During the second half of 2005, CIBER Novasoft, a division of CIBER Inc., successfully implemented a new low-cost wireless warehouse management system for the Sacramento Municipal Utility District (SMUD; Sacramento, California, U.S.). The project, which involved new technology, began in mid-July 2005 and went live in mid-November 2005, a record time for adding new technology and functionality to SMUD's existing SAP foundation. SMUD, the sixth largest publicly owned utility in the United States, uses the warehouses to store items needed to service and maintain residential and commercial utility accounts and power production equipment.

For the project, CIBER implemented SAP's warehouse management solution and new WEBSAPConsole product, a wireless network and bar-coding applications at SMUD's two major warehouses. CIBER also recommended business process changes to improve inventory control and eliminate stock outages.

With the new solution, SMUD's material handlers can enter or scan inventory information on wireless handheld computers, allowing the utility to maintain an accurate, detailed, up-to-the-minute view of inventory. The solution also allows SMUD to schedule warehouse resources most efficiently, without increasing response time or diminishing customer service.

Benefits were evident on the very first day of use. SMUD's material handlers quickly adapted to the new process because of its user-friendly interface and ease of use. The system launch was a smooth transition, causing no extended wait time for warehouse customers, while providing more detailed and accurate inventory information and material requirements planning results.

“The manual process was time consuming because it required the information to be handwritten and then keyed into the system, leaving room for error,” said Linda Johnson, SMUD CIO. “The new solution provides a faster and simpler way for our material handlers to capture the data, allowing them to focus more on serving their customers.”

“SMUD has made a smart investment in its warehouse management system,” said Bob Wiltse, CIBER vice president and SAP practice leader. “This investment will pay off handsomely for them in terms of reduced costs, more accurate data and simplified business practices. SMUD is truly on the leading edge of utility providers in this regard.”

SMUD began doing business on Dec. 31, 1946, and has since grown to provide electric power to residents and businesses in Sacramento and a small portion of Placer County, providing more than 500,000 customers with electric energy service.