Dynamic Logistics is a pioneer in the SCM industry and a third party logistics service provider. They have a client, in their trade park, who is a 100% Export Oriented Unit (EOU) that manufactures toys. Dynamic Logistics provide inbound logistics, line feeding and outbound logistics services to them.
'Since volumes are huge and the number and variety of parts that go into the product is very high, we faced difficulties to manage timely supply of parts to line from vendors,' says Shreesh Patwardhan, CIO, Dynamic Logistics.
The main obstacles in inbound material were optimization of space, proper sequencing and feeding of line, collection of parts from vendors on JIT basis while ensuring no line stoppage. Since the product is 100% exported, the obstacles faced in outbound were tracking FG based on clients and orders, proper storage and retrieval and ensuring 100% accuracy in container stuffing.
This necessitated an innovative solution to provide support to operating staff to ensure 100% uptime for production line and 100% accuracy in inventory and dispatches.
Details of the project
Dynamic Logistics is managing JIT for a 100% EOU unit manufacturing consumer durable items. There are 6 product lines each having average 45 components each. Monthly cumulative production is roughly 4 lakh units. The WMS takes inputs from production planning, converts in to pick up schedules and allocates milk run collection vehicles.
Material received goes through main stores, super markets and finally on to assembly lines. The areas of concern were availability of inventory and accuracy of feeding parts to production lines.
They deployed a Warehouse Management System which, with its bar code enabled inventory control, is able to track all the items online and give alerts based on workflow. Each stage like collection, receiving at dock, QA, put away, pick to super market, supply to production line, finished goods collection from line and dispatches are tracked and timing for each stage is measured. Implementation of this system has reduced the person dependence and brought the best practices to play in working of all the stakeholders and enhanced the production by almost three times by the client with minimal manpower addition and zero error. Real-time reporting and escalation matrix that is built in system have resulted in immediate resolution of problems.
Key business benefits gained
Impact on Revenue: Revenue increase of 12% for the unit by being able to give faster service
Impact on Cost: Cost saving of 18% in terms of manpower costs and cost of delays
Impact on Productivity: Productivity per person is increased by 21%
Impact on Customer Service: Zero errors in supply to line and easy ramp up of production by use of scalable system
Impact on HR: Ease in making new employees productive and work becomes less person dependent
Plus, the participating company has gained a revenue increase of 12% and a cumulative cost saving by 18%.
They used SCRUM methodology with a test lab set to test each incremental improvement during development stage. Actual users, IT department were constantly monitoring each stage. 'We demonstrated the system progress to client multiple times. Conducted multiple demos and workshops to operating team highlighting new features and technologies used, says Patwardhan.
This minimized the time for test runs and trial. System implementation was smooth and people involved right from beginning did not feel the quantum jump.
The future plans
They want to enable this system extensively on mobile devices to reap benefits of latest technologies available. Moving from private cloud to public cloud to enable system to be used in multiple locations and for across all customers, they are planning to make RFID, GPS based tracking integration on priority.
