This news article was originally written in Spanish. It has been automatically translated for your convenience. Reasonable efforts have been made to provide an accurate translation, however, no automated translation is perfect nor is it intended to replace a human translator. The original article in Spanish can be viewed at Entrevista a José Luís Villanueva, responsable del Departamento de SGA

"To know the stock in real time and make decisions based on accurate data is essential for the cost savings and competitiveness"

Interview with José Luis Villanueva, responsible for the Department of USG

Source: AS Software27/07/2010

July 27, 2010

AS software has positioned itself in the market as one of the most important software developers in the area of automation of warehouse management. To this end it has a research and development department devoted exclusively to its automatic system of management of warehouses, the best and most complete solution today to effectively integrate the management of warehouses with the information of the enterprise (ERP) system. Today is one of the products that records greater demand not only in the Spanish market but also at international level. José Luis Villanueva explains what has been the secret of its success thanks to the work of the Department.

Recently, the popularity of the automatic system of management of warehouses has transcended borders and today even it is being applied in Central and South America. What has been the key to his success?

The secret of its success lies in its continuous presence in the Spanish market for a decade. At this time, the number of deployments in enterprises of all types and sectors has helped AS Software provide this solution of all the know-how necessary to respond to any need that may arise when it comes to automating the management of a warehouse. In addition, along with his success as one of the most complete solutions, joins to the SGA as solution has no limits at a geographic level, i.e. does not vary with the legal changes of each country and therefore is used anywhere in the world.

How has the solution to technological and conceptual level evolved since its launch?

Its evolution has been continuous and gradual. Ten years ago, we began to develop this system began as a program that carried out the basic tasks of a store-wide expedition and inventories. Step by step, and thanks our plan for continuous improvement (PMC), the software has been evolving, expanding its functions up to what it is today, a solution that has a wide circuit of receptions, with and without labeling of product/pallet/batchthat it attaches great importance to the location of equipment (relative to its rotation, its characteristics) and prioritizes the expedition making it quick, easy and reliable.

We are already implementing storage that can work with or without papers, with method 'Push or Pull', with or without voice, with collected by corridor, expedition by hole and a myriad of functions more.

Why was the creation of a Department for the development and evolution of this solution?

AS Software management opted to create an independent structure to offer to the market a solution very competitive and above all highly specialized personnel. We are dedicated to introducing and innovate warehouse management systems automate them the most and the most cutting-edge technology. We believe that it is not possible to do otherwise.

"For ten years we have implemented multiple efforts in various sectors, for companies of a size more than significant to achieving a complete software"

That is the work of the Department of USG of ACE Software (research, development of product, etc.)?

For ten years we have implemented multiple efforts in various sectors, for companies of a size more than significant to achieving a complete software. In our case, external factors are really the determinants thus regardless of the management, the software must respond to the typology of the warehouse, sizes, heights, hedges, qualification of the personnel of the company, as well as the types of products to be stored, among others.

So our job is to keep an installed base of clients with a high level of satisfaction, something I am proud that as head of the Department. In addition, our mission is to evolve the software continuously through the application of new technologies and the use of specialized personnel. We spend between 10% and 15% in r & d in order to provide solutions for all kinds of scenarios and adapt ourselves to the infrastructure of each case.

Where is software for warehouse management evolving?

Today, more and more companies seek solutions that provide added value to its activities and business. In this sense, the system auto management of warehouses of AS Software brings simplicity and security to the logistic processes. Simplicity is the terminal which "sent" to the user and security because it minimizes human error have a warehouse without papers, with balancing of loads, where there are the tasks without manual intervention or on the basis of decisions human, and adds the value added of traceability provided by the use of bar codes.

The evolution of these management systems through the introduction of RFID, but while Smart chips have lowered their cost more than 200%, still no one can say that this technology is accessible and cost-effective for all companies.

If we add to this the current economic situation, we obtain as a result that there is still time to make these systems end up mass in the near future. By focusing on the evolution of companies, we note that there are very few medium/large organizations in Spain with an automated warehouse management system.

The SGA's ACE Software uses only the technology of radio frequency?

At present and for some years, the radio frequency is a reality in the area of a warehouse and will continue to be so in the near future. However no give back to other technologies that can live with it.

From this perspective, the SGA AS Software Department continues to develop new improvements. For example we have developed the picking for voice (Pick to Voice) and we are developing prototypes of RFID facilities.

In short, we believe that the future will continue to be the radio frequency, but we are committed to integrated joint solutions that can bring extra value to the business.

Where evolve the SGA AS Software in the future?

Nowadays not be conceived a computerization without RF but, as I have said, must be borne in mind that the future will focus on the use of mixed solutions, where in a same organization live different technologies, we are all integrated and under a USG that governs them. The near future is the RFID but combined with other technologies, that is why we are currently improving the solution with a logistical control panel where indicators of rotation, stock level, service level, percentage of occupation are integrated, etc. to make an absolute decision making and management control. We are also developing maps of more simple and colorful stores to attach more importance to information graphics. All this will be available for the third quarter of this year.

"The attitude of the person in charge of the warehouse is vital to the success of the implementation of the project should parameterize, administer, and manage all the Automation"

Is the attitude of managers and operators of warehouse before the introduction important?

The attitude of the person in charge of the warehouse is vital to the success of the implementation of the project must parametrize, administer, and manage all the automation without leaving place to makeshift decisions or to persons not responsible for. A good implementation cannot be achieved without them. As for the workers, it must be said that since implementation of these features, they no longer have a great relevance in the operation and his knowledge of the store given that the system ordered you what to do, where to gohow put or get and where to take it. Proof of this is that our customers use casual staff in a matter of hours perfectly overlooking the tasks.

Do you generally how accept change managers and warehouse managers?

After many years of experience in computing companies, I can say that the Steering and the user of this sector is more than grateful. Our SGA software brings them both that they are eager to start working with the solution quickly, so they are clear, simple and above all practical. It provides much more than what you expect.

What time usually lasts for a draft implementation of GHS?

It is usually between 3 and 6 months. We have had cases of companies, in which for example, our EMS solution is adapted by 80%, with additions of carousel vertical, rotating, etc. coming the introduction to last between 10 and 12 months although it is not usual.

How many people and departments often take part in the introduction?

By the enterprise customer is necessary to have a person who knows the logistic circuits at the global level. This figure is usually represented by the director of operations. Next to it, it is important to know the opinion of the person who knows that every day of the store, is the head of warehouse, as well as of course that of the computer equipment that may have the organization. For our part, the project is assigned a responsible way, which together with his team, defined circuits and parametrize it to reach the objectives set.

Once that is decided to implement the solution of EMS are the most important phases of the project and what?

The implementation process is supported by a procedure which consists of the following stages or phases:

(1) Definition of objectives by the company.

(2) Analysis of circuits, where is the definition of circuits to implement by reviewing each of the stages of the logistical circuit.

(3) Study of the integration with existing ERP and flow of information.

(4Th) generation of the prototype or mock-up (parameterization of the system and simulation of the behavior of the system in test mode, with study of impact and analysis of circuits settings).

(5Th) programming of adaptations if it did exist.

(6Th) study of coverage and definition of the hardware to be used.

(7Th) study of affected staff and planning of training courses.

(8Th) implementation underway.

Finally, is its implementation then a rapid depreciation of the investment?

According to recent studies, the potential savings from the implementation of an EMS is estimated around 10-20% in labor, 15% on optimisation of the space of the store and a 15 to 30% in the potential reduction of the inventory. In short, the ROI is assured to short/medium term. To know the stock in real time and make decisions based on accurate data is essential to competitiveness and cost savings.