Axelot completes logistics consulting project for Agrocenter

2024: Conducting logistics consulting

AXELOT completed the logistics project consulting for LLC Agrocenter"." Axelot announced this on June 19, 2024.

The AXELOT recommendations will allow Agrocenter not only to use the available storage volumes more efficiently, but also to prepare the warehouse for further automation, which will allow the company to maintain a consistently high level of service for customers.

Agrocenter always tries to maintain in warehouses the necessary number of goods used for warranty maintenance of equipment in order to promptly process customer requests and provide high-quality service. However, the company's warehouse logistics capabilities obviously lagged behind the level of service that management sought. Agrocenter turned to AXELOT specialists to fix this - to conduct a logistics audit of the main warehouse.

The warehouse is located in the Orenburg region, it has an area of ​ ​ 3,500 square meters. m. And occupies part of the insulated hangar, located under the same roof with the Rostselmash dealership. The features of storage and cargo processing in the warehouse are due to the specifics of the products - small and oversized goods, flammable nomenclature are stored there. For part of the shipped products, a lath and special packaging are provided. In 99% of cases, orders are selected in pieces and boxes, shipments are carried out by Europalets.

The warehouse operates using outdated "paper" technology, which cannot be called optimal in terms of speed and accuracy of operations. In addition, the company was highly dependent on the qualifications of employees who knew what kind of product was stored, and new staff had to go through a long period of adaptation. Agrocenter management understood that the warehouse needed automation, logistics audit, among other things, was to help prepare the site for the implementation of WMS.

Work on the project consisted of two main stages. The first was devoted to the survey of the warehouse, the identification of the specifics of cargo processing and the analysis of statistical data in the context of the year for the incoming/outgoing cargo flow and the level of balances.

Based on the results of the calculation and its subsequent analysis, the project team concluded that the main warehouse of the company does not need to change the topology and calculate new storage systems. There is a lot of free space on the existing racks, on which you can place the entire target storage volume, even taking into account its potential growth in the future of five years. However, a shortage of space in the console racks was revealed, which, nevertheless, can be compensated for if part of the products is redistributed to the front racks.

Another proposal from AXELOT experts was the organization of daily movement of collected orders from the main warehouse of Agrocenter to the open area at the warehouse of Agrostil (another customer's legal entity). This will make it easier to consolidate orders and enable subsequent centralized shipping to customers.

At the second stage, the project team began to clarify the warehouse topology, calculate the storage capacity, the required number of personnel and equipment, and develop warehouse processes. Business processes were presented in the form of visual diagrams, and the possibility of their implementation in WMS was confirmed by specialists who will deal with the task of automation. The company management also received a detailed plan for preparing the warehouse for the implementation of WMS.

Using the recommendations developed by AXELOT specialists and automating warehouse logistics management, Agrocenter will receive all the necessary resources and opportunities to implement development plans, will be able to increase warehouse efficiency indicators and raise customer service to a new level.