Businesses that continue to use manual warehousing face numerous problems and disadvantages. It is more expensive, less flexible, and prone to mistakes. There has never been a better moment to invest in a high-quality warehouse management system (WMS), especially with the added burden of labor shortages.
Many logistics organizations find that the amount of planning and implementation required for the move is impeding their progress. Even if it’s a big task, a competent service provider can relieve you of that stress. The entire firm can be transformed by automated warehousing, as Vertica Logistics found out.
Vertica Logistics
Vertica Logistics is situated in Berlin, Germany. They have six branches worldwide and employ more than 75 people. The business provides warehousing as part of a comprehensive suite of supply chain and logistics services.
Their warehousing operations are based on four warehouses: two in Munich and one in Frankfurt. In Hamburg, they also run two bonded warehouses.
| “Vertica Logistics achieved a remarkable shift with the implementation of CargoWise WMS, which was enabled by Elicit Technology. Previously affected by manual processes that resulted in errors and inefficiency, our warehouses now run smoothly. The company’s income has increased by 60% because of automated stock management, standard operating procedures, and simplified procedures.” Eric Coheirson Warehouse Officer |
Challenges faced
Vertica Logistics’ professionalism and customer-focused attitude have helped them develop significantly. But their warehouses were manually run, and pen and paper were used for record-keeping.
This resulted in mistakes made by humans. Master data was not being kept in good condition. Inconsistencies in stock reports, duplicate products, and expired inventory were the results of manual inventory updating. Before generating monthly bills, the warehouse managers were compelled to personally verify the physical stock and storage charges once more.
Standard operating procedures (SOPs) were considerably more difficult to implement because of the manual operations. An approval structure was not being followed, and coordination between the headquarters and branches was lacking. If the stock needed to be exported from the warehouse or vice versa, the operations staff had two tasks to do. Receiving unidentified freight was a nightmare.
Overtime and labor costs increased as a result. The worst part was that the suppliers’ customers had no method to receive updates regarding their products in real time. Suppliers ceased doing business with Vertica due to this and the differences between stock reports and receipt reports.
Solutions
After the evaluation of various WMSs and service providers, Vertica Logistics chooses the CargoWise which is implemented by Elicit Technology as the software provider. Mainly, they picked them because of their comprehensive implementation of the CargoWise WMS and their advice on CargoWise solutions.
It took Elicit two weeks to clearly identify the interrelated problems. The master data auditing and duplicate product codes were major challenges for me. Besides Vertica was having used an open floor plan with no defined spaces and places, resulting in wastage. The migration of all the existing goods inventory from the old system to CargoWise was another key change.
The process Elicit and Vertica followed for implementing CargoWise WMS are as follows.
- Preliminary surveying and gap identification
- Floorplan discussion which will include all operational staff of warehouses.
- Blueprint discourse with the warehouse managers.
- Preparing a new process flow chart.
- Adoption of process flow by SOPs is recommended by Vertica.
Results
Consequently, the logistics company, Vertica Logistics, completely transformed its whole business through the use of CargoWise WMS. The warehouses that used to produce losses are now creating profits.
Following this implementation, volumes of managed stocks have grown. We have developed a standard SOP with no paperwork, as it is. The daily activities can also be included in the task creation system. Stock reports are prerecorded and automatic.
The periodic bills are generated automatically at the end of each month. Location selection is done accurately by the staff for warehouse storage. This caused a significant drop in the costs of maintenance and labor.
New clients coming in instead of losing clients, and new client onboarding has increased by 27%. The exchange of stocks has become an effortless deal. So, too are packing and repacking.
Customers receive the status of their inventory on time, which is their reliability. The total company revenue has gone up by 60%, making the warehousing services the most profitable.
