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 0183 507020 |   info@wics.nl | Helpdesk

How a Danish webshop processes 50% more orders per hour (case study)

How a Danish webshop processes 50% more orders per hour

Temashop, located in Fredericia, is the leading Danish webshop in theme clothing. Since last year, the company also runs a regular store / showroom next to their warehouse. The Warehouse Management System (WMS) WICS Enterprise has been implemented in the summer of 2016. Owner Daniel Andersen and Warehouse Manager Kenneth Holt discuss the implementation and their results so far.

About Temashop

The company started in 2009 and has approximately 25 employees. During peak times, the number of employees may expand (temporarily) to 35. A yearly revenue of more than 30.000.000 Danish Crones (DKK) ( € 4.000.000 ) is generated.

People who don’t want to buy online, or want to see if the clothes fit first, can visit during opening times to actually see and feel the items.

  • Orders / month: 10.000 per month, 22.000 in peak months
  • Inbounds / month: 140 per month
  • Average returns: 6%
  • Peak moments: Halloween / Carnival / Oktoberfest
Kenneth Holt, Warehouse Manager

Kenneth Holt, Warehouse Manager

Daniel Andersen, owner

Daniel Andersen, CEO / Owner

Failing system

Temashop was using a SaaS (System as a Service) software package from England for their logistics. In this standard software package it was impossible to make amendments. It was doing the job as it should, until there was a big peak moment. The system failed and by the middle of 2016, the Danish webshop started looking for something else. Besides the occurring errors, Temashop was looking for a more customizable software package. Another requirement was that the systeem had to connect to their Magento webshop. Via internet the company ended up at the Dutch WICS Logistics and requested information for a WMS.

 

The office in Fredericia is combined with the warehouse and fysical store.
  • Office-Fredericia-map
  • Office-full-Temashop-WICS
  • Office-outside-Temashop-WICS
  • Office-outside-sign-Temashop-WICS
  • Office-painting-Temashop-WICS
  • Office-store-Temashop-WICS
  • Office-wall-Batman-Temashop-WICS
  • Office-workplaces-Temashop-WICS
  • Pigs-Temashop-WICS
  • Pink-Hair-Temashop-WICS
  • Scary-pupputs-Temashop-WICS
  • Tiroler-Temashop-WICS

 

Skype meetings

Shortly after the online information request, Temashop and WICS had several Skype meetings. Only a few weeks later, Temashop showed their determination by visiting The Netherlands in July 2016. With one nightly stay in between, Anderson and Holt were given a demonstration of the software and they visited an existing customer of the WICS.

Negotiation started and Temashop purchased WICS Enterprise for a -as they said- “fair price” including a few custom made features within the implementation. The Danish webshop and WICS came to an agreement and a partnership was started.

“We are able to process 300 orders an hour, instead of 200 before.”

Implementation within 3 weeks

Within 3 weeks during summer 2016 the WICS WMS was installed, implemented and the key users were trained. Because WICS worked on the existing scanners, no extra investment was needed for that. Temashop wanted to go live a month before the next peak moment; Oktoberfest. It was a very fast and heavy implementation, and the weeks after going live were tough. “But if we could do it over again, we would do it the same way”, says Warehouse Manager Kenneth Holt.

Fred van den Boogaard, Business Consultant at WICS, led the implementation: “3 weeks seems very ambitious and usually is a guarantee for a disaster. But with a lot of hard work, an open mind and mutual trust in partnership it is proven to be possible. Nevertheless, I would recommend to take at least 3 months for a full implementation.”

The usage of WICS

After the implementation, Temashop started using the order picking techniques of WICS. The company especially uses the wave pick, single line and single SKU to fulfil orders. The Danish webshop also uses priority notification in the scanners for store orders: The warehouse stock is connected to the Point of Sale (PoS) in the store next to the warehouse. Store orders are planned automatically for a quick fulfillment for the customers visiting the physical store. When someone wants to ‘order’ an item, the order pickers will get that item with high. It will be picked immediately and taken to the shop. It is also possible to order an item in the web shop and pick it up in the brick showroom.

For inbound, WICS is used to keep track on all ingoing goods - Temashop has several inbounds during the day. Holt: “This way we do not order the same items repeatedly. And we use reports of WICS, for example to identity slow-movers in the warehouse.”

 

Temashop uses order picking carts to process the hundreds of orders each day.
  • Daniel-scanners-Temashop-WICS
  • Hallways-Temashop-WICS
  • Path-Temashop-WICS
  • Path-hanging-clothes-Temashop-WICS
  • Returns-Temashop-WICS
  • Scanning-in-path-Temashop-WICS
  • The-first-article-Temashop-WICS
  • Warehouse-containers-Temashop-WICS
  • Wave-car-Temashop-WICS

 

Results

After the implementation of the WICS Warehouse Management System, Temashop processes 50% more orders per hour. The Danish webshop suggests that this is achieved due to the automated routes and batch/wavepicking options in WICS, together with reduction of walking distances. Holt: “Overall we are using the same people and the same equipment, but now we are able to process 300 orders an hour, instead of 200 before." This way Temashop is able to control their quick growth, without investing in a new warehouse or more people.

The webshop even managed to achieve this gain with the order check. The order check is an extra scan on the packing stations to take care of orderpicking mistakes. The warehouse manager says: “This has resulted in an almost fault-free operation in the warehouse and increasing profits for the company.”

“We can always run the system, even if there is no connection to the internet.

Higher performance

About the performance of the system, Holt says: “We like that it is not placed in cloud – that gives us a higher performance and the option to run, even if there is no connection to the internet. We experienced firsthand how bad it can get with a warehouse system in the cloud with our previous system. This is not the case with the WICS system.” The Warehouse Management System WICS Enterprise is a high end application, built on the stable Progress Software application platform.

Configuration and customization

The WICS system is very flexible, but sometimes logistics processes require a custom made solution: “We especially like that they can customize the software to our business, we do not have to adjust ourselves to standard software. We determine our own functions and workflows.” Using the WICS API combined with Temashop’s in-house IT knowledge, the Danish webshop has made a lot of features for their own advantage. Those features are not standard in WICS, but WICS is happy to share knowledge to develop their own standard software together.

On the other side, the knowledge sometimes led to logistics changes for Temashop: “We even changed some of the workflows because the system a smarter way of doing things. We appreciate the partnership and use the professional knowledge from WICS' specialists. They always tries to choose the best solution for the client.”

 

Video of the warehouse process.

 

Targets

Temashop is expanding its activities to Norway shortly. This way they are able to achieve their big target for next year, as Andersen says: “We want to reach over 200.000 orders in 2018.” Their long-term goal: Temashop wants to become one of the top 3 webshops in theme clothing in Europe. The turnover target in 5 years is 100.000.000 DKK ( € 13.000.000 ).

They also consider offering third party logistics services for some manufacturers. With implementing services for their manufacturers, Temashop gets more control and better foresight for delivery times. In that case, the company might have to expand their warehouse, which is possible on the current property.

“Such specific WMS functionalities for E-commerce like WICS has, cannot be found in Denmark.”

WICS’ expansion in Denmark

Using the large network of Temashop, WICS is targeting the new market of Denmark with its WMS. The Scandinavian region is known for its well-spoken English. That removes a big obstacle. With the new cooperation WICS expects to make big steps in the Danish E-commerce market. Owner Daniel Andersen concludes: “Such specific WMS functionalities for E-commerce like WICS has, cannot be found in Denmark.”

 

WICS thanks Temashop for their collaboration in these case study. Inspired by this article? Click here to contact us.

References

  • Fritom  Group
  • Verhoek Europe
  • De Jong Verpakking
  • Deleukstetaartenshop
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