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Eaton Reduces Cost per Line Item in Warehouse by 40 Percent
Manufacturer using Robocom's warehouse management solutions to consolidate facilities, reduce costs and streamline operations

Quote from Eaton Corporation IT Analyst Keith Byrne

Farmingdale, NY — August 21, 2009 — Industrial product manufacturer Eaton Corporation has reduced its cost per line item by 40 percent using a warehouse management solutions (WMS) from supply chain execution specialist Robocom Systems International, the solution provider has announced.

In a case study on the use of Robocom's WMS, Eaton Corporation's Hydraulics Division Distribution Center has reduced line item cost by 40 percent, improved shipping productivity by 700 percent and consolidated 13 warehouses into a single facility.

Keith Byrne, IT analyst for Eaton Corporation, explains, "Our goal was to consolidate all of our facilities into one distribution point in order to reduce costs and streamline our operations, employ best practices to maximize our processes, and implement state-of-the-art technology to support our growth strategy."

Since implementing Robocom's WMS, the solution provider said, Eaton has significantly improved its productivity and efficiency while reducing the cost of its distribution operations. "Today we are shipping in one week what we used to do in one month, and we are accomplishing this with fewer people," says Byrne.

Eaton's results include reducing the return by customers of faulty component parts by over 98 percent, achieving a 99 percent inventory accuracy rate based on dollar amount, reducing its costs per line item from $4.00 to $2.44, and cutting the order fulfillment process from 24 hours to 45 minutes.

In addition, Eaton is now able to ship 32,000 line items per week versus less than 5,000 line items per week before implementing Robocom's WMS, according to the solution provider.

"Robocom continues to be keenly focused on the needs of the business leaders responsible for the day-to-day results in warehousing and distribution center operations," said Fred Radcliffe, Robocom President. "The results achieved by Eaton demonstrate the value our software delivers and the importance of our focus."

The Eaton case study is available (registration required) at Robocom's Web site, www.robocom.com