Managing the supply chain for any product is a formidable task. What, then, would the procedure be like for a company that manufactures pastries, cakes and ice creams? In this case study by Psion Teklogix, the focus is on these perishable products

Founded in Milan, Italy in 1946, Bindi is world renowned for its imaginative ice creams, cakes and desserts. Over the years, traditional skills and original recipes have been combined with modern production techniques to ensure consistent, high quality products for their customers. Bindi is the prestige brand of the Society of Italian Alimentary Producers (S.I.P.A). The company produces roughly 35,000 pastries per day. It supplies 180 concessions, provides other companies with products for branding, as well as selling directly to the final consumer via its own stores.

Total annual revenue of S.I.P.A. is approximately Liras150 billion (US$75 million), of which 30 per cent is derived from markets outside of Italy. Foreign sales are rapidly increasing, particularly in western Europe, US and Japan. The company supplies both fresh and frozen final products.

This translates to extremely complex logistics for S.I.P.A. “It’s a fairly unique situation,” says Dr. Marco Scurati, Operations Director. “Not only are the products delicate, they must reach the final consumer in excellent condition. Therefore, the timelines of handling are of utmost importance, and the warehouse must be strictly managed.”

The main warehouse is kept at a temperature of -22 degrees Fahrenheit
to maintain the quality of its frozen products. It holds 7,000 to 8,000 pallet sections and manages approximately 700 different codes. More importantly, there are 70,000 to 80,000 containers delivered per year, each with multiple layers, which require an incredible amount of sorting. As a result, management of the logistics is extremely complex. Staff must manage an extraordinary number of references for various types of customers with different service requirements, all in an environment of -22 degrees Fahrenheit.

The complex logistics of the warehouse gave rise to a need for automatic individual identification and tracking of each Bindi product. Another critical aspect to consider was the passage of equipment from a temperature of -22 degrees Fahrenheit to approximately 32 degrees Fahrenheit. This thermal increase results in condensation, which is harmful to normal electronic equipment and cables. “It was very important that the portable terminals function in both environments,” said Paolo Zanini, IT Manager.

The solution Psion Teklogix was chosen to provide the solution due, in part, to the reputation of its hardware to be rugged enough to withstand the frigid conditions of the warehouse. “We wanted a supplier who had proven that they could meet our needs,” says Scurati. Psion Teklogix devices have been subjected to laboratory tests that verified their ability to endure and perform in such conditions.

The automatic identification system is based on narrowband radio frequency transmission, in part because of its known reliability. The system is comprised of one Wireless Gateway operating as a mini-controller and one operating as a Base Station on slave mode, managed via the Ethernet, using TCP/IP protocol. In phase one of the system implementation, the company adopted the use of five hand-held terminals (Psion Teklogix 7030) and four vehicle-mount, full screen terminals, as well as eight scanners.

The automated system identifies each product by means of a barcode, and tracks its progress from production, to the warehouse and through to delivery. When the products arrive at the warehouse, the operator can determine from the terminal where to place them, based on the required conditions as well as optimisation of warehouse spaces. Products entering the warehouse are first considered ‘on hold’, pending laboratory analyses. The lab, based on a strict set of guidelines, must approve the products.

Upon receipt of a customer order with defined expiration dates, the system determines availability. The warehouse operator verifies the information and gives the order to prepare the product for release. Operators receive all order information and verification via the terminals, and arrange for the loading of the product onto the appropriate vehicles. The system retains all the information on the released product, including the name of the customer to whom it has been sent.