CheckPoint: Dorfman Pacific Rolls Out a New Wireless Warehouse

Axia College

IT/ 205

June 11th, 2010

 Define the problem at Dorfman Pacific

The problems at Dorfman Pacific all stem from basic inefficiencies due to outdated

shipping, and packaging methods that still involve the use of a large “paper trail”. Dorfman

Pacific also suffers from an almost complete lack of MIS to help guide, and streamline

information across all departments. Outdated methods are causing an extremely high labor cost

in busy seasons due to the lack of a “paperless” of digital system. Dorfman Pacific current

warehouse size is also not sufficient enough to keep up with newly acquired big-box clients such

as Wal-Mart, and JC Penney. Dorfman Pacific also lacked any type of bar code system, which

made their massive inventory almost impossible to navigate with any type of speed and

efficiency.

In order to launch Dorfman Pacific out of the dark ages and into the 21st century, major

changes were going to have to be implemented in every department that would streamline

several processes required to operate. As with any major changes, all company procedures and

methodology will have to be analyzed to ensure that whatever changes are to be made will serve

the end goal of increasing profitability, while reducing labor costs, costs of goods and services,

and increasing employees ease of use, and therefore increasing overall efficiency.
Alternative solutions

Virtually any alternative to the current archaic, and outdated system set in place would be

an improvement, which is definitely a positive moving forward. As discussed in the prior

paragraph, the largest problem facing Dorfman is the overall lack of efficiency, and

communication between departments. A lack of efficient methods for moving, tracking, and

shipping products also was a big problem.

The initial and obvious solutions would be to completely scrap the current IT systems in

place due to their counter productivity, and lack of cross compatibility. A new IT system that

will efficiently link the communications between all departments at Dorfman must be

implemented. The system should link inventory with suppliers and clients to make ordering, and

shipping almost instant. New digital methods of tracking inventory should be implemented

through the use of bar codes; effectively eliminating any “paper trail”. Complete wireless

operation is possible through the use of hand held devices by employees in production that

directly link inventory to the shipping department. Due to the sheer size, and layout of the

warehouse this option might be quite costly. A mix of wired and wireless LANs might be a more

cost efficient method in linking production, and shipping with other departments and clients.

Wired terminals could be used in areas in the warehouse that would be hard to reach with

wireless. Again, wired terminals mixed with wireless devices used by employees in production

and shipping might be a more cost efficient alternative to a large amount of extremely powerful

wireless devices.
The best solution, and implementing it

In my opinion the best solution is immediate disposal of the current IT system, and any

non digital method of tracking inventory, or sales of products. Implementation of a new IT

system including: hardware, and software that has compatible applications for all departments.

Efficient, instant communication should be available between all departments, clients, and

suppliers. When a product is sold the information will be made available to the production, and

shipping departments. The client will also know that the product is en-route, and the supplier will

know what products they need to send in order to re-stock. A powerful LAN will be

implemented using a mixture of wired and wireless components; as opposed to a very costly total

wireless system. Wired terminals will be set up throughout the extremely large warehouse where

wireless handheld devices can be docked at to send and receive information. The implementation

of an efficient bar-coding system will help track inventory to at least double the efficiency of

sales, production, and shipping. Barcodes will be able to be loaded into handheld devices used by

warehouse employees, to send and receive information regarding inventory that is coming or

going. Everything from product to supplies, even office supplies can be bar-coded to make

inventory exponentially more accurate.

Offsite IT consultants will provide managerial and employee training for the new

hardware, and software. Department managers will take an active role in the restructuring of

their specific department, as well as effective and efficient training of all employees within each

department.
System building methods used by Dorfman

Dorfman Pacific was aware that their problem was mainly due to inefficient methods that

revolved around their outdated non-digital method of shipping, and inventory control. Once they

realized the problem they to develop alternative solutions. The analyzed every aspect of their

current business model, and realized their alternative methods to increasing efficiency started

with a new IT system. Dorfman then began to implement different high quality software

applications that included warehouse software from HiJump, and bar-coding software from

Zebra Technologies. Once a new IT system was tested and implemented Dorfman decided a

faster way to send and receive information from their extremely large warehouse floor was to use

a wireless system. However, it had to be powerful in order to overcome the physical obstacle.

The wireless LAN they implemented used 15 access points spread throughout the warehouse,

making it possible to send and receive information from anywhere within Dorfman. 40 handheld,

and forklift mounted wireless PDA’s to accurately track their enormous inventory. Dorfman’s

system methods increased their efficiency so much they saved over $250,000 the first year alone,

working with much less staff, with a much heavier workload.

Suggested Methodologies

The methodologies I would suggest using for modeling and deigning my proposed

system would be the structured methodology. Using a “top down” system to explain the highest

level of detail down to the lowest would probably be the most thorough and efficient way to

propose my system. Using a data flow diagram, would definitely be a very logical tool to explain

visually what I would be trying to accomplish through my proposed system

References

Wailgum, T. (2005). At Dorfman Pacific, Warehouse Turns Wireless. CIO Case Study. 

Retrieved from: http://www.cio.in/case-study/dorfman-pacific-warehouse-turns-wireless

Essentials of Management Information Systems Dorfman Pacific Rolls Out a New Wireless

Warehouse on p. 395 of Essentials of Management Information Systems.