Furnishing Dunelm’s Warehouse with SAP EWM _case study.pdf · SAP Logistics Specialists. The Objective. Build a brand new warehouse that: Implement SAP EWM in their new warehouse

SAP Logistics Specialists

Furnishing Dunelm’s Warehouse with SAP EWM

Such expansive growth, had presented Dunelm with a storage challenge.

• Dunelm had outgrown its large warehouse facility in Stoke and had become reliant on outside storage to house its products.

• Dunelm needed a solution that would work for its diverse product range which includes large furniture units, that cannotfitonpallets,aswellassmallscalehouseholditems.

• Dunelm’s existing SAP WM system had already undergone a series of enhancements and was struggling to cope with their complex processes.


The Dunelm Challenge

Marketing leader in the £11bn UK homewares market

First bricks and mortar store in 1984

165 stores across the UK

9000 employees


The Objective

Build a brand new warehouse that:

Implement SAP EWM in their new warehouse to:

Integration with Dunelm’s store delivery 3PL was required to replace paper based systems.

Tasks are assigned to users based on location, so they only work on tasks located in the area they are currently in. When all the tasks in the queue are complete, they’re automatically assigned the next nearest tasks from an alternative task queue, so work never runs out.

Project partners, Jungheinrich, calculated the most efficient routes for their automated and semi-automated guided vehicles.

1

2Improve accuracyIncrease productivity

Covers 525,000 sq ft

Ends Dunelm’s reliance on outside storage

Over 63,000 pallet locations 76 doors 200 parking spaces

Boost efficiency

Is an enjoyable place to work

The EWM implementation ran at the same time as the physical build of the new warehouse.

• The implementation team had to be based at an alternative site, in Dunelm’s existing warehouse, as the project team had to be based at Dunelm’s existing site, while the new facility was being built.

• The team had to design and implement systems without the ability to see processes in action.

• Thego-livedeadlinehadtocoincidewiththephysicalbuildfinishdate.


Practical Challenges

Stock from Dunelm’s existing warehouse and outside storage needed to be migrated to the new warehouse.

• Instead of employing new staff who were unfamiliar with Dunelm’s systems, a proportion of staff at the existing warehouse began work at the new site as they were familiar with Dunelm’s processes.

• The staff who stayed at the original site were still required to maintain the usual workload.

• The migration of stock to the new site had to be planned so it didn’t exceed the capacity of the staff working in the new warehouse.

• The original warehouse used SAP WM so orders that required picking from both sites needed careful management.


Migration Challenges

Goods Receipt:YardManagementwasintroducedtoimprovetheefficiencyandreal-timetraceabilityoftruckmovements.

• When a delivery arrives at the site, it is checked in and directed to a parking space using EWM’s Yard Management.

• 90% of stock is delivered unpalletised in containers.

• Stock is handballed onto pallets and license plates are attached.

• Users are advised of the TiHi quantity (the number/layout of items that can be built onto a pallet) via the RF device.

• When a pallet is built, its location is scanned. This triggers a message to an Automatic Pallet Mover (APM) via EWM’s Material Flow System (MFS).

• TheAPMmovesthepallettoaspecifiedpickanddroplocationreadytobeputaway.


The Solution: Inbound Processes

Improves Efficiency Automates Processes Real-Time Traceability

Putaway:Dunelmrealisedthatreducingthetraveldistancebetweendifferentputawaytaskswouldhavesignificant cost savings.

• Their system has been designed to allocate tasks based on warehouse location.

• Thesystemlogicidentifiestheclosesttrucktothejobandautomaticallyassignsittothetask.

• This putaway process was achieved using standard EWM putaway strategies and Location Orientated Storage Control (LOSC).


The Solution: Inbound Processes

Increases Productivity Improves Accuracy Automates Processes

Resource Management:Previously, Dunelm’s warehouse supervisors were responsible for assigning tasks. Now, they only intervene by exception.

• Each warehouse user is assigned a resource group and, when they start work, they log on to a resource (for example, a reach truck).

• Tasks are assigned based on location, so tasks on the same aisle are completed consecutively, by the same user.

• If all tasks in a queue are completed, users are automatically assigned nearby tasks from an alternative task queue, so work never runs out.

• Tasks are never assigned to a user on a resource that is not capable of completing the task. For example, a task in a high bay is never assigned to a user on a pallet truck.

• Warehousesupervisorshavemoretimetomonitorandtroubleshoottofurtherimproveprocessefficiency.


The Solution: Internal Processes

Reduces Labour Costs Reduces Downtime Improves Productivity

3PL Integration:Dunelm uses 3rd party transportation planners. Before EWM was implemented, the transport plan was sent to the warehouse team on a spreadsheet. This manual process has now been automated.

• The plan is sent via an interface to EWM. This assigns deliveries to vehicles and updates the time the vehicle needs to leave site.

• IDocs are sent from the external company to Dunelm’s EWM system which assigns deliveries to vehicles and specifiesthetimethevehicleneedstoleavethesite.

• EWM automatically releases a pick wave for a truck at the required time to meet the deadline of the load leaving the site.


The Solution: Outbound Processes

Reduces Errors Speeds Up Processes Improves Traceability

Picking:Pick waves are automatically released for each delivery truck.

• Apickwalkisgeneratedbydeterminingthemostefficientroute.

• The picker is sent to the correct area based on whether an individual pick, carton pick or pallet pick is required.

• Individual items are sent to pallet consolidation areas using Process Orientated Storage Control (POSC) logic, so they can be built into a full pallet to reduce the number of pallet footprints.

• Allitemsonthepalletarescannedtoconfirmthefullorderhasbeenpicked.



Automates Processes Increases Efficiency Improves Accuracy

Improves Accuracy Increases Traceability Customer Satisfaction

Loading:Yard management is also used for outbound processes.

• Vehiclesaredirectedfromparkingspacestothecorrectdoor.ThemoveisconfirmedviaRF.

• Pallets loaded onto trucks are scanned to make sure the correct stock is on the right truck, they are loaded in the correct drop sequence and that the delivery is complete.

• When a vehicle leaves the site it is ‘checked out’ by the gatehouse using Yard Management. This triggers the Goods Issue of the deliveries assigned to the vehicle which leads to the printing of transport documentation and maintains accurate stock levels.



Dunelm worked with The Config Team to ….furnish their warehouse with SAP EWM.

www.theconfigteam.co.uk

“I’ve worked on 38 implementations, and

this was the quietest go-live I’ve seen.”

Geoff Shucksmith, Head of Logistics, Dunelm


Documents

Furnishing Dunelm’s Warehouse with SAP EWM _case study.pdf · SAP Logistics Specialists. The Objective. Build a brand new warehouse that: Implement SAP EWM in their new warehouse