The Runsven Group in Skänninge, south Sweden, owns some of the country's most well-known cut-price outlets and is a leading player in Sweden's low price market. The group's chains include Bonus, Storcks, Storckens, Engelbrektsboden and Överskottbolaget (ÖoB). ÖoB accounts for the largest share of the group with over 60 outlets.
Logistics processes needed overhauling
Runsven’s total product range contains around 15 000 articles (4000 articles are always in the warehouse at any one time) and includes everything from tools, household goods, leisure goods, chemical and technical articles, packaged foods and confectionery, and surplus military supplies. The group has around 1,500 employees and annual sales of approximately SEK 3 billion, with solid profitability. The company is currently undergoing a phase of rapid expansion, opening ten new stores a year in Sweden alone.
Solid growth and expansion brings with it logistics challenges, and Runsven realized it needed to completely overhaul its logistics processes. “We were using a system that has been around for a long time and simply couldn’t cope with the volume of goods we have in our supply chain today. It was ineffective we lacked the exact control we need to expedite goods accurately, speedily and cost-effectively”, says Tobias Fors, Logistics Manager at Runsven.
The company has extended Distribution Centre in Skännninge to a huge 50,000 sq m, with a capacity of 20,000 sq m in external stores elsewhere, making it one of the largest warehouse capacities in Sweden. There are over 25,000 pallet places and goods are also stored free-standing. This increased capacity will solve capacity problems and drive Runsven’s expansion plans. Runsven chose Consafe Logistics to supply a WMS for the warehouse and all logistics equipment to ensure maximum efficiency. “I was at the company when the decision was made to work together with Consafe Logistics, but of course I already knew them. They are market leaders in Scandinavia and well-known for their professionalism and their product portfolio”, says Tobias. “While working with them I have been impressed by how they perform tasks - well above our expectations. It’s obvious they’ve done this before.”
Putting a professional organisation in place
The decision to upgrade logistics processes came when the family firm brought in an external CEO who had great experience of logistics processes in the FMCG (Fast Moving Consumer Goods) industry. He immediately set about putting a new, slim, effective organization in place, recruiting specific functions for sales, marketing and logistics management. He drove through the warehouse extension and radically changing warehouse processes with the aim of drastically increasing efficiency.
Totally reorganized routines
Runsven is in the process of completely modernizing and revamping its logistics routines. “We chose a WMS from Consafe Logistics because of their reputation and as it supplied standard WMS systems with functions perfectly suited to the wholesale and retail trade”, says Tobias. “Their track record made them a natural choice for our needs.”
The new WMS will give Runsven total control of where everything is placed and which batch goods belong to. Every single item will be accountable and can be tracked every second from when it enters the warehouse to reaching the store. “The system gives us a complete overview of where every single item is at any moment”, says Tobias. “Warehouse personnel will now be able to pick according to last date controls, (FIFO)” ensuring we always maximize sell-by dates.” The new system will also greatly increase picking efficiency by introducing paperless picking and full pallet handling. Work in loading areas is streamlined and replenishment managed automatically.
These efficiencies will enable RUNSVEN to run its huge Distribution Centre with a reduced workforce of around 50 employees despite a large increase in the volume of goods handled.
Logistics equipment from Trafficom
Runsven’s drive for greater efficiency also includes the purchase of logistics equipment from Trafficom, Consafe Logistic’s equipment division. Trafficom has supplied a radio network and 50 Truck PCs, several Shark Handheld computers, 23 scanners and 55 printers for label printing (41 mobile 14 stationary). “This new radio system and investment in rugged, truck mounted computers eliminates paper-based picking, increasing security and minimizing picking faults”, says Tobias Fors.
Partnership key to success
“Our partnership with Consafe Logistics works extremely well”, says Tobias. “Everything goes according to plan. Their people always know what to do and when to do it so we never lose time or money during the pre-study, planning and installation. We have a very tight and well-functioning contact with Consafe Logistics.”
“Our partnership with the Runsven Group has been a fantastic journey towards achieving logistics excellence", says Magnus Hallbeck, Sales Manager at Consafe Logistics. “Runsven’s focus, attention to detail and professionalism, together with our own experience has enabled us to complete all necessary installation and testing on time, on target and on budget. We are very proud to be associated with Runsven and look forward to helping them with their future expansion plans”.
Benefits in brief
- FIFO (first in first out) order in process.
- Better utilization of resources
- Radical increase in efficiency, including picking efficiency, replenishment and full pallet handling
- Minimum staffing required in warehouse. Only 50 people approx.
- Greater ergonomics and control through improved logistics equipment
Read more at www.runsven.se
2006