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QC
Logistics
1
. Overview
Waterford based QC Logistics (www.qclogistics.ie)
is a logistics and supply chain management company,
responsible for the stock management and delivery
of items for a number of clients in the pharmaceutical
sector.
By outsourcing these non-core services (like stock
management, Just-in-Time delivery and shipping for
example), the client gets a higher level of service
than they would do if this was handled internally.
“We allow companies to do what they do best and
we look after the peripheral aspects”, commented
George Banks, Operations Director at QC Logistics.
Clients trusted QC to look after large volumes of
stock and ensure that that stock is on production
lines Just-In-Time (if stock doesn’t arrive and
a production line is stopped, it could cost considerable
amounts of money). On the contrary, holding and managing
client data is another issue – there is always
a fear of outsiders getting into the system.
Due to the types of client QC dealt with, the systems
in place had to be more resilient that those of the
competition. Quality control departments within QC’s
clients were often the ones that would make decisions
on suppliers (and on the systems running within those
suppliers). Ultimately, the product QC was responsible
for was going to be consumed by human beings.
In order to combat this, offer a better level of service
to its clients and, at the same time, improve efficiencies
in the warehouse, QC wanted to implement a new stock
control system. The new system was part-funded with
a grant from the Enterprise Ireland eBusiness Acceleration
Fund.
One of the main challenges was that of integrating
the QC system with client systems. Three clients had
direct links (i.e. standalone PCs) from QC into their
own stocking systems (Prisim, JD Edwards or SAP for
example) and QC staff were trained to use that software.
Though this solution ensured that those clients knew
exactly what they had in stock, it also meant that
QC had to run a number of systems and ensure they
had staff trained in the use of those systems. This
was driven primarily by clients’ requirements
for very tight security.
QC needed a system that, in the future, could be integrated
with those client systems to provide one simple interface
for use in the warehouse. All data would be entered
into one system and that data would then be transferred
between QC and its clients.
Other requirements included:
- The ability
to manage stock in the warehouse
- Provision
of traceability
- Had to
be user friendly
- Had to
support integration of other systems
- Support
for bar coding
- Solid
security
The solution
that QC chose to fulfil these requirements was IonData Lite, an off-the-shelf
inventory tracking system designed by Dun Laoghaire based developer Ion
Technologies (www.ion.ie). The software combines a PC (that carries the
stock database) and a handheld scanner that is used on the shop floor.
At time of writing, the IonData Lite was being piloted in QCs Slieverue
facility with a view to rolling it out across the organisation. IonData
Lite provided functionality that could be gathered under four main headings:
- Goods
in
- Move and
put away goods
- Bills
and shipping
- Stock
checking
Additionally
and most importantly, was the reporting functionality of the software.
Reports were produced once a week, on a Friday morning (in Adobe Acrobat
format - .pdf) and hosted on a shared server within the organisation.
The management team was then able to view the reports at their leisure.
Reports were also distributed to clients on an as-needed basis.
In addition to the IonData system, QC Logistics also ran a ‘terminal’
for each of three clients. These three terminals allowed the warehouse
staff to tie directly into the stock-database of each of those clients.
The long term aim of the team in QC Logistics is to integrate those systems
into their own system and thus have one point of access for any of the
staff in the warehouse – an IonData terminal. There are a number
of issues that have to be addressed before this can happen.
For clients, the main benefits of the system included:
- Better
efficiency
- Reports
are easier to produce
- Better
stock traceability
For QC Logistics,
the benefits included:
- Reduced
level of paperwork
- Competitive
advantage
- Ease of
reporting
- Increased
customer confidence
There were
many lessons learnt by QC Logistics as they implemented
the new system:
- Spend
time on detailing the specification – The team
put a lot of time and effort into specifying their
requirements – this was a fundamental part
of the process.
- Have
a plan and involve everyone – It is imperative
to have a plan outlining how to approach the project
– this should be led by a Project Manager and
involve those that are on the front line.
- Stick
to your timeline - People need to adhere to timelines
and afford themselves the time to allow that to
happen (attendance at review meetings, travelling
to do research or meet partners etc.).
-
Research – Given the chance QC may have looked
at more vendors before making a decision on which
to use.
QC
Logistics has very ambitious plans for the future. The
main objective for the company in the coming years is
to develop itself into a one-stop-shop for logistics
through strategic partnerships (specifically with a
freight forwarding partner). The installation and subsequent
company-wide rollout of IonData Lite will facilitate
this greatly.
Other areas for future expansion include:
- Integration
of client stock systems into the QC Logistics IonData
system
- Development
of a client extranet allowing direct access to stock
inventory and reporting on an as-needed basis
- Rollout
of the IonData system across all the company’s
sites
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