Product tracking and Warehouse management with RFID

About the client

The client is a large scale food and confectionery manufacturer in Sri Lanka having its distributors islandwide. They handle more than 50 orders per day and handle its supply chain from the point of placing an order, to delivery. Our task was to understand the process of multiple production lines, automated conveyor belt and to provide a solution for an effective warehouse management system to address the main issues they faced.

Issues
  • Inter departmental communication was not effective and due that that process was slow and costly.
  • If an order needs to be changed for any reason it has to be approved and start from the very beginning which was delaying the entire loading process.
  • Staff idling and high labour cost
  • Mixed up orders
  • Expiry
  • Defect identification and discarding was not easy
  • Not having an accurate physical stock count
  • Not having real time information with regard to stocks for production
  • Departments are not being linked
  • Data not presented in a meaningful manner for management decision making
  • Loading time for a given lorry is approximately 45 min to 1 hour where about 20- 30 min is taken only for stock verification and counting
Solution

The client was introduced to OCTO Cloud ERP to be used with CRM, Finance and Warehouse management modules. Each and every product to be tagged with RFID stickers which would contain information such as the production batch, date, time, product type, expiry etc. Fixed RFID readers are to be used for vehicle and driver verification along with bulk counting of the boxes.

Benefits
  • Ability to check stock availability at any give time
  • Communication between inter departments gets easy due to real time information making it easier for decision making
  • Elimination of expiry
  • Easy access to information such as product, product information, batch etc
  • Enforcement of practices such as FIFO with RFID
  • Identification of orders, partial orders without having any confusions
  • Time saving due to elimination of physical stock verifications and counting
  • Reduction in labour cost for counting and better management of the staff

OCTO cloud based ERP system with its non complex setting up process can be easily set up even by a non technical. Ability to integrate onto an existing system via the OCTO API provides the flexibility for any organization to use FX Hello system along with its core system without any changes.

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