PUBLIC

Danny Van Dessel, IT Manager AVEVE Koen Van Antenhove, Managing Partner Quinaptis

How AVEVE’s Business Transformation leads to a new Logistic Experience

AVEVE – a Company with a Mission to Improve the LogisticExperience

▪ Who are we?

▪ Our logistic challenges?

Extended Warehouse Management

▪ Why?

▪ Major benefits

Conclusion

Agenda

AVEVE – a Company with a Mission to

Improve the Logistic Experience

AVEVE – Full service provider for the belgian farmer and horticulturist

AVEVE – Expansion trough targeted acquisitions

AVEVE – A new strategic future

AVEVE Group

50own

stores

250franchise

operated

stores

1retail

distribution

center

1food distribution

center

14feed production

plants

3large

dangerous

goods

distribution

centers

40grain collection

facilities

4small dangerous

goods

distribution

centers

70local warehouses

6crop fertilizing

distribution

centers

1greenhouse

automation

plant

...

1.850people

1,6mio revenue

AVEVE Group

50own

stores

250franchise

operated

stores

1retail

distribution

center

1food distribution

center

14feed production

plants

3large

dangerous

goods

distribution

centers

40grain collection

facilities

4small dangerous

goods

distribution

centers

70local warehouses

6crop fertilizing

distribution

centers

1greenhouse

automation

plant

...

1.850people

1,6mio revenue

AVEVE’s warehouse activities are core

“If it does not challenge you

It will not change you for the better.”Fred Devito - Co-Founder and Executive Vice President of Mind Body Training

AVEVE’s supply chain & logistics challenges

Overall Challenges

1. The requirement for a seamless integration between

– A specialized production industry

– A wholesale and distribution entity

– A retail company

2. Highly diverse requirements in a continuously evolvingsupply chain network

3. Seasonality & weather influences logistic throughput resulting in short lead times

Main Challenges

1. Increase overall transparency, harmonious processes and visibility to be able to do continuous improvement and harmonization

2. Highly customized legacy systems

3. Increased focus on more cost efficient and higher throughputwith the same or less capacity

4. Improve supplier and customer relationships by incorporating new logistic customer demand example: customer/store oriented picking

AVEVE’s Warehouses challenges

AVEVE’s ChoiceExtended Warehouse Management

Why AVEVE chose Extended Warehouse Management

Main requirements: 1.A • flexible solutionFit for • continuous improvementof process steps based on to be implemented business cases

2. ͏Native integration with SAP ERP

High focus on 3. staying standard and close to best practices=> reduce TCO

Options for 4. innovation and automation in the future

AVEVE’s Solution

AVEVE – Quinaptis What we continue realizing

~15 % more efficient in overallwarehouse outbound activities

EWM benefits – consolidation in picking

Picking Store 1- 14/04/2016 (Legacy system)

Customer Area Art volume colli Pal

813610 AA 27 1320 67 1

813610 AB 36 550 52 1

813610 AG 43 638 97 1

813610 CC 10 425 16 1

813610 BAK 5 80 8 1

813610 MS 12 761 22 1

813610 POT 23 200 24 1

813610 MEZ 3 95 7 1

Total 159 4069 293 8

EWM

# Pickorders Pal RC

1 1

1 1

1 1

1 1

4 3 1

EWM benefits – multi-order picking

Highlights

Picking multiple customers at once in a specific zone1.

Reducing travel distance2.

EWM benefits – results

Legacy system EWM

# Pickorders 8 4 -50%

# Loadingsurface 9 7 -22%

Highlights

1. Proposal of type of carriers to pick

2. Optimized pallet composition rules

3. Reduction in warehouse activities like picking and loading

~10 % increase in warehouse picker productivitiy

EWM benefits - dynamic bins per product group

EWM benefits - dynamic bins per product group

Product group 1 Product group 2 Product group 3

EWM benefits - dynamic bins by product group

Highlights

1. Reduce waiting time for replenishment during detail picking by 10%

2. Multiple bins per product

3. Quality improvement: the same types of products will be put together on the handling unit, resulting in higher efficiency during unloading in the stores

~ 20 % increase in reach truck tasks that can be performed in a single day

EWM benefits - interleaving

Highlights

Reduce time driving with an 1.

empty reach truck

Take into account task urgency, 2.

product and resource location

Inbound area Outbound area

~80% time reduction to perform full batch track and trace

~8 % gain in processing and storage time

EWM opportunistic cross docking

Highlights

1. Full pallets moved directly from the receiving area to the loading area

2. Reduces the number of movements in the warehouse

EWM benefits - other

Major benefits

Pro1. -active replenishment taking into account

Future requirements –

The pickers location–

System driven putaway tasks lead to 2. less inventory mistakes

3. ͏Advanced system driven allocation of tasks to workers/resources

Detailed 4. operational reporting

ConclusionImprove the Logistic Experience

AVEVE - the new logistics experience

Reactive to proactive

TransparencySystem & process driven

Better inventory control

Higher Efficiency / Flexibility / Cost Reduction

Questions