Vishera, group of companies (Proxima Warehouse)

The Vishera trading House since 1998 specializes in supply of materials from a tree for retail outlets of all formats and works with most the leading Moscow and regional network hypermarkets of the DIY format (Do It Yourself - "make") and also with independent retail and the markets. Our suppliers - tens of the largest Russian and foreign enterprises of woodworking, and the range exceeds 2000 product names in all commodity groups. The Vishera trading house successfully cooperates with Castorama, Leroy Merlin, OBI, Youzhny, Square Meter, Home Sentrz, Agabus and other leaders of the Russian DIY retail.

TDV-SERVIS company is the child business direction of structure of VISHERA Group. A basis of activity of TDV-SERVIS – providing the qualified services in support of sales process in hardware stores and hypermarkets. Use of a range of services on maintaining goods from the producer to the cart of the buyer cuts down the hidden overheads, allows to increase profitability and increases sales not less than by 10% during the season Automation of a distributive (wholesale and retail) warehouse. System implementation of management of a warehouse.

Implementation premises

Before the project of automation of warehouse TD VISHERA located the warehouse complex consisting of 5 warehouses with a total area of 6 thousand sq.m. The product line made about 1 thousand positions of the raznoformatny products from a tree (pogonazh, rails, bars, doors, windows) which are stored by both a rack, and stacking and floor method. Work of a warehouse is organized in 3 changes. Number of staff was 101 persons. As a software platform of automation of a warehouse a system Proxima Warehouse of WMS from the Russian developer of IT Scan company which after integration with CIS "1C: Trade and Warehouse 7.7" had to provide uniform management information space of a warehouse complex was selected.

Before implementation "the Proxima Warehouse of WMS" in our company for management of warehouse logistics was used one accounting system "1C: Trade and Warehouse 7.7". In it there passed the statement of documents, a remaining balance of goods miscalculated on paper, and then was brought in a system. At such organization of works time of selection of goods left much to be desired how many the client should expect depended on memory and experience of the storekeeper. If the last went on leave or on hospital, then long search of goods at once began, gross errors were made. Underdeliveries, selection errors were not a rarity. We just sank in the sea of claim acts. Naturally, such style of work did not suit company management.

Desire to work with the warehouse logistics in foreign market, i.e. to service not only VISHERA group, but also other suppliers of network became other important purpose of automation. We understood that our service division can enter foreign market and suggest other suppliers to fulfill all logistic requirements for DIY network, however a brake on the way of our aspirations was own slow warehouse logistics.

Thus, desire to improve and simplify work of logistics became the main (main) premises of automation. We wanted that selection, the complete set and goods acceptance were carried out as fast as possible, also we aimed to minimize the number of staff (at that time worked for us 101 persons), to accelerate inventory.

"It is closed on accounting"

It should be noted that inventory brought us special "headache". Carry out inventory of warehouses with a total area of 6 thousand sq.m, without having details about location of groups of goods, it was extremely difficult. We for three days closed warehouses and did calculations, we could not perform either shipments, or arrivals therefore our clients and suppliers suffered. Due to the lack of address storage system we every time has come to different results. Discrepancies according to inventory could make 200-300 thousand rubles.

Implementation

At the first stage 5 warehouses with a total area of 6 thousand sq.m were automated. We automated 2 more warehouses with a total area of 4 thousand sq.m which appeared later as a result of business expansion independently, without participation of specialists of integrator. Openness of the solution the Proxima Warehouse of WMS and a possibility of its fast setup also allowed IT service TDV-SERVIS to conduct independently replication of a system on two remote warehouses.

For smooth operation of WI-FI of points in not heated warehouse in frosty weather special casings with heating were used. During project works transactions of acceptance, selection, shipment of goods are automated, necessary document flow is organized and schemes of information flows are implemented. Different options of acceptance and shipment of goods are implemented (pallets, boxes, pieces, quality control on an input and an exit). A system gives the chance of different types of cargo handling: repacking, packaging, pre-sale preparation of goods, repair and recovery of packaging and also lot-based and serial accounting of loads.

Motivation of personnel

In spite of the fact that during the course of performance the project all features of our business were considered, training of employees is provided, a system did not earn. We faced the personnel resistance because new it is not necessary for anybody, except owners of the company. Warehouse workers felt the indispensability and perfectly understood that dismissal even of the most at fault storekeeper will turn back a problem because nobody knows where that he lies. Besides, due to the lack of accurate data and storage locations and goods quantity, also theft prospered. In such situation the warehouse management system doing business to transparent is unprofitable to personnel. Sabotage began – storekeepers did not follow the instruction WMS. The improbable confusion became a result of such "work". Discrepancies at inventory reached 1 million 800 thousand rubles. We understood that serious work with personnel is necessary. Any, even the most smart WMS, will not be able to work in itself.

Using Proxima we calculated the amount of works which the storekeeper for change is capable to execute, calculated a replaceable task and on the basis of it developed the new effective payment mechanism of work.

The salary of any employee of a warehouse, beginning from the storekeeper and finishing the loader, it began to consist of two main parts – the fixed salary and a motivational part. Directly motivational part consists of three shares. The first, is charged for observance of address storage system. Shift supervisors together with logistics specialists come to any warehouse and selectively check from 20 to 30 cells if there are no violations, and everything corresponds to pre-determined locations of storage, then the storekeeper after three successful checks receives this part of an award.

The following variable part is accomplishment of replaceable tasks. If the replaceable task is performed in full and without errors, i.e. the storekeeper as directed of WMS correctly completed, shipped, having taken goods from the specified storage locations, then respectively, and completely receives this variable part. Such inspections are carried out daily.

One more bonus part depends on inventory results. Inventories are now carried out using data collection terminals without stopping of a warehouse. If inventory takes place "in zero", then the personnel of a warehouse receive the variable part. In case of formation of excesses the special commission finds out the reasons and deprives of employees of all amount of a variable part. If inventory took place "in minus", workers lose a variable part, and pay shortage according to the agreement on a collective financial responsibility.

We started life "with a clean slate" after carrying out total inventory. Reflected quantity, a location of goods in WMS and reckoned new life with the system of motivation. Exactly in a month the warehouse earned ideally, and now we can tell surely that we received the powerful and flexible management tool all warehouse processes. People believed in efficiency and convenience of work with a system and work without violations. The warehouse personnel began to be in time more and to earn more. Stimulation of employees is also promoted by a quarter award for faultless work within several months.

The achieved results

Thanks to respect for the provided technology, reduction of quantity of errors in work, increase in capacity of a warehouse we managed to achieve optimal use of warehouse space. Before implementation Proxima Warehouse of WMS products were stored in five warehouses, and we hardly managed to perform work on service of home company, now we locate seven warehouses and these storages are hammered "on the top". Before automation we stored products for 40 million rubles, and now on 90. Volumes of the processed products increased more than by 2.5 times. At all this we reduced number of staff more than twice.

Now we have in the warehouse clients suppliers in DIY shops which we service in terms of warehouse logistics - we process their products, we complete, we pack up orders, we do goods marking in order that the customer could deliver to the client products of proper quality.

As a result of successful system implementation of management of a warehouse our division works without losses, the number of claim acts was reduced in tens of times, and it means that the level of service of our company at height.

Significantly the speed of carrying out inventories grew. We check the biggest most difficult goods warehouse in 7-8 hours, for the period of inventory we do not close a warehouse for buyers and suppliers.

The possibility of painless rotation of storekeepers became great advantage of automation. For personnel does not matter now where it worked earlier – at a window warehouse or in storage of the small-pieces products which do not have relations to a tree. Everything that is required for faultless work - it is a data collection terminal and exact observance of the WMS tasks.

As a result of automation of a warehouse complex our company got a number of competitive advantages, and today TDV-SERVIS provides the best service in the category. We locate a modern hi-tech warehouse complex more than 10 thousand sq.m. that allows to ship more than 30 cars of big loading capacity a day. The system of our warehouses ensures the most operational work with loads according to the European standards of warehouse logistics.