Mechanical Production

Argo Tractors Spa

SPOT LOGISTICS EXPERIENCE - ARGO TRACTORS SPA

Company

Argo Tractors is one of the companies belonging to the Argo Group and was established in 2007 with the intention of creating a tractor manufacturing undertaking of worldwide importance.

With a production capacity of more than 22,000 tractors manufactured and marketed under the LandinI, McCormick and Valpadana brands, Argo Tractors is one of the most important players in the western world.

True to the philosophy of the Argo Group, Argo Tractors’ dealings are founded on strongly integrated manufacturing and trading activities that link the various business areas, i.e. sales, R&D. engineering, purchases, logistics, pre and after-sales services, in a univocal and linear way.

Some figures of Argo Tractors

The production is based on the synergy achieved by 5 plants, each one of which dedicated to a specific product line, and 1 after-sales service centers.
The R&D and engineering divisions are located in the main headquarters of Fabbrico (Reggio Emilia). All factory areas are equipped with quality control facilities aimed at achieving the qualitative excellence, being this one Argo Tractors’ prime goal.

22.000

tractors manufactured

plants

after-sales service centers

trading companies

Tractor Manufacturing plants

Fabbrico

San Martino in Rio

Luzzara

Fabbrico

Cab Manufacturing Plant

Fabbrico

Delivery Terminal

San Martino

Parts Center

Choosing Replica Sistemi was a challenge as in the late 1998 Replica Sistemi had just started taking its first steps in warehouse logistics. Replica showed strong commitment by employing skilled and talented professionals. Currently our facilities operate with about one-hundred RF scanners and plenty of PCs connected to StockSystemEvolution to manage materials handling and traceability.

Roberto Bolognesi. Argo Tractors Spa - IT Manager

CHALLENGE

In 1998 Argo Tractors Spa management team decided to embark on a re-engineering project that would redesign certain aspects of the logistics process to improve logistics flows operational productivity and management of the warehouses serving the 3 manufacturing plants.

Key objectives of the re-engineering project:

Automation of manual or paper-based flows
Faster materials supply for assembly-line
Error reduction in assembly-line materials selection
Better customer relationship and service
Systems alignment of the 3 manufacturing plants

SOLUTION

After a thorough investigation into the solutions available on the market Argo Tractors selected Replica Sistemi’s StockSystem, integrated with Radio-Frequency barcode readers to streamline receiving, putaway, picking and checking operations. Actually warehouse activities were run basing on a Radio Frequency system which enabled real-time data exchange with the warehouse management system. Accordingly, warehouse operators were properly equipped with mobile handheld scanners communicating via RF with wireless access points throughout the warehouse.

Relationship's main steps

1998

Re-engineering project and selection of StockSystem for spare-parts/replacements warehouse.

September '98, enabled receiving processes and putaway.

December '98, work-order/picking and related despatch.

2004

StockSystem WMS extended to Argo France's spare-parts/replacements warehouse

2006

StockSystem WMS extended to Laverda's spare-parts/replacements warehouse

2008

StockSystem WMS extended to the manufacturing plant in Fabbrico

2011

StockSystem upgrade to StockSystemEvolution.

StockSystemEvolution extended to the manufacturing plants in San Martino and Luzzara.

Installed Products

StockSystem and StockSystemEvolution since 2011.

57 Honeywell 9551 and 9951 mobile handled scanners.

Project

The project covered three distinct phases:

1. Needs assessment and process analysis:

Process analysis for the goods flow management
Pinpoint weaknesses in the processes
Define the fundamental steps of the existing processes to be preserved by the new system

2. Analysis

First, the analysis related to processes and flows were carried out in collaboration with Replica Sistemi’s Project Manager. The analysis was aimed at:

Layout solutions have been defined basing on the peculiarities of any area:
- storage systems (shelves, staging, pallet racking etc.),
- use of lift-trucks,
- back-office activities (offices for order, shipping, receiving control management etc.)
Outlining a functional layout for the following areas
Receiving, unloading, input activities (such as quality control, labeling, packing etc.)
Slotting, putaway, transit
Order preparation for despatch, loading, output activities (automatic packing-lines controlling materials and applying packages basing on the shipment with specific preparation of delivery-note for any carrier)
Definition of areas and volume
Definition of the layout
Selection of storage systems
Selection of industrial trucks(lift-trucks, fork-lifts, pallet jacks etch.)
Definition of receiving, slotting and picking capabilities: putaway/transit and cross-docking.
Stock management (ABC Analysis), inventory

3. Integration

Receiving
Sorting in unloading areas
Sorting in quality & testing areas
Putaway in mapped locations
Assembly-line refilling (supply of needed materials)
Picking from warehouse locations
Feeding assembly-lines
Shortage monitoring and control

In the manufacturing industry, StockSystem manages and controls:

Receiving
Sorting in unloading areas
Sorting in quality & testing areas
Putaway in mapped locations

Assembly-line refilling (supply of needed materials
Picking from warehouse locations
Feeding assembly-lines
Shortage monitoring and control

StockSystem helped achieve space optimization and reorganization, streamlined activity organization and assignment, which resulted in increased operators’ skills in addition to a clearer visibility on individual tasks and possibility to check and re-assign activities in case of inefficiency.

Receiving

Receiving real-time records
Full labeling of goods
Traceability
Quantity control
Automated quality and testing procedure

Putaway

Dedicated areas by type of material
Definition of fixed/variable locations
Putaway driven by the system
Automated assignment of device/lift-trucks by type of putaway

Picking

Automated picking-list generation
Picking-list assignment per area/operator
Picking optimization by route/priority
Automated tasks communication to operators (order picking)
Workload sharing

Control

Sorting with cartonization and packing-list
Order preparation for carriers/shippers

Benefits

Reduced time in assembly-lines feeding (corresponding to 3 days work/man from material request to its supply)
Reduced labor and workforce
Faster error . recovery
Faster forecasts on materials required
Stock reduction