Volkswagen Sa Case Study
Volkswagen SA Case Study
Improving visibility, productivity and accuracy in the Warehouse. In 2001, the Volkswagen of South Africa Parts & Accessories Division (VWSA P&A) set out to introduce a new Warehouse Management System in order to meet the challenges of an increasingly complex business environment. In the period from 1999 to 2006, the number of passenger vehicle models in South Africa grew from 650 to 1080 leading to a 150% growth in the number of SKU’s stocked by VWSA. Better visibility, stock accuracy and inventory management was identified as a key business objective by VWSA management. During the tender phase three WMS systems were short listed to the final round. A local system was found to be lacking critical functionality and an international system already utilised within the VW group was found to be too expensive to run locally. The RedPrairie Warehouse Management system was selected bringing Super Group into the equation as the local partner for RedPrairie. The technology team at Super Group implemented the RedPrairie system working in close association and partnership with VWSA P&A and RedPrairie as well as providing ongoing support. Challenges faced Starting off from a low technology base and migrating towards a paperless environment with radio frequency technology had obvious advantages but also posed considerable challenges. The main obstacle initially was staff training and improving computer skills in the warehouse. A second area of concern was reassuring employees that new technology did not necessarily mean staff cutbacks and that jobs would only be lost through natural attrition. Summary of progress achieved to date • Bar-coded products and locations allows validation to ensure the user is transacting on the correct SKU and from the correct location ultimately resulting in a stock accuracy improvement of 4,8% and translating into a 57% reduction in discrepancies (short/incorrect/damages). • System directed activities implied that the
Improving visibility, productivity and accuracy in the Warehouse. In 2001, the Volkswagen of South Africa Parts & Accessories Division (VWSA P&A) set out to introduce a new Warehouse Management System in order to meet the challenges of an increasingly complex business environment. In the period from 1999 to 2006, the number of passenger vehicle models in South Africa grew from 650 to 1080 leading to a 150% growth in the number of SKU’s stocked by VWSA. Better visibility, stock accuracy and inventory management was identified as a key business objective by VWSA management. During the tender phase three WMS systems were short listed to the final round. A local system was found to be lacking critical functionality and an international system already utilised within the VW group was found to be too expensive to run locally. The RedPrairie Warehouse Management system was selected bringing Super Group into the equation as the local partner for RedPrairie. The technology team at Super Group implemented the RedPrairie system working in close association and partnership with VWSA P&A and RedPrairie as well as providing ongoing support. Challenges faced Starting off from a low technology base and migrating towards a paperless environment with radio frequency technology had obvious advantages but also posed considerable challenges. The main obstacle initially was staff training and improving computer skills in the warehouse. A second area of concern was reassuring employees that new technology did not necessarily mean staff cutbacks and that jobs would only be lost through natural attrition. Summary of progress achieved to date • Bar-coded products and locations allows validation to ensure the user is transacting on the correct SKU and from the correct location ultimately resulting in a stock accuracy improvement of 4,8% and translating into a 57% reduction in discrepancies (short/incorrect/damages). • System directed activities implied that the