INNOVATION IN WAREHOUSING AND SUPPLY CHAIN Alber… · INNOVATION IN WAREHOUSING AND SUPPLY CHAIN Albert Vidal Software Business Unit Director. INNOVATION IN WAREHOUSING AND SUPPLY

Rev. 02, Sep 2019

INNOVATION IN WAREHOUSING AND SUPPLY CHAIN

Albert Vidal

Software Business Unit Director


Quick facts about Mecalux

2

HISTORY

Backed by a solid

company with more than 50

years of experience.

COMPANY

Among top companies in

warehouse management

PRODUCTION

11 production plants in

6 countries

CENTRES

4 technological centres

EMPLOYEES

4,000+

SOFTWARE

1,000+ warehouses managed

by our software


Mecalux around the World

3


A single provider for all warehouse needs

4

5 INNOVATION IN WAREHOUSING AND SUPPLY CHAIN

Markets change and businesses

need to evolve.

Logistics need to adapt to new

scenarios and warehouses play a

centric role.


Warehouse operations might seem trivial

INBOUND

•RECEPTIONS

•RETURNS

•ADVANCE SHIPPING NOTICE

PUTAWAY

• LOOSE STOCK PUTAWAY

•CONTAINER PUTAWAY

WAREHOUSE

•REPLENISHMENT

•COUNTS

•ADJUSTMENTS

•KITTING

•QUALITY CONTROL

SHIPPING

•PICKING

• LOADS

•WAVES

•CROSSDOCKING

6


Badly managed warehouses become extremely inefficient

7

CHAOTIC

OPERATIONS

UNNECESSARY

STOCK COUNTS

FREQUENT

STOCKOUTS

IMPRACTICAL

TRACEABILITY

INACCURATE

PRODUCT ROTATION

ORDER PREPARATION

ERRORSLATE ORDER

DELIVERIES

INCREASE IN

OVERTIME WAGES

€

INCREASE IN SICK

LEAVES

NO INTEGRATION

WITH ERP

DISORGANISED

WAREHOUSE

HIGH EMPLOYEE

TURNOVER


Digital systems help improving physical warehouses

8

Optimisation and

improvement

actions4

Warehouse

operations and

KPIs tracking3

Physical warehouse layout and operations1

Digital modeling

of warehouse

and operations in

Easy WMS2


Key stakeholders of a Warehouse Management System

WAREHOUSE STAFF

• Task guidance

• Time optimisation

• Error reduction

WAREHOUSE MANAGER

• Workflows

• Space optimisation

• Monitoring and improvement

SUPPLY CHAIN MANAGER

• KPI control

• Decision making

• Cost efficiency

9

WAREHOUSE MANAGEMENT SYSTEM

Why to invest in a WMS?



It is not about just deploying a

software, it is about transforming a

business.

Real case scenarios.


Order and cleanup

12


Space optimization

13


Areas definition: quality control, crossdock, returns

14


Functional workplaces

15


Communications, processes, training.

16


WMS implementations difficulty

depends on complexity of

warehouse operations



Different complexity, different WMS requirements



From small and simple warehouses

to large and complex warehouses.

Some cases.

Enabling a 42% CAGR over a 7-year periodCase Study I: Tradeinn.com

Initial scenario:

• Online sports apparel, growing startup:- 300,000 customers

- 100,000 SKUs

- <1,000 daily orders

- 3,000 sqm warehouse

- 1 physical store

Limitations to business growth:

• Non-scalable e-commerce operations:- Unable to manage stock in heavy flash sales

- Inefficient picking, packing and shipping

- Mismatch of shipped and website items

• Unable to manage omnichannel warehouse operations:- Ineffective order prep from stock or cross-docking

- Deficient stock management and replenishment in physical stores

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From small and simple to large and complexCase Study I: Tradeinn.com

2012 2013 2014 2015 2016 2017 2018

~8x revenue growth

€50M €75M €120M €140M

36,219 monthly

orders (lines)

232,730 monthly

orders (lines)

1,000 daily orders530k customers

150k SKUs

3,000 m2 warehouse + 1 store 7,500 m2 warehouse + 1 store 15,600 m2 warehouse + 2 stores

Warehouse expansion Warehouse expansion & new shop

2,000 daily orders900k customers

550k SKUs

<1,000 daily orders300k customers

100k SKUs

2,500 daily orders1.3M customers

600k SKUs


650k SKUs


700k SKUs

7,500 daily orders2.5M+ customers

1M SKUs

First implementation

6.4x orders

2 new

capabilities

€18M €24M €32M

4 new

capabilities

8 new

capabilities

4 new

capabilities

23

Feeding and storing goods in a fast-paced production line Case Study II: Michelin

24

Initial scenario:

• Obsolete existing warehouse:

• Limited storage space

• Increasing production

• Inefficient stacking storage

• Situation:

• Michelin’s Group internal competition for a new

production line against another plant in Poland.

Warehouse efficiency was key for decision makers.

Customer objectives:

• New warehouse to increase their storage space

• Adaptability to store non-standard metal containers

• Integration with production plant’s existing systems

• Control of all the warehouse operations, integrating

manual and automated

• 24/7 operations with high downtime costs

• Handle up to 240 containers/hour

• Increase capacity by 4,600 containers


Path to Michelin’s most efficient warehouse in EuropeCase Study II: Michelin

25

“Now, we can store the goods from the production lines

and, also, supply the dispatch docks faster”

Antonio J. García-Montalvo, Michelin project manager

“the WMS of Mecalux communicates with BSM, Michelin’s IT system, through an interface. This interface has been

developed during trials run in Mecalux’s offices, at our headquarters in Clermont-Ferrand and the Vitoria plant. Overall,

the objective is to guarantee that the synchronisation of both systems runs smoothly”

Antonio J. García-Montalvo, Michelin project manager

Vitoria plant added new production line to increase its

output by 20%, thanks to having an automated

warehouse.1

spri.eus

https://www.spri.eus/invest-in-basque-country/en/news/michelin-to-invest-e80-million-in-its-vitoria-factory/


From production to multichannel fulfillmentCase Study III: Danone


From production to multichannel fulfillmentCase Study III: Danone



Efficiency and precision in health care materials Case Study IV: Zaloker & Zaloker

28


Ongoing WMS trends

in Europe and North America

Online commerce fulfillment


Physical and Digital store management



Other warehouse management solutions

32

YOUR LOGISTICS

EXPERT PARTNER [email protected]

www.mecalux.com

INNOVATION IN WAREHOUSING AND SUPPLY CHAIN33

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INNOVATION IN WAREHOUSING AND SUPPLY CHAIN Alber… · INNOVATION IN WAREHOUSING AND SUPPLY CHAIN Albert Vidal Software Business Unit Director. INNOVATION IN WAREHOUSING AND SUPPLY