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Automating Cycle Counts Integrating Handheld Devices with ERP Systems

Author(s) Ravikumar Thinnatti Palanichamy
Country United States
Abstract Inventory control is the cornerstone of manufacturing, supply chain, and retail businesses. The precision of inventory data has a direct impact on production efficiency, order fulfillment, procurement planning, and financial reporting. Of various methods of inventory validation, cycle counting is a widely used process because it smoothes the effort of auditing the inventory across time, avoiding disrupting operations. Historically, though, the cycle count process is manual and prone to errors, particularly in companies that still use legacy Enterprise Resource Planning (ERP) systems and standalone handheld devices.
This paper suggests a strong framework to automate the cycle count process by linking handheld scanning tools with ERP systems using a Microsoft .NET-based portal platform. The objective is to harmonize real-time data from ERP systems and Manufacturing Execution Systems (MES), display it for decision-making, and optimize the physical counting and data entry process. The solution specifically targets difficulties encountered in manufacturing settings where real-time inventory accuracy is difficult to achieve due to ongoing material consumption (backflushing), production variations, and incompatibilities between systems.
The problem statement under discussion highlights the procedural and technological loopholes of manual inventory cycle counting. Old ERP systems are generally incompatible with new handheld devices. Organizations are stuck between either spending on expensive ERP upgrades or creating interfaces to integrate new hardware with legacy systems. The latter provides a cheaper and quicker means to attaining inventory accuracy.
The solution that is being suggested involves the creation of a portal system based on Microsoft.NET and hosted on the Azure platform. The portal interacts with existing handheld devices and pulls data from ERP systems through MuleSoft APIs and MES systems through customized integrations. The portal harmonizes inventory data from both systems—both stock parts and Work-in-Progress (WIP) inventory—over 13 accounting periods. The information is displayed in color-coded indicators representing past, present, and future cycle counts, which allow analysts to make instant decisions.
Once the analyst verifies the parts to cycle count, the task list is dispatched to handheld scanners used on the warehouse floor. Users perform physical counts utilizing the scanners, and the captured data is pushed back to the portal to verify. Once verified, the reconciled data is posted back to the legacy ERP system to remain the source of truth.
The deployment yields tangible advantages: a 35% decrease in costs of manual cycle counting, elimination of paper-intensive processes, 320 hours less of manual data entry labor each month, and over a 40% improvement in inventory accuracy. These enhancements not only decrease carrying costs but also increase trust in inventory reports and allow for improved planning and forecasting.
The paper offers a cost-effective and scalable solution to automate cycle counting by consolidating handheld technology and legacy ERP systems seamlessly. It illustrates how properly designed middleware interface can bridge the gap between old systems and new operational requirements, generating both long-term and short-term ROI. The findings strongly recommend portal-based solutions as a means of modernizing and automating inventory management procedures within manufacturing settings.
Field Engineering
Published In Volume 2, Issue 2, February 2021
Published On 2021-02-05
Cite This Automating Cycle Counts Integrating Handheld Devices with ERP Systems - Ravikumar Thinnatti Palanichamy - IJLRP Volume 2, Issue 2, February 2021. DOI 10.70528/IJLRP.v2.i2.1542
DOI https://doi.org/10.70528/IJLRP.v2.i2.1542
Short DOI https://doi.org/g9hncp
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