Begro grows with IBS warehouse management software
Customer Story
Thanks to an advanced warehouse management system from IBS, Belgian frozen vegetable producer Begro has increased the productivity and the utilization of its warehouse, all while saving valuable time.
Marc Behagel, Managing Director of Begro is impressed with the traceability functions of IBS warehouse management software
Company background
Begro is a leading European producer of frozen vegetable products. The company’s new, automated warehouse stocks deep-frozen vegetables and comprises a production unit where vegetables are packaged in 1 or 2.5 kg bags.
Begro, located in Belgium, produces 1,600 different products, of which 85 percent are intended for export. The company employs 150 people and generated sales of EUR 35 million in 2002.
Business issues
Begro’s activities are seasonal, based on a harvest that starts in May. By the end of December the last vegetables have been picked, processed and stored as semi-finished products. The semi-finished stock is put into consumer packaging on demand from the customer and sent to the distribution centre for shipment. Begro can keep inventory for up to one year ahead.
The old warehouse had conventional pallet stocking with an ordinary delivery and collection process. Begro was utilising only about 55 percent of its capacity. Furthermore, the company was using a traditional system of one rack for one article. Begro needed to find a solution that would raise its warehouse utilisation up to a minimum of 90 percent.
While expanding its warehouse facilities, Begro decided to introduce a high level of computerization. Management shopped around for a suitable warehouse management system and chose to introduce software control of the packaging lines. This new WMS would be required to cope with an automated warehouse operating at -30°C and furnished with mobile racks.
A final but vital consideration was the EU directive regarding strict enforcement of the correct labeling of food products. One example, which affects Begro, is the EU's general food law Article 15, which took effect in January 2005. This amendment mandates fast tracking capability for all food products. Such regulations underscore the need for an automated distribution system that can provide prompt and accurate tracking and tracing. Begro must be able to trace every single carrot and pea back to its original farmer.
Solution and capabilities
Begro’s search for a new WMS software solution was a lengthy process. The company had little experience and lots of ideas, so finding the right software partner was critical. IBS was chosen for its stability and ability to answer vital questions, which other potential suppliers could not handle. IBS advanced Warehouse Management System added extra spice to the IBS offering.
In the warehouse, IBS dynamic warehouse management software applies the ‘interleaving’ principle, optimising the utilization of forklifts. A forklift with a new pallet from production is guided to a mobile rack for put-away. Without leaving the rack, the driver is instructed to pick a new pallet for dispatch.
To avoid wasting valuable time in the warehouse the mobile racks are already primed by the system. Consequently, the rack from which the next pallet is to be taken is already open when the forklift arrives, saving a lot of time. It takes fifty seconds for a rack to open but with IBS software that time has already been recouped.
The forklifts are fully controlled by the WMS. From a radio frequency (RF) display in the forklift cab, a driver receives instructions about picking up certain pallets from certain aisles.
IBS warehouse management system provides full support for all the activities in the warehouse, including palletising, receipt and storage of stock, picking, retrieval and dispatch. Furthermore, the IBS software guarantees Begro complete traceability in its storage unit.
Software control of the packaging lines is another part of the IBS solution. Features include establishing the data set-up, management of the sequence of the lines, combined with visual planning, an overview of personnel and machine workloads, equipment control and traceability.
Benefits and value
The new automated warehouse means that Begro can now handle the growing demand for its products. Today, the company manages approximately 15 private labels, along with its own brand.
IBS dynamic warehouse management system has enabled Begro to make considerable time savings in loading. An entire truck can be loaded in just under 25 minutes whereas it used to take 1.5 hours. Thanks to the IBS WMS, Begro has the added advantage of not having to check where a pallet is stored. As products can be loaded faster, the amount of loading bays required has been reduced, resulting in savings in overheads costs.
Begro is now able to keep more stock on hand. Production can run longer, and longer runs mean increased profit. Even though Begro stores more products than ever before, the same number of employees now handles three times more pallets per week.
Begro has assumed a continuous utilization rate of up to 95 percent of its warehouse - a vast improvement over its previous utilization of 55 percent capacity.
The EU tracking and tracing directive poses no problems for Begro, as IBS warehouse software supports full traceability on its inventory both in-store and with customers. The company now has the advantage of knowing exactly which warehouse stores which products. Begro can immediately communicate any potential problems to its customers.
With IBS, Begro has found the right business partner to grow with. The company expects to harvest a Return on Investment (ROI) within three years.
