Archon Interactive LLC

Company Overview: A world-class leader and innovator in the distribution and marketing of semiconductors and passive, interconnect and electro-mechanical components. The company currently operates in 167 locations in 39 countries in the Americas, Europe and Asia. When the engagement with Archon-interactive was initiated in 1993 the operation was active in North America and Europe only with an estimated 30 locations. Current sales are estimated at over $6 Billion while in 1993 they were $500 million.

Business Challenge:
To create a system that will enable a centralized distribution center operation support worldwide customer and sales base while improving warehouse quality. All operations, reports and metric were all paper based and quality was impacting customer satisfaction as well as operational costs.

All upgrades and system enhancements need to be done without impacting daily operations and be transparent to customer service. Warehouse expansion plans were being developed to enable production to be doubled to support industry projections.

Objective:
Integrate a single WMS to eliminate all paper based activities as well as install automated storage and retrieval systems to support business growth with efficient distribution operations. The installation is to utilize wireless and barcode technology to enhance the receipt, put-away, pick, order fulfillment and ship processes.

Solution:
After extensive review of numerous system suppliers Archon-Interactive was selected to develop an RF based paperless operation as well as install automated storage and retrieval systems. Archon was selected based on their wealth of knowledge and experience of their implementation and management team. Archon acted as consultants as well as an MIS team through visioning sessions on design and development of facility layout. Archon Imperative’s WMS solution was WaveTrak and it was chosen for several reasons, the original being operational flexibility practices and its ability to install in a modular format. The faster responses for warehouse operations as well as producing customized reports were also major factors in the decision to move forward with WaveTrakWMS. WaveTrakWMS provided this operation with the versatility of adapting functionality to site expansion requirements while maintaining standard interfaces to the host system. WaveTrakWMS is a cost effective solution to the warehousing, material movement and inventory control requirements.

Results:
Prior to “go live“ all functional metrics were base lined to establish a before and after look at the systems effectiveness to quantify the ROI. Initial shipments per day were measured at 1,100 lines per day and the ROI was estimated based on achieving up to 3,000 lines per day. Since completion this operation has averaged up over 10,000 lines per day with peaks up to 17,000, far exceeding expectations on production. But the true pay off came in the quality and customer service achieved as production increased. Initial quality metrics were over 566 Parts Per million defects attributed to warehouse operations. Post implementation metrics calculated warehouse defects at 0 PPM analyzing shipments over a 6 month period with an annual report to be less than 100 PPM. On-time delivery and inventory accuracy both directly attributable to system efficiency measured at over 99% Traceability, Quality and production have all become the standard of excellence which this supplier demonstrates to its customer on facility tours on a daily basis. Since initial implementation in their single North American facility they have installed WaveTrak in their European facility and have scheduled implementation for their Asian operation for 2007.

Company Overview:
This Third Party Logistics Provider has been in business for over 60 years and has prided itself on being in the forefront of the packaging and fulfillment industry. In that time the operation has grown from a packaging company to an international full-service printing, fulfillment and marketing organization that specializes in serving variety of commercial markets.

Business Challenge:
To create a system that will allow all individual sites to sustain autonomous operations as well as utilize a consistent and sophisticated WMS platform. Integration needed to be done to transition existing operations in a seamless fashion without impacting customer service. The challenge in this project was to streamline the 31 independent operations into generally common practices while maintaining a consistent WaveTrakWMS interface to the corporate ERP system.

Objective:
Integrate a single WMS to support EMS across the corporation utilizing wireless and barcode technology to enhance the receipt, put-away, pick, order fulfillment and ship processes.

Solution:
WaveTrakWMS was chosen as the WMS solution for this company. WaveTrak was chosen as the corporate WMS solution for several reasons, the original being operational flexibility across multiple site operations who operated using independent practices. The faster response for warehouse operations as well as producing customized reports was also a major factor in the decision to move forward with WaveTrakWMS. Since the contract award and design of the pilot system the corporation has scheduled WaveTrakWMS in their other facilities each supporting multiple customers within several facilities. WaveTrakWMS provided this 3PL with the versatility of adapting functionality to site requirements while maintaining standard interfaces to the host system. WaveTrakWMS is a cost effective solution to the warehousing, material movement and inventory control requirements.

Results:
Implementation for initial 4 sites Q3 2007

Company Overview:
This tier one EMS Corporation is a leading electronics contract manufacturer serving the fastest-growing segments of the global Electronics Manufacturing Services (EMS) market. Recognized as a technology leader, they provide end-to-end manufacturing solutions, delivering unsurpassed quality and support to OEMs primarily in the communications, defense and aerospace, industrial and medical instrumentation, multimedia and consumer, computer and server, and automotive technology sectors. The corporation has facilities strategically located in key regions throughout the world.

Business Challenge:
While maintaining the highest levels of productivity, their operations team needed to improve inventory control and accuracy. The challenge was to integrate a Warehouse Management, Inventory Control and Receiving Application System to the host Oracle Applications ERP suite that could also provide dock-to-dock capabilities from receipt to shipping.

Objective:
Integrate a single WMS to support EMS across the corporation utilizing wireless and barcode technology to enhance the receipt, put-away, pick and ship processes.

Solution:
WaveTrakWMS was chosen as the WMS solution for a corporate solution. WaveTrak was chosen as the corporate WMS solution for several reasons, the original being faster response for receiving and producing receipt travelers. Since the implementation of the pilot system, the customer has deployed WaveTrakWMS in Nine other facilities, supporting multiple organizations within several facilities. WaveTrakWMS provided their operations with the versatility of adapting functionality to site requirements while maintaining standard interfaces to the host system, Oracle. WaveTrakWMS is a cost effective solution to the warehousing, material movement and inventory control requirements.

Results:
The implementation and deployment of WaveTrakWMS has reduced receiving time from days to hours. Implementing the WaveTrakWMS “Wave Picking“ methodology also reduced Kit release lead times to production. Receipts improved from an average of 491 per week to an average of 2,258 per week. Kitted lines increased from approximately 1200 lines per week to over 3,000 lines. Warehouse staff reductions were also realized while increasing material transactions and inventory accuracy. Staff reductions average 25% to 30% resulting in a direct decrease to plant overhead.

Company Overview:
This multinational Corporation delivers competitive advantage to the world's leading semiconductor, electronics, automotive and network systems companies. They are a leading supplier of Automatic Test Equipment. The company's divisions are organized by the products they develop and deliver. In 2004, they had sales of $1.8 billion, and currently employ about 4,100 people worldwide. They continue to be a global leader in electronics testing and inspection solutions serving the world's leading original equipment manufacturer and electronics manufacturing services suppliers.

Business Challenge:
While maintaining the highest levels of productivity, their operations team needed to improve inventory control, kit quality and inventory accuracy across all facets of the internal supply chain. The challenge was to integrate a Warehouse Management, Inventory Control System into the existing host ERP suite which could provide dock-to-dock tracking and reporting capabilities from receipt to shipping.

Objective:
Replace an antiquated paper based, data entry focused pick from shelf picking process utilizing wireless and barcode technology to enhance the receipt, put-away, pick, order fulfillment and ship processes. The business plan projected rapid growth and intense cost competition driven by off shore challenges. The corporate operations needed to become more cost effective, more efficient while becoming flexible to meet varied customer requirements and it needed to be done quickly. These efficiencies needed to begin with their internal supply chain. The initial objectives were to improve material throughput within the factory and improve inventory accuracy while reducing cost per transaction.

Solution:
Archon Interactive and WaveTrakWMS were chosen as the WMS provider for a corporate solution. WaveTrak was chosen as the corporate WMS resolution for its designed modular structure and the flexibility it provided. Implementation could be scheduled by individual task. Each link in the internal supply chain had unique design requirements that WaveTrakWMS was ideally suited to support. The ability to implement in modules also allowed for aggressive transition to the automated system. Another key component to the Archon Interactive solution is their ability to incorporate ALL aspects of the material handling functionalities. This meant automated Storage and Retrieval systems, as well as conveyer systems all intertwined to work seamlessly with the current ERP host. The experience of the Archon Interactive team in all facets of systems integration relieved pressure from the customers own operations and MIS teams thus compressing the installation timeline.

Results:
The internal supply chain was previously known as “Camp Chaos“, upon installation that all changed. Order-picking efficiencies improved by 118% Initial goals of operators hitting 2500 picks per week has been far exceeded and new goals established and achieved again. The installation of carousels (part to picker methodologies) incorporated with standard pick processes increased productivity while reducing space requirements and costs. The reallocation of floor space to accommodate additional manufacturing space also avoided the need for facility expansion. The carousels are optimized to store over 8500 parts in 14,500 locations allowing 50,000 individual picks to the production floor on a daily basis. Within this supply chain is the use of tote and work order identification. This process has improved the quality produced from 89% to over 99% and eliminated the need for post pick inspections entirely.

Right part at the right time to the right place has improved the efficiencies, the quality while greatly reducing the cost of doing business within this operation.

Company Overview:
Arguably the most admired defense and aerospace systems supplier through world-class people and technology. This company is a technology leader specializing in defense, homeland security, and other government markets throughout the world.

With a history of innovation spanning more than 80 years, they provide state-of-the-art electronics, mission systems integration, and other capabilities in the areas of sensing; effects; command, control, communications and intelligence systems, as well as a broad range of mission support services. 73,000 employees worldwide: $20.3 billion in 2006 sales. This division has been awarded the Shigeo Shingo award for excellence in manufacturing.

Business Challenge:
As part of the corporate Six Sigma and Lean Manufacturing initiatives this division determined internal supply chain and manufacturing downtime as directly proportional items requiring systemic solutions. While maintaining the highest levels of productivity, their operations team needed to improve inventory control, kit quality and inventory accuracy across all facets of the internal supply chain and manufacturing cycle.

The challenge was to integrate a Warehouse Management, Inventory Control System into the existing host ERP suite which could allow planners to focus on front end planning / MRP activities and eliminate their shop floor inventory management / recovery activities and eliminate the manufacturing downtime associated with internal material related issues.

Objective:
Define run rules to address kit and build consolidation while improving costs associated with kit activities by 10%. Eliminate the need for Planners to “chase parts“ due to unknown inventory issues and data inaccuracy and timeliness. Replace an antiquated paper based, data entry intensive pick from shelf picking process utilizing wireless, barcode technology as well automated storage techniques to enhance the receipt, put-away, pick, order fulfillment and ship processes. The divisions operations needed to become more cost effective, more efficient while becoming flexible to meet increased customer requirements and government directives. These efficiencies needed to begin with their internal supply chain by improving inventory accuracy as well as reduce the cost of doing business (i.e. reduce overtime activities and cost of quality).

Solution:
Archon Interactive and WaveTrakWMS were chosen as the WMS provider for a this division and ultimately as a corporate solution. WaveTrak was chosen as the corporate WMS resolution for its designed modular structure and the flexibility it provided. The tremendous support and quick solutions that were provided allowed the customer to also look into ways to have Archon Interactive utilize WaveTrakWMS in various other venues such as:

- Supplier Managed Inventory
- Whole Life Support
- Management of Government owned material
- Engineering material controls for new product development

All implementation could be scheduled by individual task and therefore managed by independent teams as required. Each link in the internal supply chain had unique design requirements that WaveTrakWMS was ideally suited to support. The ability to implement in modules also allowed for aggressive transition to the automated system. Another key component to the Archon Interactive solution is their ability to incorporate ALL aspects of the material handling functionalities. This meant automated Storage and Retrieval systems, as well as conveyer systems all intertwined to work seamlessly with the current ERP host. The experience of the Archon Interactive team in all facets of systems integration relieved pressure from the customers own operations and MIS teams thus compressing the installation timeline.

Results:
The end users as well as external auditors have all been very impressed with all of the improvements this division has made with the installation of WaveTrakWMS (Warehouse Management System). It truly has been instrumental to the success since it was installed in July 2005. WaveTrakWMS has been the catalyst to almost all of the operations continuous improvement efforts and has been a key contributor to the Shingo award. The great success achieved in the initial installation has led to the implementation/training of WaveTrakWMS in 3 other divisions in 2006. There is also a goal for 2007 to have it installed in an additional 3 more divisions / sites.

The system is incredibly reliable and user friendly and all sites have responded with cost savings exceeding their estimated ROI. The cost is minimal compared to the savings provided and there is such flexibility to customize the system to the way each site does business.

Savings to date in the initial implementation have been in excess of $725,000 and a breakdown in this savings can be provided by process and function if requested.