ROMANIAN DISTRIBUTORS AND LOGISTIC OPERATORS CAN NOW SIGNIFICANTLY REDUCE THEIR OPERATING COSTS

ROMANIAN DISTRIBUTORS AND LOGISTIC OPERATORS CAN NOW SIGNIFICANTLY REDUCE THEIR OPERATING COSTS
17.10.2013

In the years to come, the  distribution and logistics  will be heavily affected by the rise in wage costs, as the EU accession process accelerates the increase in the average wages in Romania.

Logistics and distribution companies in Romania now have the opportunity to draw on the experience of leading world companies and learn what effective operation of warehouses really means. The solution adopted by high performance Western companies consisted in the automation and computerisation of all their warehousing processes.

This solution targeted four main objectives:

- optimising the staff working in a warehouse, by reducing the number of employees and especially wage costs.

- reducing delivery time and specific warehousing operations.

- reducing the number of deliveries containing errors.

- optimising equipment exploitation and full use of the storage space available.

In order to achieve these four main objectives, the IT infrastructure used was based on a series of technical solutions comprising software applications and RFID technology.

To optimise the process of merchandise entry into the warehouse, smart RFID labels were used, along with the necessary infrastructure, namely gates that automatically scan the merchandise passing through.

The reception operation is automatically completed when the tagged merchandise passes through the gate. This way, the time for merchandise entry into the warehouse is significantly diminished.

Advanced planning and organisation functionalities of the Extended Warehouse Management solution were used for organising the merchandise in the warehouse, which made possible the following:

- placement of the merchandise near the packaging and delivery areas according to the sales volume and, implicitly, to the stock turnover.

- the use of handling methods that break down internal processes into activities and operations.

- the full use of storage space.

- the optimisation of routes for bringing the merchandise at the delivery gate according to each order.

- the reduction in terms of time for unpacking/packaging.

The use of smart RFID labels optimised the process of merchandise delivery from the warehouse to the delivery gates.

The SAP Extended Warehouse Management solution provided by SAP, world leader in business management software, allows you to accomplish an optimal computerisation of the warehousing activities and to attain the objectives presented above.

The solution is used by large companies worldwide and provides access to the best business practices in terms of computerisation and automation of warehouses.

Fair Value–SAP Gold Partner–makes this solution available and accessible to Romanian companies that own warehouses and aim to streamline their activity.