New ERP strategy takes a bite out of cost
While maintaining the direct mail and telephone sales operations, RJM Dental Advantage added e-commerce and tied into the completely overhauled enterprise resource planning (ERP) system.
By Staff -- Modern Materials Handling, 10/2/2007
While maintaining the direct mail and telephone sales operations, RJM Dental Advantage added e-commerce and tied into the completely overhauled enterprise resource planning (ERP) system. The company also moved from its location in Fridley, Minn., to a 42,000- square-foot space in Twin Cities and grew the staff of sales representatives from 12 to 21.
RJM also needed a plan for more warehouse space and to design a system to meet order fulfillment needs. The goal was a systematic approach to ensure the customers' order would be processed and out shipped the same day.
With a customized system, when a customer places an on-line order, it's immediately reflected in inventory, financial and customer relations systems.
Orders are printed out every 15 minutes. Each one is scanned and three carousels carrying 80% of the items in inventory rotate the product to a stationary worker in a sequence that the system calculates for maximum efficiency.
The items are put in a tote then placed on a passive conveyor and moved down a wall of shelves containing larger items, which are added to the order. When the order is complete, it's placed on an active conveyor that takes it to shipping where it's packed and loaded on a UPS truck. Average order fulfillment time is two to three minutes.
According to co-owner Michele Perpich, “Our focus is on the small to medium size dental practice. These practices are short on time; we save them time.”
Advanced planning enabled the systems to be installed simultaneously with the move to the new warehouse, saving additional down time.
SJF Material Handling 800-598-5532 www.sjf.com
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