The expansion of the logistics centre in Strängnäs will enable the group to consolidate the activities of two distribution centers into one existing facility (brown field installation). The main benefits of the move will be offering customers a better level of service , and reducing inventory holding, overheads and labour costs. The supply chain covers three order types - branches replenishment, workshop orders and e-commerce direct delivery - and is thus an omni-channel model.
Consolidation of two warehouses
Better service level
The new design enables operators to achieve higher productivity, even when all 3 types are mixed together. Furthermore, the integration into the whole door2door flow optimises all processes and decreases lead times.
The concept for small parts in totes is based on the TGW FlashPick® system. Order cartons are created at the ergonomic PickCenter workstations and then consolidated via the TGW shuttle system. Order cartons are manually released to dispatch. Manual picking of large, bulky products takes place at the same time, and all orders are then consolidated at despatch.
Order cartons are handled at the 10 PickCenter workstations. Afterwards, the TGW shuttle system consolidates these cartons (smoother consolidation in the dispatch area). Bileko Car Parts can now better handle fluctuating order levels, while simultaneously promoting the health and well-being of employees.
Order cartons are created at the PickCenter workstations and then consolidated via the TGW Stingray shuttle system, which encompasses 100 shuttles roaming 58 levels in four aisles and 108,000 storage locations, handling up to 3,000 totes per hour.
The contract also includes a five-year Lifetime Services agreement, incorporating a dedicated on-site engineering team, remote expert support for PLC controls, a Warehouse Control System and Warehouse Management System and spare parts. Between 7 a.m. and 8:30 p.m. on weekdays, the site is monitored and maintained by 3 TGW LTS resident engineers. The UK hotline provides support for controls, and WCS/WMS is delivered and attended by Else.
In 2012, Mekonomen bought its former competitor MECA and in 2015, plans to merge logistics within the group were communicated. These included leaving the MECA warehouse in Eskilstuna and centralising in the Mekonomen 30,000 sqm warehouse in Strängnäs, about one hour southwest of Stockholm. That warehouse would also be expanded to form a joint, flexible, cost-efficient and state-of-the-art supply chain solution. Mekonomen is a leading actor in the Swedish and Norwegian aftermarket for spare parts, tools and workshop equipment.