Extended system support provided more efficient inventory management

Case

Hestra

The family business Hestra was founded in 1936 and is today run by the third and fourth generation Magnusson. Design and development take place at the head office in Hestra, Sweden. Hestra is a well-known brand that is marketed in 30 countries and had a turnover of 526 million SEK in 2019/20. The office in Hestra employs about 50 people including design, purchase, and logistics.

Services
performed

Digitalization / IT
Project management

Challenge

After increased demand and a changed order structure, where more orders came from e-commerce with few lines per order, existing IT support was not enough to control the inventory and achieve an efficient pick and pack. The warehouse had recently been built, but the system support was not enough to take full advantage of it.

Solution

Implementation of a warehouse management system (WMS) enabled improved control of the warehouse which could thus reach a higher degree of capacity. The warehouse system was integrated with vertical storage lifts, which further increased the warehouse capacity. The work on the warehouse was streamlined through the WMS with, among other things, automatic replenishment proposals and batch picking.

Proflow’s contribution

ProFlow performed the feasibility study that formed the basis for identifying the need for increased system support. Thereafter, we led the project with procurement and implementation of WMS, including integrations to automation equipment and business systems.

Freight procurement reduced costs by 16%

Case

Matting AB

Matting AB was founded in 1970 and is one of the Nordic region’s largest suppliers of carpets for stores, offices, public environments, and industries. Matting AB offers solutions for creating healthy workplaces and accessible environments, which include products such as work tables, standing mats, and seating. Matting AB has 36 employees and in 2018 turnover amounted to 102 million SEK.

Services
performed

Freight procurement
Project management

Challenge

Matting AB wanted to reduce shipping costs at the same time as they were keen to find a carrier with which they could build a well-functioning logistics solution. The largest proposition of the goods were sent as package freight B2B in Sweden and the Nordic neighboring countries, but there were also shipments to the rest of Europe. Deliveries to private individuals had increased and needed to be included in the shipping solution.

Solution

During the transport procurement, a number of evaluation points for the carriers were identified, in addition to price. In this way, it was ensured that important parameters were captured, such as having continued efficient handling of the warehouse and being able to meet the customer value proposition. The transport procurement resulted in an estimated saving of 16% against previous shipping costs.

Proflow’s contribution

ProFlow project managed and carried out the freight procurement based on our evaluation methodology where we analyze the carriers’ ability to deliver a solution that provides a good price as well as suits companies’ other logistics management and customer value proposition.