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Circulation System

Background

The introduction of ERP has in many instances enhanced to an unprecedented degree the precision with which data is managed. Making maximum use of this improvement requires accurate data updates in real time. With maintenance parts and replenishment inventory stored in a variety of locations, a number of logistics routes must be used, complicating the task of updating data.

Our solution is to incorporate the order data for maintenance into our proprietary circulation system (database), and to integrate this data with that from our transport and warehouse control systems.

This approach enables us to manage individual items, determine times and locations for each and every maintenance part from shipping to return, and support effective procurement and replenishment as well as return management operations.

Operational Flow

(Example: shipping by Company S, a manufacturer of medical equipment and maintenance parts)

  1. Direct delivery data, distribution warehouse inventory control data, and domestic distribution data are managed in combination.
  2. Data is managed in item units using the ERP order number as the key number.
  3. The data is scanned at each logistics transit point (import/export offices, domestic distribution centers, delivery branches, etc.)
  4. ERP asset transfers are linked with the logistics transfer data.
  5. "Circle management" will be utilized to oversee all operations from the supply of maintenance parts to the recovery of returned items and waste disposal.

Benefits

  1. Total management of all assets in inventory can be carried out regardless of the transport mode selected. Information on not only goods at distribution warehouses and sales branches but also on those goods being held at the transport company -- and even parts in the possession of engineers -- can be accessed instantly.
  2. Circle processing of maintenance parts eliminates wasted time/effort and irregularities in RMA operations.
  3. Data is updated in real time by scanning at maintenance logistics transit points. Support information - messages to engineers, instructions for recovering surplus/held goods, etc. - can be automatically transmitted rapidly and reliably.
  4. ERP data is automatically updated using cargo transfer data via ERP transfer data processing for assets at various other locations. As a result, administrative processing costs can be reduced and inquiries/instructions handled in real time.
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