Feb-March 2003

To meet ever-increasing demands for product traceability, real-time pallet-level inventory control is now an essential element of the supply chain. Wireless systems are the key to making it work, as distribution specialist Eddie Stobart has discovered

Real-time traceability of loads has become a key requirement for many logistics companies, especially when foodstuffs are involved. Eddie Stobart manages over 5 million sq ft of warehousing in the UK and Europe, and says demand from customers for real-time information is increasing. At the same time, market pressures demand lower operating costs and ever-faster throughput.

Wireless radio-frequency equipment and a vehicle fleet bristling with real-time tracking and communications capability have been two key solutions. To get traceability down to pallet level, Eddie Stobart has introduced wireless RF equipment into its warehousing operations at various sites. It has proved especially effective at the shared-user complex at Warrington, where it supports scanning and paperless picking operations for a number of contracts.

Eddie Stobart first introduced warehouse scanning when it was awarded a logistics contract with food retailer Tesco, choosing wireless equipment by Psion Teklogix. It has now extended the equipment to two other contracts. Over the three of them, the company handles over 30,000 scanned pallet movements in and out every week, and fulfils 3,200 case-pick orders. The warehouse has capacity for 6,000 pallet locations.

 

Given the numbers involved, it is hardly surprising the company is a keen advocate of barcoding, which is certainly the key to the Tesco operation. Eddie Stobart provides a consolidated warehouse service for the supermarket group, receiving deliveries from a wide range of food and drink suppliers and shipping product on to Tesco's regional distribution centres as and when required.

Some of the deliveries arrive with barcodes already attached, while those that do not are given one by Eddie Stobart staff. The racking locations within the warehouse are also barcoded. All incoming pallets are checked against the pre-advice documents to verify the product quantity and type is correct. Put-away instructions for each pallet are then issued via the terminals. The fork-lift truck operator scans both the location and pallet barcodes to marry them together within the WMS inventory.

Robert Shelton, warehouse systems manager for Eddie Stobart explains: "It is extremely difficult to achieve accurate traceability without using a scanning-based system. When we were awarded the Tesco contract, we assessed a number of different suppliers of wireless warehouse technology, and Psion Teklogix demonstrated the most impressive product capability." Today, there are sixteen truck-mounted and ten handheld Psion Teklogix terminals in use at the Warrington site, and additional devices supporting contracts based in Crick, Reading, Bridgnorth and Glasgow.

Pallet put-away and order picking is done with heavy-duty Psion Teklogix 8055 truck-mounted terminals and rugged 7030 handheld terminals and scanners. The handheld units interface directly with the company's own warehouse management system, which was developed by PWL Associates. This was first introduced eight years ago, but has been enhanced regularly to add greater functionality.

Staff receive order picking instructions via the terminals, including the relevant location and quantity required. Completed picks are confirmed by staff via the terminal, and trailer loads assembled in the despatch bays.

The final barcoding operation is to scan each pallet barcode and match it to the trailer in which it will be despatched. That ensures complete tracking capability through the delivery chain.

If barcoding has obvious advantages for the customer in terms of traceability of pallet loads, the benefits for Eddie Stobart extend even further. The Warrington operation is an intensive, round-the-clock put-away and picking operation; so making it a paperless system has basically enhanced efficiency all round. The company says there is less need for administrative staff to issue and control paperwork because responses are held on the terminals. Vital stock and location information is made available to the customer in real time through EDI, Internet or ISDN links.

Worker acceptability was essential, but apparently presented no problem. Steve Kelsey, the warehouse manager in charge of the Tesco contract, says Warrington staff accepted the system rapidly. "It's an extremely user-friendly system and any training required can be done on the job."

Robert Shelton points out the system also offers accurate feedback on individual staff performance. "It enables us to monitor labour efficiency with a high degree of accuracy, ensuring that resources are directed appropriately throughout the warehouse, and any need for further staff training and support is immediately highlighted."

Eddie Stobart's other two wireless operations at Warrington take the electronic data management concept even further. With "Toms", pre-advice data is sent electronically, and because all the incoming pallets are barcoded, goods receipt can be confirmed automatically by the initial scan. So real-time, totally up-to-date information is available all the time. Orders are also received electronically.

By using standardised equipment, Eddie Stobart also benefits from flexibility in assigning the equipment to various contracts. "Reprogramming the terminals to use in a different warehouse can be done in a matter of minutes," explains Robert Shelton. "Switching units between jobs to meet changing requirements can therefore be done without any disruption to existing operations."

Wireless fleet too

Eddie Stobart has always been prepared to invest in the latest technology. It fits telematics systems in most of its fleets, and is a core provider of real-time data to ITIS Holdings' traffic reporting system. All the company's vehicles are equipped with tracking systems that allow ITIS to monitor the actual speed the vehicles are travelling at in real-time. The data is one component used by ITIS is developing its real time traffic information services.

Stobart uses ITIS's sister-company Navtrack to analyse its own fleet movements. Vehicles are linked to their base via satellite, radio and in-cab telephone, and this package allows planners to track a vehicle, re-route if necessary, and provide the customer with status reports in real time.