CASE STUDY

Warehouse Management Helped a Sweden Based Automotive Spare Parts Retailer to Improve Warehouse Operations and Boost Productivity – Quantzig’s Success Story

Aug 8, 2019

The client is a leading automotive spare parts retailer based out of Sweden and is well-known for its quality control methods, purchase management capabilities, and valued collaboration with customers. The company supplies spare parts to several other outlets across Europe, through a single distribution center.

Amidst today’s complex business scenarios, distribution and warehouse operations are considered as necessary evils by supply chain executives. However, it’s important to note that such narrow views can not only prevent you from identifying new opportunities to optimize warehouse operations but also pose major roadblocks in your warehouse inventory management efforts. Several factors that are responsible for reducing warehouse efficiency that include changes in demand patterns, new product launches, and customer acquisitions. Since most of the challenges in warehouse optimization arise due to errors, inefficiency, and lack of supply chain visibility, businesses are investing heavy resources in establishing warehouse management systems to automate material handling, labeling, data collection, and other warehouse operations.

Our warehouse management solutions provide baseline indicators to yield meaningful data and determine possible productivity improvement objectives and potential cost savings. Get in touch with our experts to know more.

Business Challenge

The automotive spare parts retailer wanted to improve its multi-tier distribution network. However, before doing so, they wanted to evaluate the capacity and effectiveness of the new warehouse layout, this is when they decided to collaborate with Quantzig to leverage its warehouse management solutions to identify the best warehouse layout design. Also, they were looking for warehouse management solutions that could help them in accurate demand and inventory planning and enable them to have lean and optimal supply chains that best balance cost, service level, and profitability.

Solutions Offered and Value Delivered

Quantzig’s warehouse management experts adopted a comprehensive two-step approach to help the client tackle core business challenges. They conducted a basic review of the current performance and operation design of the client’s existing warehouse management system in the first phase. With this information, they made recommendations on prime opportunity improvements in warehouse operations. The second phase revolved around identifying operations where design adjustments were needed to deal with changes in various business functions. The solution offered helped the client to analyze the correlation between labor costs and equipment, which in turn, aided the selection of a suitable warehouse layout and distribution process.

Quantzig’s warehouse management solutions help businesses save time, space, and resources that, in turn, help in enhancing flexibility and customer satisfaction. Request a FREE proposal to gain in-depth insights into our portfolio of warehouse management solutions.

Quantzig’s warehouse management solutions also helped the client to:

  • Increase the speed and efficiency of warehouse processes
  • Adopt multichannel demand and execution processes
  • Gain real-time insights into warehouse operations
  • Reduce errors and drive productivity by automating different warehouse operations
  • Increase warehouse accuracy and lower safety stock levels by 45%

Tips to Optimize Warehouse Operations

Warehouse operations are at the heart of a company. When warehouse operations are efficient, companies keep costs low and customers happy. When they’re not, companies don’t ship or receive inventory in time and workers are not as productive as expected. Therefore, you must know exactly how to keep operations running efficiently. With the right mix of best practices, your company can maximize warehouse operations.

1: Adopt lean warehouse management practices

Lean warehouse operations offer a range of areas ripe for significant, long-term and sustainable savings. From reduced handling time and reductions in loading and unloading times of trucks and containers to increased reliability and sharing of information and greater flexibility to adapt to changing market conditions of customer specifications, lean warehouse operations help efficiently in optimizing warehouse.

Leveraging our warehouse management services can help you track inventory stocks that enter your warehouse and locate the position of your assets in real-time. Request a FREE demo for personalized solution insights.

2: Run an audit of your warehouse

This is the first step to transform your warehouse from an inefficient to an efficient one. You must monitor how long it takes for processes in your supply chain to be completed. Ask questions like are your goods organized in a way that makes sense? Is order picking going as fast as possible? Answering such questions can help you analyze and understand the loopholes in the warehouse operations. Consequently, you can adopt measures to rectify and improve your warehouse management techniques.

3: Use ABC analysis to prioritize items

ABC is a hierarchy of your most valuable items to the least. This is also referred to as the Inventory Categorization Method. Since you may not value your entire stock equally, this method can help you focus your time and resources on items that make you the most money.

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