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Samsung is doing very well. Its Galaxy phones and Galaxy tablets are highly popular, which is also quite noticeable at the Samsung spare parts DC in Breda. A large portion of the 92,000 articles in stock are spare parts for the mobile solutions of this Korean consumer electronics manufacturer.
Samsung attaches a lot of value to fast delivery. Customers across Europe who order a part today will get it home-delivered tomorrow. "Delivering spare parts is in fact the beginning of an all new sales process. If we manage to fix a broken phone very quickly, we score points with the consumer," Robert van der Waal, Samsung logistics manager, comments.
Extra checks
Although the Breda DC crew is provided by the logistics service provider UPS Supply Chain Solutions, the building, including racks, conveyor belts and warehouse trucks is owned by Samsung. "We manage the facility ourselves, and we have logistics engineers to see to the necessary innovations. Hiring and managing warehouse staff, however, is a whole different cup of tea. That is why we outsourced that" Van der Waal explains. Samsung is therefore also responsible for the DC’s IT systems, at the heart of which is the SAP warehouse management system. RF barcode scanners were linked to the system three years ago – 74 of them. "The reason for this was quality improvement. Our orders were delivered in time, but we needed a few extra checks throughout the process. We arranged for those by implementing barcode scanning," Van der Waal reminisces. However, demand quickly overtook the number of barcode scanners. Samsung has been going through massive growth, which means the number of picks increased rapidly to some 8000 a day. "There came a time when we structurally had more people than we did have scanners. So that is why we decided to once again invest in scanners some year and a half ago."
Compact and convenient scanners
The search for a new hardware partner ended with Consafe Logistics, the IT supplier that not only supplies the software, but also the corresponding hardware for warehouses. Among other things, Consafe Logistics is a re-seller for Motorola (scanners), Vocollect (voice technology), and Zebra , Imaje(printers), and has its own line of truck terminals by the name of Trafficom. "What appealed to me in particular was the speed of Consafe’s services. If any scanners need fixing at times, they return them to us very quickly. That is important to us. We can only live up to our 'next day delivery' concept if all of our suppliers tag along, including the hardware suppliers," Van der Waal mentions.
Samsung and Consafe went looking for the best model of scanner together. Naturally, it would have to be possible to seamlessly integrate the new scanner with the SAP warehouse management system. In addition, Samsung made a number of demands with respect to ergonomics. "The equipment had to be handy and must fit inside a pocket or holster with ease. It should never interfere with the order picker's work. And obviously, the machine had to be robust. We’re in a warehouse here, those scanners occasionally fall on the ground."
Together with the people from logistics service provider UPS, Samsung and Consafe tested a number of different models, from combination ring scanners and wrist terminals to scanners with large pistol-grip handles. Eventually, the one chosen was a compact, handy PDA model. "The advantage of ring scanners is that you keep your hands free, but they made our people constantly bump into the sides of the bins and racks. The pistol-grip handles were discarded because they tended to get in the way of turning and moving about in the narrow aisles between the shelf racks," Van der Waal recounts, who adds that the PDA scanners now function to everybody’s full satisfaction.
Fewer picking errors
The Samsung DC is divided into a number of different zones. Most items are on shelf racks, divided between different floors. Additionally, Samsung has a horizontal carousel for slow-movers and pallet racks for larger items, like refrigerator doors.
The order picking process starts when the printer starts up in a zone and prints a series of barcode labels. After scanning the labels, the PDA scanner tells the order picker where to go. Once there, he scans the barcode label on site and confirms the number of items he removes. "We are still working with printed barcode labels because we need them further on in the process," Van der Waal explains.
Scanning the location label and the confirmation of the number of items are the extra checks that Samsung wanted to include. The odds of order pickers going to the wrong picking location or picking the wrong number of items have decreased dramatically. "Consequentially, the number of errors is definitely decreased," Van der Waal confirms.
In-house expertise
Samsung bought a total of 42 PDA scanners, which makes their total come out to 116 devices. The electronics giant decided to hire Consafe Logistics not only for the maintenance of the new scanners, but also for the old ones. The IT supplier has its own repair centre, so it has all the necessary expertise in terms of maintenance and repairs in-house.
Additionally, Consafe Logistics offers all tools and systems to properly organise the management of such a large number of scanners. One example is the Avalanche, a cradle that allows Samsung to very quickly install the latest software updates or change settings on all of the scanners at the same time. That means it is no longer necessary to go through every same step all over again for every single scanner.
Samsung has now also expressed an interest in Qlick2Track, an online application that will allow the company to manage not just all of its scanners, but also its printers, access points and other hardware. Qlick2Track makes it possible to check the maintenance history of every piece of equipment, and to trace who used the device in question last.
Samsung is positive about the collaboration with Consafe Logistics. This is evident also from the fact that they asked Consafe to provide input in thinking about the hardware for the European DC for end products in Tilburg. Van der Waal: "In addition to the excellent customer service and the speed of their work, I very much like the way the people from Consafe think along. They often come up with new tips and recommendations. This shows that they really understand logistics."
More about the customer
Samsung Electronics is a global market leader in many fields, from monitors and TVs to mobile phones and memory chips. One of the fastest-growing brands in the world, Samsung Electronics achieved a turnover of US$ 116.8 billion in 2009. The company employs some 188,000 people in 185 branches across 65 countries, in eight independently operating business units: Visual Display, Mobile Communications, Telecommunication Systems, Digital Appliances, IT Solutions, Digital Imaging, Semiconductor and LCD. Samsung Electronics Benelux, with a turnover of more than € 1 billion, is one of the few '1 billion euro companies' in the Benelux area. For further information about Samsung Electronics Benelux, please visit www.samsung.com .