A Case Study
Pioneering Change with Vyturr’s WMS
Indonesia
Introduction
The case study revolves around an industrial factory in Indonesia that was grappling with inventory management challenges. The factory’s primary product involved high-speed scanners, and it operated within a 2000 square foot warehouse. However, despite the modernity of their product, their inventory management processes were outdated and heavily reliant on manual input.
Problem
In a world driven by the relentless pursuit of efficiency, the factory found itself tethered to antiquated practices. They relied on Excel sheets for managing warehouse inventory—a method as outdated as it was labor-intensive. Every process, meticulously handwritten and manually verified, demanded an inordinate amount of time and precision from the data entry team. Daily, they would transfer this data into SAP, yet the rigidity of this system faltered under the evolving demands of sophisticated inventory management. It was clear: a transformation was imperative to transcend these limitations and harness the full potential of technological advancements in inventory logistics.
The factory faced unique challenges due to the nature of its operations. For instance, materials received in the morning were typically used within an hour, leaving no time for entries into SAP. Moreover, many components were large in size and couldn’t be unpacked and stored within the short time frame of 15 to 30 minutes. As a result, manual entry of materials proved faster than real-time entries into SAP, leading them to make entries in the evening instead.
This approach led to several issues: errors in counting due to manual processes, confusion in storage due to lack of real-time tracking, and quality control issues as materials went into production without proper checks. These problems often resulted in excess or low inventory levels that needed rectification during production—a time-consuming and costly process. Furthermore, manual procedures meant more labor involvement and higher overtime costs.
Digital Transformation:
A Radical Transition
Vyturr’s Strategy
To address these challenges, Vyturr’s Warehouse Management System (WMS) was introduced.
This user-friendly application, blending effortlessly with the existing SAP system, eradicated the necessity for manual data entry, marking a significant stride towards modernized operations and digital proficiency.
Outstanding Results Delivered
Warehouse Operations and Goods Receipt
The need to move larger and heavier products to a pre-designated location for processing was eliminated. WMS allowed label printing and receipt of goods anywhere in the warehouse.
Quality Checks and Storage Management
Quality checks became mandatory before materials could be used in production. Also, operators could not store items wherever space was available in the warehouse.
Simplified Inventory Counting
Simplified counting procedures enabled easy reconciliation of physical inventory with recorded inventory. Also, partial picking of materials became possible.
Faster Approval Process
Approval delays were significantly reduced as urgent requests for materials were instantly notified to managers through the mobile app.
Effective Management of Production Returns
Excess returns from production, previously lost or mismanaged during storage, was now effectively managed.
95%
Accuracy in inventory achieved
Conclusion
The implementation of our WMS brought the factory’s inventory accuracy to an impressive 95%. The minor 5% errors, attributable to operational aspects, were deemed correctable with enhanced training. This scenario underscores the transformative potential of digitization in boosting efficiency and precision in sectors still employing outdated manual processes.