Editorial

WarehouseFactsThe customer magazine of the Ehrhardt + Partner Group

9th edition

High-performance warehouse logis-tics is one of the crucial success factors in the automotive industry. At the same time, this is a sector in which requirements are constantly growing. To cut the throughput times in its own warehouse and ensure the greatest possible transparency and flexibility, spark and glow plug manu-facturer NGK Spark Plug Europe GmbH took the decision to introduce a new warehouse management system. At its head office in Ratingen, the com-pany operates a central warehouse in which it wanted to administer two separately controlled logistics areas using one and the same warehouse management system. From here, NGK supplies not only car builders but also dealers throughout Germany and Europe. With the LFS warehouse management system from Ehrhardt + Partner (E+P), this supplier to the automotive industry found the opti-mum solution to meet its require-ments.

Dear Readers,

Just how multifaceted working with the LFS

Warehouse Management System can be is

illustrated in this issue of WarehouseFacts.

We have successfully realized exciting pro-

jects in a wide range of industry segments

– from beverages wholesaling, automotive

and logistics services to wholesale electrical

goods. The diversity of industries employing

LFS is above all due to the ongoing further

development of the system.

In this issue of WarehouseFacts, we

introduce the latest E+P innovations. For

example, the One Face Application, a

cross-application technology that enables

our customers to integrate all relevant

software applications into a warehouse

management system and handle all func-

tions from a single user interface. Another

article presents the comprehensive hosting

and cloud solution from EPX – Ehrhardt +

Partner Xtended – you can read all about

it on pages 2 and 4. As usual, this issue

also features all the latest news from the

member companies of the E+P Group. For

instance, we have not only expanded our

facilities in Boppard-Buchholz, but have also

forged ahead with the international expan-

sion of E+P and have further upgraded the

international standards of LFS.

We thank you for your interest and hope you

enjoy browsing through our latest issue of

WarehouseFacts.

Marco EhrhardtPresident of E+P Group

A single warehouse management system to cover the needs of six mail-order companies – the entire materials and information flow in the wholesale and online mail-order companies belonging to the Dutten-hofer Group is now controlled cen-trally in a way that optimizes routing.

Ehrhardt + Partner receives the IBM Bestseller Award as the best cloud and hosting solution provider of 2012. This outsourcing expert sup-ports all users in the management and operation of the LFS warehouse management system and the IT infrastructure it requires.

Using the new cross-application One Face Application technology, it is possible, for example, to integrate web browsers, WLAN controllers, SQL managers and other items of software directly in the LFS system GUI.

More on this story on page 5 See page 4 for more information See page 2 for more information

Six mail-order compa-nies – one LFS system And the winner is… All-in-One

LFS redesigns the Gieseke warehouse Page 6

NordiC opts for E+P Page 4

LFS for the automotive and chemicals industries Page 2

Continued on page 3

The system con-trols and coor-d i n a t e s all the work-

flows i n v o l v e d

in both logistics areas, helps to cut throughput times and maximizes trans-parency and the monitoring of all ware-

h o u s e o p e r a -

t i o n s . “Both the

dealers and the automotive

industry place very specific

requirements on us and we would have been unable to continue meeting these fully in the

future using our old warehouse man-

agement system,” says Timo Esleben, central warehouse manager at

NGK Spark Plug Europe GmbH, explaining the deci-

sion to introduce the new LFS warehouse management system.

The company is the world’s largest supplier of spark plugs and oxygen sensors. More than 500 million spark plugs are manufactured every year under the brand name. In addition, NGK is a leading original equipment supplier for new series vehicles and its glow plugs also give it an important role in the diesel segment. Alongside approxi-mately 500 specialist dealers that it supplies with spark and glow plugs, oxygen sensors, temperature sensors and industrial ceramics, NGK also sup-

ports the series production operations of 44 vehicle and engine manufacturers from its base in Ratingen. These prod-ucts are stored in a warehouse at the Ratingen site in two areas that are con-trolled independently of one another.

Logistics warehouse for dealers

NGK dedicates an area of approxi-mately 6.000 m² to stocking all the items required by those dealers that make up the so-called aftermarket. More than 15,000 different items are stored here. They are accommodated in some 4,650 pallet spaces in the com-pany’s high rack facility and 14,000 storage locations in its shelving rack system. 54 employees distributed across two shifts process approxi-mately 200 orders involving more than 6,000 picks per day. Before the intro-duction of LFS, NGK was already using an electronic warehouse manage-ment system which, however, did not cover all its requirements. To ensure a constant overview of its constantly growing stock and detailed knowledge of all warehouse-related operations, the spark and glow plug manufac-turer decided to introduce E+P’s new warehouse management system. As a result, not only did picking rates increase by nearly 30%, but through-put times were also reduced by up to 50% compared with the old system. This is due, on the one hand, to the order consolidation capability: multiple large orders can be combined and therefore processed faster and more

Reduced throughput times and maximum precision in NGK’s automotive warehouseCA

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Fritz Logistik opts for E+P warehouse management. LFS for the automotive and chemicals industries

E+P is expanding: Space for 60 new employees

Control center for warehouse logistics: E+P develops One Face Application

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the LFS warehouse man-agement system from Ehrhardt + Partner (E+P). Another project relates to the use of the TLS transport control system. This solution ensures increased process reli-ability and the optimized routing of the company’s industrial trucks.

As one of the largest transport and logistics companies in the Heil-bronn region, Fritz Logis-tik and its 600 employees store, pick, and transport goods for a range of auto-

motive, industrial, and retail customers. Just-in-time deliveries for a customer in the automotive industry are just one of Fritz Logistik’s most pressing day-to-day tasks. For this project, Fritz Logistik stocks all the items required by its automotive customer in approximately 20,000 m² of block shelving and high-rack storage: from shock absorbers and windscreens through to small spare parts. Here, several thousand contain-ers enter and leave every day. The TLS transport control system now ensures

Last year, the warehousing expert Ehrhardt + Partner (E+P) extended its company headquarters at its Boppard site to create space for 60 new workplaces. Nearly 600 m² of new office space was developed in the Boppard-Buchholz industrial estate. Newly recruited software developers, logistics consultants and sales staff have already been able to start work and help the company continue to expand in its domestic and overseas markets.

“The building work was completed in the fall of last year and the new employees are already at their desks,” reports Marco Ehrhardt, president of the Ehrhardt + Partner Group. “Thanks to this construction work, we now have the space we need for our contin-ued growth,” he explains. For Marco Ehrhardt, this investment in new office space is “a clear decision emphasiz-ing the importance of the Boppard site and the well-qualified labor force in the Hunsrück region. In the future,

we shall continue to create the jobs and apprenticeships here that we need for our international expansion in the logistics sector.”

Software developers, logistics consult-ants and commercial staff for sales and marketing activities are welcome to apply at any time. Anyone inter-ested can find further information at www.ehrhardt-partner.com.

With more than 200 employees, this internationally active warehousing and logistics expert is represented at six locations worldwide, including in Dubai, Spain and Brazil, and helps optimize the warehouse logistics of its customers across the globe. To do this, it continuously further develops its LFS warehouse management soft-ware at its company headquarters in the Hunsrück. The Boppard-Buchholz site is not only home to the software development, marketing and central sales departments but also houses a separate training and logistics center.

Ehrhardt + Partner (E+P) has already made the intuitive operation of its LFS warehouse management system possible through the provision of the easy-to-use iBrowser user interface. With its newly developed One Face Application, E+P has taken another significant step in this direction: The new technology not only gives users direct access to all their warehouse data but also makes it possible to inte-grate further software applications in iBrowser. In this way, the warehousing expert is creating a type of control center for warehouse management with a graphical user interface that is tailored specifically to meet customer requirements. This means that various software programs can be operated directly from within iBrowser.

As a result, it is now possible not only to depict and manage warehouse processes in LFS in an easily com-prehensible form as in the past, but also to integrate additional software programs in the modern user interface. “With this cross-application technol-ogy, we have simplified the handling of all relevant software applications for our customers – and within a single, extremely versatile, fast system GUI,” explains Marco Ehrhardt, president of E+P Group. “Time-consuming changes between different programs and appli-cation screens are now a thing of the past.” Among other things, the LIP

The requirements placed on warehouse and logistics service providers such as Fritz Logistik GmbH are constantly growing – the need to make flex-ible, customer-specific deliveries at precisely the stated time is a con-tinuous challenge. A fully functional warehouse management system and a high-performance transport control system are crucial factors for the suc-cess of such companies. To optimize its process flows in all warehousing sectors, Fritz Logistik now relies on

module – E+P’s Logistic Intelligence Portal – has also been integrated into iBrowser. LIP is used for the generation and graphical display of the warehouse management system’s controlling and reporting analyses. It makes it possible to obtain full and detailed informa-tion about all the logistical processes operating in the warehouse. Even a web browser to permit rapid access to the Internet has been integrated into the warehouse management system’s user interface. In addition, the One Face Application offers, for example,

the possibility of incorporating a Wi-Fi controller for the central administra-tion of all Wi-Fi access points and an SQL manager for database queries in the warehouse management system’s user interface in accordance with the customer’s requirements.

According to Marco Ehrhardt, “Our new, uniform One Face Application user interface is unique on the market. In this way, iBrowser is now an efficient control center for all warehouse man-agement activities as well as all related areas that are of interest to users.”

enhanced process stability in both warehouse areas. The transport routes of the stacking equipment used in the warehouse are coordinated to ensure optimum loading and utilization with fewer unladen journeys and reduced throughput times. “In the automotive sector in particular, orders always have to be processed and shipped at short notice and with the utmost precision,” explains Marco Ehrhardt, president of E+P Group. “Even tiny errors dur-ing picking, stock withdrawal, or in the repacking process can bring the downstream production steps in the value chain to a standstill. Thanks to its defined, documented routings, TLS now ensures faster order processing, maxi-mum reliability and transparency during warehouse management operations.”

Second project in deployment phase

In addition, E+P is also deploying the LFS warehouse management system in a chemicals store with three ware-houses for Fritz Logistik in Heilbronn. The system ensures total compliance with all legal requirements relating to the handling of hazardous goods. A huge variety of items, subdivided into different hazard categories, are stored

over a surface area of 22,000 m². Stringent demands are placed on LFS in terms of both warehouse management and goods transportation. The regula-tions prohibiting the joint storage and transportation of dangerous substances and materials must be scrupulously adhered to. For example, the 1,000 point rule must be observed during transport operations: each hazardous item is assigned a specific risk factor which, when added together for trans-portation purposes, must not exceed a total of 1000 points. “LFS knows all the criteria and assigns precisely the number of points associated with each transport operation,” says Marco Ehrhardt, describing the comprehensive functions provided by the warehouse management system. “In addition, all the required transport documents for hazardous goods are appended by LFS. All safety regulations are fulfilled with-out exception and the customer saves an enormous amount of time prior to dispatch.” Before the introduction of LFS, the entire hazardous goods han-dling process was performed manually in the chemicals store, including the assignment of items to specific hazard-ous goods categories – an extremely bureaucratic task which also involved

a safety risk and which is now reduced to a minimum thanks to the use of the new warehouse management system. In this project, the introduction of mas-ter label scanning also ensures con-siderably accelerated goods dispatch throughout the entire process chain. Previously, the packing items in a batch were first all given a separate label. All these labels then had to be scanned individually in order to ensure that everything was recorded correctly. This time-consuming process has now been consigned to history. LFS registers the incoming goods as a full pallet using the master label and combines them to form an order. This means that only a single scan is required and this, in turn, results in considerable time savings throughout the process.

The LFS warehouse management sys-tem from E+P provides full-service suppliers such as Fritz Logistik with the perfect solution. The ongoing fur-ther development of the warehouse management software ensures that this logistics service specialist can be cer-tain of the security of its investments and its ability to cope with the chal-lenges of the future even when new requirements arise.

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Core challenges

Conversion of the software during productive operation and without

impairment to delivery capacities

Control of all logistics processes, including a preliminary calculation of

shipping resources

Management of stock-pickers and stacker drivers using TLS

Project objectives

Storage of NGK’s entire range of products

Rapid delivery throughout Europe at attractive, economical costs

Solutions and service

LFS warehouse management system

Consulting during the mapping of business processes

Integration of the external Heidler shipping system

Project management during software integration and process optimization

Preparation of processes for the upcoming SAP connection

Delivery of hardware (radio data transmission components, handheld

terminals, mobile workstations)

Main benefits for the customer

Significant cost, time and quality advantages during customer deliveries

Transparency during stock control and stocktaking

Adaptation of logistics processes and possible integration of further

warehouses using in-house resources thanks to the extensive

configuration capabilities of LFS

Interfacing of the external shipping system

Fulfillment of item-specific requirements in the automotive sector:

batch tracking, FIFO (first in, first out), handling of customs identifiers

(duty paid/duty unpaid)

Existing system landscape

Integration with the JD Edwards ERP system

Central installation of the LFS warehouse management system in

Ratingen

IBM iSeries

Convincing resultsWith the introduction of the LFS ware-house management system, NGK has taken possession of a fast, versatile system that is ideally equipped to meet the challenges of the future and ensure a high level of process reliability. This guarantees outstanding transparency and monitoring of all the processes involved in the internal supply chain from goods reception through stock picking and on to goods dispatch. Any problems that occur are rapidly elimi-nated thanks to the ongoing monitoring

Reduced throughput times and maximum precision in NGK’s automotive warehouse

efficiently. Multi-order picking is the term used to describe the simultane-ous picking of multiple orders and is a technique that noticeably reduces throughput times. “The operations in the aftermarket sector consist almost exclusively of standard processes. The goods are then packed and, in some cases, shipped with individual labels or the desired packaging,” explains Timo Esleben. “Unlike our former sys-tem, LFS allows us to completely fulfill the wishes of many of our custom-ers to provide just-in-time deliveries. We work faster and, most importantly, more flexibly. This is also absolutely vital when handling orders that can include between one and 1,000 items.”

Special requirements of the automotive industry

In the warehouse area devoted to the automotive industry, the so-called OEM area, 56 NGK employees manage a store covering an area of 8,000 m² and comprising some 2,000 differ-ent items. The warehouse provides 4,680 pallet spaces in the high-rack facility and another 900 spaces in the shelving rack system. Every day, the team processes approximately 120 orders involving 300 picks. Extreme accuracy and precise processing sequences are required in this ware-house area. Here it is vital to meet all the automotive industry’s require-ments in terms of packaging instruc-tions, storage, delivery notes, and labelling. “Even tiny errors during the incoming goods process, stock pick-

Optimized processes and logistical expertise

Another advantage of NGK’s new ware-house solution lies in the transport control system (TLS), which was also installed by E+P. This coordinates NGK’s stacking vehicles in a way that makes the best possible use of the capaci-ties of vehicles and personnel. “The TLS system reduces unladen journeys and the transport distances covered by the fleet of stackers to a minimum,” explains Marco Ehrhardt, president of E+P Group. “This has resulted in reduced throughput times and a notice-able increase in the productivity of the stackers.”

the system, and to optimize it, adapt it to constantly changing circumstances and make sure that the associated information was always available inter-nally, NGK then decided to appoint two new employees as key users. “This boosted our knowledge and expertise enormously,” explains Timo Esleben. “The LFS warehouse management system is very dynamic and conse-quently offers enormous flexibility. Our key users can implement new ideas themselves and are therefore able to optimize our processes to respond to customer requirements on an ongoing basis. We are greatly impressed by this capability.”

of the system by the key users. For an internationally active company such as NGK, the multilingual capabilities of LFS are also important, and the fact that the system is now available in 14 languages represents a consider-able advantage: following its successful experience of the E+P system, NGK is now planning to integrate LFS in the warehousing services of its interna-tional sites.

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Continued from page 1 The introduction of both LFS and TLS meant that NGK’s employees had to become familiar with a new area of expertise. This was achieved by con-ducting training courses in E+P’s train-ing center in Boppard-Buchholz near Koblenz prior to the go-live phase. To ensure the continued monitoring of

ing, or repacking can lead to delays during the subsequent processing steps and possibly result in contrac-tual penalties,” explains Timo Esleben. “To make sure that errors are detected at an early stage or completely elimi-nated, we usually double-check every-thing that happens here.”

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As an international expert in the field of warehouse logistics, Ehrhardt + Partner not only offers its custom-ers state-of-the-art warehouse man-agement and warehousing technolo-gies but also makes its knowledge and expertise available to others. Two examples of the company’s successful global knowledge transfer strategy are E+P’s cooperative programmes with universities and logistics training insti-tutes in Brazil and the united Arab Emirates (uAE). In addition, E+P Logis-tics Solutions Centers covering an area of 500 m² in both Germany and Dubai help give regional logistics personnel an insight into forward-looking ware-house technology and offer top-quality training.

To make sure that established LFS users and the new emerging genera-tion of users are optimally equipped for the theory and practice of logistics workflows, E+P supports a number of training centers for applied logistics worldwide and works together closely with universities and vocational training academies. In Germany, for exam-ple, the company works together with Koblenz University at sites in Koblenz and Remagen. A number of interesting international partnerships have also been formed in recent times. Cooperative programs with SENAI, the National Service for Industrial Appren-ticeship in Brazil, and the SP Jain School of Global Management in Dubai have been particularly successful. As part of

Optimum management: LFS in the drinks store

From coffee, tea, fruit juices, and sodas through to beers, spirits, and champagne: with its wide range of products, NordiC Getränke GmbH is one of the largest providers of bev-erage-related services for caterers and retailers in Germany. To make sure that it continues to be optimally prepared to meet all its customers’ needs in the future, NordiC decided it was time to roll out a new warehouse management system. The company was won over by the LFS warehouse management system from the ware-housing expert Ehrhardt + Partner (E+P). This was directly interfaced to the SAP host system. Thanks to the integrated pick-by-voice picking technology and the use of the TLS transport control system, NordiC has been able to optimize its entire order handling chain.

NordiC is a joint venture owned by Carlsberg Deutschland GmbH and Nord mann GFGH Holding. At its Hamburg site, NordiC runs Göttsche Getränke GmbH & Co. KG, one of the largest specialist beverages wholesal-ers for the hotel and catering sector. Here, it stores approximately 3,500 different items on block shelving as well as on pallets and shelving racks covering an area of 7,860 m². Demand can rise or fall depending on season and weather, with the result that order and picking volumes as well as incom-

NordiC opts for E+P

Cloud and hosting solutions from the IBM Bestseller 2012 – optimally equipped to meet the logistics requirements of the future

Worldwide knowledge transfer –LFS sets international standards

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How you benefit from the EPX cloud and hosting solutions• Uncomplicated, rapid implementation of LFS

• Reduction of IT operating expenses (no costs for the provision of in-house hardware, no need to dedicate your own staff to IT operation)

• Increased flexibility, availability, and security when using your LFS application

• No need to tie up internal resources for server management

• Our high-performance hosting solutions are specially configured to meet your individual needs

• You can concentrate on your core business

• You avoid the need for expensive investments in in-house IT structures and the associated expertise, helping you reduce both your payroll and IT costs

• You can adapt your capacity requirements in line with customer demand (business scalability)

uncomplicated, rapid implementation of LFS, a high level of flexibility and reliability during application coupled with reduced IT costs: These are just some of the benefits offered by EPX – Ehrhardt + Partner Xtended with its cloud and hosting solutions. The out-sourcing expert supports all users in the management and operation of the

LFS warehouse management system and the associated IT infrastructure.

The cloud and hosting offering avail-able from Ehrhardt + Partner Xtended comprises a portfolio to meet all IT outsourcing requirements in the logis-tics field – irrespective of whether the flexibility of parts of the warehouse infrastructure is to be enhanced, LFS applications are to be run in the cloud, or the entire server structure is to be migrated. The performance spectrum of EPX covers three areas certificated in accordance with ISO 9001: hosting, managed services and cloud com-puting.

Hosting includes the provision of com-puter capacity for LFS in EPX’s own data center. This enables users to access the data center’s modern infrastructure without the need for any large-scale initial investments. It also ensures high availability levels of up to 99.9 percent while simultaneously fulfilling all data protection and security requirements. This offering is characterized by user-friendly operation without the need for expensive installations, updates, or hardware procurements.

In the managed services field, EPX has developed and implemented standard-ized services for warehouse infrastruc-ture and software. These include the administration and operation of the LFS server as well as the wide-ranging support of the warehouse software in accordance with previously defined cri-teria. For example, this can include data and system backups, printer setups, or support with questions relating to the use of LFS. EPX develops tailor-made solutions based on an in-depth analysis of each customer’s individual require-ments. This simultaneously increases competiveness and minimizes costs.

EPX’s cloud computing services com-prise on-demand infrastructure con-sisting of elements such as comput-ers, memory, and networks as well as on-demand software such as operat-ing systems and the LFS warehouse management system. EPX provides the preconfigured LFS system and adminis-ters the entire warehouse management solution in accordance with the cus-tomer’s individual requirements. This leaves businesses free to concentrate on their core competences. This type of solution reduces investments in hard-ware to a minimum, ensures a high

level of cost transparency and permits flexibility in warehouse management.

In recognition of its customized, reli-able service, the outsourcing expert received the IBM Bestseller Award 2012, reflecting its performance as the best cloud solution provider of the year.

ing goods figures can vary sharply from day to day. “During peak sum-mer periods, we can reach as many as 25,000 picks per day,” explains Andrea Ripke, project manager at Nor-diC Getränke GmbH. “Demand changes depending on the season and the pick-ing volumes change accordingly. It is therefore immensely important for us to demonstrate an outstanding level of flexibility in our warehouse manage-ment operations.”

In addition to LFS, the TLS transport control system developed by E+P has also been deployed in the company. This enables the beverages wholesaler to make more efficient use of its stack-ers and optimize their routing. Thanks to the use of pick-by-voice picking technology, NordiC has also been able to speed up the entire order handling chain and reduce the number of picking errors. “The crucial advantage of pick-by-voice technology lies in the fact that the staff have both hands free and can therefore concentrate fully on the task at hand, that is to say picking the right goods,” explains Marco Ehrhardt, presi-dent of E+P Group. “In the beverages sector in particular, where it is neces-sary to carry heavy crates of drinks or individual bottles, that is very important and leads to significantly reduced order handling times.”

this cooperative undertaking, E+P has equipped these regional academies with the LFS system and other solutions. This gives today’s generation of students the opportunity to gain an insight into logistics processes and state-of-the-art technologies. “Our collaborations with universities and logistics training cent-ers emphasize the importance of our software in the international logistics environment,” stresses Marco Ehrhardt, president of E+P Group. “In this way, the specialists and management staff of tomorrow can receive top-quality training using a forward-looking system which ensures compliance with interna-tional standards.”

an area of 500 m2, course participants can simulate all the processes involved in warehouse logistics and put them to the test in real-life situations. The E+P Logistics Solutions Center in the Dubai Logistics City (DLC) also makes use of this successful concept. This was opened in 2010 in the logistical heart of the desert state and mirrors the IAW in allowing visitors to experience modern warehouse technology live in the com-pany’s own showroom. Here, customers from Africa, Asia, and the Middle East benefit from professional training and demonstrations.

Since October 2012, E+P has been working together with BOMAG, the world leader in the field of compaction tech-nology, to run a state-of-the-art innova-

tion center covering a surface area of 5,500 m2 at its home in Boppard-Buchholz. In this flag-

ship of the logistics world, not only are warehouse technologies and innovations developed and integrated in the pro-cess flows used in the logistics center, but employees are also trained in a real operating environment – a measure which benefits both E+P and its corpo-rate customers alike.

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In Germany, the world’s first Logistics Solutions Center, E+P’s Institut für Ange-wandte Warehouse-Logistik (IAW, Insti-tute for Applied Warehouse Logistics), has already been running successfully since 2001. In this fully equipped train-ing and logistics center, which covers

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One LFS for six mail-order companies

Before the deployment of the LFS solu-tion, Duttenhofer used paper-based documents to manage over 20,000 items for its six mail-order companies in its 10,000 m² warehouse. All goods movements were performed manually on the basis of printed picking lists – a time-consuming process that meant that the task of checking the correct assignment of warehouse locations was extremely labor-intensive. Since the deployment of LFS, all material and information flows in the Dutten-hofer logistics center are controlled centrally and ensure optimized routing. “LFS supports both group-wide and multi-client operations. As a result, we were able to meet all Duttenhofer’s

requirements in the best way possible,” explains Marco Ehrhardt, president of E+P Group. “Thanks to the warehouse management system, all the Group’s orders can be processed on time and without error. Nowadays, everything is ready for collection at precisely the right time and the shipment of out-bound goods within just a few hours is guaranteed.”

Optimized storage in four warehouse areas

The central warehouse is subdivided into four areas. The shelving rack area with 44,000 warehouse locations and 13 aisles is used as a simple order picking store. This is where frequently ordered items such as cameras, photo accessories, and memory cards are kept. Two further areas house a total of 10,000 pallet spaces. Both dedicated and mixed pallets are stored in a block and high-rack system. These areas are used both as an order picking store and for long-term stocks. The fourth area is used to store returned goods and less frequently ordered items. “We were

From lens filters and digital cameras, through printers and on to 75-inch television sets: As a wholesaler and online mail-order company for the photographic, consumer electronics, and multimedia sectors, the Dutten-hofer Group processes thousands of very different orders every day. For Duttenhofer, it is vital to ensure both a high level of goods availability and the punctual delivery of sensitive items. Or in other words; efficient warehouse logistics are a crucial fac-tor of success. To reduce the con-siderable time and effort involved in paper-based picking and to be able to monitor stock levels precisely, Duttenhofer decided to introduce the LFS warehouse management system from Ehrhardt + Partner (E+P). By

combining the use of this system with handheld terminals, which were also supplied by E+P, the group is now able to achieve increased warehouse throughput and a high level of inven-tory reliability with exactly the same number of staff.

The Duttenhofer Group comprises six mail-order companies active in the dis-tribution, wholesale, and retail sectors. Each of these six companies possesses its own Internet shop. Consumers, for example, may be familiar with Dut-tenhofer from its technikdirekt.de site. “From single-item orders for private individuals through to fully laden pal-lets for distributors – our online shops receive a huge variety of orders every day,” explains Peter Roßhirt, head of corporate EDP at Duttenhofer. “We adopt the usual e-commerce approach and guarantee our customers 24-hour delivery. This is only possible with fully functional warehouse logistics. That is why we decided to introduce the LFS warehouse management system at our logistics center in Dettelbach.”

Duttenhofer optimizes its e-commerce: Six mail-order companies – one LFS

Background: Duttenhofer GmbH & Co. KG

The Duttenhofer Group is one of the leading distributors of digital imag-ing products in Europe. Six mail-order companies active in the whole-sale and retail sectors as well as a cooperative of specialist dealerships (Optimal-Foto) involving more than 500 dealers are now managed within the framework of the Duttenhofer Group. Each of these six mail-order com-panies possesses its own Internet shop. In the consumer sector, the Dut-tenhofer Group occupies a leading position in Europe with its online shop TECHNIKdirekt.de. The Group’s success is built on its reputation for logistical excellence. This is ensured by the logistics center based in Dettelbach near the German town of Würzburg. With easy transport access, the high-rack facility, which occupies a total of 10,000 square meters, covers all the Duttenhofer Group’s sales activities. Here, more than 30,000 items are administered and stored using a computerized system. The high level of goods availability guarantees customer delivery within 24 hours.

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able to take the designations of the warehouse areas over into LFS with-out difficulty,” explains Peter Roßhirt. “That was naturally a great advantage because we didn’t have to get used to a completely new set of names.”

Two-stage pickingTo combine the items from the four warehouse areas quickly and reliably to form orders, Duttenhofer uses a two-stage picking system consisting of so-called pallet- and piece-picking. In the first stage, known as pallet-picking, various items for a number of different orders are taken from the pallet store, for example, and stored temporarily on an empty pallet at a central location. Next, in the piece-picking stage, the items in the intermediate storage location are sub-divided and assigned to the individual orders. “For instance, if a customer orders a new printer and a printer car-tridge or a camera and a memory card, then this type of two-part order can now be assembled faster and more reli-ably than in the past thanks to the use of LFS,” explains Markus Linkenbach, the responsible project manager at E+P. “LFS assigns the items a precise stor-age location for intermediate storage. In contrast to the paper-based picking of the past, warehouse staff are now guided directly to the relevant item – with the result that processing times and error levels are greatly reduced.” After picking has been completed under LFS control, the packaged goods enter a semi-automatic packing line and are forwarded for dispatch. Since the intro-duction of LFS, the pickers have been able to achieve up to 1,200 warehouse admissions, 2,000 stock transfers, and 12,000 withdrawals per day.

Handheld terminals support warehouse logistics

The supplied solution was accompa-nied by 50 E+P handheld terminals. Withdrawals from stock are confirmed on the handheld terminal and any short-falls are entered directly and trans-ferred to the warehouse management system. This means that it is possible to track current stock levels and order statuses at all times. Six stacker termi-nals have been deployed to complement the warehouse’s new hardware. These are now used to optimize the rout-ing of Duttenhofer’s stackers as they are guided through the aisles of the high-rack storage. In its shelving rack system, Duttenhofer additionally uses approximately 300 route-optimized, guided transport trolleys for multi-order picking. To acquire the expertise neces-sary to use the new handheld terminals, six employees from the warehouse con-trol center attended courses at E+P’s in-house training center in Boppard. These users then passed on their newly acquired knowledge to the remaining warehouse personnel. “At E+P, we have

been success-fully pursuing this train-the-trainer con-cept for years,” explains Marco Ehrhardt. “Our aim is to equip our cus-tomers’ staff with the necessary exper-tise quickly and efficiently so that they can be largely self-reliant in perform-ing their own warehouse management activities in the future.”

Convincing results“When we were looking for a stand-ard software application, E+P offered us the best solution and associated consulting services,” summarizes EDP manager Roßhirt. “LFS is an end-to-end system that controls all stock move-ments from goods reception through material flows and on to dispatch. These capabilities impressed us greatly.” Since the changeover, Duttenhofer has ben-efitted from higher throughput rates without any change to staffing levels, faster warehouse processes, and pre-cise, transparent stock management. In

addition, employees and stackers alike are now guided along optimized routes through the ware-house. All transport oper-ations are continuously

recorded by the system. “Furthermore, stocktaking operations are now signifi-cantly easier with LFS,” continues Peter Roßhirt. “It is even possible to perform inventory sampling. With the wide range of items we stock, this is an enormous advantage to us.”

During the LFS start-up phase, Dutten-hofer was able to deliver approximately two thirds of its goods. The changeover to productive operation was accom-plished without problems despite the use of the new technology. Peter Roßhirt sums things up as follows: “The support provided by Ehrhardt + Partner was very good both before and after the change-over – all the deadlines were met. And even now, there’s always someone available immediately if we want to make small programming changes, for example.”

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Items arriving from goods receipt or one of the picking areas via the trans-port technology are loaded onto the employees’ hand trolleys following a corresponding pick-by-voice instruc-tion and entered in the shelving or used to continue picking operations already commenced in other ware-house areas. The employees place fully picked orders on the conveyors, which then automatically transport them to the packing and dispatch stations. Manual transport devices on which employees can handle four con-tainers at a time are also used during

picking. On the basis of the container barcode, LFS can identify whether the load is to be admitted into the stock during the next step or is to be used for picking. During this operation, LFS controls the picking jobs in a way that ensures that as the containers become empty on the trolleys, the employees handling them can use them directly for the next picking job. This means that employees never transport empty containers through the warehouse and that optimum use is made of the available transport resources. When containers reach the packing area, LFS instructs the Heidler shipping system to print a shipping label and triggers a notification to the parcel service. “Managing this interaction between picking and the transportation of the picked items or goods for admission on the multi-level transport technology was one of the most complex tasks we faced in this project,” explains Marco Ehrhardt, president of E+P Group. “Thanks to the outstanding efficiency of the picking process, we can deliver more than 98 percent of all ordered items within 24 hours,” adds Hendrik Rumpfkeil.

Gieseke cosmetic GmbH’s product catalog runs to almost 400 pages covering all aspects of hairdressing needs – from hairpins through to complete hairwashing systems. The delivery time for the more than 13,000 referenced items is a maximum of 24 hours from receipt of order. An outstandingly efficient warehousing solution is essential if this company, which is one of Germany’s largest wholesalers for the hairdressing industry, is to meet all its customers’ requirements in terms of punctuality and delivery reliability. That is why, in January 2010, this traditional fam-ily business opened a newly con-structed logistics center in Wede-mark, approximately 20 km north of Hanover. Optimum process flows in the warehouse are ensured by the LFS warehouse management system sup-plied by Ehrhardt + Partner (E+P). The use of this system, in combination with pick-by-voice and radio data technology, has speeded up picking operations in the new warehouse by approximately 30 percent compared to the previous site. Moreover, the fact that all the company’s employees are now able to perform goods receipt and picking tasks simultaneously represents a great boost to efficiency.

Gieseke cosmetic is one of the largest wholesale suppliers to the hairdress-ing industry in Germany. In addition to its mail-order business, the company also runs a total of 15 “Care for Hair” call-and-collect shops in Germany and Austria. Founded in 1983, the company has always been receptive to new technologies. Consequently, as early as 1993, long before it had become established practice in the sector, all the company’s sales representatives were equipped with mobile data ter-minals in order to reduce delivery times to 24 hours from receipt of order. Nowadays, Gieseke employs more than 70 sales representatives. In January 2010, the wholesaler launched opera-tions at a newly constructed logistics center with storage space of more than 4,500 m2 in the town of Wede-mark near Hanover. 13,000 items are stored here. Thanks to the excellent project management provided by E+P and the speed with which the stock could be entered in LFS, the move to

the new warehouse was completed in a single weekend. “Reports in the trade press had drawn our attention to the pick-by-voice technology and we wanted to make use of this in our new warehouse,” recalls Hendrik Rumpfkeil, the director responsible for logistics at this family-owned company. A logistics consultant provided support during the selection of appropriate vendors and, following a comprehensive analysis of the company’s requirements, identified three suppliers for Gieseke cosmetic to consider. “After visiting a refer-ence installation where picking was also performed using pick-by-voice technology, we finally decided that LFS was the best option,” explains Rumpfkeil. E+P not only deployed the LFS warehouse management system in the new warehouse but also provided Gieseke with 30 pick-by-voice devices, 14 handheld terminals and ten radio

data access points. E+P also assumed responsibility for installing and inter-facing Heidler shipping software.

Picking with route optimization

To make the best possible use of pick-by-voice and the route optimization possibilities for pickers that this tech-nology offers, the warehouse was sub-divided into five different areas con-taining both shelving racks and pallet stores. This subdivision was mapped to the warehouse management system to ensure that each of the 90 warehouse personnel receive only those ware-house admis-sion and picking orders to which they are assigned at any given time.

LFS redesigns the Gieseke warehouse – highly complex processes to meet the needs of the hairdressing industryCA

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This makes sure that employees in the company’s extensive warehouse only need to travel limited distances and can navigate more quickly in their warehouse area. In addition to this, the new warehouse possesses a Kardex shuttle for the storage of slow-moving items, extremely small goods, and par-ticularly expensive items. LFS admin-isters this separate warehouse area using a simple but effective access restriction policy. The shuttle, which is interfaced to LFS, only moves those trays to the withdrawal position that contain items which the corresponding employee needs for his or her current picking task. This mode of restricting access to particularly expensive items – in the case of Gieseke cosmetic, hairdresser’s scissors worth 600 euros, for example – has helped keep inven-tory differences for such items at a low level.

Complex flow of goodsMulti-level transport technology con-nects every area of the warehouse to the goods receipt sector, the upstream and downstream picking areas, and the packing and dispatch stations.

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Improved picking quality

Rumpfkeil goes on to explain that another advantage for Gieseke lies in the improved quality of picking. This is ensured by the fact that the ware-house personnel have to confirm each operating step individually when work-ing with LFS and the pick-by-voice technology. “Initially, the change over to pick-by-voice and the parallel processing of multiple orders repre-sented a considerable challenge for our employees. However, after a brief familiarization phase, our staff now use pick-by-voice intuitively and the picking quality has improved notice-ably compared to our former site,” explains Rumpfkeil, managing director at Gieseke. The number of delivery errors has fallen accordingly. In addi-tion, thanks to the extensive analyses and reports it provides, LFS permits a detailed evaluation of staff working processes and performance. “In this way,” emphasizes Rumpfkeil, “we are able to optimize our processes on a continuous, ongoing basis.”

Background: Gieseke Cosmetic GmbH

Founded in 1983, the family concern Gieseke Cosmetic GmbH is today one of Germany’s leading wholesalers of articles and products for the hairdressing segment. The company moved into its new logistics center in Wedemark in January 2012 after a construction time of only seven months. The implementation of ultramodern logistics in the center, now providing more than 4,500 m2 of warehousing space, guarantees even faster order processing and shorter delivery times. A shipment quota of 98% of all ordered items from a range of over 13,000 articles demonstrates Gieseke’s outstanding order fulfillment capabilities. Fifteen “Care for Hair” cash and carry shops are available to customers in Germany and Austria. The company’s team of over 70 sales representatives and more than 135 in-house staff is dedi-cated to fulfilling the needs of the hairdressing segment. Established in 2005, the company’s own GIESEKE Training Center offers over 400 m2 of facilities for comprehensive techniques and trends seminars as well as special workshops.