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Significant savings in logistics at PEVI

After a thorough analysis of warehouse processes, PEVI discovered two fundamental problems. The first was inaccurate inventory records, which resulted in differences between the accounting stock and the actual stock.

Current state and problem

After a thorough analysis of warehouse processes, PEVI discovered two major problems. The first was inaccurate inventory of goods in the warehouse, where there were differences between the accounting stock level and the actual stock level. It happened that information about the number of goods could be found in the accounting program, but it was no longer possible to find out where the goods were actually located and whether they were there in the stated number. Warehouse workers were therefore forced to search the warehouse in a complex manner, calculate and then compare and re-register stock levels.

The second problem was in the personnel area. PEVI was struggling with a lower number of warehouse workers than was needed. This caused a higher time-consuming work, i.e. overtime, which caused employee dissatisfaction and higher costs. The need for product knowledge also appeared problematic. It took warehouse workers about 6 months to learn to distinguish subtle differences in the stored assortment. This lengthy training of new employees caused several of them to leave their jobs during the probationary period.

Proposed solution

PEVI therefore decided to solve these problems using a warehouse system. The condition for selection was that the system should enable address-based inventory recording in the warehouse. And that its operation should be simple and intuitive. Other conditions were the modularity of the system and the requirement for continuous addition of functionalities according to the expected growth of the company.

LOKiA WMS ultimately won the tender. The main reason why PEVI decided on this solution was the modularity of the system, which allows it to start warehousing with a slimmed-down version of the software and gradually add other modules. This way, LOKiA grows together with the customer.

Resulting changes

  • The number of complaints was minimized, product mix-ups were eliminated, and the need for product knowledge was eliminated. This resulted in a 98% reduction in the error rate of shipped goods and a 40% increase in stock removal.
  • Overall, labor intensity was reduced and working hours stabilized at 8 hours from the original 10.5.
  • In the first month after implementing the LOKiA warehouse system, PEVI calculated savings of CZK 100,000.

    • “Previously, we were troubled by warehouse workers' overtime, which was caused by the warehouse worker wandering around the warehouse inefficiently, which disproportionately increased the time needed to dispatch goods. The introduction of WMS gave us a detailed overview of warehouse movements and helped optimize work with goods.“

    Petr Vinduška, projektový manažer

    Velkoobchod

    How we helped

  • 98% reduction in shipping errors
  • The second problem was in the personnel area. PEVI was struggling with a lower number of warehouse workers than was needed. This caused a higher time-consuming work, i.e. overtime, which caused employee dissatisfaction and higher costs. The need for product knowledge also appeared problematic. It took warehouse workers about 6 months to learn to distinguish subtle differences in the stored assortment. This lengthy training of new employees caused several of them to leave their jobs during the probationary period.

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    We have described our collaboration in detail in a PDF that you can download immediately

    “Previously, we were troubled by warehouse workers' overtime, which was caused by the warehouse worker wandering around the warehouse inefficiently, which disproportionately increased the time needed to dispatch goods. The introduction of WMS gave us a detailed overview of warehouse movements and helped optimize work with goods.“

    Petr Vinduška, projektový manažer

    Velkoobchod

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