Delta streamlines warehouse processes with RangeGate solution Delta Motor Corporation has reported increased efficiency, improved access to management information, and tighter control of the stock in its Parts and Accessories (P&A) warehouse as the major benefits of a warehouse execution system supplied by RangeGate.
The new system, based on mobile computer and barcode scanning technology, integrates directly with Delta`s SAP R/3 enterprise applications, says Andrew Fosbrook, CEO of RangeGate, a division of the Datatec Group. It controls and tracks every process at the motor manufacturer`s P&A warehouse in Port Elizabeth, from receiving checks, binning, picking, and packing to goods issue and invoicing. The system also includes offline stock take and on-line cycle count functionality.
Delta, which General Motors holds a 49% share in, is the Southern African manufacturer and distributor of Opel and Isuzu, and the distributor of Suzuki.
Delta P&A implemented the SAP R/3 business system in 1999 to improve the accuracy and response time to customer orders, and streamline its operations by eliminating picking errors. The new, integrated applications suite replaced the POPIMS legacy system and allows every transaction to be monitored in real-time. It tracks and records of the movement of all parts stocked in the warehouse.
Dealers submit orders for parts and accessories through the Delta Motor Corporation Web site. Once an order has been placed, it is picked, packed, and sent by courier within 24 hours. All transactions are performed in real-time, from the time the part is picked, to collection of the package for delivery. Dealers are invoiced immediately following shipment of the order, reducing the time between delivery and payment.
The system caters for high data and transaction volumes. The P&A warehouse distributes parts and accessories to a network of 200 Dealer retail outlets throughout South Africa. It stocks 150 000 part numbers, 100 000 of which are active, while remaining 50 000 are non-active parts which are kept in stock for vehicles older than ten years. These parts are kept in 80 000 bin locations within the P&A warehouse.
The P & A warehouse receives and bins approximately 1 000 order lines from its suppliers and picks and issues approximately 5 000 order lines to its customers per day. By streamlining and automating processes in the warehouse, Delta P&A has cut down on its need to manually capture large volumes of data, improved the accuracy of data capture, and reduced shrinkage through tighter controls, says Fosbrook.
Delta choose RangeGate as its supplier for this system because of its direct presence in Port Elizabeth and the ability of its solution to integrate directly into SAP R/3 using InterSys Enterprise Application Integration software suite. RangeGate implemented a spread spectrum radio frequency network to provide the data collection network backbone. Fifty wireless mobile computers are used to collect data.
The InterSys software has allowed Delta P&A warehouse management to extract valuable information from warehouse processes that would otherwise have been lost. Work in process and productivity reports can be printed for individuals or operational teams. This information gives Delta management a clear picture of the warehouse operations, allowing for more effective management of the workforce.
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