LFS Working Report. Heurich increases performance in beverage logistics

Transcription

1 LFS Working Report Heurich increases performance in beverage logistics Warehouse Management by E+P The internationally leading experts in warehouse logistics

2 The logistics benefits are great When modernising a warehouse and logistics, many advantages are attained that are not predictable. A new look on the working processes as well as a high-performing software system offer high business potentials exceeding the objectives defined in the system specification. This is proved by the report of the beverages wholesaler Heurich GmbH & Co. KG. The company manages 30,000 sqm of logistics surfaces at the business location in Fulda with the warehouse management system LFS provided by the warehouse logistics experts Ehrhardt + Partner from Boppard-Buchholz. Heurich changed their entire intralogistics to the warehouse management system LFS. This happened during the running three-shift operation and without affecting the daily business. The software offers basic functions like batch tracing and the First in first out principle. Stock management takes place by permanent stocktaking, which not only guarantees correct stocks, but also safe planning. Already when introducing the system, further advantages were attained, especially by analysing the business processes for putaway, retrieval and relocation. According to the order situation, the processes receive different priorities, whereby the replenishment orders have the highest priority. LFS manages the warehouse according to the so-called chaotic method, meaning that the bin locations are assigned dynamically. Berthold Kress, logistics manager of the family business founded in 1925, explains the advantages with the example of returns. Returns are produced when the organizers of parties and celebrations cannot sell the quantities delivered. The warehouse management system assigns the items returned to vacant bin locations and makes them available for the next orders. In other parts of the warehouse, there are fixed picking bins. This is valid for the direct warehouses, in which fast moving items like Heurich s own brands are stored. From there, the items are directly loaded onto the trucks without prior consolidation. 2 LFS Working Report

3 New customers, thanks to emproved logistics Berthold Kress is delighted about the advantages: The logistics benefits are great. Without the warehouse management system, the operation could not be kept running, he adds. With these investments, Heurich could develop new fields of business an effect that was not expected when introducing the software. This way, the company also works as a direct service provider by taking over the beverage logistics in the food retail of customers like tegut, Rewe and toom. Furthermore, Heurich renders so-called ramp services by processing the intralogistics for the beverage group Anheuser-Busch InBev. Customers of InBev in an area of 350 kilometres pick up their beverages of the brands Beck s, Diebels, Gilde, Hasseröder, Spaten and Franziskaner directly from the ramp in Fulda. The process for cross-docking is similar. Here, beverages are already picked by the retailers and delivered by Heurich. For the direct delivery to the subsidiaries, we only keep one pallet as stock, Kress explains and adds: One could say that Heurich passes on the goods. However, the benefit goes far beyond the optimisation which had been planned when introducing the software system. Heurich rates among the clients that do not only work with our warehouse management software, but that also understand it as an instrument for detecting new optimisation potential, explains Marco Ehrhardt, managing partner of the software and consulting company Ehrhardt + Partner. LFS Working Report 3

4 The transport control system provides utilization of resources The beverage wholesaler has also attainted enormous optimisations by using the transport control system (TLS), an optional module of LFS. The forklift drivers are managed centrally, so that they are no more bound to certain work areas. Now, they can work in the entire logistics centre, according to where they are needed. This is done according to availability, proximity and order priority. The system manages the assignment and identification for every scanning process. Kress estimates the increase in efficiency to be 20 to 25 percent. An even bigger effect is attained by using key figures, which are provided by the transport control system for resource planning. In the beverage industry, which is subject to strong seasonal changes of up to 40 percent, short reaction times of 24 to 36 hours are essential. Based on the current transport and picking performance, the figures of the last year, holidays, weekends and the weather forecast, the work schedules are prepared and order peaks are reduced in advance. This way, planning security and flexibility are combined and the necessary resources are available. High acceptance from Pick-by-Voice In goods receiving, LFS records all incoming deliveries. The labelled pallets are scanned to make the important data available in the system. For each handling unit which has not been labelled by the producer, LFS assigns an SSCC number which is used in-house to guarantee traceability. In the picking area, Heurich uses the Pick-by-Voice technology, which has the advantage that the pickers can use both hands unrestrictedly. The employees communicate with LFS via a headset. The system leads the picker to the picking bins containing only one type of item and announces the picking quantities. At Heurich, six employees work this way within one shift. By using Pick-by-Voice, we have exploited the highest possible optimisation potential, Kress says. For us, one pick represents the process of moving one full pallet. For the average performance of 3,700 picks per shift, our employees reach their natural physical limits. In a separate warehouse, wine and spirits are also picked with Pick-by-Voice. The system also records empties, which are handled by a completely automated sorter. 4 LFS Working Report

5 LFS leads to significant increases in quality As another important point, the system allows a fast reaction to unpredictable volume peaks. When there is a lot of traffic in goods handling, resources can be withdrawn from goods receiving. This way, a reliable and quick delivery of the customers is guaranteed, even if there are many incoming orders, like for instance during hot summer days. LFS guarantees meeting the delivery dates by a permanent stock management and an availability control of the 3,000 items stored by Heurich including special stock like sunshades and benches. The functionality of the warehouse management system and the data provided serve error reduction. Without any doubt, LFS has contributed to increasing quality, which shows during the peak-times, Kress summarizes. Technologies like Pick-by-Voice also have a positive effect, because they allow the pickers to work with both hands free and mainly without mistakes. This is ensured by the system-internal control steps in the voice dialog. If mistakes happen, they are easy to identify and prevent. The result is what the logistics manager calls extreme error minimisation. Innovative keyboard terminal for forklifts A new development previously implemented by the beverage wholesaler points in the same direction: an external terminal keyboard for forklifts developed by the logistics experts of Ehrhardt + Partner. The keyboard is attached to the existing PSION forklifts via USB and its large keys allow an operation when driving and when using gloves. Four keys can be programmed and two other sessions are available for the orders. If the driver has a question concerning the second order, he switches from his active session into the second and clarifies the open points. Afterwards, he returns to the original session and executes the order. This innovation, another detail for efficient warehouse logistics, has been well accepted by the employees. Logistics manager Kress was full of praise: Extensive test have shown that our forklift drivers can easily work with the keyboard. With touch screen terminals, there were many input errors. In daily business it has been proved that our drivers work safer with the keyboard. LFS also increases the efficiency of the beverage logistics The warehouse management system LFS has significantly increased the performance of the beverage wholesaler Heurich with an average turnover of 70,000 bottle cases per day. This is particularly important regarding the requirements of the industry. Many restrictions are to be observed, especially concerning the delivery dates for gastronomy and retail industry. Heurich can react quickly and safely, for example, when the trucks return at two o clock in the night at the end of a hectic day, this requires a lot of loading personnel in order to prepare the trucks for the next deliveries. Also in the view of such peak loads and the pressure of delivery dates, Berthold Kress comments the newly organised logistics with the words: This amount of work could not be done manually. LFS Working Report 5

6 Information about Heurich GmbH & Co. KG The beverage wholesaler founded in 1925 still run as a family business. From the logistics centre in Petersberg near Fulda, which has been restructured since 1995, Heurich supplies approx. 250 of their beverage markets from Kassel to Bamberg and offers their customers individual service in beverage logistics. On the area of more than 70,000 sqm floor space, more than 150 employees work in three halls with full goods, one machine hall, one administration building, two separated roofed surfaces for goods delivery and loading as well as an extensive empties loading place with an empties yard. Furthermore, Heurich offers services in beverage logistics for customers like Anheuser-Busch InBev, Rewe, toom and tegut. Summary The long-established family company Heurich GmbH & Co. KG has been rewarded with prices for innovation. Ehrhardt + Partner supported Heurich in designing and implementing modern logistic processes in their beverage logistics centre near Fulda. In the next step, it is planned to modernise the materials management in combination with the warehouse management system LFS. Figures Approx. 250 beverage markets (Heurich, Logo) Logistics surface of more than 30,000 sqm, thereof 15,000 sqm of full goods storage 3-shift operation of 24 hours 5 days per week Stock turnover of approx. 70,000 bottle cases per day 10,000 picks per day Assortment of approx. 3,000 items Turnover of more than 1.5 million hectolitres per year Pool of 30 forklifts and more than 40 trucks Internet address 6 LFS Working Report

7 Project data Central challenges Modernising the beverage logistics, optimising the business processes and managing the storage processes with prioritization Optimising the internal resources with key figure systems in order to absorb order peaks Guaranteeing an in-time delivery of all 3,000 items in the warehouse Project objectives Modernizing logistics in the entire beverage logistics centre Creating a future proof infrastructure that can keep up with the seasonal changes in the industry Increasing transparency and quality in storage and picking, combined with the highest possible flexibility Solution and services Warehouse management system LFS Developing efficient and flexible storage strategies managed by LFS Project management and realisation with optimising working processes during the running 3-shift operation Picking technology with Pick-by-Voice Main benefits for the client Efficiency benefits in storage and picking Significant advantages in meeting the delivery dates Flexibility in the storage and delivery processes Reliable and efficient resource planning Smoothing order peaks, in order to fulfil the delivery duties any time Existing system environment Host system Dogas from Copa (Materials management for the beverage industry) IBM iseries LFS Working Report 7

8 The power of innovation Since 1987 Ehrhardt + Partner GmbH & Co. KG Software Systems for Warehouse Logistics Alte Römerstraße 3 D Boppard-Buchholz Germany Phone (+49) Fax (+49) info@ehrhardt-partner.com _R2-1