Ferroni plans to reduce transportation costs and improve planning with SAP

2022: Reduce transport costs and improve planning

On February 7, 2022, the company SAP announced that the company also to production to sale Ferroni plans to improve the quality of planning by 20% and reduce transport the cost of the last mile by 10-15% thanks to warehouse management systems SAP Warehouse Management (SAP EWM) transportation. SAP Transportation Management (SAP TM) The implementation partner was the company "" ().Logistics Systems Technology TLS

Ferroni is a major manufacturer of entrance doors in Europe in terms of production. The company has been operating on the market for more than 15 years and has 23 regional warehouses and 3 own plants.

The main objectives of the project were to increase the turnover of inventory, comply with delivery deadlines, increase the transparency of processes, reduce the unit cost of stock storage and increase the efficiency of using the resources of the warehouse complex, reduce the average time for placing stock, reduce labor costs when performing functional duties of employees, reduce picking errors during shipments and movement of goods, reduce the time for carrying out inventory.

During the project, all the main warehouse processes were automated: acceptance, placement, replenishment, processing and picking, loading, etc. The use of the implemented system helped to implement the automatic distribution of goods to places of storage and robotize the picking area.

Due to the introduction in the warehouse SAP EWM , it was possible to eliminate errors in the selection, and the inventory was reduced, according to the information company, from 36 to 4 hours. The level of utilization transport increased by 10%.

In addition, the company implemented the SAP TM transportation management system to create a single business process and systematize and automate the process of transporting imported goods from China to the place of production. Also, Ferroni needed to automate interaction with carriers and coordinate processes with related functions to improve delivery efficiency.

The project was carried out integration SAP with S/4 HANA ERP and with SAP S/4HANA EWM.

"The implementation of SAP EWM and SAP TM has increased transparency and control of business processes, reduced transportation and warehouse costs, improved customer service, reduced manual labor and errors," noted Alexey Omobochiev, project manager for the implementation of SAP products in the logistics of Ferroni.

"A well-organized warehouse and logistics function helps improve business efficiency and productivity. Transparent and uninterrupted logistics, timely delivery of products - all this allows the company to increase turnover and, importantly, meet the expectations of customers. SAP EWM and SAP TM use industry best practices and technologies to enable companies to implement development plans. " stressed Alexander Metechko, Managing Director of SAP for working with partners and fast-growing companies in Russia and the CIS.

"As a result of the project, the speed of processing the incoming flow increased due to the use of the RF terminal during unloading, the picking of warehouse orders decreased in time due to the abandonment of paper technologies and the transition to targeted storage. In addition, the development of reports on transport orders made it possible to eliminate errors in loading goods into the vehicle, and the procedure for checking quality and tracking the results of the inspection became more transparent and reduced in time, " noted Alexander Krechanin, project director from TLS.