Paperless system tracks and controls warehouse
operations.Hastings Books, Music & Video exceeded its
productivity goals by 30% since using bar codes, wireless terminals, EDI, and warehouse
software instead of paper documents. As the people at Hastings Books, Music & Video
know so well, there are hits and then there are mega hits. And the company's data
collection and management system in its new 100,000 sq ft distribution center is clearly
the latter.
Country music star Garth Brooks even visited the Amarillo, Texas,
center to see it in action for himself.
The distribution center supplies books, music, and video products to
Hasting's 110 company-owned retail stores in 14 states. Using multiple automatic data
collection (ADC) technologies, the new information system manages all receipts, orders,
inventory, and shipments.
Electronic data interchange (EDI) delivers data about incoming
inventory, orders, and shipments. Warehouse management software (WMS) controls inventory
and directs activities in the center. Meanwhile bar codes and radio frequency data
communication (RFDC) terminals supply the information critical to the WMS and EDI systems.
"Our system verifies the accuracy of shipments and takes that
burden off our stores," says Bob Volpe, vice president of distribution. "As a
result," Volpe says, "our stores get the right merchandise in front of customers
as much as 4 hours faster than before and that helps drive sales."
And Garth Brooks understands the value of driving sales. Hastings
was one of the distributors of recordings by Brooks when he was an unknown. The star has
long credited Hastings with a strong role in building his success, staying close to the
company along the way. As Brooks saw and heard in his visit to Amarillo, the new
information system brings important efficiencies to the distribution center too.
"We've al-ready exceeded our productivity goals by 30%,"
explains Volpe. "In addition, 98% of shipments are on time and our inventory accuracy
in the warehouse is nearly perfect," he adds. As a result,"there are no Monday
morning quarterbacks looking out and wondering if this expenditure was required,"
says Volpe.
Eliminating paper: What people do see is a warehouse that operates
without paper. For the most part, Hastings places orders for books, music, and videos with
its suppliers by EDI. These purchase orders are then transferred to the warehouse software
database. When that inventory arrives at the Amarillo receiving dock, the WMS downloads
expected receipts to hand-held RFDC terminals. Those receipts with bar codes, about half,
are scanned by workers using the terminals and integrated scanner. In addition, all
receipts pass through a cubing and weighing system. The WMS is then updated in real time.
For items without bar codes, workers simply check actual against expected receipts
displayed on their terminals, key entering data as they go. This is sent to the WMS, which
updates its database and initiates bar code label printing at the dock.
Putaway is directed by the WMS. Pallet loads are sent, depending on
inventory needs, to the back stock area or any of three forward pick areas (pallet pick,
carton flow rack, and shelf rack). Workers scan the bar code on the inventory and the
putaway location with an RF terminal to complete this step for the WMS. As inventory is
required from back stock to replenish forward picking areas, the warehouse software
directs its movement, informing workers over RF terminals.
Beyond tracking inventory and driving inventory replenishment, the
WMS also plans order fulfillment and consolidates shipments as needed. Picking operations
for four stores at a time are automatically grouped together by the WMS. Price label
sheets for each item to be picked are then printed in the sequence selected by the
software to minimize warehouse travel and especially backtracking.