The expansion of the fulfillment center in Strängnäs will enable the group to consolidate the activities of two distribution centers into one existing facility (brownfield installation). The main benefits of the move will be offering customers a better level of service and reducing the costs of inventory holding, operation, and labor. The new system needed an omnichannel operation to accommodate three order types: branches replenishment, workshop orders, and e-commerce direct delivery.
Consolidation of two warehouses
Better service level
The new design enables operators to achieve higher productivity, even when all three order types are mixed together. Furthermore, the integration into the end-to-end workflow optimizes all processes and decreases lead times.
The TGW FlashPick® system manages fulfillment of small parts orders. Order cartons are created at ergonomic PickCenter One workstations, consolidated via the shuttle system, and then manually released to outbound. Manual picking of large, bulky products takes place at the same time, and all orders are then consolidated at outbound.
Order cartons are handled at the 10 PickCenter One workstations. Bileko Car Parts can now better handle fluctuating order types and sizes while simultaneously promoting the health and well-being of employees.
After being picked, order cartons are 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. This consolidation, as a result, leads to smoother operations at outbound.
BCP signed on for a five-year Lifetime Services agreement that includes a dedicated on-site engineering team, remote support for PLC controls, a Warehouse Control System (WCS) and Warehouse Management System (WMS), and spare parts. Between 7 a.m. and 8:30 p.m. on weekdays, the site is monitored and maintained by 3 TGW resident engineers. The UK hotline provides support for controls, while WCS/WMS is delivered and maintained 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 centralizing in the 323,000 sq. ft. Mekonomen 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 brand in the Swedish and Norwegian aftermarket for spare parts, tools, and workshop equipment, with Bileko Car Parts an an operating arm.