01
Client Profile & Background
A large-scale manufacturing company in Bekasi, West Java, with over 5,000 SKUs and a warehouse spanning 10,000 square meters. The company produces automotive components and exports to Southeast Asia and Australia. Their existing inventory management relied on manual data entry using spreadsheets, leading to frequent discrepancies and delayed shipments.
The company operates three warehouses: raw materials, work-in-progress, and finished goods. Each warehouse handles hundreds of transactions daily, including receiving from 50+ suppliers and shipping to 30+ distributors. The manual process required 20 warehouse staff dedicated to data entry, yet inventory accuracy was only 85%.
02
Technical Challenge
The primary challenge was the high error rate in inventory records. Manual data entry resulted in approximately 12% inaccuracy, causing stockouts of critical components and excess inventory of slow-moving items. This led to production delays costing an estimated Rp 500 million per month in lost revenue and expedited shipping fees.
Additionally, the company faced difficulties in tracking lot numbers and expiry dates for raw materials. Without a barcode system, they could not perform efficient cycle counting; a full physical inventory took 3 days and required shutting down warehouse operations. The lack of real-time visibility also made it impossible to provide accurate inventory reports to management and auditors.
03
Implemented Solution
Intilogy deployed an end-to-end barcode inventory system integrated with their existing SAP ERP. The solution included HP ruggedized mobile computers with integrated barcode scanners for warehouse staff, Synology NAS devices for local data storage and backup, and hyperconverged infrastructure for the application server. The system uses 2D barcodes for all SKUs, lot numbers, and bin locations.
The software layer consists of a warehouse management system (WMS) from a leading vendor, configured with rules for FIFO and FEFO inventory rotation. The system communicates with SAP via middleware using EDI standards. Training was provided to 50 warehouse staff over two weeks, and the rollout was phased: finished goods first, then raw materials and WIP.
04
Results & ROI
Post-implementation, inventory accuracy improved to 99.5%, reducing stockouts by 90%. Cycle counting now takes 4 hours per warehouse without disrupting operations. The company eliminated 15 data entry positions through attrition, saving Rp 750 million annually in labor costs. Order fulfillment time decreased from 48 hours to 24 hours, increasing customer satisfaction.
The ROI was achieved within 6 months. The system also provided traceability for lot numbers, enabling faster recalls and compliance with automotive industry standards. With backup and disaster recovery via Synology, data is replicated offsite, ensuring business continuity. The company plans to expand the system to their other two factories in Java.
