Furnished with greater control
Hand-made furniture and accessories retailer Neptune has enhanced customer services by implementing an Empirica warehouse management system from Chess to support complete control of inventory at its new facility in Swindon.
In addition to managing conventional warehouse operations Empirica is integrated with other applications to support processes such as bespoke product and refinish, and functions including an onsite retail outlet and a growing e-commerce operation.
When business growth led the company to consolidate four sites into a single operation with offices, showroom and distribution centre, it recognised something more sophisticated than its manual office systems would be required.
“We were experiencing double-digit growth and couldn’t run the business on spreadsheets any longer,” says Matthew Talbot, head of operations. “We saw that a warehouse management system working with RF devices and barcodes would be useful in various parts of the business.”
Many processes relied on effective inventory management. Beyond stock control and order picking these included quality control inspections, product refinishing to remedy minor quality issues, rework to prepare bespoke items for customers, deliveries and returns, supporting e-commerce and the onsite retail outlet, and enabling stock visibility for partners. These processes were managed by various applications, including a dedicated ERP system developed by the company’s in-house programming team, but there was little integration and many relied on paper-based controls.
Talbot adds: “We decided to go with Chess in April 2012 and implement by October 2012 to tie in with our year end.”
Using Empirica for company-wide inventory management required interfaces with a number of applications, including the first integration with Neptune’s ERP system. Ultimately more than 20 interfaces were configured. The process was simplified using the interface module that forms part of the core Empirica package, while a number of modifications to the core application were needed to support the various processes. Chess completed extensive trials and provided training to Neptune employees. Information from the year-end stock take was entered onto the system which went live on schedule.
All onsite stock movements are now managed by Empirica in conjunction with RF devices and barcodes. Information is passed seamlessly and automatically between the various applications to provide complete visibility of an item, its status and location.
Items arriving from the company’s factories or manufacturing partners are scanned to verify information previously received. Neptune checks over 10% of incoming stock as part of its demanding QC process. Any issues are logged and all items transferred to a dedicated refinish workshop for appropriate remedy such as repainting. This has reduced the number of quality-related customer issues to less than 2% of sales.
Conventional warehouse operations are also managed by Empirica. The system generates and prints all requisite labels for handling media and delivery packaging. Each box despatched is given a unique reference number to assist tracking. Order picking sequences are aligned with drop schedules for efficiency and optimum vehicle loading. Scanning on departure from Swindon and arrival at customers’ locations supports traceability.
The changes have allowed Neptune to introduce some innovative services. For example, the home delivery teams have mobile devices. In addition to confirming completion of onsite checks and assembly tasks the team can report and log issues in real-time. Actions such as redeliveries can be confirmed immediately with customers before the team leaves. There is no need to re-key information or phone-in. The customer sees an immediate response which enhances their perception of the service. The entire process is seamlessly managed by Empirica using an enhanced version of its EDIS (electronic delivery information system) module.
“We believe this is a unique service offering which really makes a big difference for our customers,” says Talbot.
Among the benefits identified by Neptune is a significant advance in customer service and experience due to improvements in areas such as stock accuracy and quality control. More orders are fulfilled more quickly and there are fewer short orders or returns. Improved stock accuracy and visibility enhances service for the design centres and retail partners who can place orders with confidence. Electronic delivery notes and invoices are accurate and delivered quickly to support improved commercial relationships.
Productivity gains through the introduction of electronic invoicing and similar processes have avoided the need to recruit additional administrative employees. Overall the company estimates it is completing around 25% more work in the same time and that it will achieve payback on its investment in around two years.
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