Quick cover email (you can paste this to the client)
Subject: Next steps for Arda pilot (GTX/GBT or high‑churn aisle)
Hi Arturo, Natalie, and Raul —
Great meeting you. Attached is a short proposal for a 4–6 week pilot that replaces manual low notices with scan‑based Kanban, adds a line‑side supermarket and hourly tugger route, and posts movements back to your AS/400 ERP.
To get you a firm quote, could you share (1) item master + usage for the pilot area, (2) a simple aisle/bin map, and (3) a quick site walk (virtual is fine)? If Kyle’s Florida trip lines up, we’ll plan an on‑site near Fort Lauderdale and loop in David for the review.
Once we have the data, we’ll finalize PFEP, card counts, and integration tier (file/SFTP is usually fastest for AS/400) and confirm timelines.
Thanks again—confident we can cut manual chases, protect the lines, and give you real‑time visibility.
Uriel
Arda Proposal
Kanban & Digital Replenishment Pilot
Client: Marine HVAC/Refrigeration Manufacturer (Florida plant, ~45 min from Miami; near Fort Lauderdale)
Stakeholders: Arturo Lamas (Materials Manager), Natalie (Warehouse Supervisor), Raul (Production Supervisor), David (General Manager)
Arda: Uriel Eisen (solutions), Kyle Henson (accounts), Mat Hager (customer success)
Date: October 6, 2025
Executive summary
One building with 23 production lines. Warehouse: ~15 pallet aisles (7 levels tall) + small‑parts aisles; inventory held both as pallets and loose‑part bins. Material flow today: line‑side floor stock bins; warehouse team replenishes manually. “Low notices” are manually sent when a bin empties. Pain: Notices are often missed or late, causing cross‑line scavenging and line stops/delays. Warehouse staff and supervisors spend significant time searching and reconciling. Systems: ERP on AS/400 (IBM i); scanners (“handheld gun”) in use; MRP runs 3×/week; some VMI coverage (e.g., NSK). ERP does not consume inventory when it moves from warehouse to floor, so stock appears available though it’s on the shop floor. Team: ~8 material handlers. Pilot interest: GTX/GBT area (critical, many parts/assemblies), or one high‑churn aisle; desire for real‑time interaction with ERP and location‑level visibility. Stand up multi‑card Kanban loops and a line‑side supermarket; schedule a tugger route; replace manual “low notices” with scan‑based triggers and live dashboards. Post movements to ERP (WIP consumption / location transfers) via a phased integration path that works with AS/400 realities. Deliver fast pilot value in 4–6 weeks, then scale across lines/aisles. Results to expect (pilot targets) ≥ 80% reduction in manual emails/messages for replenishment. Replenishment lead time (trigger‑to‑delivery) ≤ 60 minutes at pilot area. Measurable drop in cross‑line scavenges and line stops due to material. Clear, live view of warehouse vs. floor location balances. Current state & challenges (from your team)
Floor uses bins at each work center; no standardized line‑side supermarket today. Material handlers refill line bins; when empty, a manual “low notice” should be sent to inventory control; notices are often missed. If the warehouse is out, teams search other lines and reallocate. ERP (AS/400) shows stock in warehouse while much is sitting on the floor; consumption not recorded when stock moves to line, causing planning blind spots. MRP: run 3× per week; not used operationally by the warehouse for day‑to‑day line support. Frequent delays and avoidable line stops. Significant time cost for handlers and supervisors (searching, checking locations, rebalancing lines). Inconsistent replenishment quantities (e.g., dumping a full 500‑piece bin to one line that only needs five). High variability in information flow; reliance on individual behavior. Objectives
Replace manual low notices with scan‑based, real‑time triggers. Protect line uptime and eliminate cross‑line scavenging with a standard tugger route and line‑side supermarket. Achieve location‑level accuracy (warehouse vs. line) and post WIP/consumption to ERP. Provide simple dashboards for warehouse, line leads, and materials, so everyone sees what to pick, where to deliver, and when. Stand up a pilot quickly (GTX/GBT or a high‑churn aisle), then scale. Proposed solution (process + Arda software)
Process design
Create a line‑side supermarket for each chosen area, sized by tugger route time and consumption rate. Line bin (WIP) → Triggered (empty) → Supermarket pick → Deliver → Swap Supermarket → Warehouse pick → Repack (where applicable) → Back to supermarket Optional pallet‑level Kanban from warehouse to vendors (or repack) for upstream signals. Start with an hourly route, adjustable after Week 2 of pilot based on observed takt/consumption. Standard work: pick up triggered bins/cards, deliver replenishments, return empties for repack/put‑away. Kanban bin sizing (example) Formula: C = D × L × (1 + S), where C = cycle stock required (pieces), D = average demand rate (pcs/hour), L = supply interval (hours) = tugger route time, S = safety factor (start at 0.5 for new loops). Nbins = ceil(C / Qbin), where Qbin is the practical bin quantity. Example (from call pattern): If a station uses 20 pcs/hour, route L = 1 h, S = 0.5, Qbin = 10 → C = 20 × 1 × 1.5 = 30 pcs → Nbins = 3 (1 WIP, 1 in‑transit, 1 safety). We will perform this PFEP across pilot SKUs to standardize bin counts and quantities. Maintain two inventory forms: pallet stock and supermarket bins. Add repack Kanban: when a supermarket bin is refilled, scan to decrement pallet stock and post movement to ERP.
Arda software enablement
Cards & scanning: Print QR/Code‑128 Kanban cards tied to parts/locations; scanning an empty bin creates a replenishment order in Arda’s Order Queue. Warehouse: “what to pick now” by area/route; aging of triggers; SLA countdown. Line/area: live status of bins (WIP/in‑transit/safety), with visual shortages. Management: line‑stop events due to material, service level, and scavenge count. Integrations (phased): see Integration Plan below. Pilot scope & acceptance criteria
Recommended Pilot Area (Client Choice):
Option A – GTX/GBT area (your initial preference) Characteristics: critical area, many parts per unit (up to ~100), frequent replenishment touches. Initial target: 120–200 SKUs (start with the highest‑churn and most disruption‑prone); ~350–600 cards (assuming avg. 3 cards/SKU; validated by PFEP). Option B – One high‑churn aisle 60–100 SKUs; ~180–300 cards; narrower footprint and faster time‑to‑value.
Acceptance criteria (achieved by end of Week 6):
≥ 90% of replenishment requests raised by scan, not by email/voice/Slack. Median trigger‑to‑delivery ≤ tug-route minutes during staffed hours on the pilot route. Line stops due to material reduced ≥ 50% in the pilot area (tracked daily). Cross‑line scavenges reduced ≥ 75% (exceptions documented). ERP postings reflect warehouse vs. floor movements for pilot SKUs (method per Integration Plan). Implementation plan & 6‑week timeline
Integration plan (AS/400‑friendly, choose tier)
Tier 0 – No‑code start (fastest)
Arda is system of execution for pilot; nightly CSV/email to materials/ERP admin listing movements and suggested transactions (WIP/location transfers). Pros: Start immediately; zero IT lift. Cons: Not real‑time in ERP.
Tier 1 – File/SFTP near‑real‑time (recommended for pilot weeks 3–6)
Arda emits CSV to SFTP on each scan/batch; a lightweight watcher (scheduled job or RPA) posts inventory moves to ERP (WIP/transfer). Pros: Near‑real‑time; minimal risk to core ERP. Cons: Simple middleware needed.
Tier 2 – Direct DB2/API (phase 2)
If permitted, Arda connector writes location transfers and consumption directly to AS/400 tables or via existing API. Pros: True real‑time; least manual effort. Cons: Requires IT engagement and change control.
We will align with your IT/controls and start at Tier 0 → Tier 1 during the pilot.
Success metrics (tracked daily/weekly)
Service level: % of triggers delivered within tug-rout duration. Line stops due to material (count and minutes lost). Cross‑line scavenges (events/week). % replenishment raised by scan (goal ≥ 90%). Warehouse vs. floor accuracy for pilot SKUs (location balance variance). Average tugger cycle time and bin availability (WIP/in‑transit/safety). ROI / savings sketch (assumption‑based, to be validated in pilot)
Search & rebalancing time today: team of 8 handlers. Scenario A (conservative): 0.5 hr/day/person → 4 hrs/day → ~1,000 hrs/yr. Scenario B (mid): 1.0 hr/day/person → 8 hrs/day → ~2,000 hrs/yr. Scenario C (upper): 1.5 hr/day/person → 12 hrs/day → ~3,000 hrs/yr. Illustrative labor value (fully loaded) at $35/hr: A: $35k/yr, B: $70k/yr, C: $105k/yr saved from reduced searching/rebalancing alone. Uptime protection: Even a modest reduction in line‑stop minutes (e.g., 15–30 min/week across the pilot area) typically dwarfs labor savings—quantified during Weeks 4–6. Inventory right‑sizing: Standardized bin quantities usually yield a 5–15% reduction in floor stock for the pilot SKUs while increasing uptime (validated by PFEP).
All figures are directional; we’ll replace assumptions with measured pilot data.
Pricing model (budgetary / to be finalized after PFEP)
Subscription: Per‑card pricing (multi‑card loops) + modest platform fee. Implementation: Remote enablement included for typical pilots; optional on‑site (day‑rate + travel). Integration: Tier‑based (Tier 0 included; Tier 1 minimal; Tier 2 scoped with IT). Printing & materials: Cards/holders/bins/signage are pass‑through.
We will present a firm pilot quote after Week‑1 PFEP confirms SKU counts, card volumes, and integration tier.
Assumptions & exclusions
Pilot will focus on GTX/GBT or one high‑churn aisle, not all 23 lines. Client provides item master, usage history, locations, and floor map for PFEP. Client provides or approves bin hardware and tugger resources. ERP postings during pilot will start Tier 0 → Tier 1 unless IT approves Tier 2. VMI (e.g., NSK) remains in place; we can add vendor‑level Kanban later if desired to reduce material costs by as much as 30% Next steps & required inputs
NDA: Send us your standard NDA, or we’ll send ours. Data export (pilot scope): Item master (SKU, description, UoM, packaging, supplier, lead time). On‑hand by location (warehouse & any floor locations you track). 3–6 months of usage/issue history (if available). Aisle/bin map for the candidate area; list of GTX/GBT SKUs if choosing that option. Site walk: 60–90 minutes (virtual acceptable); if Kyle is in Florida next month, we’ll coordinate an on‑site visit near Fort Lauderdale. Choose pilot: GTX/GBT vs. one high‑churn aisle. Target start: As early as Week of [+2 weeks from data hand‑off].
