Customer: LVZ Saransky
Customer background data: The Saransky LVZ is part of the MordovAlcoProm Holding Group alongside two distilleries, the Saransky Distillers Trading House and the Mordovskaya Vodka branded retail chain, which unites 500 stores. The enterprise is among the largest in the industry, in particular, more than 50 million bottles per year are produced under the Derevenka TM brand, distribution is presented in all federal networks and all regions of the Russian Federation, 15 export lines are under development, its retail network is 30% of sales volume in all licensed sales outlets of the republic.
Initial problem and objectives:
The key reasons for the automation of the warehouse and product labeling process were: legal requirements on the brand registration of each unit of alcoholic beverages, the increase in consumer requirements for cargo handling, an increase in the SKU in the current stock-list of the enterprise, the lack of information about the work output of each employee, lots of paperwork, the need for the batch count, lack of control over goods shipment using the FIFO method, lack of current data on product leftovers.
System and partner selection:
The SITEK Company was chosen as a contractor since it met the major criteria of the Saransky distillery: experience of successful implementations, superior skills, availability of relevant human resources and knowledge to meet the deadlines, affordable project cost, future maintenance, availability of partner projects’ portfolio (in particular, assistance in selecting and purchasing equipment).
Result:
The meaningful results of the implementation were:
- 45% increase in stock turnover;
- 65% increase in order processing;
- identification and automation of warehouse business processes based on 1C:WMS;
- recording information about the receiving and shipment of alcoholic beverages within the Unified State Automated Information System;
- implementation of brand count within all warehouse processes to comply with the Federal Law;
- integration and data exchange with the current corporate information system;
- transparent counting of finished products in real-time;
- the actual reduction in warehouse stock within 5%;
- 10% staff optimization;
- reducing the dependence of the level of service on the qualifications of the line staff of the warehouse;
- 2 times increased influence of warehouse capacities on cargo handling;
- capacity development for further improvement of the state-of-the-art in terms of enterprise warehouse logistics.
Due to automation, the enterprise could completely avoid penalties for vehicle downtime and significantly reduce the number of warehouse errors since now, when information about products, their location in the warehouse, picking rules are stored and managed by the system, orders are generated correctly and expediently.
This project is a winner of the competition Best Project in the Subject Area: Warehouse Logistics Management (WMS) 1C:Project of the Year.