Since Møller Logistikk installed Astro WMS (Warehouse Management System) from Consafe Logistics, productivity has increased by 10%, and picking quality by 20%. The only issue was integrating into an older, proprietary ERP.
Møller Logistikk performs logistics services for Harald A. Møller AS, the country’s largest car importer, and Norwegian dealers of Volkswagen, Audi and Škoda.
The central warehouse at Skedsmo extends over 16,000 sqm and stocks 43,000 parts. Annually it handles 2.8 million order lines items, approximately 11,100 each day.
The number of complaints has fallen sharply. We now control quality, productivity and lead times every day with Astro WMS.
Espen Egelund, CEO, Møller Logistikk
Error correction and normal production
During the following months, Møller Logistikk conducted error correction and tuning of the set-up, while ensuring production and deliveries to dealers.
The goal was as little disruption as possible, and Egenlund and Strøm explain that they invested a lot of time and resources together with Consafe Logistics to fix unwieldy and semi-manual processes.
They adjusted schedules and organisation and changed work methodology, processes and the routines.
Challenges with the new WMS
Møller Logistikk encountered several challenges when the new WMS was implemented.
- Proprietary systems have limitations. The ERP system was old, cumbersome and programmed in an old computer language.
- Integration between M-Nett and Astro WMS was a challenge, but easily resolved as Astro WMS has APIs to implement into all types of ERP.
- The old technology had to work alongside the new one.
- 90 employees had to change their old work routines. The company were dependent on a seamless transition to dealers which required careful planning, testing and internal training.
- The system provides greater flexibility, management and control. People can extract necessary information and manage the flow of goods in a better way than previously, where all information was retrieved afterwards.
- All events occur in real-time with a new Windows-based module and management data integrated into the ERP system, so that orders are sent to the correct location.
10% more productive 20% less errors
Astro WMS has so far provided:
- a full overview of all current locations and available storage capacity, making Møller Logistikk 10% more productive compared to previously
- Increased the turnover and stock volume
- Reduced number of errors to dealers by 20% giving indirect savings and better utilization of the central warehouse
The importance of change management
It is important to manage change, involving and informing employees, maintaining a dialogue with dealers, suppliers and the IT department. To be successful, the company avoided situations where individuals were exclusively concerned with their own processes and solutions. Employees are encouraged to make suggestions for continuous improvements.
Online tools for real-time supervision and analysis
Møller Logistikk now has an online tool that lets people see what has been done and what tasks remain. Continuous operations are managed in a more efficient manner with people able to analyse and see the consequences of warehouse processes much faster. How many assignments employees perform on a daily, weekly and monthly basis? How big is the improvement potential? Previously, KPIs were checked once a month. Now every week. The company can now control the quality, productivity and lead times every day in a transparent system where all operations can be tracked.
Better efficiency in daily tasks
The warehouse operators use a PDA, mobile printers, scanners and truck terminals. Goods reception uses the Astro WMS PC version M2, while the warehouse operators use ODA version H2 and the forklift operators use O2 terminals.
“All information is entered into the ERP system, where we continually receive information about what is picked and/or not picked”, says Egelund and Strøm.
Selection errors and shortages are now reduced to a minimum, being detected before parts leave the warehouse, avoiding shipment mistakes.
“We have streamlined stock management, helping us achieve major savings. We use the OpView module in Astro WMS and SWL queries to present all events on a single screen image, instead of piecemeal in separate solutions that delay warehouse routines,” they continue.
“With a quick glance at the screen, operators and management can obtain an overview of inventory status and quickly take the necessary action. We have deployed several information screens at the warehouse, with OpView and dashboards with defined KPIs. This provides employees with an overview of the day’s work operations.”
All business is local
A critical success factor was Consafe Logistics being on-hand, just a few kilometres away, simplifying project implementation.
“We are dependent on a supplier and a partner with whom we can develop. Consafe Logistics has been that partner. Having a modern WMS that takes account of future needs enables us to take the necessary decisions”. Says Strøm, who goes on to explain that Møller Logistikk is now assessing new automation solutions to further streamline its warehouse operations.
Header image: Warehouse Operator Jane Lindberg uses a laptop and scanner when picking goods from the shelves.
Møller Logistikk performs logistics services for Harald A. Møller AS and the Norwegian car dealer chain Møller Bil AS: Møller Logistikk’s ambition is to be the industry leader in logistics services, which entails ambitious goals in terms of quality, productivity, lead times and the environment.
Harald A. Møller AS is Norway’s largest car importer and has since its establishment supplied more than one million cars to customers in Norway. 2016 was the company’s best sales year ever. In total, nearly 26,600 Volkswagen passenger cars, over 10,300 Volkswagen commercial vehicles, 7,600 Audi and 7,700 Skoda vehicles were sold last year.
Published in Logistikk & Ledelse nr 2 2017