Menigo has annual sales of over 7 billion SEK and employs more than 1100 people. One of its keys to success is driving down costs through efficient logistics.
Menigo releases more than 20,000 order lines per day, with a target of handling up to 18 million order lines per year.
New DC for increased efficiency
The company is currently building a new Distribution Centre at Strängnäs, close to Stockholm. The purpose is to centralize low frequency articles at the Distribution Centre and cross dock these with more high frequency articles stored locally in smaller warehouses.
"Using one Distribution Centre store cuts down the number of goods we need to stock per warehouse and reduces our capital outlay", says Mats Anund, IT Manager at Menigo. "By having most goods in one place we secure all goods and quantities, and achieve much greater inventory control", adds Mats.
Integrated Astro WMS directly into IBS
Menigo uses an IBS enterprise application as its primary ERP system, but after performing a thorough analysis and checking references, the company decided to integrate Astro WMS from Consafe Logistics. It also had a complete set of modules that gave Menigo a good overview of their logistics processes.
"Astro is well suited to our requirements. It is full of standard functions that are easily adapted for our purposes. It also has open interfaces that connect to the IBS system with only small adaptations. It comes complete with upgrades that are regularly issued. Astro defines the handling of received goods and box calculations in a better way for our purposes" , says Mats Anund.
Improved picking and goods flow
One of the challenges facing Menigo was to automate picking routines. "Until now, we used paper based picking routines. These routines were complex and much of the routine was memorized by experienced staff", comments Mats.
"Using Astro, picking routines are automated giving us total control and the flexibility to change them as we wish. Operators automatically receive precise orders of what to pick and where to pick them. The system also uses the best routes and fills boxes in a much more effective way. This saves on time, minimizes transport costs as all boxes are optimally filled, and removes the need for manual stock taking."
Menigo is currently evaluating voice picking that will bring further savings in operator time. "We can see the potential for even great savings using voice", says Mats.
Designed for optimal frequency planning
One other change the company has made is to introduce inventory frequency planning. "By placing the goods with the highest replenishment frequency closer to goods out, and with the least frequency at the back we will have radically reduced man and truck times", comments Mats.
Rollout planned for 15 warehouses
Once Astro has been installed in the DC in Strängnäs, the company expects to roll out the system to 15 other warehouses in the Nordic countries. This enables Menigo to have full control of logistics and stock management throughout the group.
"We are extremely proud to deliver our Astro system to Menigo", says Magnus Hallbeck, Sales Manager at Consafe Logistics. "Menigo is the leader in its field, especially with regard to its IT and logistics processes. By choosing Astro from Consafe Logistics they are confirming our position as the natural provider of logistics solutions to the food supplies industry. We look forward to continuing our relationship with Menigo for a long time to come", concludes Magnus.
Benefits in brief
- Astro WMS is easily integrated into current ERP system through standard interfaces
- Complete set of modules that satisfy the specific needs of the food and beverage industry
- Efficiently defines box calculations
- Automated picking routines increase efficiency and save on man-hours
- Optimized goods flow throughout the DC
Read more at
www.menigo.se
2008