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Can You Create A Wireless Warehouse? by Dan Schell (Business Solutions, Nov. 2003)
-In six weeks, DSA - Software replaced a 3PL (third party logistics) client's paper-based warehouse operation with an automated, wireless, WMS (warehouse management system). It was a great referral for software developer/integrator
DSA - Software (Foxboro, MA). The Client, Alpha Industries, hires disabled
and disadvantaged workers to staff the operations of several manufacturing,
distribution, and warehousing facilities. Some of the services Alpha provides
include light assembly, kitting, and order fulfillment. "Alpha provides
third party outsourced logistics [3PL] services to its clients,"
explains Mike Barad, VP of sales and business development for DSA. "As
such, it simultaneously handles multiple customers' inventories within
its warehouse and distribution centers." Do Your Clients Need Real-Time Inventory Visibility? To help keep its existing clients, and also attract new customers, Alpha needed to improve its warehouse operations. The company was not using a WMS and had no wireless barcode scanning capabilities. Material flow and inventory were being tracked manually via paper-based systems, which were labor intensive and prone to errors. "Alpha was unable to quickly identify bottlenecks affecting productivity that were caused by material shortages or incorrect inventory allocations," Barad explains. "Furthermore, many of Alpha's customers wanted real-time visibility of their inventory while in Alpha's custody." Alpha had another problem. As a 3PL, it charged its customers for not only storage, but also any extra handling services. The company needed a more efficient way (as compared to paper tracking) of generating the detailed bills customers wanted for these types of services. Increase Inventory Accuracy/Labor Savings As part of its sales pitch, DSA explained the advantages of Foxware as well as the general benefits of a WMS. For instance, according to industry analysts from Gartner, a WMS can offer inventory accuracy between 95% and 99.5%, inventory reductions of up to 50% during a three-year period, 20% to 40% in labor savings, and as much as a 20% increase in space utilization. Many of these benefits rely on the use of wireless technology in conjunction with the WMS. Thus, DSA sold Alpha a wireless LAN (WLAN) and handheld computers with built-in bar code scanners from Psion Teklogix (Mississauga, Ontario). The Psion Teklogix hardware included 6 model 9150 (802.11b access point) gateways and 12 model 7035 handheld computers. "Psion Teklogix performed a preliminary RF [radio frequency] site survey, which determined the ideal locations for the access points to provide proper radio coverage within the warehouse," states Barad. "Installation of the RF gear was also provided by Psion-Teklogix's professional engineering group." A 33-month extended warranty provided Psion Teklogix on the RF equipment was part of this agreement. Alpha's software solution consisted of multiple Foxware modules. Namely, the solution included DC Manager (for core inventory functionality), RF Manager (providing real-time RF functionality on the warehouse floor), WebView (a Browser-based interface that allows external users to view real-time inventory information over the Web), and DC Label (remote barcode and label printing). Install It Within Six Weeks? The most challenging aspect of this project was the time frame: Alpha wanted the system installed and capable of basic functionality within six calendar weeks after the date of contract execution. "While doable, this ambitious timeframe required us to tightly coordinate the project with all the parties involved," says Barad. Apart from installing the hardware within this timeframe, DSA will face the future challenge of possibly needing to adapt its software's customary user interface. This modification may be necessary so the software can be easier to understand by people with some degree of mental disability or educational disadvantage. Training on the new hardware and software was conducted by DSA for workstation users (management, supervisory, and customer service staffs) and warehouse floor personnel (order pickers, lift operators). Alpha's IT staff was also trained on system setup/maintenance and the WebView interface for the company's trading partners and customers. Barad says a system similar to the one implemented for Alpha typically would cost between $175,000 and $200,000. However, both DSA and Psion Teklogix extended significant discounts to Alpha because of its not-for-profit status and the charitable focus of its mission. Since much of this project is still being implemented, it is too early to determine actual cost savings. However, one of the biggest benefits of this new system is already affecting Alpha's business - now the company can pursue new customers that demand real-time inventory visibility. For more information about Foxware, go to www.dsasoft.com DSA - Software - Affordable WMS Software for 3PL's and Manufacturer's Distribution Centers DSA - Software provides 3PL and private distribution centers Warehouse Management software with the features and flexibility they need to increase productivity, meet customer demands, and boost inventory accuracy to 100%. Foxware is a complete WMS package that is customizable to meet the individual needs of its clients. Foxware automates all Warehouse functions from Receiving through to Shipping using state-of-the-art realtime RF technology. Foxware is offered in a series of functionally robust modules, so whether yours is a smaller company looking to start simply with room to grow, or a larger company with more extensive requirements, there is a combination of Foxware modules to meet your needs. DSA - Software: A Sound Investment - Feature-rich WMS Software Foxware provides the most comprehensive Radio Frequency functionality in the Public WMS industry. Storage, handling, and accessorial invoice generation; EDI; and customer/consignee compliance label printing capabilities are completely integrated. For more information: DSA - Software |
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