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Warehouse
Management Solutions
Directed Radio Frequency based Warehouse Management System
Sirona Technologies Limited has launched a state-of-the-art
Directed Radio Frequency (DRF) software module to complement
its highly successful supply chain and warehouse management
system SIRONA. Unlike traditional warehousing systems, this
new Sirona designed solution incorporates the very latest
radio frequency data capture and communications terminals
from Teklogics - one of the world's leading manufacturers.
Irish
Cold Stores
Background
Irish Cold Stores Limited is a member of the Irish owned Loadwise
Limited group of companies. Loadwise is a logistics service
provider focused on supplying warehousing, distribution and
supply chain management services to manufacturers, retailers
and distributors of frozen, chilled & ambient food and drink
products throughout Ireland, the UK and mainland Europe.
The Group has grown by translating the skills of its employees
into new markets within the food and drink logistics industry
and in little more than a decade has become one of Irelands
leading companies specialising in this field.
The Group currently operates from two distribution centres in
Ireland and run a fleet of over 100 trucks and trailers, all
with the ability to carry frozen, chilled or ambient products
throughout Ireland and Europe.
The company offers as specialist third party warehousing service
to manufacturers, importers and other chilled and frozen food
organisations. They store and consolidate loads for trans-shipping
all over the country and overseas. They also offer an assembly
service to their customers whereby frozen or chilled produce
is broken up and reassembled into such items as frozen hampers
for retailers.
As one of the fastest growing warehousing companies in Ireland
the ICS management team recognised that they could not meet
their ambitious business targets if they continued with their
existing system.
The Problem As Jason Mallon the firm's general manager
said, "Before we decided on Sirona Technologies as our 'partner'
in this new venture, we looked at all the major software and
hardware suppliers. We recognised that we were entering into
somewhat uncharted waters, therefore it was critical that our
IT partner had a proven track record in the warehouse and distribution
market, as well as a reputation for excellent customer service."
The principle reason ICS began their search for a new system
was due to the success of their business and the realisation
that they needed to change their 'paper-led' system for something
more sophisticated that would enable them to improve their overall
efficiency and hence profitability.
Although ICS had a computerised accounting system it did not
have any real control over the warehouse, upon which the whole
business revolved. Picking was done from paper with a batch
system update and no real-time controls. The needs of their
growing business fueled by the demands of an expanding market
forced ICS to recognise that this way of running their business
could not continue. In a fast moving warehouse, with an increasing
number of pallet loads of goods moving every day, hold-ups have
a devastating effect. Time delays within the distribution process
not only cost money, they can also easily lead to lost orders
and ultimately lost customers. In the months prior to the installation
of the SIRONA solution, ICS was struggling to process all its
inventory. However, according to Mr Mallon, the company is now
"…coasting along on significantly more throughput. We are
now set fair to increase our business without needing to increase
staffing levels by a similar proportion, thereby increasing
our profitability."
The solution The idea of incorporating the very latest
computer technology into their Dublin warehouse was first mooted
by the ICS management some time before a final decision was
made. After many months of careful planning and market research
the solution chosen was based on the SIRONA supply chain management
software.
One of the many reasons why ICS chose SIRONA was the fact that
they could integrate their distribution software into ICS's
existing best of breed accounting system.
In addition Sirona also offered a state of the art warehouse
management module capable of being adapted to provide ICS with
a Directed Radio Frequency (DRF) system. As Mr Mallon said,
"Apart from having some very sound supply chain software
and excellent reference sites, Sirona Technologies also offered
to develop new DRF software and incorporate it as an additional
module within their overall integrated distribution system.
They also offered ICS the ability to use state of the art DRF
hardware through their association with one of the market leaders
in this field, Teklogix. However, of all the reasons why we
chose Sirona Technologies I must admit that the opportunity
to deal directly with the author of the software rather than
with a third party was hugely attractive. Plus nothing was ever
too much trouble, their attitude throughout the project was
excellent."
The SIRONA DRF system can incorporate portable and forklift
truck mounted Teklogix bar code scanning data terminals that
communicate with the central computer via wireless radio frequency
(RF) links within the warehouse. Therefore not only do the terminals
capture information for transmission to the central server,
they also receive information which then directs the operatives
next task. The use of DRF means that all the warehouse operations,
from 'putting' to 'picking' are conducted in real-time under
the total control of the warehouse management software.
Once ICS had decided that the Sirona Technologies was the ideal
'engine' around which to develop the 'ideal system', they began
discussing how best to include a state-of-the-art DRF system
within the warehouse. The result was that Sirona Technologies
decided to incorporate the development of the various software
interfaces and links to the Teklogics RF terminals into the
SIRONA standard product, thereby ensuring that ICS did not have
to pay for all the DRF development work.
This meant that not only did the Sirona Technologies solution
meet all the ICS requirements, as detailed in their system specification,
it also allowed them to reduce their overall investment. As
Mr Mallon said, "Once Sirona Technologies agreed to take
on a large amount of the DRF system development cost, what could
have been a risk became a sound investment."
The Implementation When asked to comment upon the implementation
process, Mr Mallon commented; "When you are considering the
implementation of such a radically different system like DRF,
you have to anticipate some element of adverse staff reaction
and plan accordingly. "
We invested a significant amount of time and money planning
the DRF implementation process. We were convinced that the more
time we took in the planning stage, the greater degree of success
we'd achieve in the shortest possible time scale and I'm pleased
to say that we were one hundred percent correct.
"In conclusion, Sirona Technologies provided excellent training,
which met our requirements precisely and when coupled with our
own strategic approach to the implementation process, proved
to be a great success."
Business Benefits When asked to list the principal benefits
of the new system, Mr Mallon commented, "We have experienced
many benefits to our business, both from the DRF warehousing
software and the other SIRONA software modules.
"Firstly we wanted a system that we could add to and develop
without incurring massive additional costs and that's what we've
obtained from the SIRONA system. As far as the hardware is concerned,
we've found the terminals to be robust and reliable and the
company provided excellent step by step training. And from a
software perspective, Sirona Technologies has been both helpful
and truly professional in all their dealings with us. "
One of the many benefits we have obtained from this new system
is the fact that as the stock control databases are updated
automatically, we have been able to improve the efficiency of
our staff enormously through the implementation of 'Dual Cycling'.
This is achieved by the system knowing where in the warehouse
each operative is at any moment, knowing where each stock item
is and hence optimising the movement of both stock and people.
For example, when a truck travels to location X with a pallet
load of product, the system instructs him to pick up his next
pallet from a location physically close to position X. The objective
being to minimise the time the trucks move around the warehouse
empty.
" Everyone within the firm has seen the benefit of the
new system. From a purely financial management point of view,
once a pallet or case has been scanned an invoice is immediately
raised and sent to the customer, something that we simply couldn't
do with the old paper system. You can imagine the impact this
one single improvement has had on our cash flow. Nothing is
now ever missed, every single thing that moves in the warehouse
is tracked by the system and when bills need to be produced
they are produced automatically without fail. In addition to
these very practical and important business benefits, the new
SIRONA system has helped us to incorporate more structure and
hence discipline into our organisation, something that is an
essential element of any growing business."
Another significant business benefit noted by other users of
Directed Warehouse Management systems involves stock integrity.
For example some users have recorded stock variances of only
0.03% a level of accuracy that is simply fantastic. Traditionally
anything below 2% has been viewed as an acceptable result. The
reasons for this massive improvement in stock control are principally
the DRF software, the investment in staff development and the
improvement in the company's business process controls through
the implementation of a more structured and efficient system.
The Future ICS intend to invest in additional warehouse
capacity, both in Ireland and overseas, which will mean that
they will undoubtedly be implementing additional SIRONA distribution
systems in these new depots.
Jason Mallon concluded, "The next step in the development
of the system is its implementation in our other Dublin warehouse
and then 'tying' of these two operations together within the
one SIRONA system. Although this development will provide an
almost ideal warehouse management solution, we are confident
that when we want to implement it, Sirona we will be able to
do so, quickly and efficiently.
"We're also confident that in the future we'll be installing
a full Sirona E-Business supply chain solution, within both
our Irish ICS facilities as well as in all new depots, irrespective
of where they are."
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