OPSM Keeps a Sharp Eye on Technology in its Supply Chain Logistics

OPSM is an Australian-owned company with expanding international operations in Hong Kong, Singapore and New Zealand. For more than 60 years OPSM has been a leading distributor and retailer of optical products and industrial protection eye safety equipment.

With more than 330 optical retail outlets throughout the Asia Pacific region - and more than 300 in Australia alone - the optical division of OPSM offers a 24-hour turnaround time for custom-made spectacle lenses from its Auburn (NSW) based distribution warehouse. Up to 75,000 products are processed daily through the warehouse, with up to 9,000 picks per day completed and couriered to their respective destinations.

With such a high volume, order fill and rapid despatch process required, OPSM relies heavily on its data capture and information technology systems and equipment across all stages of its distribution warehouse logistics. To provide such accurate, efficient and automated customer services, requires the very latest technology available.

To achieve this, OPSM recently implemented a SAP R/3 Enterprise Resource Planning (ERP) host system; interfaced to 15 Symbol Technologies wireless data capture terminals and engaged the expert systems integration services of TIG International.

TIG International, an alliance partner to Symbol Technologies and an Australian company with national and international operations, is a leading provider of mobile computing and automatic data capture software supply chain solutions for the SAP R/3 applications environment.

The TIG International solution comprised 15 strategically-placed Symbol LS4074 RF-based wireless wedge data capture terminals, providing Radio Frequency-based real time information communications with the SAP-based host system.

The Symbol wireless data capture terminals allow warehouse staff to move freely throughout their work locations, while using radio frequency technology to communicate scanned information to a server running the SAP warehousing applications.

Warehouse staff uses the Symbol LS4074 wireless data capture terminals to process and confirm product and order information throughout the various supply chain stages. This includes high volume goods issue transactions, goods receipt, put away and despatch information.

"This new integrated solution provided by TIG International has completely automated our communication with the SAP R/3 system, allowing anyone in our world wide operation to instantly find the status of an individual order," said Peter Kerr, OPSM Logistics Team Leader. "Importantly, it has made the whole process 100% per cent accurate and ensured we are able to provide a very quick turnaround time from order to delivery, for our customers."

"The system also automatically receives and verifies orders from, and deliveries to, our 300 retail outlets throughout Australia. The Symbol data capture terminals were recommended because of their high degree of scanning accuracy, coupled with their wireless Radio Frequency-based real time operation which gives warehouse workers a certain amount of mobility to perform their job functions," he added.

Prior to the installation of SAP R/3 and the Symbol RF-based data terminals, OPSM's warehouse logistics comprised a legacy system with only some sections of the distribution warehouse under batch scanning applications. However, because this did not automate and validate the complete warehouse processes from order to despatch - as well as generating the associated paperwork - it involved considerable manual reconciliation activities within warehouse operations and the retailers when they received their orders.

With the new system, OPSM retail outlets and other customers communicate their orders to the distribution warehouse's SAP-based host system, which then raises picking and despatch and delivery orders. Invoices are also raised by the new system

The SAP-based host system also produces a bar code label transaction so that the product can be identified and reconciled throughout all stages of the manufacturing, warehousing and distribution process by staff simply scanning the product.

"The system has provided 100 per cent accuracy and assures the customer gets exactly what they ordered, and to the exact quantity," said Mr. Kerr.

"Importantly, it has provided us with real time data on the SAP R/3 host system, thereby providing the entire business with the same information technology system covering logistics, financial, sales, human resources and other applications. This provides all of OPSM's business areas with live data in the one easy-to-use format. It greatly increases the availability of information across the enterprise and improved decision-making, while reducing support issues."

Mr. Kerr said OPSM are very happy with TIG International's involvement in the whole project and pointed out that any issues, which arose during implementation, "were quickly addressed."

"We are currently trialing some Symbol fixed, mounted data capture scanning systems in our other industrial-protection product manufacturing plants and they are currently going very well," he added.

General Manager of TIG International, Gavin Campbell, said OPSM's Auburn distribution warehouse was a prime example of the business benefits of integrating RF data capture technology into real time ERP systems.

"By utilizing Symbol's RF-based LS4074 wireless data terminals, OSPM have a solution that delivers a high speed, accurate, check-out style operation suited to the demands of their specific warehouse and distribution requirements.

"It is an exciting time with applications for mobile computing growing covering plant maintenance, sales force automation, asset tracking, and other industry-specific applications.

"The race to implement e-business strategies is also requiring an efficient, real time supply chain operation and now is the time for business to embrace the considerable benefits that integration of point-of-activity data capture and ERP systems can bring," Mr Campbell added.

TIG International, a Symbol AVAR, is a leading Australian developer of mobile computing and automatic data capture software solutions and can be contacted on (02) 9929 3870.