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Eagle Implementation at Remy


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									             User Case Study:
      Eagle/QAD Implementations
         at Remy International

How Remy worked with QAD and Eagle to achieve
significant savings by streamlining our picking
processes, implementing Advanced Containerized
Shipping, consolidating our distribution centers,
modifying location-based picking …

…and more.
                 Remy International

Remy International is a leading manufacturer and remanufacturer in
the automotive, heavy duty, and transportation industry. We produce
starters, alternators and electrical components for worldwide
distribution. Today, with a strong market presence in North America,
Europe, Latin America and Asia, Remy is organized by four main
business units:
                    Remy Business Units

Remy Inc.
Remy’s original equipment division
                                          Remanufactured starters and alternators
                                          for the aftermarket. We provide electrical
•Heavy Duty
                                          replacement components, replacement
                                          parts and powertrain/drivetrain
                                          components for automobiles, light trucks,
                                          heavy duty trucks and other heavy duty

Locomotive                                Remy Europe
Remanufactured locomotive power, marine   New and remanufactured components,
and industrial engine components.         including alternators, starters, brake
                                          calipers, steering racks, pumps, ignition
                                          distributors and leads.
                  Remy Markets
•   Light Duty
•   Heavy Duty
•   Light Duty Aftermarket
•   Locomotive
•   Hybrid: Remy is the leader in North American hybrid
    applications, and was recently awarded a $60 million
    grant for the development of standardized hybrid
    motors and controls.
                          Global Operations
With operations in 11 countries on four different continents, Remy’s global manufacturing,
engineering and distribution facilities allow us to quickly respond to customer requirements
in each of our market segments.
                        Remy History
Experience matters. And ours dates all the way back to the
emergence of the “horseless carriage” when brothers Frank and
Perry Remy developed the Remy Magneto to power the first vehicles
and establish Remy at the top of manufacturers’ supplier lists, with
production capacity growing each year.

 • Remy Brothers (1896)
 • Remy Electric Company (1901)
 • United Motor Company (1916)
    with Dayton Engineering Laboratories Company (DELCO).
 • 1918 – Division of General Motors
 • 1994 – Delco Remy
 • 2004 – Remy International
   A re-evaluation of our core competencies against increasing debt
                  load and an economy in recession.

• Business unit divestment
   – NABCO (consolidated and closed, 2003)

   – Williams Technologies (sold, 2004)

   – Franklin Power Products (sold, 2007)

   – Remy Reman (subcontracted, 2007)

• 2007 Corporate restructuring
• 2008, 2009 market declines
• Strong links to US OE automotive, particularly GM.
 Economic downturn provides further rationalization for structural
          changes in manufacturing and distribution

• Distribution Center reorganizations in the US and Mexico

• Business consolidations           Worldwide Automotive
                                   + Unit Parts Company

• Business unit rationalization

• Consolidation of OE and Reman manufacturing facilities
  worldwide (US, Korea, Mexico, Hungary, Poland)
    2000 – Data Collection Requirement

•     Enterprise-wide, single-source solution
•     Immediate QAD compatibility
•     Ability to operate with a minimum of infrastructure
•     Simple, intuitive interface
•     Readily adapted to work with Remy’s customized
      QAD environments
•     Functionality across the entire length of the internal
      supply chain – receipt to shipping, multiple sites,
      multiple entities, multiple databases.
 Selection of Eagle RF Express™ for
    QAD Enterprise Applications
• Product Demo: Real-time, on-site demo proved the product’s
  ability to meet our needs
• QAD compatibility: Eagle = QAD only. No need to create and
  support APIs or terminal-based solutions
• Minimal hardware requirements: Terminal Emulation only, no
  loaded software or APIs
• Real Time: No CIM loads
• Tight Integration with QAD: Eagle was ready to go with standard
  QAD-compatible transactions
• Expandability: If we can do it in QAD, we can do it in Eagle RF
  Express for QAD Enterprise Applications. This allows us to be
  internally creative and supported with enhanced functionality from
  Eagle RF transactions.
              Data Collection Goals
• Use Eagle RF Express for QAD Enterprise Applications across
  the entire spectrum of material management – from the supplier
  to the customer – to leverage Remy’s ability to identify, control
  and enhance inventory, manufacturing and distribution
• Continue to move Remy forward by expanding our concepts of
  inventory accuracy, manufacturing visibility and customer
• Continually adjust our systems to build upon layers of success,
  improving operations with each system enhancement and every
• Develop a web of systems and processes that provide solid,
  reliable metrics which allow decision-makers to trust the data
  and management to trust the decision-makers.
          Eagle RF Implementations

•   NABCO (MI, 2000)
•   WorldWide Automotive (VA, 2001)
•   Williams Technologies (SC, 2001)
•   Remy Reman (MS, 2002)
•   Franklin Power Products (IN, 2003)
•   Remy Mexico (2005)
•   Remy Korea (2006)
•   Remy USA (IN, TX, MS, 2006)
•   Unit Parts Company (OK, 2007)
           2006 - US Distribution

• US QAD Go-Live, Dec 2006
• Corporate HQ and US distribution
• Focus: OE and Reman distribution warehouses.
• Existing “JIT” system used a manual “pick ticket”
  system to generate, pick and ship all orders. 100%
• New, Eagle RF-based system to allow containerized
  picking, containerization and shipper verification of
  every shipment.
        Reman/Service Distribution
             Meridian, MS
• Reman inventory (full units) received from Nueva Laredo, MX
  and shipped to Meridian for distribution throughout the US.
• Service material routed through Laredo, TX - incurring 3-days of
  in-transit inventory, as well as additional handling expenses.
• Consolidated loads from MX were unloaded in TX, split and re-
  loaded according to distribution requirements, which were not
  always correctly defined or measured.
• Reman units packaged, repackaged and shipped via CC, LTL
  and UPS/FedEx.
• Service parts stocked as individual units, pre-packaged
  quantities and as service kits.
                   OE Distribution
                    Laredo, TX
• OE material, in plastic returnable or cardboard containers, is
  received at the Laredo DC from Mexico and Korea.
• Some material is repackaged from one container type to another
  before being placed in inventory.
• Light Duty: US automotive, usually moves out within 2-3 days,
  via scheduled truckload shipments (customer pickup). JIT.
• Heavy Duty: US trucking, construction, etc., stocked inventory
  is re-palletized at picking, usually CC/LTL shipments. Customer
• Facility also serves as an international cross-dock for source
  material headed to Mexico OE and Reman facilities, as well as
  FG material headed to Meridian DC.
        Laredo DC
115,000 sq ft of “coordinated chaos”
          Distribution Challenges

• Many orders of varying sizes.
• Common carrier, LTL, Customer Pick-up and
  UPS/FedEx shipments combined.
• Daily and weekly pooling requirements.
• Individual containerization and labeling requirements.
• Limited staging areas requiring pooled and common
  picks using multiple personnel on the same order.
• Moving from a completely paper-based pick and ship
           Distribution Solutions

• Customized “Shipper Gateway” to generate shippers.
• Eagle RF Express for QAD Enterprise Applications
  and containerized picking.
• LNK to pick and containerize.
• LTR to assign containers to shippers.
• VLD as final check.
• DC reorganization to move Reman distribution to
  Laredo, removing 3 days of pipeline inventory and
  slashing shared transportation costs.
            Containerized Shipping

• Allows tracking of all items to specific container, allowing for
  documentation, labeling and packing slips configured for local
  business requirements.
• Allows real-time picking with item validation against shipto and
  sales order.
• Converts shipper/item level to shipper/container/item
• Provides quality control, validating item against Remy packaging
  standard (“1P” and UPC-level verification).
• Enables container auditing via Eagle CRV (Container Review)
• Integrates QAD container numbers into EDI data, without
  requiring additional data collection.
           Picking/Shipping Process

1. Automatic Shipper Gateway (software modification for
     local business requirement) reviews all requirements and
     creates pre-shippers and pick data – Remy Shipping Module.
2.   Bar-coded pick sheets printed with CQ reporting system.
3.   Material handler picks order using pick sheets and enhanced
     Eagle LNK.
4.   Pre-shippers converted to shippers (7.9.2 Workbench), allowing
     pre-shipper merges.
5.   Containers added to shipper via Eagle LTR (Load Trailer).
6.   Documents and label printing via 7.9.2 and custom application
7.   Final verification using Eagle VLD (Verify Load).
8.   Shipper confirm (7.9.5) and ASN (if required).
1. Automatic Shipper Gateway
2. CyberQuery (CQ) Pick Sheets
                                 3. Picking with Eagle LNK
                              Link Container (LNK)

Customized LNK transaction for order picking.
Creates new container and loads items into container from locations.
LOT prompt changed to „SHIP TO?‟
REF prompt changed to „SALES ORDER?‟

   1. Picker will receive Pick List from shipping office.
   2. Picker will use LNK to print container label.
   3. Picker will LNK individual items into container from rack locations. Picker may
       print individual item labels or only master container label.
   4. Upon completion of container, picker will stage completed container and begin
       new LNK/container.
   5. Upon completion of Pick List, picker will hand all paperwork to dock
       auditor/supervisor for review.
   6. Supervisor will load containers onto shipper via LTR (Load Truck) transaction.

        Screen                        Details                           Entry
Receive Menu...1              Main Menu                     Enter “LNK” to begin
Inv Mgt Menu...2                                            LINK CONTAINER
Prod Menu......3
Ship/WH Menu...4
Phy Inv Menu...5
Select or E?

[LINK ITM/CONTR]                                            ENTER for new container
Container Nbr?                                              or scan existing container

F1-Go    F4-Exit

[LINK ITM/CONTR]                                            ENTER for new container
Create New

F1-Go    F4-Exit

[LINK ITM/CONTR]              Displays new container #      ENTER to continue
New Container No
4. Pre-shippers converted to
     shippers (merged)
                                                        5. Eagle LTR
                               Load Trailer (LTR)

Customized LTR for Meridian picking
Loads containers onto shippers and matches against Sales Order (REF).

   1. Upon completion of LNK and staging containers, pre-shipper is converted to
       shipper in 7.9.25
   2. Picker or Dock Coordinator will verify containers and items.
   3. Picker or Dock Coordinator will perform LTR for each container
   4. Paperwork is turned into shipping office for labels and shipping documents

        Screen                        Details                         Entry
Receive Menu...1             Eagle Main Menu               Enter “LTR” for Load
Inv Mgt Menu...2                                           Trailer operation
Prod Menu......3
Ship/WH Menu...4
Phy Inv Menu...5
Select or E?

[LOAD TRUCK]                                               Enter SHIPPER ID
Ste: 6034

F1-Go    F4-Exit

[LOAD TRUCK]                 Requirements Review           ENTER to seen next record
10461052                     Will display open “is”        B to go back to prev record
                             records on the shipper        F4 to exit review and cont.
Qty Open:
  1:2   F-B-S-E ?

[LOAD TRUCK]                                               ENTER to seen next record
10461052                                                   B to go back to prev record
                                                           F4 to exit review and cont.
Qty Open:
  2:2   F-B-S-E ?

[LOAD TRUCK]                                               Enter/Scan container
Shp#34076185                                               number
F1-Go    F4-Exit
6. Documents and Labels
                                                                 7. Eagle VLD
                                 Verify Load (VLD)

Verifies that all containers have been “loaded” (scanned) and that no incorrect containers
are loaded.

        Screen                          Details                          Entry
Receive Menu...1               Eagle Main Menu                Enter “VLD” and ENTER
Inv Mgt Menu...2                                              for Verify Load transaction
Prod Menu......3
Ship/WH Menu...4
Phy Inv Menu...5
Select or E?

[VERIFY LOAD]                                                 Press ENTER to accept the
Scan or List(S)?                                              default (Scan)

F1-Go   F4-ExitF1-Go

[VERIFY LOAD]                                                 Enter Shipper ID or scan
Shipper ID?                                                   from Packing List


F1-Go      F4-Exit

[VERIFY LOAD]                                                 ENTER to seen next record
Ship To?                                                      B to go back to prev record
                                                              F4 to exit review and cont.
F1-Go      F4-Exit

[VERIFY LOAD]                                                 Scan container number
Container?                                                    from LNK label or shipping

F1-Go      F4-Exit
8. Shipper Confirm and ASN
•   One operator (Shipping Coordinator) creates thousands of
    pre-shippers and shippers weekly, with minimal required input
    and errors. All required data is maintained by customer
    service department.
•   Elimination of QAD allocation routines in favor of material
    moves, eliminating stranded records.
•   Dedicated, accountable picker with all required information
    available (Pick Sheet and Eagle RF lookups).
•   Each part number is verified at the pick, using item and
    location barcodes.
•   100% inventory/container identification through use of LNK
    label (part #, description, container).
•   Shipper/Container/Item (0/1/2 level) identification on all
    shippers, documents and labels.
•   ASNs show complete containerization, eliminating “kickouts”
    during transmittal and receipt, and give the customer all
    required detail.
100% Containerized Shipping
             100% Customer Compliance
Containerized shipping gives the Remy the capability to meet
100% of our customer-specific demands for packaging, labels,
documentation and ASNs
   Eliminated Corrective Actions and Penalties
Our ability to pick, stage and ship to customer specifications, with
enhanced Eagle RF reporting and verification tools, has eliminated
material-mixing, pallet mixing and inaccurate item and shipment
                  Significant Savings
    By capitalizing on existing and enhanced Eagle RF applications,
    Remy was able to quickly transfer an entire business segment in
       under two months, with minimal interruption in operations.

•      Relocation of the Meridian Reman operations to the Laredo
       DC resulted in over $600,000 in annual savings, primarily
       through inventory reductions and transportation cost
•      Manpower reductions, through the use of automated
       handheld material and picking processes, in excess of
       $90,000 in the past year.
•      Error elimination (PRR), through the use of “Containerized
       Shipping,” has eliminated over $50,000 in annual customer
               New Opportunities
•   Remy is finally moving towards unit-level barcoding and
    serialization. All individual items will be barcoded for part
    number and serial, allowing greater verification and tracking
    during production, packaging and shipment.
•   Greater tracking past the point of shipment. We can now
    record data for specific OE customers to assist in QC inquiries
    and part tracking.
•   Specific customer requests can now be implemented as
    “profit centers,” with enhancements passed on in customer
    pricing. Our customers are willing to pay for Eagle-provided
•   Other applications being considered for data collection in
    Eagle and QAD (warranty, core recovery, et al).
            100% traceability
        with Poka-Yoke concepts
•   Remy OE Heavy-Duty manufacturing is integrating
    production reporting and tracking with final-test equipment.
    As units are produced, 100% testing and performance data
    collection is performed.
•   Only after a unit is tested, accepted and recorded in the
    “Traceability” system, is the unit label printed and applied.
    This provides 100% serialization (external to QAD) and
    quality reporting.
•   Next Phase integration is automated Eagle backflush (BKF)
    and label printing upon “standard pack” completion.
            Unit-Level Verification
•   Containerized shipping labels are being matched against both
    the pallet and unit labels prior to shipment.
                   Our Experience

Remy International’s partnership with QAD and Eagle, and
our global implementations of Eagle RF Express for QAD
Enterprise Applications, has been the single most effective
and efficient use of IT and material management resources
in the past decade.

Remy no longer considers data collection a strategic

…It is a strategic necessity.

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