Syspro hammers down warehouse costs for Select Hardware
1 min read
Select Hardware, which supplies hardware to major DIY chains as well as independent traders and buying groups, is so pleased with its ERP system that it is now planning to extend it into bar code warehouse picking and landed costs management.
The company is claiming significant inventory reductions and streamlined processes since going live with its Syspro ERP system.
Operations director Steve Killworth says that the system, from Manchester-based K3 Business Technology Group, automated much of its warehousing, distribution and sales functions, resulting in a stock overhead reduction of a quarter through improved visibility of products.
"The system tells us what we have in stock, where it is and when we need to reorder," says Killworth. "It has given us the confidence to lower our stock overhead and this saves us a lot of money – without any detrimental effect on our ability to supply our customers. We don't even need to keep buffer stocks for our faster moving lines, as we can order based on our MRP."
For him, Sysrpo's perpetual stock take functionality is a major contributor. "We run a weekly stock take and every discrepancy is picked up and rectified," explains Killworth. "We no longer lose out on stock write offs," he adds.
Killworth also says that the system has automated "the vast majority" of its orders, via wireless mobile computers equipped with scanners and EDI. He states that 60—70% of orders now come via its sales people's hand-helds or customers.
And he adds: "EDI is used for some of our larger customers, such as Homebase, Morrisons and Screwfix. These EDI orders stream directly into the system. Only 10% of orders come via fax, so we're saving a lot of order entry time."
As for the future, with bar code scanners already in use for goods in and replenishing pick slots, the plan now is to introduce bar code picking to close the automatic identification loop.
In addition, companies that import manufactured goods have to monitor landed costs, and the thought is that Syspro will automate procedures.
"By automating picking we'll gain further accuracies, but first we have to standardise our bar code format within the Group," states Killworth.
"We are also keen to automate our landed cost tracking. We currently do this outside the system, but Syspro provides the means to handle this automatically. We are also investigating the opportunity to implement batch traceability. All of these opportunities are well within the scope of our system.
