Page 252 - DMGT551_RETAIL_BUSINESS_ENVIRONMENT

Unit 12: Warehouse Management

2005, Agrostroj is a widely recognized leader in its space. The organization prides itself on Notes
innovation in its products as well as the nature of its manufacturing process.

Challenge
Agrostroj was expanding due to the ambitious projects it undertook, its commitment to
meeting strict customer requirements, and the expansion of their manufacturing capacities.
In order to accommodate their growing business, the organization sectioned off a 25,000
square meter area within their production facility to act as their new warehouse designed
to store extra parts for the manufacturing area of the production facility. With a larger
warehouse area and a greater number of stock items, the company realized their need for
specialized software to manage inventory.
Agrostroj had undergone several large structural changes to better meet the changing
needs of the agricultural marketplace, transitioning from a state-owned and operated
business to a privately held joint stock company. Due to their continued success, resulting
in an average annual growth of 5%, the organization was finding it difficult to meet
customer demands. As the company continued to grow, it became more difficult to keep
track of all necessary components.

Agrostroj’s warehouse used selective pallet racking with over 3,800 pallet positions, and
pick racking with 4,000 positions. With no system in place to track inventory location,
employees were forced to rely on memory, locating items by recollection, which led to
long pick times and poor order accuracy. With one out of every two orders incorrectly
picked, accuracy improvement was of great concern to the company. “We had outgrown
our old way of storing machinery parts, and needed to find a warehouse management
system that would take care of our products while allowing us to continue to expand,”
says Jaroslav Kudyn, IT Director, Agrostroj Pelhrimov. “Now, with Accellos One
Warehouse, we never need to worry about our warehouse holding back our sales process
again. Accellos keeps track of everything we have, from a single bolt to a finished machine.”
Solution
In 2005, Agrostroj turned to Czech Republic-based Accellos partner, Kodys, to help them
find a solution for their warehousing needs. A specialist in implementing barcoding
solutions, Kodys has been helping customers improve supply chain and logistics
management for over 15 years.
“Our partnership with Accellos has enabled us to expand our service offerings to include
a complete portfolio of supply chain management solutions, bringing about new
opportunities for both us and our customers,” says Zdenek Vonasek, Managing Director,
Kodys. “We are pleased to be able to offer our clients a solution to help them save both
time and manpower in addition to increased accuracy and real-time visibility onto the
warehouse floor.”
Kodys developed a custom interface integrating Orfert ERP, a locally developed solution,
with Accellos One Warehouse and guided Agrostroj’s staff through the transition to an
automated WMS to ensure a smooth conversion.

Benefits
Since implementing Accellos One Warehouse, Agrostroj has seen a 50 percent increase in
accuracy while cutting pick times in half. The organization has also seen a significant
decrease in the number of errors occurring throughout the day’s processes, since all
inventory movement is now tracked using RF barcodes.
Contd...

LOVELY PROFESSIONAL UNIVERSITY 247