BEING ACCOUNTABLE TO THE CUSTOMER by ProQuest

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									warehouse
    management




         By GRAEME RODDEN, Executive Editor

The implementation of a new WMS has given Catalyst Paper
immediate benefits at its distribution center in Western Canada


BEING ACCOUNTABLE
     TO THE CUSTOMER

               I
                     n 2006, Catalyst Papers implemented SAP’s ware-                Due to mergers and the company changing hands
                     house management system (WMS) at its Surrey, BC,          over the previous few years, there were at least five legacy
                     distribution center (SDC). Based on the success of        systems still in place. “If we wanted to be efficient, we
               this project, in 2006, it moved into Catalyst’s Port Alberni,   needed to see the process from beginning to end.”
               BC, mill on the west coast of Vancouver Island. This mill            Compounding this situation was that SDC was third-
               produces 360,000 tonnes/yr of paper (lightweight coated,        party operated, although 100% for Catalyst, but using its
               groundwood directory) while the SDC handles 1.4 million         own warehouse management system. Graham Aubu-
               tonnes/yr of paper.                                             chon, Catalyst’s business systems architect, explains that
                    The story of Catalyst’s decision to opt for SAP’s solu-    for example, if a “change order” request came in, Catalyst
               tion dates back to 2003 when the company conducted              could not “see” the original order: where it was or if it had
               a supply chain review. The review identified a “lack of         been shipped. He says the distribution center was almost
               order visibility” in the order fulfillment process within the   a “black hole”.
               company, which was then Norske Canada, a subsidiary of               All of this created what the review termed a “complex
               Norske Skog.                                                    environment” for order fulfillment. As Rolufs adds, there
                    Catalyst’s Gerry Rolufs, director, order fulfillment       was duplication of effort, excess communication, service
               and distribution, explains, “If you go back to 2003,            errors and a lack of transparency.
               we wanted to improve our customer service and the                    The approval for the Order Visibility Program came in
               efficiency of this service as well as reducing our              late 2004. The program had three parts:
               distribution costs. That’s why we undertook the supply          •	A	proof	of	concept	project	between	late	2004	and	
               chain review.”                                                    mid-2005 in which a prototype solution using SAP was
                                                                                 to be developed;
                                                                               •	To	implement	a	common	WMS	at	the	SDC	center	by	
                                                                                 mid-2006;
                                                                               •	To	implement	a	common	WMS	at	each	of	Catalyst	five	
                                                                                 mills beginning in Q3 2006.
                                                                                    The project began on November 1, 2004 and involved
                                                                               a project team as well as 22 subject matter experts rep-
                                                                               resenting SDC, the Vancouver head office and the four
                                                                               mill
								
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