By looking at goods flows and sorting articles into ABC classifications, HAGEMEYER Germany expects to raise productivity in its Berlin DC by up to 30%. The company saw a 9% increase in just one afternoon using slotting.
HAGEMEYER Germany, a leader in the professional distribution of products and services for the energy world, has successfully used Astro WMS® to control flows through its DC in Munich. The company closed 5 smaller DCs to build the Munich centre, where Astro WMS® helps the company achieve better efficiencies including labelling, packing quality, and fulfillment rate.
Using Astro WMS®, HAGEMEYER Germany can deliver in time, track better and achieve greater stock reliability. The 20,000 sq m. Munich DC continually stocks around 50,000 articles and can sell a total of 700,000 different articles.
Astro WMS® powering rollouts
HAGEMEYER currently plans to roll out four more DCs in Germany using Astro WMS® by end 2019. The launches include an Astro WMS® competence center to facilitate learning across countries.
The first Go-Live was in Berlin, which went well, implementing the new system within the tough four-month project time. However, HAGEMEYER struggled to achieve the productivity increases it expected, as the old WMS was well suited for purpose. The company prioritized several challenges to increase productivity and get confirmation and confidence for Astro WMS®. These included:
- Implementing TMS (Transport Management System) together with customs management
- Customer-specific label printing
- Value added services. These stretch from specific goods delivery to KanBan solutions, and delivering order lines to specific apartments being constructed (washing machines, doors, fittings, etc).
The answer: slotting
Slotting is a common Astro WMS® tool that analyzes and adjusts the right placement in the warehouse to reduce labour costs and improve throughput, especially in a crowded warehouse. The problem HAGEMEYER faced was manual handling of move assignments and re-inputting of data that was already available in the system.
In June 2017, the IT department started work on ABC goods classification. Using screen views in Astro WMS® they could instantly see where the problems were, and rectify them using slotting.
30% less articles, 80% less elevator trips
The Berlin DC stores items on different floors. After an analysis and transitioning to ABC classification, they decreased elevator usage, time and movement by 30%. They also decreased article quantities by 30% using more efficient slotting and picking.
In one half-day exercise of moving the position of articles, the company increased productivity by 9%. This stage was easy however, as only a small amount of articles were fast moving. There are 10,000 more articles to move around, but when that work is done there will be even greater efficiencies.
HAGEMEYER Germany will evaluate the following opportunities to enhance its productivity and process efficiency:
- Introduce OpView, Consafe Logistics’ module (that collects and visualizes data from one or many data sources, giving you a clear overview of operations) so managers can see data in real-time and make decisions on-the-fly.
- Slotting also checks location sizes against articles, this will be analyzed to optimize goods placement
How can you benefit from slotting?
Using slotting in the right way improves picking efficiency, reduces labour cost through increased productivity, lowers storage footprint through the effective use of available warehouse space, decreases operating costs by optimizing movements in the warehouse, minimizes equipment wear and tear and increases order shipping through-put and accuracy.
To find out how slotting can help your warehouse activities,
contact Henk-Jan van Donkelaar, mobile: +31 6 39 010 409.