Applied Biosystems Transforms Supply Chain Processes

Philadelphia and London, UK — March 25, 2008 — Catalyst, a business unit of CDC Global Services, has announced the go-live of a complete warehouse solution for Applied Biosystems' Hayward, Calif. distribution center. The February 4 go-live was achieved on time and within budget, while also allowing the company to maintain full warehouse operations throughout the implementation.

The warehouse solution streamlines supply chain processes, integrates systems into a single point of entry for data and gives the organization complete, real-time visibility into Applied Biosystems' entire supply chain. Since the go-live, the company said it has already seen an impact on its productivity and operational efficiency.

Applied Biosystems' business is focused on research and standardized testing for the medical industry. The company has equipment installed at approximately 180,000 locations in 100 countries and supports these from warehouses in North America, Europe and Asia. The 51,000-square-foot Hayward facility handles around 2,500 picks each day and is run by 46 warehouse personnel each shift. The warehouse is now managed by SAP release 4.6C warehouse management (WM) and has a range of material handling equipment, including a progressive pick conveyor and an automatic carrier label system, which are fully integrated with SAP WM.

David Windsheimer, senior director, Global Supply Chain for Applied Biosystems, commented: We were already using SAP for our main [enterprise resource planning (ERP)] and manufacturing requirements and felt that the time was right to use the integrated warehouse management module of SAP. However, we also knew we would need some expert resources in terms of implementing SAP WM and integrating this with our material handling equipment and conveyor systems and our proposed [radio frequency (RF)] solution.

Applied Biosystems selected Catalyst as its SAP logistics execution partner to deliver the required solution.

I believe the key to the success of the go-live was the readiness of the team, said Adolfo Martinez, Hayward warehouse manager. Catalyst made sure the team was fully trained and ready to bring the system live through a series of exhaustive integration tests, end-user training and a controlled go-live ramp-up. Our team at Hayward showed great ability to change, while maintaining high levels of service to our customers. They accommodated the new processes and methods, while continuing to fulfil full order volumes right from day one. It was a very impressive team effort, well supported by Catalyst.

Catalyst designed a SAP console and SAP WM solution in parallel, involving the technical team and the WM functional team from the very beginning of the blueprint activity. This helped to maintain high levels of communications between both teams and ensured there were no design gaps. The result was a system that went live with minimal issues. In addition, the interfaces to the conveyor system and the carrier shipment application worked well from the very first minute of operation.

Source: Supply Demand Chain