22/12, 2010
“It’s all about the Blue Book”. REMA Distribusjon’s Director of Operations, Jørn A. Endreson, explains that the book explains very simply how everyone in the company should perform, including how they handle logistics. REMA Distribusjon has invested in hand-held terminals to maximize traceability. You could say it all went by the book.
Money really matters
REMA Distribusjon is the logistics arm of REMA 1000, and in this company the customer really is king. Their customers are both the consumers and the franchise holders they serve. The company builds its business on four key concepts:
- Price price price
- Rich, happy shop owners
- Growth
- Profitability
Their philosophy is simple, the company with the lowest costs is the winner which is why logistics plays such a vital role in their business.
Jørn explains that REMA Distribusjon has 6 Distribusjon Centres serving a full range of channels. "We offer a local presence and a high turnover of a limited range of goods. By providing the highest level of service to our shops we increase the profitability of our franchise holders, and offer customers the lowest prices."
Serving nearly 500 low price shops throughout Norway is a huge transport challenge. A typical order to a shop would be:
- 18 pallets total
- 5 picking pallets dry goods
- 4 complete pallets dry goods
- 3 half pallets dry goods
- 3 picked pallets chilled goods
- 1 complete pallet chilled goods
- 2 picked pallets, frozen goods
The Blue Book came up with Consafe Logistics
The blue book says the company should avoid complicated solutions. So for Jørn, working with Consafe Logistics ticked all the boxes. "We’ve been using a WMS from Consafe Logistics for well over 10 years. When we assessed WMS systems, theirs was the one that offered the lowest cost when all benefits were calculated into the equation". Jørn joked that Consafe Logistics probably owned REMA Distribusjon as the whole process was controlled by their WMS, and new solutions for hand-held terminals REMA Distribusjon now uses.
Handheld computers make the difference
REMA Distribusjon uses a transport log to control all goods flows from the warehouse to its customers, and people input all data using hand-held scanners. The transport log improves control, quality and efficiency throughout the chain. Shops get quicker credit as everything is scanned, Distribusjon is improved, pallets are easily traceable and fewer go missing or end up in the wrong shop or on the wrong truck.
Scanning for complete traceability
Jørn explained that handheld computers were being rolled out throughout the transport chain and that he could see differences in several key areas, namely:
- Picking: It was easy to maximise picking routes and calculate the number of pallets
- Loading goods. The system totals all numbers and makes it easy to make additions and calculate volume and weight
- Transport: As the PDAs are connected to their main system and use GPS technologies, people are continuously updated on whether transport will be delayed and by how long
- Received in shop: The system ensures the delivered pallets are correct and reports on the temperature of the goods (chilled/frozen). People can also record any damage
- Crediting: All returns, including individual goods or complete pallets can be credited directly
- Reporting: Route times, fulfillment & replenishment levels, and actual efficiency levels are easily calculated
Making scanning simple
All workers log in to the system using a Driver ID and Password. They register the start time stop time and number of pallets in Access Delivery. Drivers know all details of the order and exactly where the goods will go. All orders are received directly from the WMS. Finished deliveries are confirmed with a signature on glass.
When loading goods, operators can simply click on the units so they can register loading and how many goods are frozen or chilled. The same is true of returns. Operators can scan exactly what will be returned.
Focusing on success – initiate and motivate
The use of PDAs has gone from zero in August 2009 - to 90% just a year later. What REMA Distribusjon needed to successfully implement the system was a secure technical solution for communication that would save money, which they had from Consafe Logistics – and staff acceptance for using PDAs.
New technology can inevitably arouse suspicion. The challenge for REMA Distrbution was to motivate truck drivers to understand and accept the positive role PDAs could have. A pilot project was held in Trondheim together with Consafe Logistics where younger and more experienced drivers had the chance to try out the PDAs for themselves. Younger drivers adapted to the PDAs much quicker and could help the older drivers understand the benefits.
The goal of course is to reach 100% or staff using mobile terminals, with the increases in profitability that goes with it.
REMA Distribusjon enjoy real change they can count on
Jørn explains that handheld computers has had a large impact on their business in the following areas:
- Fewer pallets are lost or delivered to the wrong store
- There is full traceability from supplier to user
- A more secure delivery process
- Drivers have better control over their jobs
- Control centres enjoy simpler route planning and greater control over the transport fleet
Jørn sums up the transition to handheld scanners as follows, "We had all sorts of comments from "How far can we throw this PDA" or "Just another way of keeping check on us". But the best comment of all is the one that really tells the story:
"One day without a PDA is one day without control".
About REMA 1000
REMA 1000 is the leading grocery chain in Norway and one of the country's strongest brands. Its philosophy is built on people having lots of choices and an owner culture that drives the company forward. REMA 1000 owns 500 shops in Norway, 200 in Denmark. The group has a total turnover 60 billion NOK.