Lazzoni Keeps Inventory Processes Under Control with Login ERP
Hüseyin Özban, Factory Manager of Lazzoni that has a new success story with Login ERP in the furniture industry, İhsan Ömür Demir, Production Planning and ERP Manager, Çağrı Orman, Storage and Materials Manager and Dinçer Pekzorlu, Shipment Storage Manager, answered questions of Alican Çakmak Kozoğlu, Editor from Alternative Yayın Group, for ST Storage Solutions Magazine.
Daily operations of Lazzoni involve 480
inputs and 460 output packages. İhsan Ömür Demir, Production Planning and ERP Manager, says "This corresponds to 130 business modules per day".
Are all domestic and international shipments of Lazzoni Furniture made from here?
Özban: Yes, we consign goods both to Turkey and abroad from here. As a standard, we work with 3 countries. We also work with many other countries on project basis. For example, we are working with 5 countries actively.
Do you stock your products as semi-finished and finished products?
Demir: We do not have any storage for semi-finished and finished products. We do not work on stock basis. We utilize a material storage and shipment storage. Our system works on a chart that involves transferring raw materials from storage to production, and then to shipment storage. We do not need to stock products since they are directly delivered to customer. However, we have interim storages in Istanbul and İzmir. Products are sent to these places and then to customers. We deliver directly to customer from our storage in Ankara. We do not distribute products to stores, like a dealer system.
Then, are your products in stores serve to display purposes for promoting collections?
Özban: Yes,we do not have any product in store for stock purposes. We only display products. Thus, we do not have any practice such as delivering next day the product that customers see on the store and like.
Could you inform us about total storage space in the facility?
Orman: Our storage space in the facility is approx. 1,500 m2 for shipment and 1,400 m2 for materials, i.e. 3,000 m2 in total.
How do you handle the transitions between the storages?
Pekzorlu: Production department places products on conveyors. Storage supervisor accepts products that are carried by trolleys to the storage. Following their input transactions, they are placed on shelves in their packages. Places of all products are pre-defined. The systems works in this manner.
What solution does Login offer to Lazzoni?
Göktürk: All supply chain and production processes are carried out over Login. The number of users, including accounting and finance, is around 200. The whole supply chain process, including product recipe, can be tracked via software.
For how long have you been providing this solution?
Göktürk: System was set up in 2012. We have been giving support to Lazzoni in terms of supply chain since then. Has there been any update in the program for your requirements in this process? Demir: There have been many updates. We have made numerous updates that we thought to be beneficial for the program. Updates are ongoing. As a matter of fact, we have recently made an update. We updated the database. They will continue as long as we use the program.
How does Login organize these updates?
Göktürk: We have an annual maintenance agreement. Updates and enhancements are applied under this agreement. Some updates are in the scope of maintenance while others are under consultancy service. What the process should involve is consultancy and what our customers need are provided through maintenance agreements.
How does the whole process run on Login basis?
Demir: Customers come to store and make their selection. Customer orders are placed via Login. Our production department plans them weekly. Raw materials and materials are planned according to products that are ordered. Whatever is needed is analyzed. If the need arises, orders for raw materials are placed via Login. Production starts over existing stocks for smooth system operation. We have four production lines, i.e. panel, furnished, classic and painted products. Production lists are distributed according to the results from planning and production starts accordingly. MDF and particle boards are available in the main material storage. Cutting operations start upon work orders. They are processed through banding machine and then, boring machine. These products are later piled in the region that we call interim stock where products of the week will be manufactured. Products are transferred to assembly, painting or classic lines. The required quantity of materials is demanded according to type of product. Recipes are already defined in the system. Products that are completed in the assembly line are labelled. After labels are scanned, materials are removed/deleted from storages. In our facility, products are finished in the form of packages. For example, they are not shipped in a cabinet but in the form of 7 packages. That package is sent to shipment storage. This operation is verified with handheld terminals. When products are dispatched to customers from the shipment storage, output is recorded with handheld terminals. If they are to be dispatched to our storage, transfer is made. These products, combined with their invoices and dispatch notes, form the finished products. Briefly, materials inflow from one end and finished products outflow from the other end. We track and make all processes in between via Login. Is there any sensor or control system in the storage to verify that the right and intact product is delivered to customer? Orman: Our personnel are directly responsible for assembly operations. We offer direct services to customers in this regard. We are also in charge of transport. Receipts are received and thus, the process is completed. If customer claims to be any damage, products will be returned. This entire process is carried out by our personnel.
Which system is in place for consignments?
Pekzorlu:We have weekly plans. We send products to Istanbul on Monday. Dealer shipments are realized on Tuesday. On Thursday, shipments are made to Istanbul again. Our export operations are carried out on Fridays. But these are distributed among the days when the number of semi-trailers and lorries increases.
Are there peak seasons on yearly basis?
Özban: Retail sales are dominant in a five-month period that we call peak season. We try to find and get new projects in other months. We are involved in big projects in order to use the existing capacity of factory to the fullest. As this period is coming to an end, retail product demands from domestic and foreign markets tend to be high and thus, we avoid taking external products in order to prevent tight production schedules.
Is there any investment that you intend to make for short and medium term storage?
Özban: Currently, our physical capacity does not meet our work capacity. Our factory needs to expand in a short time, maximum in one year. We are short of space both in terms of manufacturing and storage. Factory has almost come to its physical limits. We sometimes find solutions by making changes to plans but it is on our agenda to invest in a new place in the short term.