How SAP EWM implementation helped Trolley optimize warehouse operations
Customer: Trolley
Industry: Retail & Wholesale – Wholesale Distribution – Electrical Goods
Key technologies: SAP EWM, SAP S/4HANA
Go-live: 2023
Country: Kuwait
Trolley, a Kuwait-based convenience store chain established in 2010, partnered with Westernacher to address inventory management challenges. They implemented an SAP EWM solution to establish a centralized distribution center serving all stores across Kuwait. Key features of the SAP EWM solution included stock tracking based on expiry dates and real-time visibility into stock levels, locations, and movements. A batch management system was also introduced to minimize losses from inventory expiration. As an outcome, Trolley was able to overcome inventory management challenges, improve operational effectiveness, and enhance customer satisfaction through better supply chain management.
Streamlining warehousing for soaring demand.
Trolley is a chain of retail convenience stores in Kuwait founded in September 2010. Having commenced its operations by serving niche markets within private universities and malls, the company strategically expanded its footprint into gas stations.
Trolley’s extensive lineup of everyday consumables across multiple categories underscores its commitment to achieving optimal customer satisfaction, maintaining uncompromising quality standards, and delivering exceptional value for money.
The existing inventory management system faced several inefficiencies that hindered operational effectiveness and led to significant drawbacks and here’s how the SAP EWM solution implemented by Westernacher helped Trolley to overcome the problem.
The client’s primary objective was to have a centralized distribution center that could cater to the demands of the stores across Kuwait. They wanted to utilize the central distribution center to reduce dependency on direct store delivery. Eventually, the central distribution center becomes the key to planning and executing its supply chain. In addition, the distribution center’s processes and operations had to be streamlined for efficient storage and supply to the stores.
The focus was also on enabling stock tracking based on expiry dates and real-time visibility into the stock level, location, and movement. The client also wanted to implement a batch management system to mitigate losses incurred from inventory expiration in the warehouse.
Fast solutions to revamp Trolley’s distribution center.
Trolley wanted to implement SAP EWM for their central distribution center. Addressing their challenges, Westernacher proposed a Time-to-Value (T2V) solution, a pre-built warehouse solution that can be implemented in a shorter timeline compared to the standard project timeline.
With Trolley’s unique requirements in mind, Westernacher proceeded with its Distribution Centre T2V methodology. Westernacher has two pre-built T2V solutions in warehouse management – one for the distribution center and the other for the manufacturing warehouse.
Through a series of workshops, our team of specialists worked with Trolley’s main stakeholders; Warehouse and Logistics Team along with IT. SAP S/4HANA IS-Retail was already in use for managing day-to-day Warehouse Operations and Trolley IT was supporting the business for the same. Our team gave them practical demos of their development system while guiding them through the pre-built scenarios.
We recorded the data on top of the pre-built scenarios and delivered the project by implementing the data along with the overall standard T2V solution.
The T2V solutions offered several advantages to Trolley. It significantly reduced the project delivery time. The existing standard pre-built scenarios were copied to the customer demo system. This not only accelerated the deployment timeline but also ensured a more efficient and cost-effective solution tailored to the client’s specific industry needs.
Driving Trolley’s vision forward with SAP EWM implementation success.
Trolley was already on SAP S/4HANA Retail and was using standard inventory management for managing the central distribution center. However, SAP Inventory management could not meet Trolley’s vision in the supply chain landscape. Hence, they selected SAP EWM for the central distribution center.
Trolley decided to adopt SAP EWM, and Westernacher helped in its implementation. The implementation of SAP EWM has significantly addressed various warehousing challenges.
The key highlight was the batch migration project, which was undertaken to activate batch management at the distribution center, ensuring a smooth transition of existing stock into batch management.
This move provided real-time visibility of expiry dates for warehouse stock, enhancing inventory management. Additionally, warehouse processes shifted from resource-driven to system-driven, optimizing efficiency.
Picking strategies were established to adhere to the First-Expired-First-Out (FEFO) principles, ensuring correct stock was shipped to stores while maintaining stock accuracy in the warehouse. System-driven replenishment further supported FEFO by replenishing stock accordingly. Bin-level visibility of stock improved inventory tracking, while resource management tools allowed warehouse managers to monitor resource performance based on completed tasks.
Moreover, the warehouse’s structure was enhanced by implementing separate areas for specific items, such as beverages, snacks, and non-food items, with putaway strategies ensuring adherence to these designated areas. Overall, SAP EWM has facilitated a more streamlined and structured strategy for warehouse management, effectively addressing key operational challenges.
Enhancing shipping operations efficiency.
Prior to SAP EWM implementation, Warehouse shipped around 3000 lines per day. With the introduction of SAP EWM, this figure increased to over 10,000 lines per day, representing a substantial 233% increase in the lines shipped out of the warehouse.
~3,000 Prior to SAP EWM implementation, Warehouse shipped around 3000 lines per day.
>10,000 With the introduction of SAP EWM, this figure increased to over 10,000 lines per day.
233% Representing a substantial
233% increase in the lines shipped out of the warehouse.
This notable enhancement in the efficiency of shipping operations highlights the positive impact of SAP EWM on warehouse management processes. Trolley’s distribution center underwent a seamless transformation, resulting in increased efficiency, cost saving, and optimized warehouse operations.
Our journey with Trolley doesn’t end here – we’re committed to continued support and innovation, ensuring that Trolley remains at the forefront of excellence in the retail industry.
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