Blue Water Shipping
A Quantum Leap for Quality
May 2010
The Danes are fond of their bicycles, and this is evident at importer, Bjarne Egedesø and Intercycle, who have responded to growth by building new, modern facilities in Tietgenbyen near Odense. The associated warehouse will be streamlined with numerous opportunities to optimise tasks that have previously been restrictive and costly.
In 2009, CEO, Kim Egedesø, contacted Langebæk to discuss the establishment of an entirely new warehouse. The companies are moving to a new headquarters, which is still just an empty plot, but the land has been purchased, and Logistics Manager, Morten Eeg, expects to be able to move into the buildings by January 2011. The entirely new buildings under construction will give Bjarne Egedesø and Intercycle the opportunity to design a warehouse that meets the specific needs of the industry.
‘We expect a quantum leap in terms of logistics. First and foremost, our goods will be optimally positioned for picking. The items we use the most will be closest. With the upcoming WMS and Pick-by-Voice, we will also be able to optimise picking routes significantly,’ says Morten Eeg, who aims for an efficiency improvement of at least 30%.
In just seven weeks, the dimensions and weight of all 10,000 items have been recorded using a cubiscanner. All data is now digitally available and will be used in the upcoming WMS, which will be the core of the new warehouse’s functionality. The WMS will not only determine the optimal picking routes. It will also take into account items that cannot be packed together, such as sharp pedals with cycling helmets, and a workflow will be eliminated because goods will now be picked directly into a correctly sized shipping box.
The first phase of the project is now complete. It has been preceded by an analysis that has outlined how areas such as purchasing, layout, and ergonomics can be improved. The next phase will be to select and delve deeper with suppliers. In this context, Morten Eeg will visit companies that have implemented similar solutions, accompanied by Langebæk.
Bjarne Egedesø and Intercycle are among the country’s largest retailers of bicycles and bicycle equipment. For many years, the companies have had a warehouse consisting of several older buildings with stairs and elevators, where goods are stored across different floors. The two companies have around 10,000 unique SKUs, covering everything from professional racing bicycles to cycling helmets, clothing, shoes, and sprockets. The increasing volume of goods is largely unorganised, making order handling a significant challenge. It is resource-intensive to locate small items, and the limited space makes it difficult to introduce new product categories. Given Bjarne Egedesø and Intercycle’s active growth strategy, this is an untenable situation.