A big leap in warehouse management
WAREHOUSE is the core of supply chain which become more global to manage logistics and distribution centers.
Large numbers of warehouse companies practise multi-site distribution and experience real challenges in productivity and profitability.
"This requires core competency. Traditional warehousing is not able to control location efficiently, item tracking, discrepancies, inventory losses, order fulfillment and many more," said Universiti Utara Malaysia (UUM) Associate Professor Hatim Mohamad Tahir.
Together with team members Mohamad Amir Abu Seman and Mohammad Nuruzzaman, from UUM's School of Computing, College of Arts and Sciences, the researchers came up with a solution called "Real-Time Warehouse Management System with Radio Frequency Technology Operation", or e-GUDANG.
"e-GUDANG is a real-time warehouse management system with radio frequency and bar code technology.
"It is an organised solution with software and communications devices that enables fewer people to do many tasks with better information. Goods stored in a way that is easy to organise without taking too much space, quick orders fulfilled with minimum labour and fuel cost," Hatim explained.
He said e-GUDANG also helps to control inventory in real time, reduce aging stock and real-time reporting.
"The warehouse is the core of the supply chain management operation. All day long, materials are moving in and out of this central business area.
"Large numbers of warehouse companies currently practise multi-site distribution and experiencing real challenges in this area impacting productivity and profitability," he said.
Hatim said this required core competency. Efficiency of warehouse processes is the key to business metrics - affecting the number of orders to shipped, inventory availability and customer service levels.
It becomes more and more complex and competitive with profits pressured by rising labour and fuel costs, offshore manufacturing and difficulties associated with managing global supply chain.
Hatim said the traditional warehouse is not able to control location efficiently, inventory losses, item tracking and discrepancy, order fulfillment and products lifeless inside inventory.
He said the traditional reaction to new and changing customer demands has been "thrown warehouse people at the problem."
"Today, we plan to develop an organised flexible facilities with software and communications devices that enable fewer people to do many more, diverse tasks with better information, goods stored in a way that is organised and efficient without taking up too much space," he said.
In addition, the facilities can perform fast and accurate orders fulfillment with minimum labour cost.
The other part of the equation is improving the administration to provide a payoff for their increased effectiveness with real-time warehouse reporting.
"Our aim is to provide customer with a high level of commitment and impeccable services through sourcing of products for them and better invoices according to their logistics and support needs," Hatim said.
Source : New Straits Times
Date : 22 December 2011
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