Adam Fiala, COO Ovečkárna: Thanks to LOKiA WMS, we handle thousands of orders daily

How to speed up shipping by 90%? StorySheep shedsis about successful growth, tradition and innovation. A small seasonal project has become a confident and successful brand in just a few years, operating in 12 European countries. How did they do it? A smart and comprehensive warehouse system played a key roleLOKiA WMS, which transformed controlled chaos into an efficient warehouse. The experience was shared by the operations director Adam Fiala.

From chaos to thousands of orders per day

Ovečkárna is a thriving company from Zlín and the online world, supplying products made of wool and other natural materials not only to the Czech Republic, but also gradually to other European countries. However, with success comes greater responsibility, especially when Ovečkárna puts its customers first.

The company's management decided to solve the growth of orders by investing in LOKiA WMS, a modern cloud-based warehouse management solution, and it soon became clear that it was a hit on the head. Comprehensive service from the workshopGRiTuIt brought the desired order to the Ovečkárna warehouse and made it possible to manage the company's expansion without increasing the number of employees and temporary workers.

How has work changed after implementing LOKiA WMS?‍
Before its implementation, the work was hard, but we didn't really know about it. We couldn't imagine that something could work the way it does now. It was quite challenging, we did some things in a nonsensical way.

Everything usually depended on two or three people who knew what was in the warehouse and where to find it. And if these people were absent, we often couldn't find the required goods at all.

Today, we record every movement of goods in LOKia - from receipt to shipment - so we know exactly where each item is located and what is happening with it.

Has this been reflected in the number of orders you can handle daily?‍
Previously, we were able to process around 1,500 orders per day with around 35 people. Today, the same team ships 6,500 orders. The speed of picking those orders has increased rapidly because we can clearly see where the goods are located, how many there are, and the warehouse worker himself knows where to go and where to find the goods.

This is a huge time saver, because previously we expected where the goods were, but we didn't see how many pieces were there - or whether they were actually there. So often the warehouse worker would fly around the entire warehouse and have to visit 4-5 positions before he actually found the goods.

How much has the picking of goods been accelerated? Do you know the exact numbers?‍
Off-season by 73% and in season by a full 92%. In general, we can say that we have accelerated the picking of goods by 90%, which is a huge number.

Performance measurement as a basis for growth

Without the statistics and data that LOKiA WMS offers, the company's expansion would not be possible. It would be difficult to set fair rewards and other motivations for employees.

How has work in your warehouse changed from the perspective of an operations manager?
Diametrically. Everyone now knows exactly what to do. We have divided and defined clear tasks, and everyone has KPIs and rewards based on their work. Those who do their job well are rewarded on merit – based on data.

What played the biggest role in growth?
‍Measurement. If you don't measure your processes, you can't grow because you don't know if they're working effectively and therefore well. That's why we track performance statistics for each individual picker, packer and the entire intake and set fair rewards - and that motivates people.

How quickly did the investment in LOKiA WMS pay back?
‍Within one, two years at most. It's a lot of music for little money.

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Up to Europe: 40% of turnover comes from abroad

Thanks to simplified distribution, streamlined processes, and motivated employees, Ovečkárna did not have to worry about expanding beyond the Czech Republic and Slovakia, where it grew up. The next steps were to Hungary and Romania, and now its products regularly reach the markets of 12 European countries.

What is the current share of foreign sales in turnover?
‍Approximately 40% of total turnover.

Are you planning to expand to other countries? Can LOKiA WMS help you with that?
‍We are definitely planning to expand to other European markets. With this, the number of orders will increase, and it is important for us to maintain the main thing that we deliver the package to the customer as soon as possible - of course, especially before Christmas, when people are quite sensitive to this. So even now we are doing everything we can to increase our capacities, speed up shipping and fully serve an even larger number of customers.

And LOKiA helps us a lot with that. We are constantly trying to come up with some improvements. It's not about saving hours, or even minutes, but seconds, and every second can add, for example, 500 orders that we can ship that day.

Is foreign distribution more complicated? Does it have its own specifics? And what do you need to think about?
Service abroad is practically the same as service in the Czech Republic. You don't need anything special for this, the package just travels to the customer across a part of Europe. With the help of Balíkobot, for example, we can also print labels for local carriers, so nothing stands in our way and nothing changes for us.

Inventory: no more astronomical shortages or surpluses

Before implementing LOKiA WMS, Ovečkárna had almost no accurate overview of how many goods it actually had in stock. Inventory days were a nightmare for warehouse workers and the results for the company's management. That is finally over now.

How was the inventory done before and how is it better now?
‍Before we had LOKia, we didn't know the exact positions of the goods and the shortages and surpluses were astronomical. They were mostly mix-ups, where the warehouse worker took red socks instead of blue ones, for example, and didn't address it in any way.

However, with LOKia we can also do continuous inventories, so when we identify a problem in the cart that some goods are missing, Support immediately issues an instruction for a continuous inventory of the given product or its position. Thanks to this, we now have a deficit of only about CZK 10,000 in the entire warehouse, which has a value of goods of around CZK 160 million.

In cooperation with LOKiA, we have now also preparedinternal D+ report, which measures not how long it takes for a package to reach the customer, but how long it takes us to pick it from the moment it enters our system. Thanks to this, we know how long it takes from the paid order to the dispatch and how efficient our warehouse is.

Personal approach even in the rush before Christmas

Ovečkárna is an example of a company that has to cope with a huge seasonal onslaught. 80% of annual sales come before Christmas and the company hires several part-time workers. Thanks to LOKiA WMS, even newcomers can get their bearings within hours. At the same time, the brand maintains a personal approach – it always speaks to customers in a friendly and humane manner.

How do you handle the seasonal pressure and how do you still manage to maintain a warm relationship with customers?
We generate up to 80% of our sales in the last two months of the year. During this busy time, we have to hire a few temporary workers to help out – but thanks to LOKia, their number is significantly lower, as thanks to this warehouse system, they quickly find their way around the site and can pick immediately.

As for customer relations, they are with us – Even though it sounds like a cliché – always first. They often call us, for example, saying that they are suffering from cold feet or aching joints. And we will recommend what will really relieve them. It is personal, not anonymous. Our operators are trained to talk to them as if they were their own grandmother.

Wool is not retro, but the future

The trend of returning to natural materials is a good fit for a brand that builds on sustainability and tradition. Wool is becoming a symbol of comfort and a modern lifestyle.

How did you manage to turn wool into a modern material?
‍Time has helped us. People are returning to natural materials and sustainability. We were just spreading the message about what wool can do. I think it's great that people are starting to realize this and that they are discovering that a cheap T-shirt from China is not exactly great and that it can be done a little differently and more sustainably.

A lot of music for little money

Ovečkárna's investment in LOKiA WMS paid off within two years. Operations Director Adam Fiala has no hesitation in recommending it to other companies that want to manage growth and move their business forward.

What would you say to companies considering LOKiA WMS?
‍Don't worry. Growth is not about getting the order into your house, but getting it out to the customer. That's where LOKiA is a key helper. In retrospect, you'll see for yourself that the initial investment was quite ridiculous money for how it will move you.

Would LOKiA WMS be suitable for your company? Book with usfree consultation, where we will first clarify together what your warehouse needs, and then prepare a deployment plan. If you go with us, we will completely take care of the implementation and our friendly and accessible customer service will help you with everything else.