Case Studies Catering Engros Improves Picking Accuracy and Operational Efficiency with Manhattan Associates

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	Catering Engros Improves Picking Accuracy and Operational Efficiency with Manhattan Associates

Catering Engros Improves Picking Accuracy and Operational Efficiency with Manhattan Associates

Technology Category	Functional Applications - Warehouse Management Systems (WMS) Networks & Connectivity - Wireless Local Area Network
Applicable Industries	Food & Beverage
Applicable Functions	Logistics & Transportation Warehouse & Inventory Management
Use Cases	Inventory Management Predictive Replenishment Warehouse Automation
Services	Data Science Services System Integration
Challenge	Following a period of sustained growth, Catering Engros needed a new logistics system to handle its fulfilment operation, particularly in light of anticipated further growth. The company sought a system to manage its 24/7 operation in both warehouses and introduce proven standards and processes to improve efficiency in its supply chain operations. The previous reliance on a paper-based system led to frequent errors in picking and shipping, and a lack of real-time stock visibility adversely impacted inventory management. The legacy system could not pinpoint the exact location of stock, leading to bottlenecks and picking errors that required replacement shipments, negatively affecting customer service and environmental impact. Read More
About Customer	Catering Engros is a leading Danish food distributor serving customers such as Monarch, Compass Group Denmark, Scandic Hotels, Choice Hotels, IKEA, and Legoland. The company generated DKK 1.2 billion (US$ 235 million) in revenue last year. Its distribution centres in Copenhagen and Middelfart each have a capacity of 120,000 sq ft and hold 21,000 individual stock keeping units (SKUs). On average, the organization ships 70,000 cartons per day from each distribution centre. Catering Engros operates 3 shifts per day, 24/7, and has been experiencing sustained growth, necessitating an upgrade in its logistics and warehouse management systems. Read More
Solution	Catering Engros considered various options for its systems upgrade, including purchasing a new ERP system and deploying an off-the-shelf warehouse management system (WMS) that could integrate with its legacy ERP and business intelligence products. The selected system needed to operate on a Microsoft platform and support integration with voice picking technology from Vocollect. After a thorough review, Catering Engros chose Manhattan Associates' WMS solution, which met their needs in terms of functionality and integration capabilities. The company opted for a five-phase implementation, introducing the system gradually into each area of the warehouses (ambient, chilled, and frozen). The implementation was completed alongside a 20% expansion of each distribution centre, deployment of a wireless network, and a data cleansing exercise involving 10,000 product lines from over 500 suppliers. Read More Log in to view content
Contents

Technology Category

Functional Applications - Warehouse Management Systems (WMS)

Networks & Connectivity - Wireless Local Area Network

Applicable Industries

Food & Beverage

Applicable Functions

Logistics & Transportation

Warehouse & Inventory Management

Use Cases

Inventory Management

Predictive Replenishment

Warehouse Automation

Services

Data Science Services

System Integration

Challenge

Following a period of sustained growth, Catering Engros needed a new logistics system to handle its fulfilment operation, particularly in light of anticipated further growth. The company sought a system to manage its 24/7 operation in both warehouses and introduce proven standards and processes to improve efficiency in its supply chain operations. The previous reliance on a paper-based system led to frequent errors in picking and shipping, and a lack of real-time stock visibility adversely impacted inventory management. The legacy system could not pinpoint the exact location of stock, leading to bottlenecks and picking errors that required replacement shipments, negatively affecting customer service and environmental impact.

About Customer

Catering Engros is a leading Danish food distributor serving customers such as Monarch, Compass Group Denmark, Scandic Hotels, Choice Hotels, IKEA, and Legoland. The company generated DKK 1.2 billion (US$ 235 million) in revenue last year. Its distribution centres in Copenhagen and Middelfart each have a capacity of 120,000 sq ft and hold 21,000 individual stock keeping units (SKUs). On average, the organization ships 70,000 cartons per day from each distribution centre. Catering Engros operates 3 shifts per day, 24/7, and has been experiencing sustained growth, necessitating an upgrade in its logistics and warehouse management systems.

Solution

Catering Engros considered various options for its systems upgrade, including purchasing a new ERP system and deploying an off-the-shelf warehouse management system (WMS) that could integrate with its legacy ERP and business intelligence products. The selected system needed to operate on a Microsoft platform and support integration with voice picking technology from Vocollect. After a thorough review, Catering Engros chose Manhattan Associates' WMS solution, which met their needs in terms of functionality and integration capabilities. The company opted for a five-phase implementation, introducing the system gradually into each area of the warehouses (ambient, chilled, and frozen). The implementation was completed alongside a 20% expansion of each distribution centre, deployment of a wireless network, and a data cleansing exercise involving 10,000 product lines from over 500 suppliers.

Impact #1	Catering Engros now enjoys much better inventory accuracy, with picking errors reduced by 90%.
Impact #2	The company has achieved a 30% productivity improvement in the picking process.
Impact #3	The sales team is now focused on increasing profit margins rather than correcting mistakes and dealing with customer issues.

Impact #1

Catering Engros now enjoys much better inventory accuracy, with picking errors reduced by 90%.

Impact #2

The company has achieved a 30% productivity improvement in the picking process.

Impact #3

The sales team is now focused on increasing profit margins rather than correcting mistakes and dealing with customer issues.

Benefit #1	Annual cost savings of DKK 1.7 million (US$ 325,000) from improved stock control, fewer truck journeys, and better productivity in the warehouse.
Benefit #2	Return on investment achieved within one year.

Benefit #1

Annual cost savings of DKK 1.7 million (US$ 325,000) from improved stock control, fewer truck journeys, and better productivity in the warehouse.

Benefit #2

Return on investment achieved within one year.

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Overview

Catering Engros Improves Picking Accuracy and Operational Efficiency with Manhattan Associates

Operational Impact

Quantitative Benefit