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.

Analysed detailed operational data

from the central warehouse in Jihlava, which dm drogerie markt had prepared to a very high quality.

Performed ABC analysis

big data analysis and created heat maps to understand assortment structure, stock placement and the most heavily used areas of the warehouse.

Evaluated where and how products

were located in the warehouse, how much distance pickers walked and what share of their time was spent on value added activities.

Considered current technological options

that matched the individual needs of the client and identified improvements in the picking process, small warehouse automation and resource planning that would bring savings with minimal investment and a clear payback.

Automated & Efficient Warehousing

Capacity Planning

OPEX, CAPEX and ROI Calculations

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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