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Logistics and Supply Chain Management

Notes SGI’s high-end, built-to-order systems range from desktop workstations to high-
productivity servers and supercomputers. A $50 million inventory of more than 2,500
different part numbers is housed in a 125,000 square foot warehouse and distribution
centre located in Chippewa Falls, Wisconsin. This ISO 9002-compliant facility contains
components that include sheet metal, memory devices, drives, monitors, electronic
components and an assortment of nuts and bolts. SGI’s inventory is frequently transferred
from the warehouse and distribution centre to the 80,000 square foot manufacturing facility
located nearby. In managing such a large, diverse and valuable inventory, SGI’s advanced
technology experts recognized the potential for improved efficiency with an integrated
warehouse management system.
The SGI manufacturing team analyzed and identified several bottlenecks in the day-to-
day operations. For example, a dozen employees shared a few terminals, and manual data
entry in the warehouse was often inaccurate and inefficient. Due to a recent consolidation
of worldwide manufacturing, warehouse workers sometimes spent hours looking for
hard-to-find parts, wasting valuable time. Even the physical movement of boxes between
picking and shipping areas became a more cumbersome process. SGI realized that these
inefficiencies had a direct impact on the company’s bottom line.

The Challenge
To address the inefficiencies, SGI added the Oracle Warehouse Management System (WMS)
module to expand its existing Oracle E-Business Suite. The manufacturing IT team, working
with the factory’s logistics management, determined that the Oracle WMS deployment
would help the warehouse and production facility realize significant productivity gains
and efficiencies. An advanced mobility solution would streamline processes, improve
productivity and increase efficiencies to deliver a higher return on investment.

Wireless technology and bar code data capture were a natural fit. SGI already successfully
implemented Symbol’s enterprise mobility solutions and wanted to continue to work
with Symbol’s rugged handhelds. Since every mobile computer purchased needed to
meet Oracle WMS requirements, Symbol’s complete line of Oracle-certified devices enabled
SGI to find the right handheld to meet their application needs. RedLine Solutions, a premier
Symbol partner and expert in bar code data capture, wireless and automatic data capture
(ADC) systems, delivered the integration and Oracle expertise to meet SGI’s needs.
The Solution
SGI tested a variety of Symbol’s rugged mobile computers, built to withstand rigorous
warehouse environments. Everyday users – the warehouse workers – selected the best
form and functionality. “Our first step was to put the products to the test in a real-world
environment, so we gave our workers a choice,” stated Jon Rauch, factory logistics manager
for SGI. “Testing the handhelds during the course of daily operations guaranteed an easier
selection and transition process. This led to productivity improvements much faster than
we expected.”
SGI warehouse and distribution employees selected the PDT 6846, a rugged, lightweight
mobile computer with well balanced, forward-scanning ergonomics that is comfortably
suited for scan-intensive environments. Whether counting inventory, receiving parts or
putting away components, the large 16-line backlit display provides greater data content
and readability, to enable quick movement between activities. Symbol partner RedLine
Solutions, configured the Telnet client on each device with an IP address while meeting
SGI’s security requirements.

RedLine also provided the wireless systems engineering and integration services. After
the site survey, RedLine configured Wavelink’s Avalanche device management software
Contd...

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