For some companies the ERP solution is the best, but for others a dedicated WMS will be the right way forward.
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Since 2012, HiKOKI Power Tools, earlier known as Hitachi Power Tools, has grown and increased its competitiveness by optimizing warehouse logistics together with Apport. With Apports automatic warehouse management system, the Norwegian tool giant experiences continuous opportunities for development and efficiency in its almost 6000 square meters large warehouse in Oslo.
When HiKOKI implemented Apport WMS in 2012, it was with a desire to achieve more overview – and overview, was what the tool giant achieved.
Before the implementation of the automatic warehouse management system, HiKOKI lacked overview in the warehouse. In the large warehouse with over 20.000 product numbers, it was time consuming and a demand that the employees knew the warehouse in and out in order to exploit the order lines. This led to costly picking errors.
Moreover, HiKOKI lacked control of its inventory which led to a minus on the competitiveness account. Thus, the implementation of Apport WMS became alfa-omega in order to get HiKOKI on the right course.
However, it would appear that HiKOKI gained a lot more than just overview when implementing the automatic warehouse management system.
The gains of the system is multiple – and they create everything from timely to financial savings.
“Apport helps us develop and have the most effective warehouse,” Stavros Tsamis adds. This increases the tools giants’ competitiveness while it also contributes to future profit goals.
HiKOKI Power Tools has experienced a great growth since the implementation of the automatic warehouse management system. It has created financial gains for HiKOKI as its turnover of 500 million NOK in 2012 has increased to a turnover of 700 million NOK today.
After the implementation of the warehouse management system, HiKOKI has experienced high customer satisfaction. The system makes sure that there is control over the warehouse and inventory so customers always are guaranteed when they place an order.
This creates an increase of satisfaction which supplements the positive loop of competitiveness and growth that HiKOKI has experienced since the implementation of Apport WMS. “We can compete with thid part logistics actors abroad,” Stavros Tsamis adds.
Besides from the new structure that HiKOKI experiences noticeable benefits from, the optimized efficiency is another essential and beneficial factor descending from the implementation of Apport WMS.
Stavros Tsamis explains: “After the implementation of Apport WMS, it is possible to pick the double. We went from a maximum of 19 order lines per hour to be able to handle the double.”
When the efficiency increases, it becomes easier to grow – and this indeed became noticeable for HiKOKI. The growth increased rapidly. Despite the increasing growth, each warehouse employee was able to pick far more effectively, which has resulted in a reduction of the warehouse employees.
At HiKOKI’s central warehouse in Oslo, 26 employees have become 23. According to Stavros Tsamis, this paints a great picture of how the tool giant has optimized efficiency in the warehouse with help from the warehouse management system.
HiKOKI’s Warehouse Manager Stavros Tsamis states that it is costly to have a warehouse in Norway, however, Apport WMS helps the tool giant to make it financially possible to have a central warehouse in Norway. With Apport’s warehouse management system, HiKOKI saves money on the bottom line.
Warehouse Manager at HiKOKI, Stavros Tsamis explains at the minimization of picking errors and the fact that there is now control over inventory are great examples of what saves costs for HiKOKI.
Moreover, Stavros Tsamis adds that the automatic warehouse management system also creates packaging savings as the system chooses the right packaging for the orders. “Structure saves money,” Stavros Tsamis emphasizes – and Apport WMS creates structure.
The automatic warehouse management system has thereby not simply had a one-time effect at HiKOKI Power Tools. The system continuously keeps the warehouse effective, increases competitiveness and makes sure that there is a high customer satisfaction. Thus, Apport is a great part of HiKOKI’s goals for the future.
Geared for growth with Apport WMS
With Apport WMS it is safe to grow knowingly that you will stay competitive. One of the goals for HiKOKI is to reach 1 billion NOK in annual turnover: “In order to achieve our goals, it is necessary to have Apport with us on the journey – they help us tackle our growth,” Stavros Tsamis underlines.
Goalsetting for the future demands strategy. With Apport’s automatic warehouse management system, all the warehouse’s data is gathered for future strategizing and overview. This contributes to HiKOKI’s goalsetting. Stavros Tsamis emphasizes: “We would not be able to shape the future of our warehouse without Apport.”.
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