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Integrated Warehousing and Dispatch

To achieve the full benefits of integrating quality informa­tion into product availability requires the warehouse man­agement system to know exactly where each batch of output is stored and what quality characteristics each batch has. This requires a combination of lot traceability and warehouse mapping.

Lot traceability will record each batch output from manu­facturing and will tag it with the quality characteristics of the batch. One manufacturing batch may however be packed in one or many units. Each unit of output must be able to be linked to the quality characteristics of the batch to achieve full quality integration. Physically this may mean quality labels attached to each carton or pallet. Where batches are split over several locations within the store, each segment must be individually identified so that picking can find it.

A warehousing system that allows individual batches to be located within a bin location system needs to also allow the operator to search batches of output by quality characteristic values. Where batches have many quality values, the operator needs the ability to vary the range of acceptable values of each characteristic to be able to find batches which are acceptable for a given customer. Whilst the system could be set up to automatically identify a batch that fell within the selected value ranges, it is quite likely that no batch will be found in some cases. The operator then needs the ability to scan batch availability by varying the value ranges.

In some cases batches will be stored in block stacks, with many pallets being stored in the same location, perhaps several wide and high. The selection process then needs to have the ability to suggest pallets which are most accessible.

The selection and dispatch process can be further en­hanced with the integration of automatic data collection device equipment. Each unit (carton, pallet or bale) can be labeled with a unique number which can be used within the computer system to identify batch, quality characteristics and warehouse location information. Radio frequency con­trolled handling equipment can then be sent to pick the item, confirm its identity and designate its dispatch location.

Integrating Order Processing

The real benefits from integrating quality information into logistics comes in the customer interface. Many customers within fine chemical and chemical markets require their purchased ingredients to conform to a desired specifica­tion. The vendor has a number of opportunities to improve its customer service to win the customer's loyalty.

(a) The customer's desired quality characteristics can be stored on the system and matched to available inven­tory without the customer being required to inform the vendor for each order.
(b) Where quality varies, the vendor can reserve inventory for selected customers. This might particularly be the case with customers who require very high quality.
(c) By integrating order processing into batch inventory information, the vendor is able to quickly inform the customer of inventory availability.
(d) Quality specification can be printed and delivered with the shipping documentation. Alternatively, the ship­ping information with the quality information can be sent via EDI so that the customers system has the information in advance of receipt of goods.
(e) Where the vendor cannot match exactly the quality information of the customer, it would be possible to allow the customer to scan the batch information directly to identify a batch that could meet its requirements. This information could be downloaded or direct access could be designed into the system.

Increasing Margins

The Vendor that improves customer service by improving responsiveness to customer requests relative to its competi­tors will improve both the level of business and the contribu­tion from that market sector. Customers prefer to deal with vendors who are set up to provide reliable information on product availability, who anticipate their requirements and who can provide detailed information on product quality.

In a market where the product from one vendor is readily matched in specification from others, customer loyalty has to be earned through higher levels of customer service. Integrating quality information through the manufactur­ing and logistics systems so that the vendor can be more responsive to customer requirements is one method that the chemical manufacturer can use to respond more posi­tively to customer demands.

An additional benefit achieved by some vendors is the ability to segment customers into quality classes and match output to a customer class in advance of receiving the customer's order.

Lower specification product can then be moved more quickly with promotions or simply by allocating batches to orders where high specifications are not required. In the best cases a premium can be charged for higher specification product. Inventory is kept lower and customers more closely matched with available product.

Summary

The integration of quality information from laboratory through manufacturing and logistics has many benefits to the process manufacturer. Knowing what you have and where it is one of the major contributors to decreasing inventory levels and increasing customer service. This leads directly to higher margins, more loyal customers and higher esteem for employees.

These benefits cannot be achieved overnight, but it is important to put in place a visionary plan of systems implementation that will move the internal systems to­wards this goal. Each systems investment project should be considered in the light of an overall goal of achieving a fully integrated LIMS, manufacturing and logistics systems. Only with such an objective firmly in place and supported by the whole organization will the real benefits of quality information be achieved.