SGI (Silicon Graphics, Inc.), headquartered in Mountain View, California, is the world's leader in high-performance computing, visualization and the management of complex data with over $1 billion in revenue for 2002. SGI products, services and solutions enable its technical and creative customers to gain strategic and competitive advantages in their core businesses. The company services five key market segments: Government, sciences, manufacturing, energy and media.

SGI's high-end, built-to-order systems range from desktop workstations to high-productivity servers and supercomputers. A $50 million inventory of more than 2,500 different part numbers is housed in a 125,000 square foot warehouse and distribution center located in Chippewa Falls, Wisconsin. This ISO 9002-compliant facility contains components that include sheet metal, memory devices, drives, monitors, electronic components and an assortment of nuts and bolts. SGI's inventory is frequently transferred from the warehouse and distribution center to the 80,000 square foot manufacturing facility located nearby. In managing such a large, diverse and valuable inventory, SGI's advanced technology experts recognized the potential for improved efficiency with an integrated warehouse management system.

The SGI manufacturing team analyzed and identified several bottlenecks in the day-to-day operations. For example, a dozen employees shared a few terminals, and manual data entry in the warehouse was often inaccurate and inefficient. Due to a recent consolidation of worldwide manufacturing, warehouse workers sometimes spent hours looking for hard-to-find parts, wasting valuable time. Even the physical movement of boxes between picking and shipping areas became a more cumbersome process. SGI realized that these inefficiencies had a direct impact on the company's bottom line.

THE CHALLENGE
To address the inefficiencies, SGI added the Oracle Warehouse Management System (WMS) module to expand its existing Oracle E-Business Suite. The manufacturing IT team, working with the factory's logistics management, determined that the Oracle WMS deployment would help the warehouse and production facility realize significant productivity gains and efficiencies. An advanced mobility solution would streamline processes, improve productivity and increase efficiencies to deliver a higher return on investment.

Wireless technology and bar code data capture were a natural fit. SGI already successfully implemented Symbol's enterprise mobility solutions and wanted to continue to work with Symbol's rugged handhelds. Since every mobile computer purchased needed to meet Oracle WMS requirements, Symbol's complete line of Oracle-certified devices enabled SGI to find the right handheld to meet their application needs. RedLine Solutions, a premier Symbol partner and expert in bar code data capture, wireless and automatic data capture (ADC) systems, delivered the integration and Oracle expertise to meet SGI's needs.

THE SOLUTION
SGI tested a variety of Symbol's rugged mobile computers, built to withstand rigorous warehouse environments. Everyday users -- the warehouse workers -- selected the best form and functionality. "Our first step was to put the products to the test in a real-world environment, so we gave our workers a choice," stated Jon Rauch, factory logistics manager for SGI. "Testing the handhelds during the course of daily operations guaranteed an easier selection and transition process. This led to productivity improvements much faster than we expected."

SGI warehouse and distribution employees selected the PDT 6846, , a rugged, lightweight mobile computer with well balanced, forward-scanning ergonomics that is comfortably suited for scan-intensive environments. Whether counting inventory, receiving parts or putting away components, the large 16-line backlit display provides greater data content and readability, to enable quick movement between activities. Symbol partner RedLine Solutions, configured the Telnet client on each device with an IP address while meeting SGI's security requirements.

RedLine also provided the wireless systems engineering and integration services. After the site survey, RedLine configured Wavelink's Avalanche device management software and Telnet clients to communicate with the Oracle mobile wireless application server (MWAS). This provided a direct connection between Oracle WMS and the Symbol PDT 6846 handhelds, empowering warehouse workers to perform transactions right from the shop floor. Avalanche also offered an easier way to update flash firmware and Telnet clients with increased security that required no additional infrastructure.

Together, Symbol and RedLine Solutions delivered a powerful mobility solution that worked seamlessly in the Oracle WMS environment. One key factor in the purchase decision was Symbol's wireless technology expertise and bar code data capture  leadership, as well as prior positive experience with Symbol products. Another major factor was RedLine's excellent customer service, Oracle expertise and impressive technical support. From the mobility tools to the applications, SGI is well positioned for a more streamlined process, improved productivity and increased efficiencies throughout the supply chain.

THE BENEFITS
At the start of the project, a 12-month return on investment (ROI) was estimated. Key metrics were established to measure the effectiveness of the new integrated solution:

• Labor savings
• Reduce inventory write-offs
• Reduce total inventory
• Reduce warehouse space

"Of all the metrics, SGI's ROI timeline demonstrated the most significant gain of all," stated Richard Westover, manufacturing IT project manager at SGI. "The Oracle, RedLine and Symbol mobility solution delivered full ROI within six months, which clearly exceeded our earlier expectations. It's equally important to note that the ROI gains began to show in the first quarter following deployment." All other metrics were also met or exceeded. The same transaction volume was maintained with less staff hours. Improved data accuracy and a reduced number of lost parts delivered more productivity gains. As for efficiencies, SGI realized a high payback with a drop of 82 percent in inventory write-offs. Maintaining full production capacity and improving purchase planning ensured that the optimum balance of parts was available at any time, reducing warehouse space requirements.

Each of these streamlined processes contributed to more cost-effective inventory management with significant gains in productivity and efficiency. With the powerful warehouse and distribution mobility solution from Oracle, RedLine and Symbol, SGI achieved project success.

Symbol Partner Spotlight RedLine Solutions, Inc.
RedLine Solutions is a leading systems integrator and value added reseller (VAR) specializing in bar code, radio frequency (RF) and automated data capture (ADC) systems. The company offers integration services to assist customers of all sizes, ranging from startups to Fortune 500 companies, in implementing cost effective solutions. RedLine Solutions' corporate headquarters is in San Jose, California, with a regional office in Portland, Oregon, to serve the Pacific Northwest.

Specifications are subject to change without notice. Symbol is a registered trademark of Symbol Technologies, Inc. Oracle is a registered trademark and Oracle Warehouse Management System is a trademark of Oracle Corporation. All other trademarks and service marks are proprietary to their respective owners.

For system, product or services availability and specific information within your country, please contact your local Symbol Technologies office or Business Partner.

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