Royale Cold Storage, one of the biggest cold storage facilities in the Philippines, found a partner to help them boost efficiency through digital technology.
RCS chief executive Ferdinand Tongson acknowledged the inconvenience of using paper in inventory management, so in 2014, they began looking for a digitalization partner that meets their requirements and understands the complexity of the firm’s operations.
“Operating in a paper-based system presents some difficulties, particularly in inventory management: Writing things down on paper and then transferring the data to our computer system causes delays, if not errors. In terms of stock location, we had to manually locate available slots, which is time-consuming and involves a lot of human intervention,” he said.
After talking to local and international top-level warehouse management system providers, Tongson announced the digitalization of RCS’s warehouse operations.
“After doing due diligence on their technical capability, a lot of meetings and exchange of ideas, we chose AEB because they were able to meet our requirements and they provide the best value for money in terms of WMS implementation,” Tongson said.
AEB, a Germany-based cloud software specialist with 40 years of experience in global trade, logistics and IT was recommended by one of their suppliers. AEB’s service called Cold Chain Warehouse Management System now enables RCS to get real-time inventory updates and clear visibility of transparency on the available stocks.
“Through the AEB WMS, we can seamlessly customize the system to manage these different types of items and with fewer errors,” Tongson said.
The system's automated slot allocation and improved storage space utilization ensure faster transactions with clients. The WMS is not only customizable, but also reduces time in receiving and confirming deliveries to clients through AEB’s system-assisted route and mobile applications.
As the COVID-19 pandemic raises concerns about food safety and security, RCS finds the solution to better food handling. This is by having stronger integration of cold storage practices.
Frans Kok, general manager of AEB Asia Pacific, says more restaurants in the country can now offer 24-hour services because of the improved cold storage industry.
“The one thing the pandemic has taught us is that regardless of the industry, office work can be done almost anywhere. As the Philippines positions itself as one of the top offshore service providers in Asia embracing a 24-hour economy, we see more restaurants in the future providing 24-hour services to customers who want quality food anytime of the day. Of course, the cold storage industry is one of those key elements that will enable the food industry to provide quality service,” Kok said.
RCS believes that automating operations is the first step toward its goal of becoming the country's largest cold storage provider in the next two years.
“Our cold storage facility can handle different sets of temperature from +5°C to -20°C. We can handle any type of vaccine, which we expect to come in the next two to three months,” Tongson said.
The company also plans to expand its site network by increasing storage capacity, doubling the 47,000 current pallet positions in the next two years.
RCS expects continuity of good relations with AEB as it grows its operations, thanks to flexible and easy-to-integrate warehouse management system. Mary Beatrice L. Umlas
