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Meat picking at SPAR Switzerland by voice: Pick-by-voice processes in SAP LES

Increased efficiency for the "SPAR meat & more" own-brand meat through paperless picking

SPAR Switzerland optimised order picking

The SPAR Handels AG launched the new SPAR meat & more private label in all SPAR stores in Switzerland in July 2019. Previously, the meat products ordered were pre-picked in boxes by the central supplier in line with market requirements. Repacking at the distribution center in St. Gallen no longer took place. This led to inconsistencies, e.g. with regard to delivered goods or quantities. The decision was made to carry out future picking directly at the distribution center and no longer at the supplier.

Project facts

About the project

The project is divided into two phases:

Solutions & Services

Highlights of the implementation

Main benefits of SPAR Switzerland

With the meat & more project, we have created the necessary flexibility with regard to suppliers, products and new ideas. This is now fully supported by new logistics processes with IT.”

Description Phase 1

New implementation of meat picking processes in existing SAP LES with pick-by-voice processing

Initial situation

Previously, orders were pre-picked by the central supplier and not at the distribution center in St. Gallen. The ordering process was as follows:

  1. The stores send their orders for meat products to SPAR Switzerland.
  2. SPAR Switzerland sends a collective order with article-related SLS sub-items to a central supplier via EDI.
  3. The ordered meat products are pre-picked in boxes by the central supplier in line with market requirements.
  4. The pre-picked goods are delivered to the SPAR Switzerland distribution center and parked at the cross-docking storage location (refrigerated warehouse).
  5. Delivery to the ordering SPAR stores without repacking.

Pre-picking by the supplier led to inconsistencies, e.g. in terms of delivered goods or quantities. The decision was therefore made to carry out order picking directly at the distribution center in St. Gallen in future and no longer via the suppliers.

Implementation

The future process for ordering and delivering meat products at SPAR Switzerland envisaged a goods receipt process and a goods issue process. For this purpose, a so-called cross-docking process was implemented. The goods are stored in a cross-docking warehouse type in line with market requirements and made available for loading the store tours at a later date, i.e. removed from storage.

Challenges

Description Phase 2

Optimisation package - challenges & measures

Markets order several times a day

Conversion to SU management in the cross-docking warehouse type in order to be able to separate stocks per outbound delivery and store. This makes it possible to provide each outbound delivery with precise stock levels. A separate stock removal strategy was also used for this purpose.

Prioritisation of certain SPAR stores

The start of the putaway process (Z-Monitor) is initiated in advance by the creation of the putaway transport orders. Processing is then system-guided via pick-by-voice.

Rounding problem solved analogous to SAP Catch Weight functionality

Update of the converted delivery quantity for weight articles.

Performance optimisation for cross-docking deliveries

The outbound delivery update has been decoupled from the WM transfer order update of the delivery. Picking is now updated asynchronously.

Overdelivery of goods

Allocation of the oversupplied quantity to the individual SPAR stores according to a specific key

About SPAR Switzerland

The SPAR Group is a Swiss retail company based in Sankt Gallen. The SPAR Group comprises around 200 SPAR Neighborhood Markets, SPAR mini and SPAR express convenience stores as well as TopCC Cash & Carry pick-up stores. The majority of the stores are operated by independent retailers in a franchising system.

The SPAR Group employs around 2,000 people (as of May 2020). SPAR focuses on neighborhood grocery supermarkets, a large selection of fresh products and a wide range of products including local and organic products. Since April 2016, the SPAR Group has been a subsidiary of The SPAR Group Ltd. in South Africa, which generated total sales of CHF 7.4 billion in 2019.

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