This giant toys retailer is one of the fastest growing toy retailers with over 110 stores offering the widest range of the latest and greatest products in toys, baby, outdoor and gaming. The toys retailer’s ambition is to open ten more stores, expanding its network to a total of 120 stores. In order to realise this expansion, the current logistics processes will need to be updated and optimised.
The company wants to continue stocking its new and existing stores from the two current logistics centres, which will require a 50% capacity expansion at both locations. As part of their activities to achieve their goals, the toys retailer launched a large project with the purpose of maximising space in the current warehouses, using a double-deep racking system and a conveyor system. Other ad-justments include the installation of a sorting system and upgrading to and implementing a newer Warehouse Management System (WMS). These changes are aimed at achieving maximum effi-ciency in the warehouses in every possible domain.
The challenge, the solution and the implementation
ICT Group’s Transport & Logistics department was responsible for outlining the future logistics pro-cesses and the functional requirements for the implementation of a new WMS at the giant toys retailer’s two logistics centres. This involved the
• The WMS manages the logistics processes and the automated process for material handling and forms an interface between all processes.
• There needs to be an interface between the WMS solution and the conveyor system, sort-ing system and the ERP system (SAP).
The main challenge was to provide an end-to-end solution for this giant toys retailer’s logistics de-partment, utilising the WMS, and the conveyors and sorting solution of the MaterialHandling Equipment (MHE) supplier by means of a smart and seamless integration. The MHE supplier’s solution is a mezzanine floor with conveyors, and a pick-to-light system with flow racks. The result is a robust and flexible semi-automated solution, where the WMS and conveyor/sorting functionality are melted together seamlessly.
“This presents a new challenge that requires an efficient solution – we can’t wait to get started!”
In peak periods, the new system processes over 20,000 orders per day, and could easily process double that amount if the giant toys retailer were to increase production to 40,000 orders a day. The management team is very pleased with the achieved results, and they see it as a business-critical solution, which can be rolled out across Europe. As part of its activities to expand its business in Europe, the giant toys retailer has acquired 93 stores and 4 online stores. The German logistics processes need to be migrated from an old legacy system to a ‘best practice’ ERP and WMS solution, which is already in place at multiple logistics operations. ICT Transport & Logistics have again been asked to provide a functional design for rapid deployment, where some of the logistic processes need to be streamlined to make sure that the method of working fits with-in the boundaries of the standard WMS solution.