Pharmacy retail & wholesalers
Higher warehouse productivity with minimal investment
Logio partnered with dm drogerie markt in the Czech Republic to identify and realise savings at the central warehouse in Jihlava.
Outcome
Using ABC analysis, big data analysis, heat maps and other techniques, the joint team focused on picking processes, small scale warehouse automation and resource planning. This data based approach increased labour productivity and reduced walking distances while keeping investment to a minimum.
Reduction in walking distance for pickers
-0%
Labour productivity
+0%
Project payback
0 year
About dm drogerie markt
dm drogerie markt is one of the largest drugstore chains in Central and South Eastern Europe. The first store of the parent company dm‑drogerie markt Austria was opened in 1976. Today the company has 62 600 employees and operates 3 700 stores in 12 European countries; in the Czech Republic it runs 251 stores supplied from the central warehouse in Jihlava.
62 600 employees worldwide
3 700 stores in 12 European countries
251 stores supplied in the Czech Republic
Initial challenge
dm drogerie markt wanted to find savings at its central warehouse in Jihlava. An initial investigation identified three main areas of potential: optimisation of the picking process, use of small scale warehouse automation and more effective planning of resources.
Project goal
The project aimed to quantify these saving opportunities and design improvements that would increase the efficiency of warehouse operations at the Jihlava central warehouse, with a focus on picking, suitable small automation and resource planning while keeping investments low.
Solution
Using data to redesign warehouse operations
Logio carried out a three month, data based project that combined ABC analysis, big data evaluation and heat maps to understand product placement, picker movement and value added activities in the central warehouse. Based on these insights, the team proposed improvements in picking, warehouse automation and resource planning that delivered measurable savings with minimal investment.
Solutions implemented
Process Optimization
OPEX, CAPEX and ROI Calculations
Process Mapping & Analysis
Automated & Efficient Warehousing
Capacity Planning
Impact
More efficient warehouse operations with data based optimisation
Higher labour productivity
Labour productivity in the central warehouse increased by 27 % after a three month project.
Shorter walking distances
Walked distance in the warehouse decreased by 13.4 %, which reduced non value added time for pickers
Fast payback
The project achieved a payback period of 1.25 years, which confirmed the financial soundness of the proposed measures.
Minimal investment required
The productivity and distance improvements were achieved with only minimal investments.
Optimize your warehouse productivity
If you see potential for savings in your central warehouse, we can help you use data to improve picking, material flow and resource planning with clear payback. Let us discuss how to increase productivity in your distribution centre with minimal investment.
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22 % reduction in walking distance for pickers
8 % potential increase in picking productivity
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