 DPS/Real-World Solutions: Kitchen & Bath Cabinetry & Hardware
CourterCo Attacks Warehouse Productivity
Demonstrating Applied Advantages Of DPS Zap™ WMS
Customer Description:
CourterCo was started in Louisville, Kentucky in 1983 by a handful of employees with a vision to become the best distributor in the cabinet business. With headquarters now located in Indianapolis, Indiana the company has a combined total of 75+ employees.
Branches in Indianapolis, Indiana; Louisville, Kentucky; and Greensboro, North Carolina primarily cover the states of Indiana, Kentucky, Illinois, Michigan, Ohio, Tennessee, Virginia, North and South Carolina, but also ship throughout the entire United States. With over 30,000 items and more than 150 different manufacturers CourterCo is considered a leading supplier of hinges, drawer slides, lazy susans, visual hardware and laminate. By specializing in offering top of the line products to meet their customers’ needs, they have experienced steady growth.
Project Challenge:
To better support ongoing growth, brothers Craig and Kevin Courter wanted to implement a warehousing system to improve staff productivity and inventory accuracy.
Their existing DPS ExtendTM ERP solution provided a solid base for traditional business functions such as order processing, inventory and accounting applications but a number of warehouse challenges were not being met.
- New hires took 3-4 weeks of warehouse orientation before becoming productive
- Lag time in paper-flow meant hours and sometimes days between actual inventory movement and entry into the CourterCo system
- With 30,000 items, similar item numbers and similar box design meant an unacceptable number of errors in picking and shipping
They wanted a solution that could integrate with their ERP system, leveraging that database and extensive inquiry subsystem.
Why DPS Zap?
Having been long-time users of ERP systems created and supported by DPS, Inc. (Data Processing Services), the Courters turned to DPS to see what they might offer. The timing was right for Courter to implement the DPS ZapTM warehousing system designed to improve staff productivity and inventory accuracy. Given the DPS expertise in distributor business processes and ability to create seamless integration with the existing DPS Extend ERP solution, the DPS Zap solution promised to deliver the workflow and integration that Craig and Kevin sought. And it ran natively on their AS/400, reducing the need for additional hardware.
Based on directed workflow for put-away and picking, the integrated design also provided for real-time visibility of inventory and order status. This ensures that Customer Support Reps have access to meaningful information at any point in the life cycle of the order. They are no longer dependent upon the timing of the paper flow between the warehouse and the office. "The key element was our partnership with DPS," said Kevin Courter, VP of Sales. "They spent weeks watching how things worked and incorporated solutions into the DPS Zap base."
Results:
Phased implementation of DPS Zap began with receiving and labeling. Once all items and shelves were labeled, the directed put-away and picking processes were added. The benefits were immediate and obvious. With the new warehouse managment functions in place:
- New hires require only a couple of hours of warehouse orientation
- The receiving process is streamlined significantly and provides immediate purchase order and inventory updates. This eliminated ½ day delay from time of inventory receipts to availability of an item to the rest of the company.
- Directed shipping function allows completion of the shipments entry process in the warehouse rather than the front office reducing both data entry and information delay.
- The directed picking process has all but eliminated the possibility of shipping a similar item (Says Craig, "Now, with the labels, we always pick what’s ordered.")
- Real-time updating with the scanned receiving or shipping transaction means that the CSR can see real-time status and availability. "The CSR can track an order through stages in house."
- An online audit report prompts timely action if the directed transaction is not what takes place.
- The order picking process benefits from improved workflow. Orders may be split so that one person picks sheets of laminate while another picks the hardware. Additionally the picker can "park" a process and resume picking later or have the process completed by another picker.
- Picking tasks are reviewed and assigned by a warehouse supervisor leading to consistent prioritization and better productivity.
Craig also really likes the marketing benefit that standardized labeling has provided. Craig shares "Every item and every package that leaves our warehouse has our name and contact info. That has made it easier for the customer to re-order. It has also made it easier for our salesmen in the field to see a product and know that it was or wasn’t bought from us." Bottom line – increased inventory accuracy through real-time transactions and improved productivity through directed activity.
These benefits translate into an impact on the bottom line. Kevin and Craig summarize:
Per Kevin, personnel savings of one person – reduced data entry of ½ day on receiving transactions and another ½ day in shipments entry and data reconciliation - means about $45,000 per year.
"We estimate that it costs a minimum of $85 to reship an incorrect order," reports Kevin Courter. "We believe we have 2-3 fewer shipping errors each day. That’s another $250/day or roughly another $50,000 annually."
Per Craig Courter, "We’ve been pleased with the ability to label everything that leaves the warehouse. I see that as additional advertising at no additional expense. And though it’s hard to quantify, I know it has meant more business for us."
With the recent completion of UPS integration and truck reporting as a part of DPS Zap, Craig and Kevin Courter look forward to tackling new challenges. "We know that we can count on DPS to be a factor in our on-going success."
DPS ZapTM runs on the IBM iSeries and can be integrated with any ERP solution.
IBM iSeries is a registered trademark of the IBM Corporation.
|
