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Efficient material flow for new logistics centre

27 February 2024

EPG has implemented its LFS warehouse management system for a discount retailer.

EPG (EHRHARDT PARTNER GROUP) has successfully introduced its LFS warehouse management system for German discount retailer KiK Textilien und Non-Food GmbH (KiK). The German clothing and home textiles store opened a new logistics centre in the Polish village of Rabowice, east of Poznan, in early December 2023. KiK opted for LFS so that it could manage its warehouse efficiently. Together with the supply chain software specialist EPG, KiK also intends to introduce LFS at its two other large logistics centres in the German town of Bönen and in South Slovakia.

Supplying toys, clothes, textiles, and decorative items, KiK has grown steadily over its almost 30-year history. This growth has meant that requirements have increased for logistics processes in warehouse management. Its old warehouse management system had reached its limits. As a result, KiK decided to introduce a new solution at its new location in Rabowice: the LFS warehouse management system by EPG. The supply chain software specialist ensured swift implementation and provided a high-performance warehouse management system extensible in modules. LFS is expected to optimize all processes in the KiK Group in the future. “We chose to implement LFS when launching the Polish location, aiming to gradually standardize logistics workflows across the company and enhance the transparency of our processes,” states Michael Fröhlich, managing director at KiK Logistik. The core of KiK’s success lies in its highly efficient, well-established supplier chains, striking an optimal balance between speed and cost-effectiveness.

Process standardisation

On introducing LFS, KiK is not only focusing on process standardisation but also on future semi-automation in Bönen, an upgrade based on performance indicators, an increase in efficiency, and state-of-the-art lean management practices. Given the seasonal peaks at Christmas and Easter, particularly for decoration items, KiK recognizes the critical importance of a perfect material flow and the ability to readjust to varying order volumes. LFS incorporates various modules and specialized functions designed for this purpose, including comprehensive analysis capabilities for stocks, access frequencies, occupancy by different items, and warehouse capacity utilization. LFS is also scalable at all times. 

Rabowice supplies all Polish and eastern German branches

The newly built logistics centre in Rabowice will play a key role in the future. “It’s a highly important location for us, given our increasingly stronger presence in Eastern Europe. The centre will serve as a hub between Central and Eastern Europe,” affirms Fröhlich. The new logistics location boasts almost 35,000 pallet storage spaces and 50 loading ramps over 40,000 square metres. A hazardous goods area is also integrated into the new location, where items such as helium tanks for balloons are stored. From 2024 onwards,130 employees are expected to ensure efficient incoming and outgoing goods flows. 

EPG managed to implement LFS at the new location within a matter of months. The warehouse management system was first put into operation for incoming goods in early December; the go-live for outgoing goods is expected to be completed in January 2024. The KiK range will then be distributed to both Polish and potentially eastern German branches of the company group from Rabowice. 

LFS also to be implemented in Bönen and South Slovakia

As soon as LFS is fully implemented in the new logistics centre in Rabowice, the idea is to introduce the warehouse management system at the group’s headquarters in Bönen and in South Slovakia. Bönen dispatches the largest volume of goods within the company. The company also plans to integrate an automatic small parts warehouse in Bönen.    

For more information, visit www.epg.com