QC Logistics

3 . Problem Definition and Objectives

When QC Logistics first opened, the team knew that the company would need a stock control software package in order to track the incoming and outgoing stock and to provide management information on an ongoing basis.

The system chosen back in 1998 was a stock management system developed by a regional based software house, and provided at the time an adequate system for stock control. As the volume of work started to increase (from 500 pallets a week then to in excess of 14,000 today), the team found that it was necessary to upgrade and move to a new system.

A new system was required for a number of reasons:

• Traceability – Management of stock was the main focus of QC’s business. It was imperative that the item requested was the item that was shipped (even down to the correct batch number). Many of the stock items looked similar so it was vital that stock control was foolproof.
• Error control – The older system was more prone to errors primarily due to the use of andwritten dockets.
• Stock information – Warehouse staff needed rapid access to stock (to be able to get it quickly out to clients). To facilitate this, accurate stock records were essential.
• Reduction in manpower – With the old system there was a lot of manpower involved in checking stock, and then double checking – a lot of the work was manual. Reducing the need for this manual intervention will become more important as the business grows.
• First In First Out (FIFO) stock rotation – In many instances it was important to ensure that older stock was used first. This was especially important for pharmaceutical clients as usage was often driven by batch number.

Commented O’Mahony “Above all else, the main reason for adopting a new system was to improve and optimise the quality of our service to our customers”. One of the main challenges was that of integrating the QC system with client systems. Three clients had direct links (on 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.

The long term plan was then to integrate that system into freight forwarding companies to facilitate ease of shipping and provide another value-add service for QC’s clients.

4 . Decision

Prior to looking for a solution, the team undertook research into the market - visits to trade fairs in the US gave QC a good idea as to what was new in the logistics sector. These trips, in addition to research undertaken in the Irish market meant that QC knew what they were looking for before they went looking.

The team at QC first saw the eBusiness Acceleration Fund advertised in 2000 (and were also aware of it through Enterprise Ireland and their external consultant, Michael Phelan of IMCS). An application was lodged immediately as the team knew there would be a lot of competition. Commented O’Mahony, “It was instrumental to our business that we secured the funding”.

Without the grant assistance the company would have been unable to put in place the system that is there today.