Logistics company

  • Sector : Logistics
  • Time saved : ~60 hours/week
  • Money saved : € 114,000/annually

#Challenge Accepted

While working on an automation project in the finance department of a distribution centre, we came across the realization that the processes within the warehouse also require improvement.

Some of the issues were highlighted:

  • Long and manual processes in warehouse (inbound).
  • Daily and weekly reports pulled manually, time consuming & containing errors.
  • Staff spend too much time on selected tasks. Some tasks were double-jobbed, others were not completed at all.
  • Multiple deliveries arriving at random time causing hours of waiting in line.
  • Warehouse staff didn't check packing lists against what was delivered. This resulted in huge discrepancies when stock take was done.
  • Fiannce could not use system to check delivery information for invoice purpose and had to query warehouse each time. This was very long process and full of errors.
  • #Our Approach

    Our aim was to:

  • Reduce paperwork processing time, eliminate errors and increase productivity .
  • Automate internal reporting for quicker data access and processing.
  • Automate external (suppliers) reporting for quicker data processing and to improve ordering process.

  • #Solutions

  • There was no dedicated person/team to deal with Suppliers' carrier to plan delivery time slots. Team asked all Suppliers to book slots for deliveries, SOP was shared with suppliers
  • Computer system that was used in the warehouse was used only in 50% of its capabilities. The other 50% was populated manually and contained errors on a weekly basis. There were no manuals available on 'how to' use main system efficiently and use advanced options. Staff atteneded multiple training sessions.
  • Standard operating procedures were developed and all SOP's were written and distributted among staff and shared with Suppliers.
  • All reports were automated and daily and weekly reports were automatically sent to Suppliers. After receiving delivery report was send, if there were discrepancies, or damages it was highligted automatically and staff was actively working with Suppliers to reduce damaged boxes, as this was resulting in longer process of returning stock and seeking replacement and also this was time consuming, not to mention money.
  • Software used onsite to be adjusted to meet the highly specialised needs of this implementation.
  • We also identified training needs for most employees on how to efficiently use SAP, how to book deliveries in, how to manage time and be efficient
  • #Results

    The business was seeing a time save within a matter of days.

  • Average time to book delivery slot takes 2-3 minutes
  • Average amount of damaged deliveries dropped by ~89%
  • The results of the stock take showed that 99% of the stock levels were accurate.
  • Annual operating costs reduced by € 114,000

  • Other benefits:
  • Employees are more satisfied
  • Employees are more knowledgeable and move involved
  • Automations that speed up processes are error free, quality has improved
  • The employees are eager to participate in future improvement projects, and have already begun generating ideas on areas for improvement and strategies to achieve them
  • Standard operating procedures (SOP) and manuals are available for new employees, so onboarding process is more smooth and effective