Successful WMS Implementation

Logistics Advice recently completed a successful Warehouse Management System (WMS) implementation for a medical supplies wholesale company in South Florida. The customized WMS was developed with Wireless Data Systems out of Boca Raton, FL and integrated with a SAP ERP system.

The Existing Operation

Our client's operation can be best described as a cross-dock operation. The incoming orders already have a destination (assigned customer). Goods are received, after which the receiving is manually processed in the ERP system. Then "pick tickets" are prepared in the office to break down the bulk receiving into orders for specific customers. A highly manual and time consuming operation. The process of preparing the pick tickets could take hours while the goods are sitting in the receiving area. Often the receiving department runs out of space, as goods are piling up because of the long processing time. After the goods are picked by customer, the pallets are transported to a staging area, awaiting pickup. Due to the manual nature of processing data and matching paperwork and the fact that goods are not tracked throughout the process, mistakes are common. When goods are missing, it is difficult to find out what happened.

The Preparation

The implementation and integration of the new system took approximately 2 months. During this time Logistics Advice worked together with the WMS developer, the ERP software provider and in house IT staff to ensure all systems would be developed to create a highly efficient business process, including a streamlined warehouse operation. All parties worked extremely well together, which made it possible to tackle the issues quickly and built a solid system. Part of the preparation was to run the new system parallel to the existing system prior to go-live, something we highly recommend for any automation project. This enabled us to compare the outcome of both systems and analyze discrepancies. Testing with real data is very important and anyone installing new automation should take sufficient time for this activity. In addition, all users should be involved in the entire process, as early as possible. Adequate training is essential for a successful implemention.

Go-live

The go-live date is the moment it becomes clear if all preparation was done correctly. Going live with new automation is always the most challenging part of the project. Clitches in the system will present themself right after the switch is turned. Besides the need for the system to work properly, it is equally important for the users to work properly with the new system. That is why testing and training (and more testing and training) are so important.

We had done it right. There are always challenges, but when they are manageable, the implementation can be considered successful. We faced some hick-ups in handheld connectivity and manual errors, which the system should have prevented from happening (these were easy fixes). Besides that, our client had additional requirements for reports or minor adjustments after going live.

A New Operation With Automation

Wireless handheld terminals are now directing the activities in the warehouse. While receiving a shipment, the receiving person enters the purchase order number in the terminal and is automatically guided on how to distribute the goods to the different customers. This eliminates the office work where pick tickets used to be generated. At the same time data is recorded for all warehouse activities in real time, which enables users to have instant access to up-to-date information at all times. All goods are now accompanied by a barcode label identifying them. Accurate pallet manifests and truck manifests are created. Wireless Data Systems, Inc. has done an outstanding job in accomodating my client's needs and wishes. Their support and cooperation has contributed to the success of this project. It has been a pleasure working with WDS and we can definitely recommend them as a partner in any WMS project.

Results

All changes to the system were done within only a few weeks from the go-live date and the system has been operating successfully since. The results are significant:

- Estimated increase in warehouse productivity at least 10%.

- Number of errors significantly lower, resulting in fewer customer complaints

- Standardized process simplifies work, less dependence on people's knowledge

- Faster processing of goods through warehouse

- No more lack of warehouse space, discussion about moving to bigger building off the table

- Real time data gives valuable information/reports and makes process easy to manage

- Data can now be used to identify bottlenecks and make future improvements

- Estimated ROI: less than 1 year

Logistics Advice is proud of their contribution to this successful project. Our ultimate goal is to complete each project knowing our client is fully satisfied with the results.