The reason for the project
- Sustainable growth of the company
- Improving efficiency
- Increase in goods volumes
- Greater load on warehouse and logistics
The purpose of the project
- Acceleration of processes
- Optimizing energy costs
- Reduction of human errors
Project solution
- Digitization of warehouse operations
- To offer competitively prices
Project deadline
- The new solution is ready to use by the spring of 2025
Brief description of the project
In 2020, the company's management prepared a strategy with the main goals for the next three years and a tactical plan for reaching these goals. The main strategic goals were the long-term and sustainable growth of the company and the necessary reorganization and improvement of efficiency in operations related to the core business.
Taking the above into account, in the view of the management of Agapics AS, a so-called bottleneck is emerging in the warehouse handling incoming goods volumes and assembling orders, which slows down the company's development. Since a significant increase in the volume of goods is planned in the future, the management and owners see it as important to invest in increasing the company's capacity in the warehouse department.
Warehouse operations play an important role in the value proposition of the entire company. Within the framework of this project, all the main processes of the warehouse department's work will be digitized - receiving and storing goods, assembling and dispatching goods.
Based on the information provided by the digitalization solution provider, their capabilities, and the business model of Agapics AS, the goal is to implement the entire digitalization project within 12 months. The company sees that due to its strategic goals, the new solution must be ready, installed and tested no later than the spring of 2025, with a deadline of 01.03.2025.
The purpose of the project
The goal of this project is to complete the digitization of warehouse operations resulting from the company's strategy. The long-term goal of digitization is to reduce the costs of the warehouse and logistics department by optimizing labor and energy costs.
During this process, several important processes or their parts have been automated or digitized within today's possibilities. The larger goal of these changes has been to reduce human errors, speed up processes and reduce the proportion of human labor to the lowest possible limit.
With the current work organization, the proportion of human labor in order picking is very high and has reached a critical limit, beyond which it is very difficult to find further efficiency gains. This, in turn, limits the company's ability to provide services to customers at a competitive price.
Project result
The project has a positive impact on the company's business model. Due to the strategy of Agapics AS, digitalization helps to reduce the proportion of human labor and thereby reduces the probability of human errors. The company's ability to handle volumes of goods and service orders improves.
The project significantly increases the efficiency of the warehouse department and through it improves the company's ability to make a profit. As a result, there is a greater ability to develop products and services. Based on this, it can be said that the impact of the project on the company's financial results is significant.
Under the forecasted conditions, the cost base of the warehouse department will decrease significantly. Since the cost of the warehouse is a significant part of the cost base of the entire company, economic activity becomes more cost-effective after the project. In this way, the company has the ability to offer products and services at a more competitive price.
Project support
Agapics AS applied for funding from the Enterprise and Innovation Foundation's Enterprise digital transformation support measure for its project "2024 Digitalization of Warehouse Operations Plan". The project received support in the amount of 140,144.78€