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Oracle Warehouse Management Cloud provided us with the necessary flexibility to extend our supply chain and implement a new distribution center with Tier 1 WMS solution capabilities right before the end-of-year peak season, which was our major goal.
Supermercados Peruanos S.A. (SPSA) is one of Peru’s largest supermarket chains, with annual sales of almost $1 billion USD. Experiencing rapid growth over the past few years, the firm recently added a new distribution center in the southern region of Lima. SPSA has fueled its rapid growth and increased market share with store formats appealing to different market segments, from high-end specialty shops to discount stores.
Supermercados Peruanos’ sales channel diversity added a level of complexity to its supply chain execution after experiencing rapid growth over the past few years. The company needed to redesign and improve some of its logistics operations and integrate the new solution with its existing SAP ERP system or order to ensure fufillment in it’s different market segments, all while leveraging a low-risk, pay-as-you-go solution that would not only solve their immediate challenges, but also expand gradually with their growth.
Challenge: Find a Robust Yet Flexible Warehouse Management Solution
Supermercados Peruanos S.A. is one of Peru’s largest supermarket chains, has been experiencing rapid growth over the past few years. With this expansion, the firm added a level of complexity to its supply chain execution, prompting them to seek a robust and scalable warehouse management system with Tier 1 capabilities to handle its multi-channel extended supply chain execution processes. The company also wanted to redesign and improve some of its logistics operations and integrate the new solution with its existing SAP ERP system.
After evaluating potential solutions in the marketplace, SPSA’s management team selected Oracle Warehouse Management Cloud. The cloud-based solution also leverages a software-as-a-service (SaaS) pricing model where SPSA did not have to pay for the software up-front nor pay annual maintenance fees, only paying a monthly fee based on the volume of logistics services needed.
One of the biggest requirements SPSA’s mandated was the solution needed to be up and running in just four months, ready to handle the company’s high-volume peak season. Had SPSA chosen a traditional licensed-WMS system that time frame would have been impossible to meet, not to mention considerably more expensive to deploy and support. With Oracle's (formerly LogFire) cloud-based delivery model and SaaS pricing, however, the goal was challenging but achievable.
WMS Results Exceed Expectations
SPSA reports that the results delivered by the cloud-based WMS system have been overwhelmingly positive. Efficiency, shipping productivity, product traceability and customer service have all increased significantly. Moreover, the ability of workers to access the WMS system on tablets and other Internet-connected mobile devices on the warehouse floor, rather than from fixed workstations, has greatly improved productivity and the speed and quality of communication throughout the operation.
In addition to improving warehouse processes, the selection of the Oracle SaaS-based WMS solution over a traditional licensed solution has also benefitted SPSA financially as well. The advantages include reduced start-up costs with no licensing fees, faster implementation time, and continuous technical support and upgrades at no additional expense. In operation, the flexibility and scalability of the cloud-based solution pays additional dividends.
SPSA Vice President of Supply Chain, Gabriel Ortiz concludes: “Oracle was able to train and certify our operators with new and improved functionality and processes never before used at SPSA.”
Oracle Warehouse Management Cloud is an ideal fit to support SPSA’s mission-critical logistics and distribution requirements. With over 70 retail locations with diverse formats and size of products, they solutions have been successfully leveraged by manufacturers, retailers, wholesalers and logistics services providers/3PLs, regardless of their size and complexity, providing robust Tier 1 functionality with cost effective SaaS pricing all can afford.
Cloud-based Solutions on the Rise
Implementing traditional WMS and SCE software solutions for small-to-medium size and large enterprises have typically been a high-budget proposition. Cloud-based solutions can eliminate up-front hardware and software and database licensing fees, costly modification and long implementation and integration time frames, additional hardware and system maintenance and upgrades costs, and often, the need to increase or at least allocate in-house IT resources to manage and support the system.
Cloud-based technology has changed the technology and solutions landscape. As SPSA’s experience clearly illustrates, today’s advancements in secure cloud-based technology and the cost effective multi-tenant operating environment and SaaS pricing model are changing the way companies of every size implement the software solutions they need to operate their businesses.
The multi-tenant operating environment and SaaS pricing reduces up-front capital investment while providing increased flexibility, scalability and agility to keep pace with business growth and changes as well as shifts in global supply chain management. Oracle’s solution allows companies to reduce IT and overall operational costs and resources and focus resources on core business activities that foster growth and competitive advantage in this fiercely competitive marketplace. And that’s a goal worth everyone’s focus.
This story was originally published on https://www.logfire.com/.