and the inventory records held by the manufacturer. Not a big problem, but
one which SageData was called in to review.
Our solution was a daily synchronisation. In the early hours of the morning,
each system now exports key data to SageData's server. As convenient, material
management personnel at the 3PL and the manufacturer can check a customised
discrepancy report which identifies only items which are not in synchronisation.
The initial reporting showed a number of human errors - transposition of numbers
(in quantity and SKU), unlike units (cans vs litres) and items that had somehow
been missed entirely. Within a few days, all discrepancies had been rectified,
and the system now performs a routine check to help prevent future errors.
Benefits of the system include: reduction in manufacturing disruption, faster
audits, and a significant reduction in time spent double checking the numbers
and hunting for errors. Users have a lot more confidence in the numbers.
This is a neat technical solution to a real world problem, linking disparate
systems in different organisations.
For more information contact SageData.
January 27, 2004
Learning
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