Skillcraft Agencies dramatically increases warehouse efficiencies with SYSPRO 8

Manual warehouse systems with corresponding stock inaccuracies put strain on productivity and efficiency

Customer

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Customer Profile

Skillcraft Agencies was established in 1991 as a general wholesale supplier of tools, general hardware, security products, architectural hardware and household fittings. Since its inception, Skillcraft has evolved into a brand-specific hardware wholesaler focusing on providing the INGCO range of industrial-quality tools at affordable prices.

Their Business Challenge

Skillcraft Agencies faced the challenges of a warehouse which operated primarily on manual systems and lacked the ability to do cycle counts. The result was inaccurate stock information and extensive inefficiencies in the warehouse, significantly impacting the company’s drive to increase revenue and reduce costs without growing its headcount.

The Solution

A long-term SYSPRO user, Skillcraft Agencies upgraded from SYSPRO 6 to SYSPRO 8 and optimized the full functionality of the system. In so doing, it was able to eliminate many manual, time-consuming tasks, thereby supporting its drive towards increased efficiency. The company’s annual stocktake was completed in under eight hours with a stock variance of less than 0.1%. In addition, the number of Stock-Keeping Units (SKUs) handled daily has grown.

The Outcome

The Skillcraft Agencies management team realized things needed to be done differently. Default bins were switched on, so there would be 1500 SKUs with only one bin location each, whereas the stock was actually stored in five or six bin locations. This meant the staff in the warehouse would go to the bin indicated on the sales order only to find it was empty. They would have to physically find the stock, pick it manually and then send it through for invoicing.

The management team put a project together to redo the layout of the warehouse, taking into account Skillcraft Agencies’ expected rate of expansion. Iterative improvements such as multiple bins, regular cycle counts, racking and bulk picking bins increased stock accuracy from 68% to 95%.

“Thanks to the help, support and accessibility that SYSPRO gave us with fixed and multiple bin locations by area and by warehouse, we were able to double and triple our stockholding to address stock shortages in the country without impacting customer service levels.”
– Jaco Viljoen, National Warehouse Manager, Skillcraft Agencies.

The Outcome continued

Jaco Viljoen, Skillcraft Agencies’ National Warehouse Manager, says: “Now, the entire process has been streamlined and automated as far as possible. The warehouse staff don’t need to know the stock, they only need to scan each item and pack it. The system knows when a box has been started, when it is complete and when the packer has started on a new box. At the end of the process, the scanner will notify the packer if an item is missing.

“Once complete, the packing list is printed by box and then the invoice is printed. The packer puts the invoice inside the box, seals it and takes it to Dispatch. The system makes it possible for every order in the system to be invoiced the same day that it comes in.”

These efficiencies, together with upgrading from SYSPRO 6 to SYSPRO 8, enabled Skillcraft to move from doing 500 lines a day to 2500. The stock was right, sales orders were going out, and, within 24 hours, invoices could be checked and orders dispatched. As a result, the time was right for barcode scanning.

Multi-factor success

Viljoen attributes the ‘phenomenal’ increase in warehouse efficiency to a combination of the collaboration available in SYSPRO 8, integrating SYSPRO with partners for aspects such as barcode scanning, the freedom to customize activities like trial kitting and checking, and the excellent support Skillcraft has received from RPM Resources, its SYSPRO partner.

“Everything runs through refreshable, sales-specific and warehouse-specific Excel reports. With this data, we are able to answer any query within seconds. It’s cut down the call backs drastically and is a tangible advantage for us,” Viljoen says.

RPM Resources played a critical role in integrating SYSPRO into the Application Programming Interface (API) of Courier IT, Skillcraft Agencies’ courier company. The system refreshes every 25 minutes and sends updates to the API database so that all pickups and deliveries are automated based on the invoicing as it happens.

The SYSPRO solution was also integrated with the TransLution barcode scanning system. “That was another major game changer, as it enabled us to be consistent in the number of lines picked each day,” Viljoen says. “We want to be in a position to do 5000 lines a day with the same staff complement, and the complete barcode scanning implementation will make that a reality.”

Maximizing facilities for optimal results

Skillcraft Agencies initially operated out of two facilities in Gauteng, South Africa, one in Turffontein and one in Randfontein, a 45-minute drive away. To streamline logistical operations, Skillcraft Agencies shifted operations to a single dispatch warehouse in City Deep Johannesburg.

“We set SYSPRO up to make it happen. Thanks to the help, support and accessibility that SYSPRO gave us with fixed and multiple bin locations by area and by warehouse, we were able to double and triple our stockholding to address stock shortages in the country without impacting customer service levels,” Viljoen says.

Reaping the rewards

Before Skillcraft Agencies management restructured the warehouse function, the company was working on a three- to five-day turnaround time in the warehouse. That window has shrunk to 24 hours.

“That’s how we improved the efficiencies in the warehouse,” Viljoen states. “The success resulted from meticulous planning, tight integration between SYSPRO and the relevant third-party solutions as well as outstanding support from both SYSPRO and RPM Resources.”

“We benchmark ourselves against industry standards, and the stocktake variance of less than 0.1% is the best we’ve seen. Our warehouse processes and procedures that go hand-in-hand with SYSPRO are exceptional. Typically, it takes months to integrate a system and iron out bugs – we’ve never experienced a project that’s realized efficiencies so swiftly and successfully. In addition to the supply chain team, this is due to the close relationship and constant communication between Skillcraft Agencies, RPM Resources, SYSPRO and TransLution.”
– Graham Finch, Financial Manager, Skillcraft Agencies.

Achieve business success with SYSPRO ERP

SYSPRO is a leading, global Enterprise Resource Planning (ERP) software provider, specializing in key manufacturing and distribution industries. SYSPRO’s ERP solution empowers customers to take the next step – whether it is expanding into new territories, adding new product lines, transforming business processes, or driving innovation.

Skillcraft Agencies dramatically increases warehouse efficiencies with SYSPRO 8

Manual warehouse systems with corresponding stock inaccuracies put strain on productivity and efficiency

Customer

Customer Profile

Their Business Challenge

The Solution

The Outcome

The Outcome continued

Multi-factor success

Maximizing facilities for optimal results

Reaping the rewards

Achieve business success with SYSPRO ERP

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