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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 •Automotive for the aftermarket. We provide electrical •Heavy Duty replacement components, replacement •Hybrid parts and powertrain/drivetrain components for automobiles, light trucks, heavy duty trucks and other heavy duty vehicles. 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 Challenges: 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. Opportunities: 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 operations. • Continue to move Remy forward by expanding our concepts of inventory accuracy, manufacturing visibility and customer service. • Continually adjust our systems to build upon layers of success, improving operations with each system enhancement and every implementation. • 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% paper-based. • 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 stocked. • 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 system. 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 automatically. • 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. 18.104.22.168 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 (22.214.171.124) 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?‟ Process: 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 transaction Phy Inv Menu...5 More...........6 Select or E? LNK [LINK ITM/CONTR] ENTER for new container Container Nbr? or scan existing container number F1-Go F4-Exit [LINK ITM/CONTR] ENTER for new container Create New Container[Y]? F1-Go F4-Exit [LINK ITM/CONTR] Displays new container # ENTER to continue New Container No 00000703 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). Process: 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 More...........6 Select or E? LTR [LOAD TRUCK] Enter SHIPPER ID Ste: 6034 Shipper? 34076185 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 REMAN MTR 42MT 12V records on the shipper F4 to exit review and cont. Qty Open: 5 1:2 F-B-S-E ? [LOAD TRUCK] ENTER to seen next record 10461052 B to go back to prev record REMAN MTR 42MT 12V F4 to exit review and cont. Qty Open: 5 2:2 F-B-S-E ? [LOAD TRUCK] Enter/Scan container Shp#34076185 number LastCnt# Container(1)? 000235484 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 More...........6 Select or E? VLD [VERIFY LOAD] Press ENTER to accept the Scan or List(S)? default (Scan) F1-Go F4-ExitF1-Go F4-Exit [VERIFY LOAD] Enter Shipper ID or scan Shipper ID? from Packing List 31431806 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. 14685 ^ F1-Go F4-Exit [VERIFY LOAD] Scan container number Container? from LNK label or shipping label 00383264 F1-Go F4-Exit 8. Shipper Confirm and ASN RESULTS • 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. RESULTS 100% Containerized Shipping RESULTS 100% Customer Compliance Containerized shipping gives the Remy the capability to meet 100% of our customer-specific demands for packaging, labels, documentation and ASNs RESULTS 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 identification. 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 elimination. • 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 charge-backs. 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 enhancements. • 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 advantage…. …It is a strategic necessity.
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