Case study: Logistics provider upgrades to computer system

2 April 2008

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The computer track shipments when they leave the manufacturer and notifies CDS personnelCDS Logistics has partnered with Intermec to upgrade its operation with cutting edge systems and technology.
US-based CDS Logistics is a transportation company which specialises in the delivery of commercial and residential kitchen cabinet. As a logistics network, it manages 31 third-party logistics providers (3PLs) that deliver products in 33 American states.
According to the company, on-time and quality delivery is given the highest priority. Damaged or missing cabinets have to be replaced on a rush-order basis to minimise the impact on the end customer, resulting in postponement of other deliveries. To reduce such incidents, the logistics company needed an improved shipping process.
Until its partnership with Intermec, the company had relied on paper-based solutions. Cabinets were unloaded and stored when they arrived at the warehouse, and the inventory was manually checked against a packing list.
When the order was ready to be shipped, the cabinets were removed from the warehouse, checked off on a list, and then loaded into the truck. This system was vulnerable to human error, and inefficient.
According to the company, there were a high number of displaced cabinets, the distribution process was not well-documented, and there was no assurance that the right cabinets were being delivered to the correct location.
The company deployed Intermec’s CN2B mobile computers along with a customised CSSI software solution.
311 mobile computers were distributed to the drivers and warehouse personnel. The computer track shipments when they leave the manufacturer and notifies CDS personnel when cabinets are due to arrive at its facility.
The notifications include packing lists, which are recorded into the CDS system. This data is distributed to the mobile computers to allow checking and storage.
According to the companies, the new system handles up to 250 trucks a day, delivering a daily total of 800 different orders.
The system uses a barcode system to improve the accuracy of the billing process. It enables CDS to bill customers for the exact number of cabinets delivered, taking into account missing or damaged units.
When the delivery is complete, the driver confirms the contents of the order using the mobile computer and notes damaged or missing materials. This data is transmitted to the cabinet manufacturer.
According to CDS, the new system reduced shortages by 44%. Issues with orders can be resolved during delivery, and drivers no longer have to deal with paperwork.
The companies are now looking to expand the computer network by adding other customers into the system. It is hoped this will increase the synergy between the different companies.

Key contact:
Intermec
service.australia@intermec.com

 

Tags: barcode | case study | cutting edge | delivery | human error | Inventory | logistics | mobile computers | Network | paperwork | partner | software | technology | transportation | upgrade | warehouse

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