Artic Cold Storage Taps 3PL Software as It Expands to Serve Hormel Subsidiary

Company doubles size of warehouse to service key client; builds out Headwater suite with more seats, more technology

Company doubles size of warehouse to service key client; builds out Headwater suite with more seats, more technology

St. Cloud, MN — April 28, 2006 — Artic Cold Storage, which last year installed Headwater Technology Solutions' SmartEnterprise third party logistics (3PL) software suite, has completed construction of an addition that nearly doubles the size of its facility and has expanded its software system with more user seats, expanded wireless technology capability and with implementation of untended computer-to-computer communications.

The addition represents approximately 80,000 square feet/2,400,00 cubic feet in the one-story controlled-temperature facility, with all of the new space devoted to servicing Hormel Foods subsidiary Jennie-O Turkey Store.

About 20 additional personnel are assigned to the Jennie-O business, and the number of users on the SmartEnterprise software has increased from 30 to a total of 40. Automated RF warehouse communications have been expanded with the tripling of the number of Teklogix RF units, to a total of 30.

The company currently is implementing several ANSI EDI transaction sets that will enable untended computer-to-computer communications between Artic and Jennie-O and subsequently with other clients as well.

"In the short time we have used SmartEnterprise, we've come to value its capabilities very highly," said Artic General Manager Jay Condon. "For example, the RF solution enables directed putaway and picking following instructions that come directly from the software. The catch weight feature allows us to expedite loading by taking weights right off the cases or pallets during the picking process. Using this input, the system can automatically generate a loadsheet and update inventory quickly and accurately."

Among its other capabilities, SmartEnterprise enables the company to establish standard operating procedures by client or workflow, helping to ensure that it can offer consistent repeatable processes that are specifically established for each customer and its clients.

"One of the greatest benefits of using SmartEnteprise is the discipline and accountability that are built into the system," Condon said. "Employees are aware of the precision it imposes and they take more pride in their work, since it makes processes work better. Because it is extremely scalable, the build-out has been quick and easy.

"Jennie-O personnel are impressed with the system's flexibility, features such as the ability to observe Wal-Mart retention requirements so easily. For example, if the system determines that a product is not in the ship-range, it will skip right over it. In fact, if there is a custom requirement, SmartEnterprise can handle it."

According to Headwater Senior Vice President Joe E. Couto, Arctic is one of three Jennie-O logistics providers that manage their operations with Headwater's SmartEnterprise 3PL solution.

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