Logistic tasks constitute the core competence of business processes between production and retailers. The rapid turnover of merchandise from manufacturer, to wholesaler and then right through to individual supermarkets has always been one of the critical success factors. Logistics has taken an important role in quality management, especially in the food industry where temperature sensitive goods with limited shelf life require high standards for storage and transport. Kraft Foods Germany relies on the competence of Power Logistics and they have completely outsourced all the logistics processes for the food area to this operator. Power Logistics set up an ultra modern logistics center in Bad Fallingbostel for the food manufacturer that shortens the path from production to delivery of the goods. The processes are controlled with the lot-oriented solution: Starting with fully automatic warehousing, order picking, deliveries of full and carton pallets as well as EAN labeling. The ERP solution from the GUS Group optimizes all the logistics processes for Kraft Foods Germany. For the food industry the software fulfills the required statutory proof of origin of the products and thus safeguards the quality process.
Logistics as a Service
Groceries from the company Kraft Foods are available on supermarket shelves the world over. In Germany orders from the thousands of supermarket chains and retailers are handled and booked in the Bremen Headquarters of Kraft Foods Germany. The goods however come from the Lüneburger Heide. The products for the German market are manufactured in Fallingbostel and then dispatched by Power Logistics. In the logistics center pallets are picked daily according to customer orders and then loaded along with automatically reserved original pallets. The turnover of merchandise is organized here for the whole of Germany starting with warehousing the goods coming directly from the Kraft Foods production plant, through stock control, right up to order picking and tour planning. The 120 x 63 x 33-meter high level warehouse has space for 55,000 pallets.
Fully Automated Warehouse
The warehouse management system to control pallet bins is from Mannesmann Demag and runs on a VAX System from Digital Equipment. It fully controls the automatic warehousing, prepares order picking in batch, plans amounts, routes and time and fulfills the fully automatic stock removal of normal and carton pallets including EAN labeling under robot control. Special scheduling tasks, such as tour planning and pallet or storage space optimization, are carried out with help from the fully the ERP system. The lot-oriented information system is installed on an IBM iSeries. When so many different computer systems work so closely together high demands are put on the workflow management and the control of business processes. This is why all applications from other systems go through the workflow management of GUS solution and are provided with the necessary information. The iSeries running the software acts as the central database and distribution center for all the participating systems. The ERP system receives the master data and orders by data transmission from the host system, checks availability in the warehouse and bundles individual orders into tours for transport.
Daily Stock Levels
Data from the iSeries is sent to the PC applications for optimization only when all the current dispatch orders have been checked and compared to the day’s stock level. Special software in the logistics center calculates the best possible packing sequence for order picked goods on the Euro pallets. Finally the truck tours are optimized so that deliveries are organized on a last in first out basis. In order to have current stock and order data available at all times, Power Logistics along with the GUS Group has implemented a real client/server link between the iSeries and the work-center computer. The scheduler can then access the database of the midrange system using data exchange. The calculated results are then immediately confirmed back to the iSeries.
Quicker Client/Server Access
Based on the order data transmitted by EDI from the Bremen headquarters, the stocks are reserved and then blocked for further planning. At the same time the warehouse management computer issues employees with picking orders. Single items are listed in sequence for pallet optimization. Each mobile pick system has its own terminal to receive the data transmitted from the warehouse management computer. The confirmation however is transmitted directly to the stock control in the GUS solution. According to the tour plan and the results of the storage space optimization an exactly defined pallet position in the preparation dock is indicated by a LED display. This ensures that pallet that is to be taken out last from the truck goes over the ramp first.
The delivery papers are only printed when the truck has been fully loaded. Even here several computer systems are working hand in hand. The stock control of the iSeries receives the confirmation and then initiates the printing of the delivery papers on the warehouse management system. The printer on the other hand is in the scheduler’s room near the loading docks. Although the data has to travel a long way the goods flow is as short as possible.
But even apart from the current logistics processes the ERP system on the iSeries plays a central role. The database is used as a comprehensive information source by the management of Power Logistics. The data is transmitted directly from the iSeries to PC applications such as Excel or Access. This means that at any time at Power Logistics there is an exact overview of all filled picking orders, order backlog and warehouse utilization.
