Radix Helps Sotreq Distribution Center Increase Productivity and Traceability
Sotreq, one of the world's largest Caterpillar dealers, achieves 30% reduction in inventory corrections with Radix X!Pedition mobile logistics solution
Global engineering & technology company Radix has developed a mobile software application to improve control of logistics processes for Sotreq, the largest Caterpillar machine and parts dealer in Brazil. Sotreq offers products and solutions for a range of industries. Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives.
The Radix X!Pedition mobile app was initially created to manage one of the warehouses, but it is already being used in another 35 Sotreq branches. Formerly, controls of logistics processes were performed manually and led to workflow inconsistencies, schedule backups and inventory problems. “There was an imperfection to equalize the physical and systemic processes, resulting in stock losses, rework, and lack of accuracy in the management data, which impacted the planning” explains Radix Project Manager, Leonardo Leda.
The project’s main objective was to reduce logistics operational costs through a warehouse management system (WMS). Utilizing the WMS and the X!Pedition app, Sotreq’s goals were to obtain a reduction in inventory corrections; increase in the traceability of materials; optimize warehouse processes, and reduce the need for manual labor.
Radix developed the X!Pedition app to integrate the daily operation processes with the SAP ERP Central Component (SAP ECC) enterprise resource planning (ERP) system. The X!Pedition app optimized all logistical operations, from the entry of the material to its delivery to the customer. The employee confirms an operation on mobile and the process is executed automatically in SAP, without the need to access the system.
The solution center uses the standard features of SAP Warehouse management system which provides flexible, automated support in processing all goods movements and in managing stocks in a warehouse complex. For example, it is possible to keep track of which employees are guarding or collecting, and which transport order is being executed. Processes such as the creation/confirmation of a transport order; creating / updating volumes; issuance of invoice; confirmation of delivery to the customer, and digitalization of the stub of the invoice and among others, are done automatically.
The first results were: a 6% increase in customer service speed; 30% reduction in inventory corrections at the entrance and 55% at the exit; and improved process traceability. In addition, there was a reduction in the need for manual controls and paper printing; 30% reduction in overtime in operation and also, 78% reduction in discrepancy at the time of material collection. It was also possible to establish new indicators and metrics for operational efficiency, increasing information reliability and customer satisfaction.