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CASE STUDY
NorthGate
Tentative at First, NorthGate Finds WMS
Software Upgrade Fast, Easy
Like the machines it produces, the automobile industry is made up of
thousands of parts, all critical to the performance of an industry that
collectively represents some 15 percent of the U.S. economy. Some of the
component enterprises are huge and highly visible. Most operate largely
out of sight, like NorthGate, the Flint, Michigan-based company that has
been handling reverse logistics for a major automaker and its thousands
of dealers since 2002.
The reverse logistics operation supports a new parts recovery service that
allows dealers and parts retailers to return certain items under certain
defined conditions. The complex process was created around an advanced
multi-client warehouse management software system that evolved to
become AccellosOne WMS. In early 2012, NorthGate underwent its
second comprehensive upgrade of the software, installing the newest
version of AccellosOne WMS.
Power and Flexibility
AccellosOne WMS is a complete warehouse & stock management
solution that provides real time visibility of warehouse activities while
maximizing operating efficiencies. It combines radio frequency and
barcode technology with an n-tiered, cloud centric architecture to deliver
a powerful, scalable and flexible real-time warehouse management
system that helps boost productivity, reduces costs, and accelerates
order fulfillment. Automating, streamlining and verifying all in-warehouse
processes, it allows users to track every movement of stock into, out of,
and within the warehouse, from receiving doors to the shipping dock.
The software system serves two distinct, parallel activities within
NorthGate’s parts return process. One involves the standard inventory
functions of receiving, putaway, sorting, repacking, and picking. It is
maintained as a primarily manual operation in order to achieve the
greatest degree of flexibility in the warehouse. The other is essentially a
cross-docking process. Parts are received and inspected, their conditions
verified and confirmed into inventory records and matched against
inbound orders. If an order is found for an incoming part, it is immediately
diverted to the outbound dock for shipping.
Operations
NorthGate operates its return parts process as a third party logistics
warehouse, with each “client” representing both the part number and
its manufacturer. Parts are further defined by attributes such as price,
product class, condition, and so on. Hence, thousands of clients are set up
in the software.
The reverse logistics warehouse comprises some 150,000 square feet of
space with three- and four-level racking, and inventory locations that are
defined by zone, aisle, cube/bin and rack level. Zones indicate sections of
the warehouse and are designated by letter. Aisles are also designated
by letter with “floating” bin locations on either side defined by odd and/
or even numbers, like street addresses. Ascending shelf levels again
use letter designations, beginning with “A” at floor level. Bins are not
reserved for single products, but can hold as many as 20 different part
numbers, depending on such things as size, weight, pick frequency, etc.
The facility is staffed by a cadre of 40-50 workers, who receive, sort,
rework and distribute service parts that fall outside of the automaker’s
normal parts distribution system. Warehouse operators communicate
with the WMS software over a Cisco wireless network using handheld
computers, barcode scanners from Teklogix and PSC, respectively,
executing tens of thousands of transactions weekly in a virtually error-free
operation.
Reverse Logistics
The reverse logistics process commences with dealers receiving approval
from the automaker to return a portion of their inventory for credit. The
approved requests and product dispositions are then downloaded to
NorthGate, which sets up the shipments in the software for sorting into
sub-processing buckets prior to their physical arrival.
NorthGate Case Study
AccellosOne WMS
FEATURES & BENEFITS
Services routinely performed at the company’s reverse logistics center include, among
others:
■
Confirm receipt of parts against Material Return (MR) Applications
■
Reconcile the returned parts with Advance Shipment Notification (ASN) files
■
Confirm that shipments are complete; verify documentation
■
Validate claims; investigate Problem Report and Resolution requests
■
Handle scrapping of returned and/or inventoried parts as necessary
■
Inspect and repackage as needed
■
Send the receipt record to the customer for processing the credit to the dealership
■
Place parts in stock
■
Precise reverse logistics management
■
Fast upgrade to new software version
■
Streamlined warehouse operations
■
Graphical user interface controls
■
Software-driven 3PL warehouse activities
■
Reduced software customizations
■
Pick and ship parts to customers, suppliers, other third parties
■
Increased process flexibility, control
■
Manage the inventory; provide periodic reports and cycle counts
■
Increased visibility across operations
■
Manage rule-based end-to-end warehouse process
■
Directed putaway/picking
■
Systematic sorting/tracking, inbound shipments
■
Expedited cross-docking, inbound parts
■
New staging functionality, outbound shipments
■
Flexible order-route coordination
NORTHGATE WEBSITE:
Complex Challenges
From the very beginning of the reverse logistics service, the NorthGate return center’s
Radio Beacon WMS software system allowed the company to conduct all of the normal
warehousing functions of receiving, storing, transferring and distributing the parts.
Nevertheless, even the advanced multi-client version could not accommodate some
functions the company wanted, so extensive modifications were coded into the system.
Several years later, Accellos acquired Radio Beacon and its product line, enhancing the
software significantly with additional features and capabilities. NorthGate responded
by upgrading its reverse logistics to the then-newest version. Physical processes in the
warehouse continued virtually unchanged and the modifications to the earlier software
were brought forward in the new version. Some adjustments were required in the way
inventory records were maintained in the SQL Server database.
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“We were one of the earliest customers to use the previous version,” says I.T. Director
Nicole Wellman. “At first we encountered problems with missing data and records and
diminished traceability, most of which related to the size and complexity of the new
database. Accellos identified the problems and fixed them and we ultimately realized
many improvements. We still required a lot of customization to accommodate the
various stages of our reverse logistics process and as before, these became part of the
system code.”
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Keeping up with Change
After several years with the system functioning well, Wellman and her colleagues
reluctantly faced the reality that the software was several versions old and that support
could become a problem. The reluctance also traced in part to a sense that an upgrade
likely would entail modernizing the company’s server and network capabilities. Too,
recalling earlier complications, the I.T. staff had serious concerns about incorporating
the extensive suite of modifications into yet another new version of its software.
“Accellos had worked very hard and very well to take care of our requests, but the
experience in launching our previous version with all of the modifications had been
difficult and we worried that another major upgrade would be similarly hard to
accomplish,” Wellman says.
NorthGate Case Study
Among the most critical considerations was whether the upgrades
would contribute to the company’s growth plans. With assurances
that the new system would bring additional major benefits, NorthGate
management authorized the upgrade to AccellosOne WMS. Ultimately,
the effort enabled the company to speed and simplify the returned parts
warehousing and redistribution operations without actually altering its
physical processes.
”We gave this project much closer attention than we had in the first major
upgrade,” Wellman says. “We prepared well for it and took a more
systematic approach in working with the Accellos implementation team.
As it turned out, we were able to convert our operations in only about four
weeks. In doing so, we were also able to eliminate more than half of the
modifications, streamlining workflow significantly.”
We are extremely pleased with the
outcome of our upgrade. There is
a high level of visibility throughout
our operations and the new version
has enabled us to eliminate more
than half of our modifications, vastly
simplifying and streamlining our
processes.
Nicole Wellman, I.T. Director
Pain-free Upgrade Process
The process began with Accellos Senior Consultant Lee Redman
participating in a walk-though of the physical warehouse and conducting
an analysis of its existing operations and procedures -- including a review
of the modifications that had been incorporated into the software over
time.
Wellman provided documentation for the existing version and its
extensions and together, the team considered what potentially could be
eliminated and what needed to be brought forward.
A formalized implementation schedule was established, assigning
responsibilities and tasks across an aggressive four-week timetable.
Back at Accellos headquarters, Senior Consultant Raj Subramanian, who
had been involved in the NorthGate project since its inception, took
responsibility for reengineering the system, completing the programming
ahead of schedule. Each customization was examined in terms of its
integration and its value in the overall process. Some were retained,
many were eliminated and some were replaced, not with code but with
vastly simplified procedures using XML files.
Redman spent a week on site, installing the new version on a test server
and executing each phase of the operation individually. He trained
two different groups of personnel: high level back-end users including
Wellman and her staff, and the hands-on users who would execute the
activities on the floor.
“Lee did everything on the test server that we would expect to be done on
the floor,” Wellman says. “We continued to test for about six more weeks
and then scheduled our go-live date, for which Lee was on hand. There
were a few small glitches that could be changed on the fly – for example
a format for labels, Crystal Reports, and configuration switches – nothing
that would impact production in any way.”
New Look, New User Experience
NorthGate had carefully crafted its warehouse operations and liked the
way the facility functioned. The volume of the company’s transactions
mandates that its operations are fluid and precise and, Wellman says,
AccellosOne WMS ably supports the overall business concept.
The software features an entirely new look and feel, streamlining the
overall warehouse experience both for handheld and desktop users.
Where the previous interface was essentially character-based, the new
look utilizes an easy-to-use graphical presentation on the handheld
devices. It also allows customization of the screens to save steps and
simplify various tasks.
Warehouse functions are executed through side-situated menus for
allocating orders, reviewing warehouse stock, executing putaways and
picks, responding to inquiries, creating reports and much more. Wave and
allocation planning templates have been incorporated in order to expedite
floor operations. According to Wellman, the new presentation makes tasks
easier to learn and to follow through clear visual cues and the familiar
device interface.
Workflow
To inaugurate the return process, a dealer submits a Material Return
request to the automaker, which in turn downloads it to NorthGate
as a text file. In the I.T. department, the text file is formatted as a
Material Return ticket and downloaded to the Accellos software, where
it populates a table in the receiving files. When the parts arrive, the
Material Return ticket is scanned, bringing up the pending receipt
information.
Rules built into the software allow NorthGate to accept only those
returns for which the dealer has been authorized. Those not qualifying
are rejected and returned to the dealership, which can then revise and
reactivate the return. With the process completed, a receipt confirmation
is automatically sent to the client, which issues a credit to the dealership.
NorthGate Case Study
Each physical touch of each product is recorded automatically by the
Accellos software as data input from barcode scanners. Rules are
attached to each part, and when they arrive at the NorthGate facility,
the parts are received into the warehouse and inspected to determine
condition and compliance with the respective rules. The parts undergo
multiple sorts based on up to 25 attributes. Once sorted, they are either
sent to inventory, to re-work, or are diverted to the cross-dock area for
immediate order fulfillment.
NorthGate also handles a group of products called Transfer Parts, which
originate at the client’s regional Parts Distribution Centers. These
parts are received into the system through the software’s No Purchase
or alternatively, through NorthGate’s SOBWA (Sales Order by Walking
Around) process – in which personnel execute orders on the fly.
For outbound shipments, the newest version provides staging functionality
that allows products to be tracked throughout the putaway, picking and
shipping processes, even updating current sales orders in the process.
Staging starts with a carton scan at the bin, where the carton is marked
as “staged.” It is again scanned at the dock, as is the truck I.D., with the
staged location then updated in the software from bin site to truck I.D. At
that point the carton is marked as “loaded.”
Scanning the truck’s proposed route, the handheld user can refer to
the software for additional orders designated for the respective route,
continuing to do so until the last carton destined for the route is loaded,
whereupon the software marks the truck as “loaded.”
Looking Ahead
“We are extremely pleased with the outcome of our upgrade,” Wellman
says. “There is a high level of visibility throughout our operations and
the new version has enabled us to eliminate more than half of our
modifications, vastly simplifying and streamlining our processes.”
Having gone through two major upgrades, the last one much easier than
the first, Wellman has it figured out: “You need a good program plan and
you must remain involved,” she says. “You need to be team-conscious and
put everything on the table. Identify and spell out your business needs and
don’t be shy about it.”
Order feature and are then redisposed through the same process as the
dealer returns. A third process allows NorthGate to receive shipments
of multiple untagged products, when only one tag is used to identify an
entire shipment. Workers use the software’s Random Receiving capability
to scan the part numbers, which enables them to trace the products via
Material Return ticket.
Moreover, she says, you never know what your customers are going to ask
for next. “We were comfortable with the older version but the new one
has increased both our capabilities and our flexibility. That’s important:
with customers driving much of our activity, we must be able to respond
to their needs and growth expectations quickly and easily.”
Inbound parts that are destined for inventory are put away using the
Accellos Stock Locator function, which can direct workers via their
handheld devices to various activities, such as sorting, or directly to a bin
location. The software records the disposition of the products and later,
picking can be executed in unallocated waves using printed pick tickets,
ABOUT ACCELLOS
Accellos is a global provider of software solutions specifically designed for the
unique needs of logistics service providers and small and midsized businesses
(SMB). Over 3,000 companies trust Accellos to be the technology backbone of
their global supply chains. Accellos provides solutions for warehouse management
systems (WMS), third party logistics (3PL), fleet management, transportation
management systems (TMS), trading partner integration (EDI), automated barcode
data collection, parcel shipping, transportation optimization and supply chain
business intelligence. Accellos solutions are built on the AccellosOne platform,
a modern technology platform featuring a user-friendly interface and simplified
technical administration.
FOR MORE INFORMATION:
email info@accellos.com
or visit www.accellos.com
©Accellos, Inc.
AccellosOne NorthGate Case Study v2.0
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