Honeywell Case Studies Parmalat's Warehouse Transformation with Voice-Directed Processes and SAP WMS

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	Parmalat's Warehouse Transformation with Voice-Directed Processes and SAP WMS Honeywell

Parmalat's Warehouse Transformation with Voice-Directed Processes and SAP WMS

Honeywell

Technology Category	Functional Applications - Remote Monitoring & Control Systems Functional Applications - Warehouse Management Systems (WMS)
Applicable Industries	Food & Beverage
Applicable Functions	Logistics & Transportation Warehouse & Inventory Management
Use Cases	Inventory Management Predictive Maintenance Warehouse Automation
Services	System Integration Training
Challenge	In the past, Parmalat’s Lidcombe distribution centre (DC) relied on manual, paper-based processes to direct their pickers. The disadvantage of Parmalat’s old system was a lack of visibility of the warehouse operations. Parmalat was seeking improvement in the utilisation of labour and in order to achieve that, it needed greater operational visibility and control. Increased visibility and control would offer Parmalat the ability manage which tasks were completed by which worker and in what order. Seth van Dijk, Sales Manager, Real-time Logistics at Dematic, said Parmalat initially enlisted them to investigate how technology could help them optimise their current processes. “The basis of Dematic’s initial investigation on the DC floor was for us to look at what was traditionally a paper-based process, and to determine how we could implement technology to help speed that up,” Seth said. “Following the consideration of a number of different technologies, it was determined that voice picking was the optimal solution.” Read More
About Customer	Parmalat is a global provider of world-class dairy and other food products, with more than 36,000 employees in 29 countries around the world, and annual revenue in Australia in excess of $1.4 billion. Parmalat Australia has 2,500 employees who work closely with around 500 Australian farmers to produce leading dairy products, including Pauls Milk, Ice Break Iced Coffee, Vaalia yoghurt, Oak and Breaka flavoured milk. Parmalat is one of Australia’s largest dairy producers and in 2014 was named Woolworths’ Core Fresh Supplier of the Year. Part of their Mission is to invest in and grow the Australian dairy industry, while also promoting Australia as a high quality producer for the Asia region. Read More
Solution	The new voice picking process is paperless, which means operators no longer need to look away from what they are doing or go back and forth picking up new pick slips. It is also easy for workers to be trained up, so they can hit the warehouse floor sooner. “With our new voice system, when an order drops into the system the operator will pick up the transfer order, they will then go to the location, confirm with the check-digit that they are at the right location,” explained Tony Behan, DC Trainer, Parmalat. “The system will then tell them to pick a certain amount of crates or units. From there they’ll pick it and the voice system will ask the worker if they picked the right amount. The system will keeping going through this process until the order is finished.” “Shipments are also now allocated and sent to several pickers on the floor, rather than just one under the previous system,” added Tony. “Picking is completed by multiple workers simultaneously, which greatly enhances Parmalat’s warehouse efficiency and productivity.” The new voice-directed smart SAP WMS solution also facilitates a real-time, two-way data flow between workers on the distribution floor and the WMS, making it easy for managers to generate reports, and to provide them with comprehensive and accurate insights on the operation – right down to an individual’s performance. Read More Log in to view content
Contents

Technology Category

Functional Applications - Remote Monitoring & Control Systems

Functional Applications - Warehouse Management Systems (WMS)

Applicable Industries

Food & Beverage

Applicable Functions

Logistics & Transportation

Warehouse & Inventory Management

Use Cases

Inventory Management

Predictive Maintenance

Warehouse Automation

Services

System Integration

Training

Challenge

In the past, Parmalat’s Lidcombe distribution centre (DC) relied on manual, paper-based processes to direct their pickers. The disadvantage of Parmalat’s old system was a lack of visibility of the warehouse operations. Parmalat was seeking improvement in the utilisation of labour and in order to achieve that, it needed greater operational visibility and control. Increased visibility and control would offer Parmalat the ability manage which tasks were completed by which worker and in what order. Seth van Dijk, Sales Manager, Real-time Logistics at Dematic, said Parmalat initially enlisted them to investigate how technology could help them optimise their current processes. “The basis of Dematic’s initial investigation on the DC floor was for us to look at what was traditionally a paper-based process, and to determine how we could implement technology to help speed that up,” Seth said. “Following the consideration of a number of different technologies, it was determined that voice picking was the optimal solution.”

About Customer

Parmalat is a global provider of world-class dairy and other food products, with more than 36,000 employees in 29 countries around the world, and annual revenue in Australia in excess of $1.4 billion. Parmalat Australia has 2,500 employees who work closely with around 500 Australian farmers to produce leading dairy products, including Pauls Milk, Ice Break Iced Coffee, Vaalia yoghurt, Oak and Breaka flavoured milk. Parmalat is one of Australia’s largest dairy producers and in 2014 was named Woolworths’ Core Fresh Supplier of the Year. Part of their Mission is to invest in and grow the Australian dairy industry, while also promoting Australia as a high quality producer for the Asia region.

Solution

The new voice picking process is paperless, which means operators no longer need to look away from what they are doing or go back and forth picking up new pick slips. It is also easy for workers to be trained up, so they can hit the warehouse floor sooner. “With our new voice system, when an order drops into the system the operator will pick up the transfer order, they will then go to the location, confirm with the check-digit that they are at the right location,” explained Tony Behan, DC Trainer, Parmalat. “The system will then tell them to pick a certain amount of crates or units. From there they’ll pick it and the voice system will ask the worker if they picked the right amount. The system will keeping going through this process until the order is finished.” “Shipments are also now allocated and sent to several pickers on the floor, rather than just one under the previous system,” added Tony. “Picking is completed by multiple workers simultaneously, which greatly enhances Parmalat’s warehouse efficiency and productivity.” The new voice-directed smart SAP WMS solution also facilitates a real-time, two-way data flow between workers on the distribution floor and the WMS, making it easy for managers to generate reports, and to provide them with comprehensive and accurate insights on the operation – right down to an individual’s performance.

Impact #1	By adopting the new voice-directed smart SAP WMS solution, Parmalat has achieved visibility of its processes, as well as productivity and safety improvements by adopting the “hands-free and eyes-free” voice technology. The DC also is better organised with stock moving a lot more efficiently since the new system was deployed.
Impact #2	Order fulfilment accuracy has also increased, which has helped Parmalat achieve higher levels of satisfaction from their customers and distributors. And Parmalat’s workers have also embraced the change to a voice-directed system.
Impact #3	Under the new WMS and voice-directed picking system, Parmalat has experienced a 15 percent improvement in terms of their litres per man hour. As a result, they are not only reaching their targets but exceeding them, even during peak periods such as Christmas. For a fast-moving picking environment, using voice with your WMS is the only way to go.

Impact #1

By adopting the new voice-directed smart SAP WMS solution, Parmalat has achieved visibility of its processes, as well as productivity and safety improvements by adopting the “hands-free and eyes-free” voice technology. The DC also is better organised with stock moving a lot more efficiently since the new system was deployed.

Impact #2

Order fulfilment accuracy has also increased, which has helped Parmalat achieve higher levels of satisfaction from their customers and distributors. And Parmalat’s workers have also embraced the change to a voice-directed system.

Impact #3

Under the new WMS and voice-directed picking system, Parmalat has experienced a 15 percent improvement in terms of their litres per man hour. As a result, they are not only reaching their targets but exceeding them, even during peak periods such as Christmas. For a fast-moving picking environment, using voice with your WMS is the only way to go.

Benefit #1	15% warehouse productivity increase
Benefit #2	100% warehouse visibility

Benefit #1

15% warehouse productivity increase

Benefit #2

100% warehouse visibility

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Overview

Parmalat's Warehouse Transformation with Voice-Directed Processes and SAP WMS

Operational Impact

Quantitative Benefit