FASTENER DISTRIBUTION pgb-Europe
pgb-Europe drives ahead with
DIGITISATION AND AUTOMATION It is said that an efficient supply chain can become a sales argument in itself. Fastener and tool specialist pgb-Europe is arming itself for the future with a robotised pallet warehouse and new ERP and WMS system.
“W
e have gained in efficiency, offer an answer to the demand for traceability and optimise our deliv‐ ery times,” explains Logistics Manager Vincent Pennoit. “These are assets that our customers appreciate.” Since 1956, pgb‐Europe (Pennoit‐Grootaert Bolt Trade) has developed from a one‐man business to a reputable interna‐ tional player. The head office in Melle, near Ghent, functions as a logistics centre for the storage and delivery of fasteners and tools. The company’s own production units are located in Poland (anchors) and Vietnam (wood screws). The sales market from Melle is mainly located in Belgium and the surrounding countries. With Frederik and Vincent Pennoit and Johannes Heye, the third generation is active in the company. pgb‐Europe moved to Melle in 1997. Due to the rapid growth of the company, the storage space of 10,000 square metres soon reached its limits. “We then turned to external warehouses,” says Pennoit. “That turned out not to be the ideal solution, as we lost efficiency when grouping our orders.” An initial expansion of the existing facility provided the solution. With an automated miniload picking system, capable of handling 10,000 order lines per day, pgb‐Europe emerged – not for the last time – as a pioneer in its sector. The next phase of expansion was preceded by a software tran‐ sition. “For a long time, we relied on a self‐built AS/400 system, of which we could do very little to change the core,” explains Vincent Pennoit. “It cost us too much effort and time to link product certificates to specific batch numbers. We therefore made the switch from AS/400 to SAP for ERP. Almost simulta‐ neously, we implemented a new WMS system with Dynaman.” Meanwhile, the opportunity presented itself to buy the adja‐ cent company site. This paved the way for a robot‐controlled high bay warehouse of 5,000 metres², with space for an addi‐ tional 13,000 pallet locations. This expansion brought the total to 28,000 pallet locations over the past three years.
Pennoit adds: “The total layout is now split into three major parts. The high bay warehouse acts as a reserve buffer stock. The miniload section centralises single‐box picking and there is a warehouse for manual overload picking. Three AGVs ensure the pallet replenishment between the high bay and overflow warehouse. The WMS system estimates the quantities to be picked, so our warehouse employees never run out of stock.” The high bay warehouse and the software implementations improve shipping speed and accuracy. “This is a must, given the high market expectations,” explains the Logistics Manager. “We deliver mainly to retailers, mainly in the professional segment. A fast execution speed is an important objective there. EDI connections now allow our customers to reduce their stocks. On the other hand, our customers expect us to deliver within 24 hours. If an order reaches us before 3pm, we will handle it before 6pm. Depending on the size of the order and the loca‐ tion, we therefore meet the intended market demand.” To estimate this market demand, pgb‐Europe relies on the fore‐ casting module of the SAP package. “It determines on the basis of history and calculated growth factors which goods – and in which quantities – we should order. Thanks to the close cooperation with our production companies in Poland and Vietnam and, of course, our suppliers in the Far East and Europe, appropriate purchasing management ensures a delivery rate of 97%,” says Pennoit. The pgb‐Europe ScanApp ultimately makes the link between logistics and customer service. “Consumers call up technical data sheets with it via their smartphones. The professional user in turn scans the barcode in his warehouse or shop shelf, after which he automatically reaches our order module. All he has to do is click on the number of copies he wants to order.” In recent years, pgb‐Europe has invested heavily in e‐ commerce. Customers can not only track their deliveries, but also keep track of whether their order has been picked or dispatched. www.pgb-europe.com
// The forecasting module of the SAP package determines which goods – and in what quantities – we should order. //
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