SAP Extended Warehouse Management — Enhanced Operations at a Western Asian Automotive and Retail Company
BACKGROUND
Our client is a company based in Western Asia, specializing in automotive services and retail. The client required the development of a scalable solution to unify, optimize, and minimize risks, costs, and losses in business processes.
CHALLENGES
- Optimizing storage space
- Increasing warehouse productivity
- Improving customer service
SOLUTION HIGHLIGHTS
1/ The reorganization of storage areas, zoning and layout of the warehouse:- addressing storage with abc segmentation
- stocking consolidation
- receiving organization: addition to existing stock
2/ The organization of address storage, tracking each unit to the lowest level of detail
3/ Acceptance strategy: by product group
4/ Replenishment of “piece storage”
5/ Reduction of labor costs:
- for taking inventory
- exclusion of “extra mileage” during shipment and acceptance
- resource dependency elimination
6/ Improving assembly accuracy — minimizing errors (the human factor): the introduction of mobile terminals and reflecting operations in the system in real time
7/ Increasing assembly speed by optimizing the route: automatic, semi-automatic, and manual planning and launching of waves
KEY RESULTS
Through knowledge, professionalism and ongoing dialogue with our client, we achieved the following:
- More efficient use of warehouse space
- 60% reduction in shortages and surpluses based on the results of the inventory
- 40% reduction in order formation times
- 30% reduction in intra-warehouse movements/operations
- The number of errors in the formation of orders has been reduced to zero
- Control and analysis of personnel performance