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inconso

www.inconso.com

02/14

Journal

Boltze Ideen manages


both logistics locations

with inconsoWMS X

Ernstings family
trusts in inconso

during SAP EWM implementation

BLG Handelslogistik takes on


end customer delivery
for engelbert strauss

Does VUCA pose a risk?


Security with inconso!
How to react to market volatility, uncertainty, complexity and ambiguity
with flexible software, multi-component capability, powerful add-ons and
a strong implementation partner.

Thomas Gries, Member of


the Board of Directors, explains how to react to market volatility, uncertainty,
complexity and ambiguity (VUCA) with flexible software, multi-component capability, powerful add-ons
and a strong implementation partner.

6
12

The textile retailer Ernstings


family GmbH & Co. KG
maintains one distribution
center in Coesfeld-Lette and
another in Coswig-Klieken
in order to supply more than
1,700 stores in Germany
and Austria and process web
store orders. Since 2014,
SAP EWM is in use.

ideas are stored-in transparently


8 Decoration
and efficiently: The IT-based control of both

logistics locations of Boltze Ideen is managed by inconsoWMS X in subsequence to


implementations between 2012 and 2013.

Table of Contents
Schco

................................................................................................ 4

BLG and engelbert strauss


Braas

.................................................................. 4

Since fall 2013, BLG


Handelslogistik takes
on end customer delivery
for the work clothing supplier engelbert strauss
in Frankfurt am Main.
inconsoWMS X directs
processes in the logistics center.

................................................................................................... 5

inconsoYMS ......................................................................................... 5
Emmi

................................................................................................... 5

Does VUCA pose a risk? Security with inconso!

.............................. 6

Boltze Ideen manages logistics locations with inconsoWMS X .......... 8


Ernstings family trusts in inconso during SAP EWM implementation 12

/2/

inconso

Scan here for detailed


event information

inconso ...
Logistics IT and more
Bertram Salzinger
CEO of inconso AG

For more than 6 months now, inconso belongs to the


Krber Group. In addition to our current offering in logistics IT from inconso software solutions through to the
complete operations of logistics IT systems we can
now offer our customers complete solutions including
warehouse and conveyor technology as well as material
handling systems. All from a single source. This is managed through increased effort spent on fruitful cooperation with our sister companies Aberle and Langhammer
from the Krber Business Area Logistics Systems.
Important to note is that inconso AG still retains its autonomy within the group. Individual consulting and services are
and will remain at the core of our offering. Furthermore,
inconso software solutions and services can be used, as
usual, independently or in combination with your desired
supply partner.
In addition, belonging to the Krber Group provides an excellent platform for international development. In this way,
we will continue to build up our international presence beyond the location in France and the office just opened in

Spain in the coming years. We will also use the current


available presence of the Krber Group to access nearly
every relevant market worldwide.
The key word internationalization plays an important role
in the current inconso Journal. Increasingly these days,
we are confronted with the challenges and risks combined
under the term VUCA; a volatile issue that relates to an
increasing international networking of logistics processes.
What is meant by this and how inconso can help you to react can be found in our expert article on page 7. In addition,
read how inconso created significant efficiency increases
in the logistics networks of Ernstings family through the
integration of SAP EWM and Boltze Ideen with the implementation of inconsoWMS X.

Enjoy reading the latest journal from inconso!

inconso

/3/

Schco increases efficiency


and climate protection in its
logistics network
At Schco International KG with its headquarters in Bielefeld, Germany, inconso AG
has implemented a transport management
system to support operative logistics processes. Schco, the leading supplier of the
most modern window and facade technologies has a comprehensive logistics network.
For delievering their customers in Germany
and northern Europe, the company uses its
own fleet. Worldwide delieveries are conducted by partner carriers. With the goal of
combining climate protection with company
success, Schcos transports are now optimized on a global scale.
For the implementation of the SAP based
transport management system, inconso used
extensions to the modules SD, LE-TRA and
PM to cover additional processes and functions. This included a new SD document for
freight order and modified freight cost processings in the LE-TRA module.SAP addons were developed by inconso were integrated as well.

Source: inconso/Schco

BLG stores and picks for engelbert


strauss with inconsoWMS X
Since fall 2013, BLG Handelslogistik takes on end customer delivery for the work clothing supplier engelbert strauss
Quelle: BFS
in Frankfurt am Main. For granting encompassing process
management, inconso implemented the high performance
warehouse management system inconsoWMSX as well
as industry-specific E-Fulfillment components.
Since the beginning of 2013, BLG Handelslogistik had already provided logistics services for engelbert strauss at the
Frankfurt location. There, inconso AG had convinced with
service support, process know-how and software already.
The new Frankfurt location was built to provide relief for
the logistics location of engelbert strauss in Biebergemnd.
Automized warehouse functions for buffer storage were at
the center of attention.
The Frankfurt location now has a picking warehouse that
currently offers 6,500 articles available, increasing tendency
included. For the picking itself, special carts were designed
which enable the picking of up to 28 orders simultaneously.
In addition, the appropriate tugging aids were acquired. A
modern sorting facility supports the packing and shipping
process more than 6,000 packages are currently sent
every day. Increases are planned already.
From Frankfurt, end customers as well as additional warehouse locations of engelbert strauss are supplied. For this, increasing goods receiving capacities
required are now at hand. Along with stable running fulfillment functions of the warehouse management system
inconsoWMS X, the shipping and dispatching system
inconsoSDS is in use as well. The processing between the
goods issue and the CEP service providers is now effectually simplified.

/4/

inconso
Source: BLG

Braas: inconso brings system under one roof


For Braas GmbH, an SAP integrated solution for transport planning and freight calculation was implemented by
inconso AG. Dispatching and invoicing of deliveries, returns, inter-company transports and the drop-shipment business are managed perfectly with SAP since then.
The route planning at Braas, a leading supplier of intelligent roof systems, is based on the number of deliveries
and supported by algorithms. Locations and route plans are displayed on integrated maps and can be decoupled if
required to be displayed on a second screen.
Source: Braas

Special highlights of the new system are route-related freight price simulations and freight forwarder determination.
With the freight price simulation tool, a current statement about the expected costs per route can be made at any
time. The freight forwarder determination supports the selection of the ideal freight forwarder. For selected routes, it
is then possible to easily identify an available freight forwarder and to calculate freight costs precisely.

inconsoYMS (Yard Management System) now


available on tablets
inconso AG has modified its yard management solution inconsoYMS
towards the use of tablet and mobile touchscreen devices. With this,
inconsoYMS offers more mobility and even more flexibility for the yard
manager in charge of conducting the loading and unloading traffic, the
parking lots and resources on the yard.
The inconsoYMS defines and sets resources, gates, loading locations and
ramps according to their specific properties and dependencies. The transports to be managed within defined time slots are already recorded in the
slot management module (web portal) or entered manually at the arrival
gate. The planning and control takes place using a central management
screen optimized with algorithms and processes. Current events on
the yard are shown in tables and in graphics and offer high-levelled user
transparency. Issues are recognized early and the required actions can be
done with optional system extensions at hand at all times.

Source: iStockphoto eyetoeyePIX

Emmi uses uniform software landscape from


inconso for comprehensive logistics management
In the future, Emmi will use the supply chain execution solution, inconsoSCE,
to manage its entire logistics network.The logistics software
specialist inconso will implement the warehouse management system inconsoWMS X at selected locations as well. Thus, Emmi gains a standardized
and harmonizing logistics software solution.
The procedure starts from intergating these
into the existing ERP system in use, followed
by the connection to SAP ERP that is
currently carried out. In the scope of
the strong company growth the last
years, a new logistics handling for
Emmi had turned inevitable.

Quelle: Emmi

Source: Emmi

inconso

/5/

DOES VUCA POSE A RISK?


SECURITY WITH INCONSO!
How to react to market volatility, uncertainty, complexity and ambiguity with flexible
software, multi-component capability, powerful add-ons and a strong implementation
partner.
The influences of globalization on logistic processes have already been highlighted, described and analyzed
from the most diverse perspectives. Simple logistics chains become complex networks. The dynamics accompanying those processes, the mutual dependence and the influencing factors affecting global supply chains
across national borders need to be taken account of more than ever. Much more dramatic, but unfortunately
less tangible, are the resulting market requirements, type and extent of ones own service provision and degree
of interconnectedness with other market players within the same supply chain. In many contexts, this trend is
summarized by the acronym VUCA. Methods and means that counteract these risks range from an optimized
software system to modifiable add-ons through to competent consulting partnerships.
//// VUCA: Volatility, Uncertainty, Complexity, Ambiguity
This abbreviation, originally
stemming from military jargon, subsumes changes on
the market affecting a single company, even before
the time of globalization, but
now increasingly gaining in
importance due to increasing global networking: Volatility, uncertainty, complexity,
and ambiguity. Changing
product lines, distribution
channels, clients, distribuThomas Gries
Member of the Board of Directors tion structures and the inat inconso AG
creasing volume of returns
create a degree of volatility that can hardly be predicted
due to the high number of diverse factors.
//// The unpredictable third party
Increasing uncertainty on the demand side, the general
complexity of global value-added chains and therefrom
resulting uncertainties about who makes what decision
when and why and how it influences the business contribute to creating the VUCA world. The observable
trend toward more outsourcing is also part of these developments. The increasing involvement of third parties
inevitably leads to more uncertainties and fluctuations.
Especially logistics service providers are facing these
challenges.
No horrific nightmare scenario will be detailed at this point
on the contrary: Becoming aware of this trend is the first
step in counteracting it. It only matters slightly whether

/6/

one has to monitor and manage a broad logistics network


with many branches or one logistics center with a modest
number of suppliers and customers fluctuations, ambiguities, uncertainties, and increasing complexity automatically creep in as soon as one becomes dependent on
other parties and does not act autonomously anymore.
//// With transparency to more security
How should one counteract these developments within
logistics? One could try to contain the increasing uncertainties and ambiguities as much as possible, for example
through arrangements with partners, clear contracts with
suppliers or customers and explicit service level agreements with service providers. Transparency beyond logistics chains, across borders between warehouse and
transport management systems, procurement and production can restore lost security to some degree. Nevertheless, unpredictable developments can still cause
these supposed securities to waver. This makes a logistic
organization that is flexible and quickly modifiable indispensable. Change should be an integral part of the system.
//// Comprehensive functionalities support multi-channel operation
In order to organize such a logistic environment, a correspondingly flexible and functionally extensive IT control is
essential. The logistic IT application systems in a classical
multi-channel operation, for example, should initially contain comprehensive functionalities. Different distribution
channels, delivery types and returns are processed at a
logistics center. The effects of the VUCA factors can be
even larger here. In general, the speed of change is increasing due to demands from all sides. This development
increases exponentially if a logistics network includes

inconso

Complexity

Uncertainty

plemented; short-term
supply peaks, complex
processes and unpredictable circumstances
need to be taken into
FlexiTransaccount. One option is
Simulation
Add-ons
bility
parency
a cloud solution with
Extended
little, but very efficient
Component
ModulariTechnical
range of
capability
zation
integration
functions
infrastructure that can
be implemented on
short notice. Regardless of whether in a
complex, international,
local or temporary logistics plant quickly
implementable, modifiable add-ons and the
possibility to easily turn
su
lt a t i
specific functionalities
on and off through pure
Source: inconso
parameterization cremultiple
warehouse
locations ate the ideal addition to an already
that need to be managed. When very powerful IT control. If, for examthere are short-term supply bottle- ple, a forklift control or voice managenecks, seasonal fluctuations or in- ment system to accelerate picking is
creasing return volumes, one can needed on short notice, individual
only react as fast as possible with modules can be switched on and flucflexible software management and, tuations can be better accounted for
if necessary, by changing arrange- in the system.
ments between warehouse areas or
within order processing.
//// Technology integration

Volatility

Know-how, Experience, C o n

Ambiguity

With the inconso Logistics Suite, that


is inconsoWMS (Warehouse Management System), inconsoSCE (Supply
Chain Execution) and inconsoTMS
(Transport Management System),
inconso offers exactly those modularized systems which help to react
accordingly: to retain from volatility, to
reduce insecurity and to survey complexity and uncertainties with simulation tools, where needed. Thanks to
single, modular software extensions,
i.e. inconso add-ons, an overall adaptable system is born.
//// Flexible and quickly expandable
A special form of this organization
can be found in event logistics, for example, in international mega events
such as the Olympics or soccer World
Cups. Here, an entire infrastructure
with powerful IT systems must be im-

Of course, investing in efficient technical trades, equipment and hardware is also a promising method to
counter volatilities, uncertainties,
complexities and ambiguities on the
market. They contribute to more
efficient organization altogether,
thereby cushioning VUCA effects.
However, the following still applies:
Efficiency depends on the capacity
of software control. It must be designed for flexible technological integration because mobile technology,
for example, can react quickly, but
only if the software can do so as well.
Moreover, this guarantees smooth
processing with corresponding interfaces and clear user interfaces.

multi-component capability can also


be found in the SAP business addins, so-called BAdIs, that can be activated like pre-assembled plugs and
which are ready to use at any time.
Especially add-ons that help deal with
short-term fluctuations, such as by
redistributing personnel or resources, are recommended. inconsoRMS
(Resource Management System)
optimizes personnel assignment
planning or manages the distribution
of other resources. The surprise effect of uncertainties and ambiguities,
however, can be reduced by using
simulation tools or forecasts. Based
on experience and past developments, the likelihood of future trends
or influences can be calculated.
//// Professional know-how
Flexible IT, due to its modularization
and multi-component capability, is
the perfect answer to all questions
concerning the VUCA world and
the first step towards an efficient
logistics system. However, without
corresponding knowledge about
the degree of system integration
and the components to be integrated, the most powerful software is
useless. Only in combination with
professional know-how and the appropriate project experience, which
the inconso experts provide, can
the perfect VUCA solution be developed.
In regard to structure, transparency
and flexibility, the software solution
should basically be prepared for all
market changes but only a competent implementation and support
partner can provide enduring solution efficiency. For instance, even
during modification or expansion of
the modules used during operation,
smooth execution of logistic processes needs to be ensured.

//// inconso add-ons and SAP BAdIs


What is offered within inconso
Logistics Suite with add-ons and

inconso

/7/

DECORATION IDEAS ARE STORED


TRANSPARENTLY AND
EFFICIENTLY
Boltze Ideen manages both logistics locations with inconsoWMS X
Past Easter bunnies, sparkling deer antlers and vintage-style cabinets, one sees pillows, extravagant vases
and wall clocks, until one finds oneself in a winter wonderland surrounded by Christmas tree ball ornaments,
scented candles and gift boxes. On 1,400 m2, the Boltze showroom in Braak presents diverse insights into
the product world of Boltze Ideen, providing everything ones heart desires for a beautifully decorated home.
Up to 7,000 different products compose a yearly product line and are delivered to major customers across
Europe. In order for this product diversity to reach customer stores and, finally, the living rooms of end customers, Boltze has set the highest standards for smooth logistic processing. In immediate proximity to the
showroom, the products are stored at two locations. Both logistics locations are managed by the highly flexible warehouse management system inconsoWMS X, which had already been implemented by inconso in Bad
Oldesloe in 2012 and subsequently in Braak as well.

Boltze Ideen offers high quality, innovative and trendy


home accessories and gift items. The company focuses on
seasonal theme worlds, meaning the product line changes
70 percent each year. This product variety is stored on a
total of about 70,000 pallet positions, distributed between
two logistics centers in Braak and Bad Oldesloe in northern
Germany. Due to the large product variety of the stored
decoration and home accessories and the frequent inventory turnover (five times a year), this capacity is rather
small. Therefore, it is of utmost importance for Boltze logistics to channel goods through the warehouse as quickly as
possible, but also optimally process picking as well.
//// Goods receiving and resource management
Goods issue dispatching operates across both logistics
locations and distributes the received goods according to
the warehouse and the current inventory capacity utilization. It is supported by the resource management system
inconsoRMS in this process. With it, even personnel planning, especially in goods issue, can be organized according to the planned amount of work.

/8/

The high bay warehouse areas are operated with interleaving processes. At the same time, the forklift stores in
full pallets and stores out other full pallets for the picking
area, the small parts picking or direct goods issue. In the
process, the forklifts can be allocated to a different number
of aisles based on availability. These aisles are driven to
in the predefined priority. In this way, new goods from ca.
4,500 sea containers reach Boltze logistics and eventually
the customer via the fastest way possible.
//// High variation picking
Once the goods have found their way into high bay
storage and then into picking, there are different options for how they will be processed further. The picking area in Bad Oldesloe has room for about 1,800 pallets. Here, Boltze can define flexible parameters, such
as when pre-picking is triggered or when a full pallet
is transported as replenishment to the picking area.
For example, a full pallet can be brought to the dispatch area for further processing (replenishment) for
an order with more than three units per order pool and

inconso

Source: Boltze

for smaller quantities, be first pre-picked onto empty


pallets.
There is room for 200 pallets in the small parts picking
area. Here, products are either collected on carts or directly processed, as is the case with single positions. Afterwards, the products are packaged in a mixed carton,
given a shipping label and transported to the general picking area. From there, during a tour, they are packed on a
pallet with other cartons of the order and eventually transported to the shipping area. As has already been hinted
at, replenishment is carried out with full pallets in order
to reduce warehouse movements. These replenishment
runs have the highest priority of all runs in the warehouse.
//// Personal experience counts
In addition, at both Boltze logistics locations, there is a
separate bulk goods storage and picking for goods that
cannot be stored in racks. Here, the same employees are
responsible for store-in and store-out since experience is
important for goods that have to be processed in a complex manner. The employee decides on his own where
he stores which pallet and knows which pallet has to be
handled with more care.
Returns are also a relevant matter for Boltze, even if only
to a small degree. Sometimes customers return opened
cartons, individual products and less often full pallets.
These are stored in special racks most often in fringe
areas of the warehouse after QA has been carried out.
Once the goods are received, the company is directed to
reimburse the customer for their value. The goods easily
cross over to the inventory.

//// Prioritizing orders


Picking and consolidating orders always follows a set
sequence. Bulk goods are begun with, followed by full
pallet picking, and lastly mixed units. In general, the
prioritization of picking orders at Boltze is specially
regulated. Thus, a customized system modification
takes account of several KPIs: the basic priority of the
order (express or standard), the age of order and the
percentage of the orders picking status. Therefore,
the order that has already been picked for the most
part has priority over one that has not yet been started. In this way, Boltze ensures that orders are quickly
processed and that the degree of capacity utilization in
the warehouse and especially the picking area is never
too high.
//// Optimized shipping processing
The packed pallets are securely prepared for transport
at the pallet wrapper and smoothly transferred to shipping. In the previous system, process management already ended at the pallet wrapper and shipping had to
be processed manually. Today, loading is automated and
the creation of shipping and loading documents is triggered by the system. In this way, what was loaded when
and where can be evaluated at any time. Transparency
from dispatching up to loading is thus secured. 3.1 million cartons per year are loaded this way, which equates
to 27 million individual parts. Ninety logistics employees
ensure fast availability of goods year-round and fulfill the
requirement of Boltze to always deliver goods securely
and on time.

inconso

/9/

The combination of inconsoWMS X, resource management inconsoRMS


and simplified shipping processing contribute to smooth processing
in all warehouse areas. This facilitates fast dispatching and paperless
recording of goods received in the warehouse right from the start.
Compared to its previous organization, the area for small parts storage is also well organized now; picking and replenishment go hand
in hand, are processed smoothly and thus ensure faster turnover.
//// Avoidance of bottlenecks
Product variety in combination with high quantities created a great
challenge for process organization in all warehouse areas. However,
with the newly integrated processes in replenishment and C picking,
meaning picking already starting in the narrow aisle, bottlenecks are
avoided despite a limited amount of locations. The diverse kinds of
picking, based on product size and priority, were also ideally mapped
in the system and, together with the new order management, contribute to the high reliability of Boltze logistics.
After 16 years with the preceding warehouse management system,
it became increasingly urgent for Boltze to integrate a new system
and modern process concepts. After a tender was done in 2010,
inconsoWMS X was ultimately chosen in 2011. At the end of 2012,
the warehouse in Bad Oldesloe went live, shortly followed by anewly
built logistics center in Braak in 2013. Since then, the Boltze idea
worlds are stored with inconsoWMS X on 65,000 m2.

/ 10 /
Source: Boltze

inconso

SIGNIFICANT
INCREASES IN PRODUCTIVITY
Interview with Michael Winterhalter, Process Management Boltze Ideen

inconso: Mr. Winterhalter, why did it become time


for a new warehouse management system?

inconso: What were the decisive criteria for this


choice?

Michael Winterhalter: After being in operation for


16 years, our previous warehouse management system could not meet our requirements anymore. The
dynamic business of Boltze Ideen requires a solution for managing logistic processes that is just as
dynamic and adaptable. Sadly, we have been lacking
corresponding advancements and updates for quite
some time. In order to maximize the potential of our
logistics and with it the potential of our entire business, we opted for a restart.

Michael Winterhalter: The warehouse management system inconsoWMS X offers all functions that
are important and indispensable for Boltzes logistics.
Moreover, inconso continuously works on system advancements. inconso add-ons can handle additional
demands such as efficient resource management
or shipping processing in goods issue. Judging by
the size of the company, we also expected a stable
project situation and short response times in support
operations.

inconso: And how did you go about searching for


the new provider?

inconso: And have these expectations been met?

Michael Winterhalter: First, we had to write down


our relevant questions and requirements in regard
to a new system and a suitable software partner.
Fraunhofer IML in Dortmund helped and supported us in this process. Together, we completed the
tender, defined criteria for exclusion and carried
out one-day workshops as well as reference visits.
During this process, inconso eventually became our
favorite provider.

Michael Winterhalter: With inconso as our implementation and consulting partner, we have reached
our project goal. Now with inconsoWMS X, a powerful and highly flexible system manages our logistics processes at the locations in Braak and Bad
Oldesloe. Today, we have achieved a significant
increase in productivity in previously often critical areas such as small parts picking or shipping processing that, of course, also influences the efficiency of
logistics as a whole.

inconso

/ 11 /

ERNSTINGS FAMILY TRUSTS IN


INCONSO DURING SAP EWM
IMPLEMENTATION
inconso ensures high output for textile company with SAP EWM
Over 1,700 retail stores that are supplied every other day, an output of up to 800,000 delivery positions per day
on a logistic area of 80,000 m2 and 1.5 million web store orders per year the logistic requirements of Ernstings
family are already quantitatively enormous. In addition, there are qualitative expectations for flexibility, efficiency, performance and user friendliness. With
SAPEWM, inconso provides the textile company with a warehouse management solution that
can meet all of these requirements and can be
optimally integrated into the existing SAP environment.
The textile retailer Ernstings family GmbH & Co. KG
maintains one distribution center in Coesfeld-Lette
and another in Coswig-Klieken for both the supply of
more than 1,700 stores in Germany and Austria and
the processing of web store orders. The logistics network also includes the regional center in Schwarzenbeck being used as a delivery and distribution hub,
due to its closeness to the Hamburg port. Since 2014,
all logistic processes regarding store deliveries are
controlled by the SAPEWM based warehouse management system. The related consulting, concept and
implementation were carried out in a three-stage project process by the logistics software specialist inconso.
//// The store as the center of the logistics concept
The logistics processes in the distribution centers, the
regional center and within the transport network orientate themselves according to store requirements.
These combine many different products on a small
sales area. However, only a small quantity per product version is available on site. Furthermore, differentiation needs to take place between push and pull
products. Every day, Ernstings family introduces 40
new styles on average (push). In addition, sold products, especially NOS products (never out of stock),
need to be replenished on short notice (pull). Ernstings family faces these challenges by supplying each
store every other day.

/ 12 /

inconso
Source: Ernstings family

//// Exemplary multi-channel concept


In addition to tightly synchronized store deliveries, orders
from the online store, which has been in operation since
2003, require processing as well. Ernstings family receives 1.5 million orders per year, which are delivered
to the closest store or directly to the customer via a CEP
service provider. Returns can also be handed in directly
at the store using this uncomplicated method. Here, Ernstings family employs a classical multi-channel strategy
the customer chooses the least complicated method
and Ernstings family can concentrate on smooth logistic
processing. Comprehensive returns processing, which is
usually difficult to avoid on the e-commerce market, is
almost nonexistent for Enstings family. Most customers
return their goods directly to the store, where they can
immediately be posted to the local inventory.
//// Standardized SAP environment for smooth processing
Since 2013, the warehouse management system SAP
EWM monitors these necessary, multi-layered and high
performance processes. The decision for a new IT control
was already made in 2011. For the first time, the limits
of their existing system became visible and the need for
a standard SAP environment grew until then, logistics
was the only area of the company that was not controlled
by SAP yet. In May 2011, the creation of a thorough requirements specification began. The decision for inconso
as the implementation partner was made in September
2011 after several selection interviews and workshops.
//// New system as the basis for further development
One of the aims of the software change was the creation
of an integrative system environment in all company areas.
Up to now we lacked the necessary informational security in logistics as well as comprehensive
options for further development,
explains Holger Henning, Logistics Department Manager at Ernstings family.
Due to the different systems, for
example in

Source: Ernstings family

procurement and logistics, problems always arose during


the exchange of information. These gaps had to be closed.
Moreover, Ernstings family had already been following an
ambitious growth strategy for several years that brought
logistics management closer to its limits. The new building of the automated high bay warehouse in Lette was a
first step in extending these limits. Paired with SAPEWM
as the new IT system, performance could be further increased and increasing output numbers reached. The
topic of multi-channeling also could not be neglected.
In SAPEWM, a system was found that could optimally
meet the diverse requirements of the various distribution
channels as well as parallel process store and customer
deliveries.
//// Project initialization in April 2012
The business blueprint created by inconso was accepted
by all participants in 2012, which meant the realization of
the system change could begin. The location in Klieken
was focused on first. In the first phase, the automatic carton warehouse was connected to SAP EWM. Here, three
or four cartons are stored per tray shelf in four aisles.
Connected to it is a carton conveyor technology pre-zone
with six workstations. Furthermore, goods receiving and
replenishment of NOS goods was taken over at both locations. These processes could already go live in January
2013.
In July of the same year, the other processes followed in
phase two in Klieken. In this way, goods receiving, the
labeling of apparel and all picking processes for apparel,
replenishment and NOS goods were changed for about
850 stores. SAP EWM is now managing even the automatic, partially double-deep pallet warehouse. Here, pallets, roll containers and empty goods are stored. The linking and unlinking of roll containers and slave pallets occur
manually or half-automatically.

inconso

/ 13 /

//// Goods receiving and labeling


uncoupled

Quelle: Ernstings family

In Klieken and Lette, goods receiving


processes are handled separately from
labeling processes. This means that
a received apparel is first stored into
the high bay warehouse in its original
package on pallets without recording
the product quantity. QA, however, is
already carried out in this step. Afterwards, the goods are prepared for picking. They are individually transferred to
roll containers, their actual quantity is
recorded and they are then stored-in
again. The decoupling of goods receiving and labeling has a positive effect on
logistic process efficiency. Since goods
are rarely supplied on the day they are
supposed to be delivered, Ernstings
family can avoid idle time in its warehouse areas. Moreover, flexible and
short-term rescheduling of goods control is possible.

//// Replenishment store-out in


three waves
The picking documents are printed
parallel to replenishment store-out in
three waves. In the first wave, one
roll container per product version is
placed in the picking area. The second wave is determined based on
the demands of the stores covered in
the first route. Rounded up to full roll
containers, these are also arranged in
the picking area according to product
version. The third wave contains the
products for the second route. Then
picking takes place according to the
printed document. The goods issue
posting occurs in the background and
after the actual shipping or one day at
most before the official delivery date.

In the third project phase in January


2014, the location Lette went live with
SAP EWM analog to the location in
Klieken. Furthermore, goods receiving
and replenishment for direct customer business via the online store were
integrated and the automatic pallet
warehouse was connected. Here,
up to 2,500 pallets and roll containers are stored-in and stored-out daily
and distributed onto eleven aisles and
22,000 pallet positions. In contrast to
the location in Klieken, roll containers
and slave pallets can automatically be
linked and unlinked here.

For automatic replenishment, theERP


system creates the necessary deliveries (pull approach) based on
store sales. Per notification to the
SAPEWM, only stores of the route
that can be picked the following day
are taken into consideration. SAP
EWM then determines the picking
order and calculates the necessary
routes for the first 50 stores. Based on
the necessary volume for the stores,
picking occurs via multi-order picking
or via MDE for only one store.

//// Interaction of SAP ERP and


EWM
Not only do various supply processes to
the store need to be prepared in goods
issue, but relocations between the locations, sales to personnel and returns to
suppliers need to be processed here as
well. Store deliveries differentiate between the initial distribution of fashion
(push delivery), the automatic replenishment of fashion and NOS goods, the

/ 14 /

supply of consumable products, spontaneous deliveries and relocations between stores. SAP ERP and EWM operate as independent systems. In ERP,
allocation tables are first created, in
which the number of units per store is
determined and deliveries including a
delivery date are generated. EWM then
combines these individual allocation
tables to form groups and designs
a position recommendation on the
picking area for a delivery date.

//// Transparent system on time and


budget
This is only a selection of the processes optimized with SAP EWM for

inconso

Ernstings family. After the successful go-live, the textile company now
has a multitude of functions at its
disposal that ensure higher process
security for all processes relevant to
warehouse economic activities. The
new system features convincing clarity, transparency and ergonomically

as well as intuitively designed user


interfaces. For the expanding textile
company, this means that a timely
and cost-effective delivery of goods
can be achieved in the future as well.
In the full project, the schedule, budget, quality and range of services

could be adhered to as planned. All


three phases were executed without
any effect on delivery performance.
The fourth phase, in which all direct
customer business will also be connected to SAP EWM, is already under way.

IMPRESSIVE DEDICATION

Talk with Holger Henning, Logistics Department Manager, Ernstings family


inconso: Mr. Henning, concerning
the output of up to 800,000 positions per day, Ernstings family is
the largest SAP EWM installation
in the world. Does that make you
proud?
Holger Henning: We can definitely be
proud of the results of the SAPEWM
integration. However, this does not
just apply to output numbers, but also
to the multitude of efficient logistics
processes that are available in the
new system. All expectations that we
had have been met due to this flexibility. The project could also be completed on time and budget, another
aspect that makes us proud.
inconso: What expectations did
you have for SAP EWM at the beginning of the project?
Holger Henning: While Ernstings
family is on its way to becoming a
value retailer, logistics were not to
impede development at this point. All
logistic processes are carried out by
Ernstings family itself. On the IT side,
however, there were constantly gaps
and breaks. Therefore, it was a logical conclusion to also bring logistics

under the SAP roof. We saw


SAPEWM as a future-proof system
offering us not just the needed transparency, but also flexibility concerning
future modifications and expansions.
Today, one needs to increasingly expect unpredictable changes, whether
in regard to suppliers, customers,
or economic developments. With
SAPEWM, we are now able to react
quite quickly to such variations and
modify our processes accordingly.
That exactly corresponds to our expectations.
inconso: So, you are happy with
the result of the project. How did
you feel about working together
with your implementation partner
inconso during the project?
Holger Henning: The entire project duration was characterized by a
very open and pleasant working atmosphere. We felt well understood
in all phases of the project, from the
blueprint phase to the testing phase
through to all phases of the go-live.
The dedication of the inconso project
staff really impressed us. One could
tell that the entire team fully committed itself to the project.

inconso

Source: Ernstings family

/ 15 /

Imprint
Publisher:
inconso AG, Bad Nauheim
Editorial Address:
inconso AG, Marketing & Communications,
Dieselstrae 1 7, 61231 Bad Nauheim
marketing@inconso.de
Phone: +49 6032 348-0, Telefax: +49 6032 348-100
Headquarters:
Bad Nauheim
Locations:
Bremen, Dresden, Essen, Gallin, Hamburg, Heidelberg,
Cologne, Mnster, Sindelfingen, Lyon (F), Madrid (ES)

Quelle: Boltze

mail@inconso.de | www.inconso.de

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