Three companies that improved operations with better information management

By Bob Trebilcock, Editor at Large -- Modern Materials Handling, 3/23/2006

Warehouse management systems, bar code scanning, voice technology and RFID. They are all technologies that enable the collection of information inside the four walls of a warehouse or distribution center.

In today's competitive landscape, however, collecting the information is not enough. The best companies are putting that information to use across their organization in innovative ways, says Chris Heim, president and general manager, HighJump Software (952-947-4088).

"In the past, the information collected as a byproduct of operations wasn't tapped for its inherent value," says Heim. "Today, people are looking for ways to use it both inside and outside their operations to the benefit of the greater supply chain."

Here are three examples of companies developing new best practices to manage their businesses with information collected during the order fulfillment process.

Musco Olive, one of the largest producers of table olives in the United States, installed a warehouse management system to increase efficiency. As part of their operations, the system creates farm-to-fork traceability, tracking information about the field where the olives were grown, the lot number for a shipment, and where the lot was shipped. Using that information, Musco was able to reduce the amount of time it takes to conduct a mock recall for government compliance from eight hours to just twenty minutes.

ADP, the automated payroll provider, uses the inventory management functionality in its warehouse management system for supplier enablement purposes. Whenever the inventory of core materials dips below a pre-prescribed level, the system automatically sends a replenishment signal to the supplier of that product. If the supplier acknowledges that they have the product to fill the order, replenishment takes place automatically, without manual intervention.

Today's warehouse management systems have a wealth of real-time information about how a facility is performing. However, managers usually have to be at their desk to find out if they’re ahead or behind schedule. Sportsman's Warehouse, a sporting good retailer, outfitted its warehouse managers and supervisors with PDA’s. The mobile devices enable a data-driven management style – allowing managers to track the productivity of individual workers and ensure that the right orders are ready for delivery from the warehouse floor.