BIA Technologies optimized storage locations for Alidi

2024: Product Storage Optimization

BIA Technologies has optimized storage locations for ALIDI. This was reported to BIA-Technologies on August 7, 2024.

The wholesale supplier has a tool for assessing target parameters, identifying bottlenecks and assessing storage density.

Before contacting BIA Technologies, the placement of cargo in the company's warehouse did not take into account the convenience of picking orders. ALIDI sought to reduce the costs of personnel and handling equipment, as well as handle more cargo with available resources.

Warehouse logistics costs are important in the structure of operating costs, so their reduction can lead to a significant decrease in the entire cost of sales. In a dynamic distribution market, where the cost, quality and speed of order processing play a key role in the competition, effective warehouse organization becomes a prerequisite for successful business. Thanks to the creation of a simulation model, we managed to solve the problem of optimizing the storage areas of goods and reduce the mileage of equipment for assembling orders to 30%, as well as optimize the PHY of warehouse personnel by 5-15%, - said Alexander Volovik, Commercial Director of BIA Technologies.

When choosing an IT partner, successful experience in building mathematical models was important for us to optimize the warehouses of leading logistics companies and distributors of the country. Also, one of the most important selection criteria for us was the successful solution of the test task, where in a small piece of the warehouse we were able to highly appreciate the competencies of the partner company and the readiness to create a "box" product for us, which we can use independently, while adjusting to constant changes. Thanks to BIA Technologies specialists, we received a simulation model on which we can test our hypotheses, determine the regulatory time for the tasks and work of warehouse personnel, optimize the placement of goods in a pick, and also find the optimal location of all positions in the warehouse, "said ALIDI-Logistic Operations Director Sergei Babey.

In the process of implementing the project, BIA Technologies specialists simulated the placement of goods in stock using historical data. As a result, the task of minimizing the total time for product selection was solved. In addition, significant potential has been identified for reducing personnel mileage by taking into account implicit dependencies between the counterparty (commodity matrices) and product groupings in the order.