Belgium Logistics Center: Restructuring Journey

Background

Last year as a provider of industrial dust extraction solutions, we embarked on a transformative journey to restructure our Logistics center in Belgium. We recognized the need for significant changes to overcome major challenges and achieve our ambitious vision of being the best in class in delivering standardized dust extraction components for industrial processes in Europe, by focusing on operational efficiency to be reliable one-stop-shop. The restructuring initiative aimed to enhance productivity, increase storage capacity, improve accuracy, implement an advanced IT tool Warehouse Management System (WMS), and elevate overall quality.

Challenge

The challenges faced by the Logistics centre were multifaceted. To begin with, Formula Air identified the pressing need to improve productivity. By streamlining processes and optimizing workflows, the company sought to maximize efficiency and output. Additionally, the expansion of the business called for increased storage space to accommodate growing inventory demands. Accurate inventory management was crucial to ensuring seamless operations, avoiding delays, and minimizing errors. Therefore, implementing a robust WMS was imperative. Lastly, Formula Air aimed to enhance overall quality in its logistics operations to deliver exceptional service to its customers.

Outcome

Enhanced Efficiency
Transformed Warehouse Operations
Tangible Productivity
Customers Satisfaction
Technological Advancements
Empowering Warehouse Personnel

Enhanced Efficiency

The impact of the changes on the efficiency and productivity of the warehouse has been significant. Since the implementation of the restructuring measures, the productivity of the warehouse has been increased by 100%, marking a substantial improvement from October 2021 to the present. This notable increase in efficiency can be attributed to a range of specific changes that have been made to address the challenges faced.

Transforming Warehouse Operations

The warehouse underwent various physical transformations to optimize its operations. The barcode and racking systems were upgraded, enabling more accurate and efficient tracking and storage of inventory. Shelf arrangements were redesigned to enhance accessibility and organization. Furthermore, the lighting system was improved to create a well-lit environment that facilitates faster and error-free picking. Additionally, the lift machine was renewed, ensuring smoother and more reliable movement of goods within the warehouse. Formula Air made a substantial investment in the warehouse to facilitate these essential upgrades. Moreover, substantial safety improvements were implemented, prioritizing the well-being of the personnel, and mitigating potential hazards.

Tangible Productivity

The positive impact of these changes on warehouse operations is evident through concrete examples. The error rate has significantly decreased, resulting in a higher level of accuracy in order fulfillment. Notably, the picking rate has doubled, allowing fewer staff members to handle a higher volume of orders efficiently. This streamlined operation has not only improved productivity but has also contributed to cost savings for the company.

Customers Satisfaction

One crucial area where Formula Air has witnessed notable improvements is in customer service. The enhanced reliability and accuracy of inventory management have reduced frustrations caused by stock shortages or item unavailability. Customers now experience better service due to the Formula Air’s ability to fulfill orders more efficiently. With the expanded physical capacity and improved processes, Formula Air can now absorb more orders and with a remarkable increase of 85%, the company now handles more order lines per day, demonstrating its enhanced capabilities. Furthermore, the optimized operations have improved response time, enabling Formula Air to accommodate urgent orders promptly.

Technological Advancements

Technology has played a pivotal role in driving these improvements in the warehouse. The implementation of a mandatory Warehouse Management System (WMS) has been instrumental in enhancing overall efficiency. The utilization of QR code barcodes and the acquisition of appropriate licenses and tools have facilitated seamless tracking and management of inventory. The combination of a standard WMS with customized adaptations tailored to Formula Air's specific needs has further optimized the system's performance.

Empowering Warehouse Personnel

The personnel in the warehouse has also been positively impacted by the restructuring efforts. Comprehensive training programs were conducted for employees, including team leaders, who played a crucial role in disseminating knowledge and skills to their respective teams. Specialized training on working with the WMS was a significant component of the overall training program.

The restructure of our Logistics center in Belgium has been a resounding success. Formula Air has demonstrated its commitment to innovation, efficiency, and customer satisfaction. Through technological advancements, physical enhancements, and comprehensive training, Formula Air has set a solid foundation for continued growth and success in the dynamic industrial dust extraction industry.