Magma conducted a logistics audit with the help of Axelot

2022: Warehouse Survey and Preparation for Automation

On November 25, 2022, AXELOT announced that specialists conducted a survey of the warehouse facilities of Magma LLC and gave recommendations on the organization of business processes, a system for storing and optimizing the use of warehouse space and the placement of goods that will increase the speed of cargo processing and form the basis of the automation project.

Warehouse of Magma LLC

To maintain a high level of service, the logistics processes of the company must be efficient and accurate. This can be achieved using warehouse logistics automation, so Magma management decided to implement WMS in a warehouse in Dagestan.

But before starting the automation project, it was necessary to develop a concept for the operation of the warehouse in order to modernize technological solutions on the one hand, taking into account the plans for the development of the company, and on the other, so that when implementing WMS, it would be possible to use all the functionality of the system. As a primary problem, the customer noted the problems: the "human factor" and the lack of a systematic approach to the placement of goods, affecting the quality and speed of processing. AXELOT specialists helped in solving the Magma problem, who were to:

• Develop warehouse topology based on planned optimization solutions
• calculate the capacity of storage places and determine the location of the process areas of the warehouse;
• develop and describe process algorithms;
• calculate the required number of personnel and equipment.

The logistics audit identified "growth zones" to concentrate on in order to get rid of all that hinders the further development of the business. Three key aspects requiring attention were identified:

• The warehouse topology is not optimal, because of which spontaneous storage places are formed in the passages, the selection of goods is difficult, a large number of sampling errors occur. There is also no control of selected orders and increased mileage of personnel and equipment.
• Existing paper technologies do not allow you to accurately and quickly perform warehouse operations, cause dependence on personnel and complicate the process of adapting employees.
• Business processes of cargo processing have problem points - the placement of goods is carried out at the discretion of warehouse employees, there is no targeting of bins in the front and shelf racks. The warehouse has several floors, but there is no system for storing goods on different floors, which gives rise to a large number of unproductive operations.

Based on the results of the survey, AXELOT experts have developed recommendations aimed at improving the speed and quality of operations, which will further simplify and make the process of implementing the warehouse management system more efficient.

Thus, based on the measurements and calculations made, the concept of storage space arrangement was developed, taking into account the existing and designed storage facilities. The required number of personnel was calculated and requirements for the PTD fleet were formed. The additional rack equipment recommended for installation in the warehouse perimeter allows to increase the storage capacity by 15%, which meets the requirements of the Customer's business until 2024 inclusive. The total increase in the storage capacity is possible up to 48%, taking into account the Customer's reconstruction and conversion of one of the floors of the building.

Eliminating work on "paper" and organizing address storage are tasks that the implementation of WMS will solve directly. Taking into account automation, optimal process charts of main and auxiliary business processes have been developed, in which the speed of cargo processing will increase by 2 times, and the speed and accuracy of the most time-consuming and costly order selection process will increase by 2.5 times.