CASE STUDY
Augment Material Management Solution with Endless Tracking and VisibilityIndustry
Distribution
Ecosystem
Oracle EBS Fusion
Smart Tracking of Assets
Metrics
- Customer Experience
- Business Agility
- Visibility
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Business Case
The global leader in selling and distributing food and non-food products to restaurants, healthcare and educational facilities, lodging establishments and other customers around the world.
The Customer has 50+ Business Units, and each of them has its own inventory & fulfillment systems. The educational facilities place bulk orders to the customers’ specific business units and run into product shortages.
In fact, customers couldn’t fulfill 50% of the accepted orders across their business units.
All 50+ business units have their own allocation strategy driven by dedicated inventory & fulfillment systems and cannot interoperate with each other.
Table of Contents
Manufacturer Challenges
Limitations
Solution
Business Outcomes
Challenges Faced
Constrained to eliminate the errors which are almost impossible to catch until after the production run ora already to the customer.
Any weaknesses in the Manufacturing support logistics affect Customers and brings manufacturing processes to a halt costing time/money. Collectively, these errors are almost impossible to catch until the material is sold to a customer or the production run is complete. Both require manual intervention and are tedious to resolve after since it breaks automated flows.
Material management supporting lineside with a physical hand-off is a simple move of the materials on a forklift within the facility. Unfortunately, the systems still require a formal “shipment” and receipt confirmation of the materials to maintain inventory ownership tracking. Returns of unused raw materials further complicate this.Manufacturing operators track production output through work order completions. This is done before the material can transfer ownership and cannot be done pre-emptively because the work order completions are real-time inventory updates. This presented several opportunities for material to be passed to the transfer area without having system ownership changed. Since the handoff area exists externally to the manufacturing area, there is no formal communication between the inventory transfer operators.
To compensate, receivers scan the manufacturing pallet tag to confirm ownership into the Warehouse Management System.
Timing delays in work order completion or any incorrect scans created multiple opportunities for desynchronization between systems. The design also creates redundant processes as items enter and exit each system- once as raw materials and a second time as finished good.
Outcome
When faced with product shortages and allocation challenges, UCBOS smartly looks up other business units’ inventory and shares soft allocate signals to admissible business units’ fulfillment systems.
UCBOS binds with the corporate policies and procedures on which business units can share the inventory.
UCBOS interoperates with other systems and no room for ripping or replacing those legacy systems.
By isolating the manufacturing transfer orders and tracking pick status of those materials, UCBOS automated “shipping” out of the Warehouse Management System as individual pallet shipments. These shipments can be immediately converted into a raw material receipt in the ERP system since the transfer operator is responsible for both the pick and the drop as a business process. If the material is missed, a detailed accurate history record of who performed all the picks and when they occurred is used.
Re-entry of information became unnecessary for example palletization of the finished goods by quantity, lot number, expiration date, and quality level.
UCBOS leveraged the work order itself to create an advanced shipment notice for the warehouse team, increasing receipt visibility for the warehouse team and enabling them to track the ongoing manufacturing runs within their system.
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