Even though Danske Fragtmænd’s main business is the day-to-day transportation of parcels and goods, the company also has an increasing focus on offering Danish companies an efficient, temporary warehouse storage facility. Logistics and handling in these facilities are made efficient on a current basis by using C-WIS, which is a unique computer system for optimization of the warehouse flow.
In the traffic you often meet the characteristic blue trucks from Danske Fragtmænd of which they have approx. 1600. Danske Fragtmænd A/S is owned by 80 independent hauliers who have their individual businesses placed locally around the country, and each of them holds a large or small number of trucks and drivers. The company annually handles 9 million shipments and has a turnover of more than 2 billion crowns, and its 750 employees, in which the hauliers’ drivers are not included, perform their work in 23 transit exchanges and 10 warehouse facilities.
Discovered the unique system
When project manager at Danske Fragtmænd, Calle Nicolaisen, was put in charge of the “insides” of a newly- built large warehouse at Århus, it was his goal to optimize the warehouse in all aspects. He was therefore looking everywhere to find knowledge and tools for this purpose.
“It was during this process I became aware of Constructors optimization system C-WIS, which provides unknown possibilities of a continuous optimization of the warehouse flow. I can tell you that this system is the only one of its kind, since I have examined the market quite thoroughly, tells project manager Calle Nicolaisen.
New knowledge has strengthened the operation
The new large warehouse was to replace four warehouses on four different locations. “Among a number of suppliers we chose Constructor as our collaborator and supplier of material handling equipment for our new warehouse. They simply presented us with the most far-seeing ideas and solutions, including particularly the C-WIS analysis tool which looked very interesting. We wanted a full-scale utilisation of the C-WIS system, and therefore asked Constructor to solely deliver pallet racking which makes it very easy to move around the location of the stored goods. First the goods were stored in the new warehouse according to ”old” knowledge, meaning according to the logic and habits used for storage in the old warehouses. By means of the C-WIS system we have obtained new knowledge which we have used to relocate quite a number of articles. Thus, we have saved both time for handling and obtained a better quality in our work. We are able to offer our customers a far higher service quality measured both in terms of processing speed and number of correct executions”, underlines Calle Nicolaisen.
Intelligent warehouse flow
C-WIS is short for Constructor - Warehouse Intelligence System. The system is able to make the physical handling processes in a warehouse efficient by merely analysing the in- and output data (intelligence), which any company possesses on its purchase and pick and sales orders performed.
“It is very simple to work with C-WIS”, Constructor’s consultant and specialist in C-WIS, Preben Kristoffersen explains. “Data for when the different article numbers have been stored and picked in a given period are registered. The system then analyses these data, and presents a tangible plan for how the articles should be placed physically in the warehouse in order to obtain the most efficient and profitable flow. C-WIS presents the plan as a 3D drawing which everybody can understand and relate to, and which is very suitable for projection on a screen or wall during a meeting”, continuesPreben Kristoffersen. “A warehouse is a dynamic size.
New article numbers arrive while others disappear. At the same time different seasons and peak periods can bring about big fluctuations as to which articles are moving the most. All this C-WIS is able to integrate into a optimization plan. The system merely needs some old data to analyse”, he remarks.
Considerable winnings in terms of efficiency and knowledge
Optimization of the goods flow and handling hides a big earning potential. It is this potential that you get to when using C-WIS. “We save processing time and obtain a higher degree of safety and quality in our work, when the articles are placed according to their pick frequency and complementary articles”, tells Calle Nicolaisen. “Therefore we are able to offer our warehouse customers both competitive prices and a better service. At the same time we can by means of the C-WIS system impart to our customers valuable knowledge about their logistics and real need for storage, thereby enabling them to strengthen their purchasing strategies and lowering their capital binding. Many companies actually do not know their real warehouse flow, and thereby misses the considerable efficiency gains obtainable by streamlining their purchase process. Finally, we can also provide our customers with data and documentation for their finance and quality management, e.g. in relation to possible KPIs (Key Performance Indicators)”.
Work smarter is the new philosophy in the warehouse
“The employees in the warehouse have really taken ownership of the C-WIS system and its philosophy. They are very motivated and can now better see how they contribute to creating efficiency and profitability. Today new articles are not just stored in the first available location. On the contrary, picking frequency and other important factors are estimated before the new articles are given a location.
C-WIS has given our warehouse teams a totally new mind set for their daily work. The system has in other words introduced an optimization culture which secures big winnings in terms of increased efficiency, saved handling time, increased capacity, better service, quick processing time, better quality and shorter storage time for our customers, in order for them to reduce their capital binding”, concludes project manager at Danske Fragtmænd, Calle Nicolaisen.