UB1. Improving the accuracy of processes in a 3PL-operator’s warehouse - 1 - kapelou.comClose

UB1. Improving the accuracy of processes in a 3PL-operator’s warehouse

Lviv, Ukraine

UB1 is a 3PL operator providing a full range of logistics services: contract and warehouse logistics, fulfillment, end-to-end warehousing, copacking, returns management, long-haul transportation, Last Mile delivery in 24 hours. The company’s portfolio includes such global brands as Nestle, Mars, L’Oreal, Henkel. The company’s warehouse has an area of 50,000 m2, operates 17,000 SKUs and works 24/6.

UB1, as a part of BERTA Group, relies on the experience of distribution logistics, which the company has been engaged in for more than 30 years. Given the client’s need to optimize distribution and retail processes at the central distribution center, which handles 124,000 orders per month, together we defined the following objectives:

  • improve productivity and accuracy of processes in the warehouse;
  • customize different process types and picking categories in one area of a 3PL provider’s warehouse;
  • separate and automate the processing of retail and distribution orders;
  • provide parallel assembly of goods for 160 stores;
  • automate checkout and packaging areas at the 3PL company’s warehouse;
  • improve picking accuracy and reduce the share of claims.
Project implementation period:
Business sector:
3PL operator

Using an integrated approach, we divided the 3PL operator’s warehouse into separate retail and distribution processing areas. Each now has equipment for automatic transportation, accurate weighing, inspection and packaging. The last are equipped with ergonomic tables designed in tandem with the customer for the convenience of the workers.

A special feature of the distribution area in a 3PL warehouse is the number of suppliers and products that are regularly changed or added. Due to automation, 50% of routine tasks are performed by conveyorized equipment. Operators work at their assigned locations to ensure high picking speed and accuracy.

How we achieved 99.6% picking accuracy

The warehouse has a retail area where we installed 288-cell Pick-By-Light sorting equipment. The WMS consolidates customer orders and allocates an individual cell for each. The picking of goods takes place in parallel, allowing the 3PL provider to simultaneously process orders for 160 stores and guaranteeing the accuracy of the process.

The completed shipment passes through the inspection and packing stage within the checkout area. Automated conveyor equipment moves the formed cargo places for sorting and further preparation for shipment. From the inspection and packing area in the warehouse, they are then transported to the sorting area and from here distributed to the 160 stores.

Accuracy and flexibility – the focus in today’s environment

Warehouse automation equipment has given the customer not only accuracy, but also flexibility. Depending on the number of orders, one person can work at two stations at once. During peak periods – 2-3 people at one station. The automated equipment and implemented technologies allow the warehouse to handle 200,000 items and 25,000+ lines.

The result of cooperation between UB1 and KAPELOU is the automation of one of the largest warehouse complexes in the West of Ukraine with an area of 50,190 m2. On one section of the warehouse, 2,000 m2, different types of processes, picking categories, with different order structures and line depths are configured.

Advanced technologies and conveyor equipment from our production have become the tools that have enabled the 3PL warehouse to separate and automate the processing of orders of the “retail” and “distribution” categories. Parallel assembly of orders for 160 stores has been set up, control and packaging areas have been automated, and 99.6% picking accuracy has been ensured. Together with our partners, we have created an efficient tool for 3PL warehouse, which allows UB1’s business to improve process accuracy, grow and scale.

Installed KAPELOU equipment and technologies:

The installation of automation equipment in the 3PL company’s warehouse was preceded by an important step. It consisted in the choice and implementation of an effective analytical unit for tracking the full life cycle and lot size of goods, transparency and accuracy of equipment operation, and increasing the throughput of the warehouse. WMS Qguar from our long-term partner Quantum perfectly coped with it.

Together with our partners we automated the warehouse of a 3PL provider and provided accuracy, flexibility, quality, comfortable workplaces, high productivity, reduced the share of claims by 18%. The result was directly influenced by the unity and shared values of KAPELOU, Quantum and UB1 – to help customers be first with modern logistics technologies.