Percon Falcon 340

Van Leeuwen Pipe and Tube Group, a global steel pipe distributor with nearly 80 locations, faced logistical challenges in managing consigned inventory due to manual processes prone to delays and errors. These inefficiencies led to inaccurate records, limited real-time visibility, and declining customer satisfaction. Partnering with Robert Harris IT Consulting, they implemented a custom-built inventory management system that improved accuracy, efficiency, and visibility across their operations.


Problem

Van Leeuwen encountered several critical issues in managing their consigned inventory:

  1. Manual Processes and Discrepancies: Sales staff conducted physical inventory checks and manually entered data, a time-consuming process highly prone to human error. This resulted in frequent discrepancies between recorded and actual inventory levels, causing billing errors and straining relationships with consignees.

  2. Lack of Real-Time Visibility: Without centralized automation, tracking inventory across numerous locations was extremely challenging. This lack of real-time visibility hindered accurate demand forecasting and limited proactive decision-making.

  3. Operational Inefficiencies: The manual system led to elevated labor costs and increased the risk of costly stockouts and overstocking, negatively affecting profitability and overall operational efficiency.


Action

To address these challenges, Robert Harris IT Consulting developed a custom consignment inventory management system using advanced yet practical technologies. The solution included the following key components:

  1. Data Capture:

    • Inventory transactions were captured using Percon Falcon 340 handheld computers running a simple DOS script.

  2. Local Data Processing and Transfer:

    • A Visual Basic program was installed at each consignee location to retrieve transaction data from the Percon handhelds upon docking.

    • The program updated the "quantity on hand" in a local Microsoft Access database, providing immediate inventory visibility at the consignee location.

    • Transaction data was automatically uploaded via FTP to Van Leeuwen’s central server.

  3. Centralized Data Processing and Replenishment:

    • A Visual Basic program on Van Leeuwen’s central server processed the uploaded transaction data, updating the "quantity on hand" in a central Microsoft Access database.

    • The system used predefined min/max levels to implement automated replenishment logic, generating EDI purchase orders (850 format) for items needing replenishment.

  4. SAP Integration:

    • The EDI purchase orders were automatically transmitted to Van Leeuwen’s SAP system, triggering the replenishment process.

This integrated solution streamlined data collection, minimized manual intervention, and improved inventory accuracy and efficiency across all locations.


Results

The implementation of the custom system delivered significant improvements:

  1. Reduced Errors: Automation reduced data entry errors by 75%, significantly improving the accuracy of inventory records.

  2. Real-Time Visibility: Synchronization of inventory data reduced update lag from days to hours, providing near real-time insights into inventory levels.

  3. Automated Replenishment: The replenishment system optimized inventory levels, reducing stockouts by 60% and overstocking by 40%, thereby lowering carrying costs.

  4. Efficiency Gains: Order processing time decreased by 50%, allowing sales teams to focus on strategic, revenue-generating activities.

  5. Stronger Consignee Relationships: Enhanced inventory accuracy and timely replenishment minimized disputes and improved consignee satisfaction.

  6. Improved Decision-Making: Real-time inventory insights empowered more informed decisions in production planning, pricing strategies, and promotional activities.


By partnering with Robert Harris IT Consulting, Van Leeuwen Pipe and Tube transformed its inventory management process, achieving greater accuracy, visibility, and efficiency. The custom solution strengthened customer relationships, boosted operational performance, and showcased Robert Harris IT Consulting’s expertise in developing tailored database systems and integrating disparate technologies to solve complex business challenges.