Eduard Mysev: Columbus WMS is qualitatively new level of internal logistics of a warehouse

Eduard Mysev: For such large distributor as Yurves work without warehouse information system is impossible. Daily our company should process not less than 1000 orders that makes about 12000 product names. Before implementation of the specialized WMS solution our company used the information system of address storage written on 1C 8.1. In general a system provided requirements imposed to it, but at the same time had some essential shortcomings.

For example, in the solution there were no tools for lot-based accounting and accounting of intra tare investments, operational inventory in a warehouse could not simply be carried out. In a system the single database for accounting of warehouse and trade operations was used that at a large number of diverse users had negative effect on questions of security of business of Yurves.

TAdviser: Whether correctly I understand that you began to select new WMS at construction of a warehouse? What the warehouse is, tell about its specifics.

Eduard Mysev: The choice of WMS and construction of a new warehouse complex is rather coincidence. By this moment the question, as stated, already ripened. Nevertheless, with pleasure I will tell you about a warehouse as I was directly involved in its design and construction. First of all, it is a warehouse with different storage areas of products that is dictated by specifics of our distributor business. Secondly, it is very modern, equipped with necessary security systems complex which functions as uniform whole, providing assembly and shipment of orders diverse according to the product characteristics.

If to speak about technical characteristics, then it is a storage areas from 3 to 15 meters high and five-floor mezzanine warehouse of 12000 square meters (960 sq.m) for shelf storage of products. Zones of acceptance, shipment and additional processing of products are accurately separated. The complex is equipped with modern warehouse appliances and as now it is possible to state, runs smoothly under control of the warehouse information system Columbus WMS based on Microsoft Dynamics AX.

TAdviser: Whether you were directly involved in the choice of the new information platform? What other platforms were considered and why finally the solution based on Dynamics AX was selected?

Eduard Mysev: Yes, of course. The choice took place directly under my management. For this purpose I had to consider all WMS solutions which are almost available in the market, adhering to the following technology of search. Systems which functionality did not suit us by determination were rejected at once. Also offers from the companies with muffled development team were not considered (as it is not strange, were also such). For all other solutions we carried out the preliminary analysis of available functionality, estimated the volume of possible completions, cost of purchase, completion, implementation and also costs for further operation of a system.

Considering the limited budget, we eliminated systems with high total cost. Then compared implementation time, cost of ownership and setup of the solution of own forces, estimated the number of successful implementations of potential partners, including at the enterprises of our industry orientation.

We had to make the difficult choice between systems with the large volume of completions and low basic cost and systems with a small volume of completions, but quite high basic cost of ownership. In view of tough terms on implementation, we made a choice for benefit of solutions with a small volume of completions and changes of a number of warehouse business processes. Thus, before the final choice of a system for our company there was only one step. We preferred Columbus WMS based on Dynamics AX as the stable reliable solution, with a large number of implementations and low cost of ownership. Acquaintance to a team of consultants which took place at a stage of signing of the contract became an important factor.

TAdviser: Whether a system during implementation was adapted for business of Yurves? In what specifics of storage of products in your warehouses how it is considered in a system?

Eduard Mysev: Of course, it was not without adaptation of a system. Generally it concerned the procedure of consolidation of the order from the goods gathered in several different storage areas and procedures of cross docking for goods of network clients. In a system all questions connected with high-rise and shelf storage of products, replenishment and movement of a seasonal goods and also questions of dynamic placement of the wide range of odd shaped products – from a pencil for eyes to displays more than two cubic meters in size are considered.

Reduction of time and costs for acceptance, placement and storage of products – for ensuring high speed of turnover of a trade inventory became especially important requirement from Yurves to the implemented WMS system. The project team and me personally also had to adapt a system to acceptance and storage of goods, separation in a warehouse of boxed and piece assembly and also processing of returns of small-pieces goods. All this was successfully solved. It is remarkable that the implementation methodology of Columbus meant documentation of any made changes for blueprint stage of a system.

TAdviser: It is no secret that one their problems of many IT projects resistance of employees to new technologies at the initial stage of operation often is. How did you solve it? Whether some special motivational schemes were developed for personnel, other measures?

Eduard Mysev: Here I was helped by the previous experience of project management in the production and construction sphere and also a formula known to all "cadres are the key to everything". Prior to the beginning of the project we created the selected command (which is selected, but not from the acting employees) which, on the one hand, had all necessary competences, and with another – was motivated on successful implementation. Certainly, the project was given the high status, and personally at me as managing director, it took away a lot of time and forces.

We overcame resistance of linear personnel due to their training in the main skills of work with a system with emphasis on a new assembly technique of goods. In turn, the key element was positive results of work of the selected command, having realized all advantages of technology of management using modern WMS.

TAdviser: Whether you expected some economic effect based on implementation? If yes, that as you estimate it later half a year from the beginning of operation of a system? What other visible effects of transition to the new platform do you fix?

Eduard Mysev: Certainly, the effect of implementation of the new WMS solution is, and it can be expressed in digits. For example, the cost of end-to-end inventory of goods fell by 3 times in comparison with earlier applied technology. Nevertheless, I consider that the positive result of implementation of the WMS system is, first of all, the other level of the organization of internal logistics of a warehouse. It also compliance to universal standards, belonging to the advanced community and, certainly, a message to the market and to clients of the company about the proper level of service and services from the company.

I think that the observed splash in the field of implementations of management systems for warehouse logistics and the wages rise of specialists in this industry is connected, first of all, with these factors, but not with notorious cost efficiency of projects. We fix growth of turnovers, fall forward and customer service qualities. Also I will note satisfaction of warehouse personnel with work of the new WMS system and jaundiced eyes of competitors (laughs).

TAdviser: Whether the WMS project the first IT projects in which you participated was? Tell, please, about own experience: what it seemed to the most difficult, the most interesting? Coming back whether you made something in a different way? How to you cooperation with Columbus?

Eduard Mysev: No, it is not my first IT project. Earlier I had to implement more complex systems on sales management, managerial accounting of industrial and trade enterprises. Nevertheless, this project allowed me to get invaluable work experience in area of warehouse automation, gave the chance to learn a lot of new and to work, of course, together with the staff of Columbus company. Along with high qualification of staff of this company I will note the excellent organization of all project. The solution even, apparently, small, "household" questions which in other organizations often are considered as minor always passed at the highest level. Everything, beginning from the first meeting before transfer of the final project documentation, exceeded our expectations. For what, certainly, thanks to the management of this consulting company.

Also I would like to express sincere gratitude to the colleagues with whose direct participation this project took place. And though many of them joined the Yurves command on implementation start, their experience and competence, their aspiration and diligent work became guarantee of the general project success.