Bekins Distribution knows the meaning of tight deadlines. This third- party logistics (3PL) provider must deliver items ranging from food to chemicals and electronic products to manufacturing sites of its customers within as little as two hours of order entry to avoid production stoppages. The company must also provide a range of information to the companies it serves including real-time inventory status and shipment notifications.

Unfortunately, Bekins' information systems were unable to meet all of its customers' requirements. First, the inventory system was largely manual and paper-based, limiting precision of product tracking. Workers had to retrieve pick tickets from the office and then search for the product because only general not specific storage locations were known. Furthermore, the proprietary database technology was not compatible with other systems.

Bekins set out to find the latest solution that would meet its basic requirements: real-time inventory management and a standardized database. The company now uses a warehouse management system that integrates with an enterprise resource planning system (ERP). Bekins opted for only the order and financial modules of the ERP system.

It hasn't taken long for operations to improve at the warehouses since implementation of the new system. At the company's Sioux City, Iowa facility, the software was installed for only a few months before orders and items handled per hour increased significantly, says Bruce Matthey, general manager of information technology there. Overall productivity has increased 16%, and virtually all order errors have been eliminated.

With the new system, data is immediately updated as soon as an order is entered to the ERP system and then transferred to the WMS. All inventory is now tracked through the facility with bar codes, identifying specific storage locations. The software automatically identifies the location of the oldest product and directs workers where to make the pick. Workers receive that information on radio frequency data communication terminals anywhere in the warehouse, saving time and steps. After items are picked for an order, the WMS informs the worker if the items must first go to a value-added service area or can go directly to a staging or shipping area, identifying the specific location in each case.

Bekins now delivers all information its clients request. Vendors and suppliers access a Web site to view real-time status reports. Meanwhile, the 3PL's customers automatically receive electronic notification that a product has been shipped.