Information System for integrated management of logistics
Over the past few years, the evolution of manufacturing companies has emphasized the functions of logistics, transforming it into an instrument of actual competitive advantage for the company.
By managing customers, suppliers, stocks and all information related in an integrated way, the company is able to face more and more globalized markets successfully, which require not only productivity optimization, but also a great flexibility in order to adapt quickly to customers’ needs and market upheavals.
Logistics subsystem has been improved to enable a correct and simultaneous optimization both of the value chain and the supply chain through the specialization of the different players involved. In this way, an excellent costs level is reached, including not only production, supply and non-quality costs, but also costs attributable to non-flexibility.
The real strength of Si5 is to guarantee the same quality standards to its customers, suppliers and contractors by engaging more and more the various players, who share the same objectives of productivity and profitability.
The system includes the use of innovative tools to obtain data from field, to manage barcodes and negotiations with automatic warehouses, to integrate laser readers and radiofrequency.
Moreover, punctuality and efficiency towards suppliers are guaranteed through the use of different means of communication: EDI (with ODETTE – EDIFACT Standard), Internet, fax.
Using Si5 in logistics gives the following advantages :
- Improvement of material planning by optimizing the use of production factors and complete treatment of blanket and closed orders;
- Optimization of both semi-manufactured and finished product stock;
- Integration of logistics management in environments with several operation units;
- Improvement of synchronism among different production stages and with other production activities (receipt of materials, quality control etc.);
- Leveling in production planning;
- Optimization of labor through a punctual analysis integrated with pick-up systems;
- Complete traceability of materials by respecting standards in strict protocols such as in pharmaceutics and aeronautics;
Generally, reorder point scheduling is a technique intended to auxiliary materials or materials which are not included in the product bill of materials (BOM). Indeed, they cannot be treated through MRP, which is based on the idea of exploding the BOM in order to calculate the needs for each element.
Basically, the reorder point helps to propose an internal or external order when the dead stock (that is, warehouse supply = stock amount + material on order) drops below a certain level known as the REORDER POINT. It helps not to be out-of-stock while supplying, so its value has to be higher than both average consumption and replenish time. Moreover, a BUFFER STOCK is added to the reorder point to protect against unexpected variations of one or both the above-mentioned parameters.
A priority in Si5 is that its reorder point can operate in case both of closed and blanket orders by dealing with manufacturing parts and external purchase ones.
Rotating inventory regards planning a certain number of inventory verifications according to the ABC analysis of material categories. As a consequence, A items are inventoried more frequently than C items.
Basically, the procedure is similar to a periodic inventory in terms of selection of warehouses to inventory, items to exclude from inventory and verifications and automatic adjustments.
It can be used several times during the year:
- to indicate warehouses to inventory
- to choose locations to inventory(if required)
- to choose items to inventory among
- all items
- items including management data
- itemps including balance
The launch of the inventory freezes balances in choosen warehouses/locations. It issues invetory coupons which are associated to the single balance survey and registration.
When inventory is closed, a simulation of closure is launched on basis of which coupons are checked and inventory rectifications are presented (automatically made by the system both in quantity and value). After checking is made, definitive closure is launched, rectifications are made and warehouses balances are updated.