Solution Profile: Industry: 3rd Party Logistics (3PL) 1.2 million sq. ft. warehouse Shipments per year: 50 million Eight million returns per year SCE Provider: RedPrairie

Electronic Data Systems (EDS) is implementing a warehouse management solution in its third-party fulfillment and distribution facilities, including Fairfield, Ohio, and Clarion and Des Moines, Iowa. With more than 1.2 million sq. ft. of warehouse and distribution space, EDS processes more than 50 million shipments and more than eight million returns a year.

The 3PL Challenge
The third-party environment is dynamic, with fluctuating volumes and rapidly changing customer requirements. Operating in this environment demands rigorous information technology with the flexibility to respond quickly to changing circumstances and the capability of flawlessly managing multiple clients' logistics operations. In addition, the WMS must enable EDS to develop solutions that meet the diverse fulfillment and customer service requirements of its customers.

EDS' first client was brought online quickly several years ago in order to meet the customer's business requirements. "We had a very aggressive timeline," said Benjamin. During the WMS selection process, the short timeframe coupled with the volumes and velocities that EDS projected the system would have to handle scared some potential WMS vendors away from the project. The new WMS is enabling EDS to provide clients with real-time information, a sharp decrease in order cycle time, rapid putaway of product, and highly accurate cycle counting.

Part of the early success of the new system is due to extensive training. An initial five days of product training for superusers was followed by a five-day "train the trainer" session at the EDS facility.

Moving the Solution to Multiple Facilities
The successful implementation with EDS' new client led to a decision to include the warehouse management solution in multiple EDS facilities, and to make it available to its broad range of customers - spanning many industries including retail, publishing, wireless and telecommunications. EDS demonstrated the new system to its clients via face-to-face meetings, as well as through a three-day client conference held at EDS headquarters.

"The WMS is a component of an upgraded Customer Relationship Management (CRM) offering that we are selling in the market," explained Gary Emory, Vice President, EDS Customer Relationship Management. He is responsible for all of the EDS product fulfillment and distribution facilities. "Since the capability of the system allows for real-time information, the market response has been good."

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