Skolkovo resident improves Hoff logistics efficiency

2023: HOFF. 300% acceleration

The story of how Hoff accelerated logistics and improved business efficiency by 300% with Kleverens.

Call to adventure: The situation before the introduction of Kleverens

Hoff, one of the largest the Russian retailers furniture, has faced an increase in warehouse operations, increased logistics and insufficient order processing speed. With the growth of the company to 62 stores and more than 20 warehouses, it became clear that the previous methods of work are slowing down the business. Commodity movement processes based on paper documentation and manual data processing could not meet the needs of customers waiting for quick delivery and timely receipt of goods.

The system slowed down. We understood that the goods could get on the shelf a few days later, and these days could be decisive, recalls Dmitry Sumin, head of Hoff retail warehouses.

The World Is Turning Over: Resisting Change

As is often the case in large companies, the introduction of new technologies can cause resistance. At Hoff, this was especially evident at the warehouse level, where for many years the company relied on paper documentation and manual data processing.

For many employees, the transition to an electronic system, in particular the use of data collection terminals (shipping documentation), seemed unnecessary and difficult. Their mistrust of the system was reinforced by their use of paper forms, despite obvious flaws such as errors in data entry, delays in registering goods and dependence on the human factor. Many warehouse employees were accustomed to paper documents and were afraid of change.

For them, it was like replacing an old, comfortable sofa with something completely unfamiliar, says Alexander Afanasyev, Head of Mobile Solutions at Hoff.

Employees weren't sure the new technology would actually improve their performance. Fear of change and lack of confidence in the effectiveness of the new solution complicated the first stage of implementation. However, Hoff's management was determined. Automation was necessary for the company to cope with growing sales volumes and speed up order processing.

New expertise: Making a decision on the implementation of Kleverens

The company began to look for a solution to automate the processes of employees working directly with goods. After careful market analysis and consideration of various options, Hoff chose the Kleverens platform for its flexibility and rapid integration with existing systems. The solution proposed by Kleverens did not require long-term adaptation of equipment or additional improvements to the needs of the company. The platform "out of the box" covered the key needs of Hoff, which made it possible to speed up the launch of automation. In addition, Kleverens took full responsibility for integrating and replicating the software across all devices, which removed a significant portion of the technical load from Hoff. This became an important factor in choosing a partner.

In fact, everyone except "Cloverens" would do their "self-writing" for us. And "Kleverens" came out to us openly, offered a platform from which there was no need to adapt the devices, and which out of the box covered part of our needs. The developer assumed the responsibility for integrating and replicating software to all equipment. It completely suited us, Alexander Afanasyev, Head of Mobile Solutions at Hoff Tech.

Note that Hoff used the Microsoft Dynamics AX (Axapta) accounting system, which has been finalized for many years for the needs of the company.

The key factor was the ability to adapt Kleverens to the unique Hoff processes and support for both WinCE and Android devices.

Kleverens proposed a platform that immediately closed our key needs and allowed us to start work without lengthy developments, supplemented by Alexander Afanasyev.

For Hoff, it was critical to retain some of the existing WinCE fleet of devices to avoid the additional cost of updating more than 700 shipping documentations. Kleverens provided support for both old and new Android devices, which allowed the company to save significant resources. Another advantage was the ability to independently develop within the company, the use of APIs for integration with other systems, as well as guarantees of high-quality support, which corresponded to high Hoff standards.

Шаблон:Quote 'author=Alexander Afanasyev, Head of Mobile Solutions at Hoff.

Burnout: Start of implementation

The introduction of Kleverens began with an important step: the automation of warehouse operations. The shift from paper to digital was a time-consuming and lengthy process that brought many complexities. The main problem was to ensure accurate and fast synchronization of data between physical warehouse operations and the existing Axapta accounting system (Microsoft Dynamics AX), which the company used to control the movement of goods.

A key element of this transition was the use of the Kleverens system. The system replaced manual data processing and paper invoices and allowed employees to receive and process product information in real time. The transition to the new system had an immediate effect: order processing became faster, more transparent and more accurate. However, the implementation of the new system required significant efforts to configure the software and train employees.

At first we decided to automate the warehouse, it took some time, but as soon as the process started working, it became clear that we were on the right track, recalls Dmitry Sumin, head of retail warehouses at Hoff.

The main task at this stage was to eliminate the "gap" between physical work in the warehouse and its display in the accounting system, and Kleverens allowed data to be synchronized in real time, which immediately led to a noticeable improvement in performance. This was the first step towards full integration and automation of warehouse processes and laid the foundation for further growth and development of the company.

Finding Allies: Implementation Difficulties

Despite the success of automation, the introduction of Kleverens faced challenges. The biggest challenge was staff training and changing habits. Sticking to paper processes interfered with the work, and it took time to fully master the new system.

It seemed to some employees that the piece of paper was more reliable. But with Kleverens, we managed to create a system for logging operations, which, in turn, made it possible to approach the digitalization of key KPIs for warehouse processes and launch visualization on dashboards, as well as use this tool to increase employee loyalty through gamification. This helped organize the complete involvement of the team, Dmitry Sumin shares.

The use of the Kleverens platform was not limited to the automation of warehouse operations. An important aspect was the introduction of solutions for managing the labeling of goods coming from abroad, such as textiles and light industry goods. To ensure the correct application of DataMatrix codes at enterprises in China and speed up the passage of customs procedures, Hoff began to use another solution from Kleverens, which simplified the process of accepting labeled goods in Russia.

One of the calls the company encountered was errors in scanning marking codes. Partners claimed that problems arose on the Hoff side, but thanks to the Kleverens system, it was possible to identify that some codes were ignored by inattention in foreign warehouses. This case confirmed the reliability of Kleverens and showed how the use of the platform helps to minimize errors and maintain high accuracy at all stages of the supply chain.

There were moments when not all brands were scanned. The partner sent us the goods and said that the mistakes were on our side. But we asked to scan the CM on camera and found out that some of the codes were missed by inattention, Alexander Afanasyev, about mistakes abroad.

Kleverens helped find a solution to this problem. Hoff greatly simplifies labeling processes. Operators in Chinese warehouses scan DataMatrix codes, and Hoff employees in Russia already know in advance what goods are expected, which eliminates the need for re-scanning and allows faster acceptance of products. This solution helped the company reduce the time to accept goods and improve the accuracy of operations.

The main test: Awareness and acceptance

Gradually, Hoff employees began to see that the new system works more reliably and faster. The time for collecting goods was reduced from three days to four hours, and the process itself accelerated by 300%. That was a key moment when the company recognized the value of automation.

At first it seemed incredible, but when we saw that we could handle the trucks in a few hours, it became clear that we had chosen the right path, says Dmitry Sumin.

One of the striking examples of successful automation was the order processing time for platforms such as Yandex.Market. Now the order collection can take only 10 minutes, which significantly increases customer loyalty. This level of speed and efficiency was made possible by the implementation of Kleverens and confirmed the correctness of the chosen automation path.

Collecting an order for Yandex.Market in 10 minutes is an indicator that the client will definitely return to us. It was these speeds that we wanted to achieve when we switched to automated accounting, singled out Alexander Afanasyev.

Reward: Unexpected results

The Cloverens Kleverens changed Hoff's warehouse processes through real-time synchronization with the Axapta accounting system. This made it possible to eliminate delays, reduce the number of errors, speed up the fulfillment of orders by 300% and significantly increase the competitiveness of the company.

Customer satisfaction rose to 97%. Automation speeds up work and creates a competitive advantage.

Kleverens supported us at every stage of development, helping to respond quickly to market challenges, emphasizes Dmitry Sumin.

For a large company like Hoff, the flexibility and scalability of the Kleverens system is an important advantage. As a result, the system adapts to the company's unique processes and remains stable even with a significant increase in the amount of work. Optimization of the workflow led to the optimization of manual work and a decrease in the cost of PHY. After all, now the movement of goods has started working without paper and without additional manual processing.

Valuable: Conclusions and long-term outcomes

The integration of the Kleverens system had a long-term impact on Hoff's business. The system not only accelerated order processing and reduced operating costs, but also increased the flexibility of the entire company. Hoff can now respond quickly to changing market conditions and quickly solve new problems and meet customer needs.

Kleverens proved its effectiveness not only at the local level, but also in the long term, allowing Hoff to expand its business and ensure high efficiency in the face of increased order volume. Thanks to Kleverens, we can now not only synchronize the processes of commodity movement, but also quickly respond to changes in the market. This gives us confidence in the future and the opportunity to maintain a leading position, Alexander Afanasyev drew conclusions.

With Kleverens, business finds solutions.