Ster-Kinekor Home Entertainment, leading distributors of home videos, DVD and Sony Playstation hardware and software, recently installed Logical`s radio frequency barcoded data logistics system to integrate on-line with SAP R/3.
The distribution of video, DVD and Playstation products results in large peaks in transaction volumes when new titles are released. Being high-value consumer items, these products need to be tracked throughout the warehousing and distribution process. The warehouse receives, bins, picks and issues thousands of orders to its customers every day.
In July last year, Ster-Kinekor Home Entertainment, based in Sandton, went live on SAP R/3 and required a data logistics system to integrate in real time with SAP R/3, as well as support additional warehouse tracking processes.
SAP South Africa, who implemented SAP R/3, partnered with Logical (previously called Scantec) to provide the integrated data logistics` portion of the solution. Logical was selected due the flexible nature of its system, the ability to integrate with SAP R/3, and its extensive support infrastructure.
To meet the requirements proposed by Ster-Kinekor Home Entertainment and SAP SA, Logical implemented a solution based on its InterSys ERP Integration Suite, and conducted a full design in conjunction with all parties.
The Logical system executes all the warehouse processes that SAP R/3 requires to perform higher level business functions. InterSys controls and tracks every warehouse activity, from binning, picking and packing to dispatching goods. In addition, the solution also performs internal warehouse transfers and stock taking functionality.
One of the requirements put forward by Ster-Kinekor Home Entertainment was the need to track the serial number of videos, DVDs and PlayStations as they are packed into boxes for shipment.
SAP R/3 was able to store the serial number of the videos issued against a sales order, but required the facility to link the serial numbers to a box number if it went missing during transit. Using the flexibility of InterSys, Logical was able to provide this facility and then forward the information to SAP R/3.
Logical installed an Intermec spread spectrum radio frequency network to provide the data collection backbone, and Intermec Trakker Antares terminals for on-line data collection.
Logical`s ERP integration suite, InterSys provided the integration to SAP R/3, as well as the data storage and ability to manipulate data and reports of work-in-progress. InterSys facilitates connections from all terminals and routes the messages directly into SAP R/3, and visa versa.
Donald Nicholas, warehouse distribution manager of Ster-Kinekor Home Entertainment comments, "Since we changed systems, we have never looked back. Our service levels have been incredibly improved - we have total warehouse control, better stock levels, dramatically improved security levels, stock loss reduction and increased accuracy and productivity.
"It previously took us the duration of 3 to 4 weeks to pick a launch - today we can do this under one week. We`re also now working in a paperless environment, and have got rid of all those picking slips, which often get lost. If the barcode on the video is incorrect, the SAP system will inform us."
Robin Serebro, operations director at Ster-Kinekor Home Entertainment adds, "Our warehouse staff enjoy the ease-of-use of the system, which so simple to operate and requires minimal training. We also use Logical`s Medallion Support program, which offers us superb, quick turn-around assistance when we hit a glitch. This was particularly vital for us during our implementation phase and is also important for our daily operations. For example, we ran out of barcode labels the other day, and they were delivered by a Logical staff member within the hour."
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Logical
Scantec, leading providers of automated data capturing solutions, recently announced a name change to Logical, following the realignment of the services companies in the Datatec Group into one focused solution and integration division. This is part of Datatec`s global strategy to focus on e-business solutions and services.
Companies now merged under the Logical umbrella include Vircom, Scantec, Knowledge Architects, Datasecure and Logical Internet Partners.
Gordon Edwards, MD of Scantec has been appointed CEO of Logical, and Ken Everett, MD of Vircom takes on the role of Chief Operating Officer.
According to Logical`s CEO Gordon Edwards, these changes have been driven by the need to offer customers seamless, integrated solutions. "We have blended all the skills within these companies to offer a single point of customer contact," says Edwards.
"This realignment bodes well for all Scantec customers and partners, as Logical can provide a totally integrated solution, which includes but goes beyond data capturing and logistics to incorporate a totally integrated solution. Skills and technology solutions incorporate business application development, e-business strategies and solutions, financial systems, ERP integration, knowledge management, data warehousing, mobile computing, call centre and help desk applications, as well as Internet development, networking and information security."