Image
Overview
Heavy-equipment manufacturers chase a high degree of line-side material accuracy as even minor ledger delays can inflate working capital, distort MRP, and expose warranty risk.
Our client, a global producer of engines, power-train components, and integrated energy systems, relied on batch logs and end-of-shift uploads causing mismatch of two days between perpetual inventory v/s system inventory. To close this gap, the company engaged Birlasoft to build a low-code mobile application integrated with JD Edwards for real time operations.
Scanner-driven completions, transfers, and ABC cycle counts are now posted to JD Edwards in seconds, feeding same-day MRP, cutting $3m in buffer stock, and freeing production capacity without adding headcount.
See how we enabled this transformation below.
The Challenge
#1. Need for functionality to empower lean inventory management
Because our client operates high-mix engine lines, they needed to keep inventories lean to hit optimal working-capital targets. However, batch-posted transactions obscured accurate stock for up to two days, pushing planners to over-issue parts and carry needless safety buffers.
That’s why they wanted real-time, scanner-based postings for every receipt, transfer, pick, and shipment. They also required a mobile ABC cycle-count capability.
Together, these features would help create and inject the data needed to achieve inventory accuracy into the flow of work, allowing planners to cut excess stock without risking line stoppages.
#2. Automate inventory backflushing and contextual data capture for downstream processes
Using manual methods for inventory backflushing, printing shipping labels, and collecting serial data caused mismatches, rework, and shipping delays.
To fix this problem, the client wanted a single scan to close the work order, backflush all BOM items, automatically create traveler labels, and stamp each unit with full genealogy data. This would ensure that the work order was closed correctly the first time and that it could be traced downstream.
#3. Eliminate ledger latency to feed real-time Material Requirements Planning
Material Requirements Planning (MRP) drives efficient procurement only when ledger data mirrors the reality of the shop floor. At our client’s facilities, a 48-hour posting lag distorted demand signals. This inflated safety stock while letting real shortages go unseen until the line stopped.
Therefore, they wanted to employ a system that updated inventory transactions in the ledger in near-real-time. This data would then be used to feed a predictive analytics layer for identifying shortages, recommending resequencing, and trimming excess parts. The goal was to make procurement decisions based on data, protect build schedules, and free up capital in overstock.
The Solution
To mitigate the above challenges, Birlasoft modernized the client’s shop-floor execution by pairing low-code mobile applications with Zebra barcode scanners and the JD Edwards Orchestrator.
The new layer captures transaction completion, transfer, or count at the point of occurrence, and then posts them to JD Edwards in seconds. By replacing manual reporting and delayed data entry with an orchestrated, mobile workflow, the solution shortened the end-to-end inventory update cycle from roughly 48 hours to under a single shift, giving MRP near-real-time inputs.
Take a look at the solution elements below.
#1. Purpose-built mobile suite on rugged scanners
The mobile solution enabled the operators to use Zebra TC-series devices that run a custom app. A tile-based home screen exposes Inventory Transfer, Cycle Count, and Work-Order Completion functions.
Users authenticate once via barcode and the session remains active for an eight-hour shift, eliminating repeated log-ins. This keeps the average entry time under four seconds.
During the pilot, the scanners processed around 325 daily transactions, confirming Wi-Fi coverage and device endurance across the entire floor.
#2. Sub-13-second work-order completion
The Work-Order Completion functionality enables operators to scan the item number of the finished item. The solution triggers an orchestration that posts the completion (status 80), backflushes all the bill-of-material components, and creates the finished-goods record in inventory, all at once.
The whole process takes an average of 9-13 seconds, ensuring that the cost roll-ups and genealogy data are finalized before the unit is shipped.
#3. Demand-driven work orders and real-time transfers to feed accurate MRP
To keep JD Edwards aligned with finished output and in-plant material movements, the solution combines Work-Order Completion and Inventory Transfer into a single mobile workflow. Operators scan a completion, or a location-to-location move; Orchestrations instantly backflush components, create finished goods, validate locators, and post the transaction.
This helps planners confidently place purchase and restocking orders because it lets them update inventory and cost data in the ERP during the same shift.
#4. ABC cycle counting aligned with GAAP
To keep GAAP-level inventory accuracy, you need a way to count that works well with production. The mobile ABC Cycle Count module embeds this discipline into daily operations. Users now select an open count, scan the item and location, and submit the quantity, after which orchestrations write adjustments directly to inventory tables while enforcing ABC frequencies.
This lets you keep accurate records without having to stop production, which gives them two to three extra production days every quarter and lowers the cost of labor needed for physical inventories.
The Impact
The solution delivered by Birlasoft delivered the following results to the client:
- Shifted inventory and costing updates from 48-hour delay to sub-shift latency (13s completions, 45s transfers), enabling same-day MRP.
- Cut cycle inventory by $3Mn while meeting 1.5x demand and achieved 99% on-time line supply by eliminating double picks.
- Kept the net headcount flat through scan-based transactions and automated backflush, even as daily throughput grew 50%.
- Deployed GAAP-aligned ABC cycle counts, which let them skip physical counts and freed two to three production days per quarter.
- Captured revision genealogy at scan, meeting customer-specific compliance mandates and avoiding chargebacks or rework.
Lastly, the engagement also provided a $4m opportunity for the client to use an advanced analytics solution in addition to the current architecture.
Looking to modernize inventory orchestration at your facilities? Get in touch with Birlasoft to achieve similar results.
