Location-Based Inventory

The need

The client wanted to improve inventory accuracy and gain real-time visibility into material flow.

The solution

Prior to the project, all inventory was stored in a single location. The first task was to devise a scheme to divide the warehouse and exterior storage yards into multiple locations. I divided the main yard into 10’x10′ grid squares, numbered along the short side and lettered along the long side. I divided the warehouse into zones, which were subdivided into rows, which were subdivided into sections, which were subdivided into shelves. All of these locations were added to the ERP system.

I created signage to assist users in finding inventory locations. Industrial storage racking received colour-coded signage for each shelf, and open floor locations received signage suspended by cables from the ceiling. All location signs were equipped with two-dimensional barcodes so that they could be scanned.

A software vendor was selected by the management team to build a custom add-on for the ERP system which would interface between it and the barcode scanning equipment. The design process took place before I joined the project, and I ended up having to redesign large portions of the solution because the software vendor could not figure out how to implement their own design.

Touchscreen computer terminals were installed at each workstation, and forklift drivers were issued handheld computers. Machine operators used the touchscreen terminals to report production, and forklift drivers used their handheld computers to receive purchase orders, move inventory between locations, perform cycle counts, and ship sales orders.

Cycle counting was used to initially move inventory from the old single location to the new locations. Any inventory variances that remained in the old single location were investigated and resolved. Ongoing cycle counts have helped to maintain inventory accuracy and identify causes of inaccuracy within the factory.