The Company – Huhtamaki (UK) Ltd is a global speciality and consumer packaging company focusing on moulded fibre/paper products, films, flexible packaging, foodservice paper cups and other products based on paper forming technology. Their main customer markets include foodservice operators, fast food restaurants, ice-cream and other consumer goods markets, non-food consumer packaging, fresh food packers, pet food packers as well as retailers.
Today, Huhtamaki employs some 14,600 people in 65 manufacturing, distribution and sales facilities, in 35 countries worldwide. Net sales in 2008 amounted to EUR 2.3 billion.
A fast moving, 24/7 manufacturing and distribution operation, they track a variety of Key Performance Indicators such as On Time, In Full (OTIF) to ensure that their clients are receiving the best levels of service in this highly competitive industry.
Requirements
Like all businesses in this difficult economic environment, efficiency gains were a key business driver with the warehousing and distribution operations spearheading the initiative. As part of this process, Gary Owen, UK Warehouse & Distribution Manager determined that the operation demanded a more sophisticated Warehouse Management System (WMS) for its 3 southern area UK warehouse facilities, capable of delivering “Tier 1” functionality, but without the headaches typically associated with WMS implementations. The challenge was to deliver these business benefits, but with the demanding additional requirements of the 3 warehouse facilities going live with the solution concurrently, ‘No Capex’, ‘No Finance’ and a ’12 month ROI’.
Huhtamaki, as an organisation, embraces the use of the latest in technological advances to leverage competitive advantage; accordingly Gary began evaluating Software as a Service solutions in conjunction with the more traditional WMS software offerings. Following extensive research, he identified Snapfulfil as not only the right WMS, but also the only SaaS WMS solution that could meet all of his requirements and still meet that demanding ROI constraint. The comprehensive blend of functionality present within the Snapfulfil system combined with the unique Snapfulfil technical and commercial offering proved to be a winning combination for Gary, his team and most importantly the business.
Key business decision drivers were:
• Non Capex
• No Traditional Finance Models
• 12 month ROI
• Comprehensive Functionality
• Minimal IT Resource Demands
• Proven Solution
• Rapid Implementation
• Interface Capability to Huhtamaki Corporate Host
Key operational areas Snapfulfil were selected to improve included:
• Multi-Site control and visibility
• Stock receipting from Production to verify production runs and ensure rapid visibility and availability of inventory for despatch
• Put-away of both Raw Materials, WIP needed to be verified for accuracy and have immediate visibility
• RF driven processes increasing efficiency, accuracy and ensuring that correct stock rotation was followed
• Automated management of Task allocation to warehouse operatives to reduce administration and supervision
• Reporting of resource efficiency would help to maximise efficiencies in overall headcount and highlight where operators required further training
Immediate Benefits
Not only did the implementation of the Snapfulfil system significantly increase the productivity within the warehouse environment, but Key Performance Indicators, such as OTIF were increased to their highest ever levels.
Product receiving, put away and retrieval have all benefited as predicted and Warehouse Operative efficiency has significantly improved utilising the Snapfulfil system, with more expected within the next few months.
With the successful launch of 3 sites concurrently came the ability to view inventory across the business, as well as in transit, this being made significantly easier by the exceedingly low IT resource requirements, both in terms of physical hardware and personnel. Such has been the success of the project, Huhtamaki are now employing the Snapfulfil system within other areas of the operation to deliver complete inventory control and visibility across the entire business.
Financial Savings
Gary Owen, UK Warehouse & Distribution Manager for Huhtamaki carried out a post-implementation review once the Snapfulfil system had been “Live” for 6 months.
This review highlighted the following areas where savings had been realised:
• Headcount Reduction
• Stock Items No Longer ‘Lost’
• Overtime Reduced
• Reduced Error Rates
• Stock Obsolescence Removed
• Hardware Repairs Removed
And
• Paperwork production and Administration almost eliminated
These areas of saving delivered Net savings to the business of over £80,000 in year one, with more expected in years 2+
Summary
Huhtamaki’s warehouse and distribution operation has benefitted enormously from implementing Snapfulfil, Gary Owen stated, “Snapfulfil has helped us to realise significant improvements across the operation and save money at the same time. Really, a winning combination.”
Synergy Logistics Ltd Tel: 0845 463 7627 www.snapfulfil.com
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