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

The client is a leading automotive spare parts retailer based out of Sweden and is well-known for its quality controls 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.

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.

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.

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 now.

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 the 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 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%

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 below to know more.

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.

Tip #1: Adopt lean warehouse operations 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.

Tip #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.

Tip #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.

To learn more tips on warehouse optimization, request for more information.


Re-structuring Delivery Model and Inventory Management Through Order Fulfillment Optimization

Quantzig’s recent study on order fulfillment optimization for a leading electronics retailer guarantees 51% reduction in shipping cost for priority orders.

Optimizing order fulfillment

The surge of e-commerce and online retailers across the globe is creating a customer-driven business environment. Optimizing the order fulfillment process is gaining immense importance and suppliers are looking for new ways to increase sales, market shares, and reduce operational costs. The increasing focus on managing the performance of the sales force, improving the ability to process more loads, and optimal use of technologies will help retailers to elevate their order fulfillment processes. The introduction of 3PL techniques will also help retailers to analyze the best possible way to manage shipping and reduce delivery charges. The use of data analytics will help companies to prioritize business functions that require manual intervention. The data analytics team at Quantzig offers solutions that help businesses make better decisions and aids in improving various business processes including supply chain visibility, inventory management, and merchandising. The study also includes network optimization, enhance supply chain effectiveness, demand planning, category tracking, and consolidation, and tail spend analysis.

The growing popularity of subscription boxes is revolutionizing the supply chain matrix. This is a consumer engagement model that offers different subscription boxes at different price levels to increase consumer brand loyalty. To diversify the services offered, some retailers are also adopting subscription delivery models that include a subscription fee usually for six months or one year. Subscription boxes come with benefits such as quick delivery time and special offers, exclusively for subscribed customers.

Warehouse automation

To structure a robust delivery system and optimize the order fulfillment process, suppliers are implementing advanced technologies for warehouse automation. By using technologies such as RF scanners and heads up display (HUD) devices, retailers are enhancing the productivity and reducing the chances of manual errors. Moreover, these devices provide data analysis of slow-moving products and solutions to improve the delivery and supply chain. With the aid of technology, suppliers aim to offer faster and quicker services with no room for error.

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Emergence of multi-sales channels

Service and product delivery today is not restricted to one channel. Storefronts, e-commerce portals, and catalogs are some of the few avenues utilized by retailers to reach the maximum number of consumers. The growing adoption of mobile apps is encouraging various suppliers to offer special discounts for consumers purchasing through these channels. The launch of promotional deals for different channels will help companies to acquire new customers and generate new revenue streams.

Outcomes and solutions offered

Quantzig’s order fulfillment optimization team develop an operative solution based on the classification of influencers from the analytics data collected from various segments for a leading electronics retailer. Some of the solutions offered are as follows:

  • Helped the client deliver better customer experience through faster fulfillment of online orders
  • Reduced the delivery time of priority orders by 80% (5 days to 1 day) through fulfillment from the stores
  • Provided an effective solution to reduce the delivery time and deliver better experience for loyal, high-valued, and new customers
  • Identified the factors influencing customer ratings in each segment and approximated a cost function to recognize the right store to fulfill the order
  • Offered recommendations on high-valued customers whose requested products are available at the nearest store and provide store-to-door delivery services

The complete case study on order fulfillment optimization engagement for a leading electronics retailer is now available.

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