Yet it does move…
…and how! Shipping and purchasing – a peek into the world of logistics
Reception of articles from suppliers, storage planning and national distribution of orders: an effective logistics service requires a precise, programmed approach. One of the challenges for a company is how to organise the products and flows of goods in the warehouse so as to reduce time and costs when processing orders. In fact, logistics management represents a commercial advantage as the first step in differentiating oneself from the competition and building customer loyalty.
As a distributor in Italy, NaturalLook offers its brand partners a large logistics warehouse. To give an idea of its size, the daily quantity of shoes handled exceeds 10,000 pairs.
The logistics department is organised according to a precise schedule: bookings for the spring/summer collections are dispatched from January until May.
The period from March onwards sees replenishment orders handled: these generate extra turnover, not least thanks to the structured logistics with record delivery times of 24/48 hours.
The autumn/winter collections – even if, nowadays, seasonal differences are increasingly blurred – are sent to customers between June and September, with opportunities to restock until the end of the year. We talk about what it’s like to be a company in constant movement with Johann Brugger, Logistics Director at NaturalLook.
Organising logistics requires precision and an openness to new technologies. What are the workflows and processes that support your department’s activities?
“There are two main processes to be taken into account. On the one hand, the reception of incoming goods and their correct storage and, on the other, the picking and packing. Today, technology allows workflows to be organised using WMS (Warehouse Management System) software, which can guide staff. When managing a warehouse, the key is always at any one time to know exactly which items you have on hand and where they are.” Johann smiles and explains: “I know it may sound obvious, but it’s just like that – especially for those of us who are handling movements of hundreds of thousands of pairs of shoes. The advantage of working with a WMS system is that we can digitally map the warehouse, giving us a real-time picture of stock.”
As a concrete example, when picking an order the WMS automatically calculates the volume; it then calculates the number and type of packages to be used, also specifying the content for each individual package. The WMS builds an optimised route according to the positions of the articles that directs the personnel responsible for picking to the individual pick locations.
“We use trucks equipped with pick-to-light systems for picking. This guarantees simultaneous order preparation: the activated light signals tell staff what to pick and in what quantities. This simplifies workflow, increases productivity and reduces the likelihood of errors”, says a satisfied Johann.
After picking, the packages are delivered to what at NaturalLook is called the billing line, where an automatic check takes place. If the result is OK, the packages are weighed, taped and labelled. Finally, the pick-up request is sent to the courier, who sends its label and organises the shipment. The biggest challenge? “Space organisation: an efficient warehouse layout is essential, especially when the seasons change”, Johann continues. “Goods have to be moved, low-turnover items have to be placed in the most remote locations, while best-selling items have to be placed in fast-access areas, always with a view to minimising picking, optimising times and efficiently coordinating resources.”
Your department also plans the purchases of the various brands: how do you manage orders?
“A key element to consider is the manufacturer’s lead time, i.e. the time it takes to deliver the articles. At NaturalLook we plan our purchases at a very early stage – as soon as the new collections are presented by the brands – and order at our own risk, obviously based upon a precise analysis of forecast sales. We guarantee our customers ample product availability: they can draw upon 100,000 pairs of shoes, with around 2,000 items for immediate delivery, with their availability easy to check on our B2B portal.”
