Supernova Award Category
The Problem
Like many wholesalers, Kroll sought to adopt digital transformation strategies and thrive in an ever-changing, highly competitive marketplace by reducing costs, streamlining operations, improving the bottom line. As well, Kroll wanted to improve information transparency to meet the needs of its wholesale customers' and exceed expectations.
Warehouse operations are a critical component to competing in the marketplace, meeting the core demands of its supply chain, and exceeding customers’ expectations. To support its growing business, Kroll needed to maximize its warehouse operations in order to create efficiencies in receiving, inventory control, and shipping.
Specifically, Kroll wanted to:
• Improve inventory visibility to reduce excess/obsolete inventory buildup or unexpected shortages.
• Reduce pickers cycle time to find the right items to ship, to streamline the loading process.
• Optimize warehouse layout and utilization for improved time and labor efficiencies.
The Solution
In 2012, Kroll was looking replace its legacy ERP platform that was unable to support the company’s growth trajectory. It wanted to invest in the right IT infrastructure to support improved efficiencies, support overall customer experience and foster business growth. Kroll knew it would take a holistic approach and needed a technology foundation that could support and integrate operations across all functional areas.
Kroll selected Epicor Prophet 21, which integrated enterprise resource planning (ERP), customer relationship management (CRM), ecommerce, mobility, business intelligence, and strong reporting and analytical tools to support smart decision making to improve the customer experience while saving time, cutting costs, and driving more sales. The solution’s wireless warehouse functionality streamlined processes including receiving, picking, inventory operations, cycle counting, and adjustments.
The results
Having quick access to information and improved transparency, quantifiable metrics and analytics has transformed many of Kroll’s day-to-day operating processes for greater efficiency and profitability. Since going live on Epicor Prophet 21 ERP solution in June 2013, the company has doubled its revenues.
The Epicor Wireless Warehouse Management System has enabled more efficient use of warehouse space, to make picking and packing more profitable and efficient. Previously, with paper tickets, they had no idea where an item was in the warehouse once that ticket was printed. Now, Kroll has the visibility to know exactly where the product is, where any order stands at any stage of the process, and even the ability to locate or cancel a customer order at a moment’s notice.
Going wireless allowed Kroll to streamline, maximize, and improve warehouse processes. From better inventory tracking to going paperless, fulfilling orders more accurately, and generating performance metrics, the overall efficiency of warehouse operations has skyrocketed.
Kroll now has the ability to track inventory as it moves through the warehouse, as well as people’s performance. Kroll is now able to statistically measure each employee’s performance compared to others doing the same job so Kroll now knows exactly how much time and costs are incurred with every order. Information supports smart decision making to keep stock at the exact right level for optimal profitability.
Metrics
Increased Productivity – Orders received by noon will ship same day, whereas before, it could take days from the time the order was placed. Average daily volume of shipped orders has increased by 21.7% since implementation, and the recorded highest shipping day volume has increased by 39.7%. Overall warehouse productivity has improved by 16.9%.
Reduction in FTEs -- Kroll will save as much as one FTE per million dollars in sales due to faster and more effective warehouse operations. These labor savings will be used to reallocate personnel to other higher value added activities. Improved Order Fulfillment Accuracy – utilizing barcodes provides a faster and more accurate way to verify that correct items have been picked, and use of a secondary checkpoint of picked items has resulted in improved order fulfillment accuracy where errors are identified before our products ship to the customer, resulting in a decrease in product returns by 10%. Improved Warehouse Utilization – optimization of warehouse space has allowed Kroll to stock and offer more products -- capacity utilization is up 15.26% -- and boost revenues. Improved Merchandise Turn Around -- maximizing its warehouse footprint has also improved inventory turns by 1 day on average as a result of cross-docking, which is used in approximately 12-15% of order scenarios.
Reduced Paper Usage -- by approximately 3,500 lbs. per year, for reduced overall environmental impact
The Technology
With Epicor’s Wireless Warehouse Management, a small wireless hand-held device enables warehouse employees to synch with Kroll’s Epicor Prophet 21 ERP solution about who picks what and when, for improved accuracy, control, and efficiency. This provides real-time feedback and better control over warehouse tasks, supporting improved customer service by ensuring the right products go out on-time, every time, while improving efficiencies through directed warehouse activities.
Disruptive Factor
Despite rolling out the system two weeks before the start of its busy season, Kroll never missed a beat and was able to get all its orders out the door on time. While the company has seen significant improvements in metrics, it anticipates continued improvements. Kroll’s placement of products in the warehouse is becoming more intelligent – aided by technology; the Wireless Warehouse Management System directs employees where to place high-movement items for maximum efficiency and maps pick routes for commonly picked items.
For inventory receiving, the system-directed method (“directed put away”) automatically suggests up to six bins, giving Kroll the option of choosing an alternative bin location. The Wireless Warehouse Management Solution also offers a ranking system similar to ABC classes, but based on the number of hits a bin receives. Primary bin, bin ranking, along with weight and volume of bins and items are all taken into account to calculate their best placement in the warehouse.
Shining Moment
Labor is a big expense in warehouse operations. Kroll has achieved added upside by leveraging the technology to create a form of a leaderboard to infuse its workplace with a competitive spirit resulting in improved productivity.
The first day Kroll published its established performance metrics for all warehouse processes, employees exceeded all expectations, further validating the benefits of the technology from an employee engagement, goal setting and performance management perspective.