Implementation of a SAP warehouse management system
transformed to address strategic business needs

The Customer

Groupe SEB: Manufacturing and distribution of household appliances

The Project

Secure Warehouse management and cross-company-code shipping optimization

The Solution

Implementation of a SAP warehouse management software with and integration of the previous ERP-solution.

Results of the project

  • Complete transparency of warehouse management and logistics

  • End-to-end material and data flows

  • Increased output rate

  • Higher delivery reliability

  • Reduced complaint rates

  • Permanent Inventory

  • Optimized routes thanks to a vehicle guidance system

  • Data transmission via WebSAPConsole

  • Warehouse activity monitor displays transport requests

  • Delivery monitor groups together individual orders and reduces picking and transportation costs

„The SAP logistics application provides complete transparency in our distribution center and increases throughput and delivery reliability.“

Wolfgang Müller, leader logistic, Groupe SEB Deutschland

Groupe SEB

The whole story

 

Groupe SEB – The Customer

Groupe SEB is represented worldwide as the market leader in the household retail market. The broad spectrum of products, the diversity of countries and needs, and the rapid development of new technologies offer new opportunities as well as strong growth potentials.

SEB holds more than 1,000 active patents and brings more than 200 new products onto the market every year. With more than 40 product families, Groupe SEB covers all areas of the market for small household appliances and is represented in more than 120 countries worldwide with 57 sales branches.

With the takeover of Rowenta in 1988 Groupe SEB also expanded to Germany. The company in Germany has its headquarters in Offenbach am Main, the Central Service is located in Solingen. International brands include Rowenta, Tefal, Mulinex, krups, All-Clad and Lagostina.

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own retail stores
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Mio. € in 2015
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Employees

The Challenge: At a glance

  • Solution for customer-individual processes
  • Safe Warehouse management with 25.000 storage spaces
  • Cross-company-code dispatch optimization
  • Seamless tracking of customer orders up to the goods issue.
  • Continuous material and data flows.

Groupe SEB – The Challenge

High delivery reliability and transparent material and information flow – was the main goal of Groupe SEB Germany GmbH, as they re- organized operations for the distribution center in Solingen. From there the subsidiary of the French domestic appliance provider delivers its products under the established brand names Rowenta, Tefal and Krups all over Germany (165.000 shipments per year with a total weight of 14.500 tons).

Groupe SEB launched a tender to find a tailored solution that tracks customer orders until shipping. The logistics provider Kühne + Nagel proved itself. The company was able to demonstrate successful storage services for its customers in the past.

Groupe SEB

One warehouse software for operators and service providers

Groupe SEB – The Project

ERP software from SAP, completed by a logistics component fulfilled the requirements of Groupe SEB. Therefore, Groupe SEB decided to expand their existing ERP application by this storage management software. Kühne + Nagel reinforced the decision and started to manage the distribution center in Solingen.
Together Kühne + Nagel and Groupe SEB committed SERKEM GmbH to support the project as its implementation partner. As Special Expertise Partner of SAP, SERKEM offers special expertise in the logistics area. In close cooperation between Kühne + Nagel, SERKEM and Groupe SEB the detailed concept for processes was created. Existing sales processes as they were depicted in the existing SAP® enterprise software of Groupe SEB served as a basis.

On July 1st 2005 the new warehouse control and management started into running operations. The six-month implementation project was realized in scheduled time and within the planned budget. „We were advised by extremely knowledgeable logistics experts from SERKEM“, said Wolfgang Müller, Head of Logistics at Groupe SEB. „Their expertise helped us to connect warehouse operations with core SAP processes.“

“We were advised by highly knowledgeable logistics experts from SERKEM. Their expertise helped us connect warehouse operations with core SAP processes.”
Wolfgang Müller, Leader Logistic, Groupe SEB

Orders can be tracked

The integration of the ERP system now offers an overview of Groupe SEB logistics services. All operations can be viewed with an unprecedented transparency – even every single one of the 25.000 spaces in the warehouse. „The new warehouse logistics is working hand in hand with the individual departments. Integrated processes and a precise warehouse management help to reduce complaint rates“, says Müller.
Due to a linking of the SAP logistics solution and ERP applications of Groupe SEB every customer order can be tracked completely and in real-time – from acquisition via picking and goods issue to invoicing. This integration of SAP core processes also benefits the logistics service provider. Received information about the volume of future orders helps to plan the workforce.

Based on the detailed technical design concept SERKEM has set the logistics software and added a number of features according to the requests of Kühne + Nagel and Groupe SEB. A warehouse activity monitor displays every transport request. The warehouse supervisor or worker gets a precise description on which or how many goods need to be taken from one storage location to another. Furthermore, the application detects different picking strategies depending on the order, such as multi-order picking or two-step picking.
Another function shortens delivery processes. A delivery monitor groups together individual orders from one recipient to just one delivery. This reduces picking and transportation costs.

With the help of order picking vehicles the warehouse workers ensure that the desired goods are getting ready for shipping. Therefore vehicles are equipped with radio scanners and mobile printers. For each picking and packing process the corresponding shipping labels including bar codes and IDs are printed. WebSAPConsole provides WIFI connection to the SAP warehouse management. Technical operations run stable and without errors.
Pickers are directed through the warehouse on optimized routes. Via multi-order picking the pickers can combine up to ten shipments in just one sorting run. A vehicle guidance system coordinates orders depending on priority, sends them to the vehicles and leads through the warehouse on optimized routes. Next to beam shelves the warehouse structure also includes a DIS system (Drive-In-System developed by Jungheinrich), which was integrated into the SAP warehouse solution. Aside from fixed picking spaces, dynamic picking areas are set up and administrated by the SAP application. The utilized capacity of the DIS warehouse system reached 85 percent within a short period of time.

Particularly high-quality devices such as espresso machines, fully automatic coffee machines or ironing stations are being tracked by serial numbers. When removing goods from storage, the storage space and in addition the serial number or the bar code of the product get detected by a scanner. The scanner technology and the integration of warehouse management into ERP processes become obvious in the inventory. „Back in the days it took us three days for an inventory, today we just need one“, says Müller. By now, permanent inventory (including zero stock check) is applied to large areas of the warehouse.
Another process is used for the handling of warranty and reparation services processed by a service center in the warehouse in Solingen. The same location supports processes for value-added logistics services which enable for example the adding of vouchers or a free bag of coffee.
The applications of the new warehouse management system are very user-friendly. Especially in seasonal peaks when temporary staff is needed this is very useful. Within a short period of time the new employees are trained and familiar with warehouse processes. Therefore household appliances from Groupe SEB reach their customers in no time.

The Result

The applications of the new warehouse management are very user-friendly. This is especially noticeable in seasonal peaks when the tribal personnel are supplemented by additional free forces. Within a very short space of time, the new employees are then trained in the storage processes. The Groupe SEB household appliances are always fast to the customers.

„The new warehouse logistics is working hand in hand with the individual departments. Integrated processes and a precise warehouse management provide significantly lower complaint rates.“
Wolfgang Müller, Leader Logistic, Groupe SEB

Downloads & Further Informationen

SERKEM Success Story Groupe SEB: SAP Versandoptimierung

SERKEM Success Story Groupe SEB Infografik

SERKEM Lösung: SAP All-in-One für Logistikdienstleister (A1-LDL)

SERKEM Präsentation: Success Story Groupe SEB