LPP digitalises distribution

LPP’s distribution strategy is to be capable of the simultaneous delivery of new collections to all it stores. As the company explains, this poses a significant logistical challenge, especially considering its increased production levels and expansion into new markets. After a six-month pilot scheme, the first stage of the system’s introduction was completed at the end of last year when LPP’s distribution centre started using its production version. It automatically schedules the work of warehouse sorters, using planning algorithms that process huge amounts of information in a few seconds. LPP has achieved tangible benefits already in just a few months. The time necessary to plan logistics operations has been shortened by almost 40 pct. Due to the system’s automatic planning, the roles and tasks of the planners have now changed to that of monitoring the entire process and making occasional manual changes to the plan. The sequence in which orders are processed is predetermined, and in the case of unforeseen situations, supervisors can change the plan, e.g. by moving operations to another sorter or changing their order.

The system generates accurate estimates of the number of employees needed to the handle orders on a given day in order to meet the scheduled shipment dates. The next warehouse management system module to be implemented will be a flexible management panel that provides directors and management with real-time information. It displays all the current tasks, possible delays, planned breaks and sorting failures. Automatic e-mails reporting potential delays are an additional tool for controlling the situation, enabling a rapid response – thus avoiding problems even before they occur, e.g. by increasing the number of employees needed or by analysing bottlenecks in the logistics process. The Warehouse Advanced Planning system will eventually be implemented for all LPP’s storage tasks in subsequent phases of the project – from the receipt of goods to shipments.

“The fourth industrial revolution is based on the autonomy of production processes through the greatest saturation with IT systems, including elements of artificial intelligence. It is currently one of the hottest topics in Western Europe. PSI, as a leading provider of APS and MES systems, supports its clients in the transition to the digital world of Industry 4.0. The analogy with highly automated production processes is immediately clear to anyone who has seen LPP’s distribution centre. Therefore, faced with the challenge of streamlining the work processes of the distribution centre, we decided to use our experience of industry when developing such systems, for example, for the largest European automotive manufacturers. Based on the production planning system, we created an innovative module, Warehouse Advanced Planning, which, following our positive experience with LPP, we have decided to integrate with the PSIwms system, providing the full range of functionalities necessary for the appropriate control and process control required in a modern warehouse,” claims Arkadiusz Niemira, the CEO of PSI Polska.