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Tuesday, December 8, 2009

Demand-driven Manufacturing and Warehousing

The global provider of enterprise resource planning (ERP) and supply chain management International Business Systems (IBS) offers a modular solution called ASW Manufacturing, which was developed as a demand-driven manufacturing solution geared to handle very fast manufacturing cycles and short lead times, small orders of custom products, and other customer demands. This is because with manufacturing resource planning (MRP) attaining and maintaining agility requires a lot of re-planning to meet customer needs, which causes the so-called "nervousness" of the system. IBS does offer flexible rescheduling tools that integrate with existing MRP systems for companies that have already invested in such systems. Given IBS does not compete in complex engineer-to-order (ETO) manufacturing environments, its manufacturing capabilities revolve around planning, execution, and monitoring high volume light manufacturing and assembly operations. It lets actual demand drive the user enterprise's production, ensuring supply chain flexibility, while planning on several levels and time frames to ensure maximum agility. The system also can configure and build products to company-specific requirements to effectively plan capacity, while handling complex product structures.

Demand-driven manufacturing is related to warehousing management, since the warehouse is no longer a static storage facility. It now has to use near real-time data to closely match supply to demand, eliminate the need to hold excess inventory, and increase the flow of goods throughout the supply chain. Therefore, due to the supply chain execution (SCE) software's capability to handle these complex requirements, there has been a trend of postponing many light manufacturing operations, such as final assembly, customized packing, labeling, engraving, etc. from shop floors to warehouses and distribution centers (DC). Consequently, a warehouse management system (WMS) package plays a key role in any company's manufacturing postponement strategy to delay the customization of products until after the products, or a set of common components, have left the manufacturing plant. To meet this need, IBS has added more functionality to its WMS module. The value-added services capability, which includes, kitting assembly and disassembly, multiple/multi-level bills of material (BOM), special instructions and labeling should help IBS' customers reduce the costs associated with their supply chains. In the supply chain, the most significant facilitators is postponement, and that is where kitting helps because it allows enterprises to keep their products in a more generic state for as long as possible.

The ASW Warehousing solution comes in two versions, including one for traditional and highly automated environments, and cover all the necessary functionality for efficient operations and management of warehouses. They provide the tools and functions for optimizing the use of space, while automating reception, put-away, location replenishment, picking, warehouse maintenance, packaging, shipping, radio frequency (RF), storage and product definition, and warehouse administration and monitoring. IBS' WMS process helps ordered be picked faster and with increased accuracy. Processes are based on product movement frequency, optimized resource activity through precise and accurate instruction handing. Fast return on investment (ROI) with staged implementation possibilities can be achieved.

Ultimately, the ideal WMS keeps items in the warehouse are moved quickly and as accurately as possible. The application must update all the quantities for a particular customer in real time, at the moment of picking. The system then makes up the work orders sequentially, and wirelessly relays this information to the screen of the forklift operator in the warehouse. The first item listed is the shipping box/package, which the operators picks up and labels. As the operator scans the bar code to confirm that the item has been picked, the next package in the queue and its location appear on the screen. Once the shipping box is full, it is sent to the packaging station where cushioning material and out packing material seal the package. From there, the packages are driven either directly onto a trailer or to a staging area awaiting the truck.

Employees, ranging from truck drivers to warehousing shift managers, only see the information they need, but can access more information, if necessary. As items move, a replenishment list is created so operators can move items from storage to the picking shelves. For more of pertinent information, see ERP and WMS Co-Existence: When System Worlds Collide.

Additionally, the IBS ASW suite has a pervasive built-in event or alert management, with triggers in the system to warn users of problems in the supply chain, enabling them to respond accordingly before it impacts the customer. This management by exception monitors critical or sensitive activities with exception rules and notification via multiple channels, and with reaction monitoring and audit trail. Some user-definable alert examples take place when a critical purchase order is not delivered or is late, when the particular customer account fails the credit check, or when an order fails margin limits.

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