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China motor plant improves inventory

A handheld barcode reader enables instant inventory updates.

Energy-saving motor manufacturer Shanghai CHILO Press Company has implemented an automated inventory solution powered by Microsoft.

CHILO’s solution, developed by Microsoft partner Digital China, allows for instant inventory updates through the use of handheld barcode readers powered by Windows Embedded Handheld.

These readers connect to access sites located throughout the factory, and the company’s back-end enterprise resource planning system and a Microsoft SQL Server data warehouse running on Windows Server.

Before implementation, inaccurate and inefficient manual data entry contributed to a loss of 50 per cent of profit, according to CHILO.

With better inventory management and a ‘first in, first out’ strategy, we’ve avoided product degradation due to rust

Lili You, Shanghai CHILO Press
Six months after automating the system, that number dropped to four per cent.

Greater accuracy in inventory management allows CHILO to more finely target orders of raw materials and to meet inventory refreshment goals.

“With better inventory management and a ‘first in, first out’ strategy, we’ve avoided product degradation due to rust,” said Lili You, the company’s production director. “As a result, we converted a 600,000 (Chinese) yuan (US$96,000) inventory loss to one million yuan (US$160,000) profit in sales within the same six months.”

Shanghai CHILO Press Company; the manufacturer is one of only five of its kind in the world that designs and builds custom energy-saving motor technology.

The company, which creates motors that power everything from home appliances to factory cranes, also has faster ship times and more accurate in-stock reporting.

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