WCS for Special Brew

Cimcorp’s Warehouse Control System (WCS) optimises inventory flows and improves warehouse efficiency. The 150-year-old Finnish beverage and brewing company Olvi relies on Cimcorp’s WCS to handle all intralogistics within its distribution centre.

Throughout Olvi’s logistics centre in Lisalmi, Finland, goods are mainly produced at the brewery and then automatically transferred to the high-bay warehouse for storage, picking, and dispatching.
It can be busy. “During the high season, a product produced in the morning might be in the retail outlet in the afternoon,” says Olvi’s Logistics Foreman, Ilkka Heikkilä.

However, a typical week with 5500 customer deliveries is not quite as hectic. Standard delivery time from production to the customer’s premises is 48 hours. This is fixed in the everyday routine of the logistics department. “The 24-hour cycle means that we must pick and deliver one day’s goods within 24 hours,” says Ilkka Heikkilä. “The next period is dedicated to new orders.”

High quality with warehouse control software

In 2014, Olvi implemented Cimcorp’s intralogistics system. It encompasses all the different areas for storage and order-picking and manages the flow of inventory from the reception to the dispatch of goods. Integrating seamlessly with the sales system M3, the WCS receives all the pertinent data from its host system.

As a first step, product information, orders and their deadlines are transferred from M3 to WCS. The needed data for product registration is automatically retrieved from the conveyor system.
In the logistics centre, operators move pallets to the order picking areas according to a predetermined schedule. A voice-directed picking system can be used, if required. With this system, pickers receive instructions regarding order lines as well as their locations in the dispatch areas.

Automatic picking

“Via their headsets, warehouse workers receive exact information on what and where to pick,” explains Heikkilä. A combination of automated tray picking and manual picking is used to pick most orders, with any products that cannot be picked automatically being added to the pallets.

With the high-bay warehouse, conveyors and order picking robots, Olvi can pick 97 percent of its orders automatically. In the next step, the goods are shrink-wrapped and moved to the shipping area. Whenever a delivery is ready, it is loaded and delivered to the next link in the chain. At that point, WCS sends the order accomplishment information to the sales system for reporting and invoicing.

Real-time monitoring

Olvi implemented Cimcorp’s WCS to eliminate bottlenecks and improve efficiency. Within the logistics department, the system has about 20 users. For them, monitoring in real time is one of the biggest benefits. “The most valuable feature is the ability to monitor the current picking situation,” says Heikkilä. “We can track our progress in relation to the daily target.”

With Cimcorp’s Warehouse Control System, better forecasting and evaluation are also possible. For example, Olvi plans and forecasts picking activities based on order data.
A high degree of automation and innovation is a hallmark of Olvi’s distribution centre in contrast to many of its European competitors. Olvi knows that as a beverage company expands and offers more complex products, it is essential that the goods flow seamlessly.

“We have more than 400 products in our distribution,” Timo Miettinen, Logistics Manager at Olvi, “and Cimcorp’s intralogistics system has the capability to handle products from our subsidiaries and partners in addition to our own.” The number of products has grown rapidly over the past decade, and there is no indication that this trend will reverse. “In fact,” says Miettinen, “there are still new and attractive product categories with room for growth.” For Olvi, smooth processes and intelligent automation are necessary to meet customer demands.

One-tenth of UK goods pass through Prologis portfolio

Prologis, a global leader in logistics real estate, in partnership with independent advisory firm Oxford Economics has released an updated study on the economic impact of its global operations. The “Future Flow of Goods” report highlights how the activities taking place inside logistics buildings owned and managed by Prologis in the UK are making a major contribution to the country’s economy.

According to the report:

  • The goods produced and sold that came through a Prologis building represent 2.8% of global GDP, up from 2.5% in 2020
  • £67bn ($78bn) of throughput flows through Prologis warehouses in the UK each year, the equivalent 2.5% of UK GDP and almost 10% of all household goods
  • Warehouses owned and managed by Prologis UK house an estimated 34,183 people in direct jobs – 5% up from 2020

The study’s economic impact model found that activities carried out by customers operating across the entire Prologis UK portfolio, which includes 22 Prologis Parks in the Midlands, South East and London, make a significant contribution to the national economy, with goods flowing through the buildings equivalent to approximately 9.8% of household consumption.

Paul Weston, Regional Head at Prologis UK, said: “It is increasingly clear to all that the logistics sector is playing an important role in driving economic growth – not just here in the UK, but around the world. This study confirms the contribution the sector is making and it’s positive to see that throughput at our warehouses in the UK has an estimated economic value equivalent to 2.5% of GDP, supporting UK PLC growth.”

Prologis: employment increases

“A crucial element of generating economic value is creating sustainable jobs – key to long-term prosperity,” continues Weston. “The Oxford Economics data shows that direct employment created by businesses at our Parks has increased since 2020 – another great outcome for the UK economy.

“The study is important to Prologis, because it demonstrates that the commitment we show in supporting our customers by investing in training and skills initiatives and ensuring there are enough workers in the sector, is making a difference.”

The study is the third to be conducted by Oxford Economics – the first was published in 2017 and followed up in 2020. The 2020 study provided UK-specific data for the first time.

Oxford Economics estimates the total employment impact of Prologis’ activities, with the study revealing that logistics property is having a positive employment impact in the UK specifically. The total number of people estimated to be in direct employment at Prologis-owned warehouses in the UK is 34,183, up from 32,500 in 2020 – an increase of 5%. Globally, in 2020, Oxford Economics estimated total direct employment of 853,700 workers in Prologis-owned warehouses. This figure has risen to 1,067,975 workers in 2022 – an increase of 25%.

Prologis’ estate in the UK covers more than 26 million sq ft. Many of its buildings are purpose-built to meet customers’ needs and are leased to household names such as Tesco, Sainsburys and Royal Mail. Among its key industrial property assets is the UK’s premier rail-connected logistics park at Daventry International Rail Freight Terminal (DIRFT).

CLICK HERE to visit Prologis’ Economic Impact Report to view and download the full report.

 

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