Permanent inventory at distributed sites

Using Nordic ID RF601 handhelds and an extended ERP system with real time data reconciliation via VPN, the spectacle manufacturer Seiko Optical Europe was able to replace its conventional system and set up a permanent inventory. This has lead to considerable improvements in the company’s warehouse processes.

Seiko Optical Europe is leading manufacturer of plastic lenses for spectacles and titanium frames in Europe. From warehouses at the headquarters in Willich and in Gloucester in England, products are delivered to opticians and distribution partners in 30 European countries. Inventory management at Seiko used to involve complex, labour intensive processes. In inventory taking e.g. the stock of products was counted and corresponding lists were written. These, in turn, were manually transferred to a midrange server. Therefore the spectacle manufacturer’s central requirement aimed at “less time and effort consuming inventory taking and a permanent access to product and inventory data“.

First of all, Seiko Optical Europe abolished the handwritten inventory lists. Instead, barcodes read by mobile laser scanners were applied to the goods. This type of inventory automation accelerates data collection and makes permanent inventory possible by giving operational headquarters the possibility to access product data in real time at any moment.

To implement this solution, an ERP tool for permanent inventory with the focus on direct communication and stability was developed by Seiko Optical Europe together with the Augsburg-based system retailer comSID. As far as the hardware for mobile data collection was concerned, Seiko Optical Europe and comSID took a decision in favour of the Nordic ID RF601 wireless data collection handheld. „There were three factors that tipped the scales in favour of this device: One, these handhelds deliver a large wireless range. Two, communication between the IBM host and Nordic ID’s application server is extremely reliable. Three, our experience from earlier projects is that Nordic ID provides a very solid and qualified technical support“, explains Gerald Beck, CEO of comSID. Using Nordic ID RF601 wireless data collection handhelds is remarkably simple as the software runs but on the host computer, thus avoiding the necessity to perform individual programming of each device. Updates and system modifications are centrally provided in a time-saving way via the host system. The handhelds are permanently connected to the host computer, this way a data transfer in real time is always guaranteed. But also other factors like its light weight, the high performance of its rechargeable battery and the sturdy housing – the RF601 will survive a fall from a 1.2 m height onto a concrete floor without any problems – render the wireless data collection handheld by Nordic ID the first choice for use in warehouses.

In collecting the data, all Seiko Optical Europe staff needs to do is enter the corresponding number of items of a good into the wireless handheld. All other information is automatically provided by the ERP system from the barcode scan. Thus sources of error are largely eliminated. Another advantage is that in contrast to the previous method, data are now collected without major disruptions of the operation procedure. This is due to the fact that only those shelves are blocked by the ERP system where data are actually being collected. The sale of the remaining warehouse inventory continues as usual.
The Nordic ID handhelds communicate with the base stations located in the warehouses in Willich and Gloucestershire and directly transmit the data to the ERP system. The imported information is then directly transmitted to the mainframe computer in Willich via an application router integrated in a PC. This two-way communication between handheld and mainframe is Internet-based using a secured VPN tunnel.

With Nordic ID handhelds and the ERP solution for permanent inventory, Seiko Optical Europe was able to considerably reduce its manpower requirement in the warehouse. Staff no longer needs to be withdrawn from the tasks usually assigned to them in order to compare article numbers or to compose lists. Moreover, with permanent inventory, a noticeable reduction in time and effort can be achieved in comparison to the conventional process. Inventory now only takes a quarter of an hour – a fraction of the time that was necessary before. In the Willich headquarters all warehouse data can now be called up by staff with one mouse click in real time. „This combination of mobile Nordic ID scanners and ERP extension has proved really successful“, Bertold Oestermann, Operations Manager at Seiko Optical Europe, sums up the situation. „It is a direct and simple solution that is stable and renders our inventory measurably faster and much more efficient.“