by
Michael J. Colwell CPIM, CSCP
RF
IDeas Supply Chain Manager
One of the things we are most proud of at RF IDeas is our ability to
consistently maintain 98% same day ship performance on our top 250 products.
When we first began working toward that goal, the challenge was identifying
where we could best drive efficiencies and speed into the process. The decision
was to eliminate the need for our purchasing team to be the sole contact point
to the supplier for replenishment of stock. That way, we could re-focus them on
more value-added activities, such as supplier improvement projects and cost
reductions. We also wanted to speed up the communication process to the
supplier when stock was at a lower than required point.
After much research and discussion, we chose to implement a process
called Kanban. Kanban is the Japanese word for signboard and in a manufacturing
environment, it is used to signal the need for more material. There are many
ways to do this – placing a card in the tray, turning on a light at the
stocking location, or simply noticing an empty tray and getting it filled.
We decided to use our own RF IDeas proximity cards to send the supplier
an automated email alerting the need for more material. Because it is an
instant and pre-programmed signal, it is both error-proof and user-friendly.
Set up
First we needed to create a template. Using our RDR-7080AKU pcProx
Writer HID reader and a BDG-2003 HID iCLASS Card connected to a PC, we created
a template using the RF IDeas Card Manager software. On the AIRID Writer for
Log On tab, we entered the following information:
·
Pre-keystrokes
(Left Blank)
·
Credential 1 (email address to send request to)
·
Post Keystrokes (%2B00%2B00%2B00)
·
Second Line Pre-keystrokes (KANBAN Request RF IDeas%2B00)
·
Credential 2 (Title of the email, we chose
“Kanban Request RF IDeas”)
·
Post keystrokes (Enter “SKU” and “qty requested”
to be sent)
·
Card Gone Keystrokes (%1604)
After we created the template, we made an identification card to place
next to each associated SKU, changing information in the template as required.
Process
Once the replenishment threshold is hit for the particular item, our
warehouse staff opens a new email and waves the Kanban card over the
reader. This automatically enters the
data with email address, subject line of the Kanban request, and the SKU and quantity
requested. When the card is removed from
the reader, it automatically sends the email without further intervention. The employee
then returns the card to the storage rack of the SKU and turns it 180 degrees
in the holder to signify that the request had been sent.
Benefits
We have already seen considerable improvements over the original
process, including:
·
Elimination of typing errors that can cause
confusion, wrong material, or incorrect quantities.
·
Nearly 50% cost reduction from shifting the
responsibility of informing the supplier of stock replenishment requirements from
buyer to warehouse, freeing up buyers to focus on more strategic tasks.
·
Reducing time it takes to communicate
information to suppliers from minutes to a few seconds.
·
Speeding product consumption to replenishment time
by several days.
·
Increasing the speed of communication between RF
IDeas and our suppliers, reducing potential for stock out situations.
