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Unit 9: Warehousing

and Telnet clients to communicate with the Oracle mobile wireless application server Notes
(MWAS). This provided a direct connection between Oracle WMS and the Symbol PDT
6846 handhelds, empowering warehouse workers to perform transactions right from the
shop floor. Avalanche also offered an easier way to update flash firmware and Telnet
clients with increased security that required no additional infrastructure.
Together, Symbol and RedLine Solutions delivered a powerful mobility solution that
worked seamlessly in the Oracle WMS environment. One key factor in the purchase decision
was Symbol’s wireless technology expertise and bar code data capture leadership, as well
as prior positive experience with Symbol products. Another major factor was RedLine’s
excellent customer service, Oracle expertise and impressive technical support. From the
mobility tools to the applications, SGI is well positioned for a more streamlined process,
improved productivity and increased efficiencies throughout the supply chain.
The Benefits
At the start of the project, a 12-month Return on Investment (ROI) was estimated. Key
metrics were established to measure the effectiveness of the new integrated solution:
 Labor savings

 Reduce inventory write-offs
 Reduce total inventory
 Reduce warehouse space
“Of all the metrics, SGI’s ROI timeline demonstrated the most significant gain of all,”
stated Richard Westover, manufacturing IT project manager at SGI. “The Oracle, RedLine
and Symbol mobility solution delivered full ROI within six months, which clearly exceeded
our earlier expectations. It’s equally important to note that the ROI gains began to show in
the first quarter following deployment.” All other metrics were also met or exceeded. The
same transaction volume was maintained with less staff hours. Improved data accuracy
and a reduced number of lost parts delivered more productivity gains. As for efficiencies,
SGI realized a high payback with a drop of 82 percent in inventory write-offs. Maintaining
full production capacity and improving purchase planning ensured that the optimum
balance of parts was available at any time, reducing warehouse space requirements.
Each of these streamlined processes contributed to more cost-effective inventory
management with significant gains in productivity and efficiency. With the powerful
warehouse and distribution mobility solution from Oracle, RedLine and Symbol, SGI
achieved project success.

Question
Make a discussion on the case given above. Also provide case facts.
Source: www.tmcnet.com

9.5 Summary

 Economic benefits of warehousing materialise when overall logistical costs are directly
reduced by utilizing one or more facilities.
 Shipment consolidation is an economic benefit of warehousing.
 A break bulk operation receives combined customer orders from manufacturers and ships
them to individual customers.

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