DOPACO EXPECTS 25% PRODUCTIVITY GAINS AT ITS MANUFACTURING/ DISTRIBUTION CENTRES AS A RESULT OF CATALYSTS IMPLEMENTATION OF SAP WM AND SAPCONSOLE

Dopaco, a global packaging company for quick-service restaurants, has recently partnered with Catalyst International, a SAP Services Partner and global provider of supply chain execution (SCE) solutions, to implement a complete SAP WM and data collection solution, utilising SAPConsole. The solution has been deployed at a 300,000 square-foot distribution centre in Kinston, North Carolina, USA, and two, 200,000 square-foot warehouses (one of which is also a production facility) in Pennsylvania, USA.

The solution included 12 wireless enabled transactions, which Catalyst adapted from its extensive library of SAPConsole transaction templates; wireless infrastructure; professional services; and RF hardware from LXE, which offers rugged wireless computers and data collection solutions to improve supply chain performance. The installations were completed in late spring 2005, and Dopaco immediately achieved a 10-15 percent gain in productivity, which it expects will increase to 25 percent by years end.

By automating its processes and eliminating time spent searching for materials, Dopaco also has reduced its labour cost, improved product visibility and tracking and has begun to consolidate partial pallets and less-than-truckload shipments. Once Dopaco covers its initial costs, it expects the implementation to achieve ongoing annual savings of US$600,000.

Catalyst was a logical choice for us because of its considerable experience with SAP WM and SAPConsole, said Wayne Anderson, IT Director for Dopaco. Catalyst helped us quickly sort through our technology options, and the efficiency and proficiency of its development team was just outstanding. We never thought it was possible to complete that many transactions in such a short time frame.

According to Anderson, two other keys to the projects success were Catalysts project management leadership and the go-live training and preparation of Dopacos end-users. Catalyst had all the infrastructure and equipment in place two months before going live so material handlers, production personnel, shippers and others could get comfortable using the technology and the LXE MX3X forklift-mounted RF terminals and MX6 hand-held terminals.

We also were able to test the RF infrastructure and identify any potential problems, such as weak coverage areas, says Anderson. As a result, we had no technical or personnel issues during the changeover process.

We appreciate the opportunity to help Dopaco leverage its SAP investment and achieve its goals of improving real-time visibility and productivity while reducing its labour costs, said Jim Treleaven, Catalyst President and CEO. We look forward to working with the company as it continues its efforts to optimise the supply chain.

Dopaco plans to convert three more of its facilities to SAP WM over the next year.