K2 Systems increases efficiency in outbound logistics with AEB software
At a glance
- Company: K2 Systems GmbH
- Industry: Mounting systems for photovoltaic installations
- Initial situation: Strong growth, multiple warehouse locations, cross-location shipments
- Solution: K2 Systems has fully digitalized its warehouse operations using AEB Warehouse Management and its shipping processes using AEB Shipping, including packaging processes and the integration of the electronic ATLAS export declaration.
- Results: Fewer goods movements, shorter lead times, two external warehouses closed, error rate reduced from about 0.3 to 0.1 to 0.15 percent
Challenge
"It all started with the idea of implementing a new shipping solution. Early on in the project, we realized: Without a powerful WMS as a foundation, that won't get us very far."
Marcel Grilo, Head of Supply Chain Management at K2 Systems
Strong growth requires new warehousing and shipping processes
K2 Systems specializes in innovative mounting systems for photovoltaic installations. The company's solutions are used on roofs, facades, open spaces, and carports in projects around the world. As the volume of orders increased dramatically with the growth of the solar industry, K2 Systems built a new pallet warehouse at its headquarters in Renningen-Malmsheim, southwest Germany, thereby increasing the number of staging areas fivefold.
It quickly became apparent that the existing logistics software could no longer keep up with this scale of operations. Another reason was K2's unique logistics structure: Pallet shipments are processed at the main location, while long-length goods shipments are processed at another location. Both locations must coordinate their shipping operations, as many shipments consist of goods from both warehouse areas.
Warehouse and shipping processes are closely interlinked
In collaboration with AEB, K2 Systems first implemented AEB Warehouse Management and then AEB Shipping. The company also uses the shipping software to process shipments in which the goods come from two warehouse locations and the truck must stop at two loading points. This creates a coordinated shipping process from multiple shipment components.
ATLAS export declaration integrated into the outbound process
For export orders at K2 Systems, the package data must be accurately documented. Using a packaging tool integrated into AEB Shipping, employees assign products to the respective packages. This makes it easy to see which goods are on which pallet or in which bundle. This creates the foundation for packing lists, export documents, and reliable document processing directly within the operational process.
Export management by the customs authorities is also integrated into the outbound process. This is particularly relevant for shipments involving multiple locations: Long-length and palletized goods can be consolidated onto a single truck for operational purposes, but must be processed separately by customs because different customs offices have jurisdiction over them. This is also supported by AEB Shipping.
The project thus demonstrates how AEB combines K2 Warehouse Management, shipment processing for long-length goods, pallets, and packages, and ATLAS export declarations into a single, integrated outbound process.
Direct routing to loading docks reduces goods movements
Together with AEB, K2 Systems also analyzed and improved the material flow in the warehouse. A highlight: In the past, full pallets intended for shipping were first stored in a temporary shipping holding area. This area was designed to hold about 450 pallets and regularly reached capacity. So the pallets were removed from storage, temporarily stored, and later taken to the loading dock.
Today, AEB Warehouse Management generally leaves full pallets in the warehouse. Only once the outbound shipment has been cleared and the truck is about to pick it up does the software prioritize the shipment for transport directly to the loading dock. Two goods movements are combined into one. This significantly reduces lead times and frees up valuable warehouse space.
AEB WMS also already includes the foundation for further automation. In the future, the solution will be able to control the Linde forklifts in use so that they automatically navigate to the correct storage location and handle stock putaway and retrieval operations autonomously.
Origin of goods and preferences considered in picking process
At K2, the issue of origin of goods and preferences also plays a role right through the warehousing process. For certain customer orders destined for third countries, it is important to specifically supply goods with the appropriate preferential origin so that proof of preferential origin can be used in the country of destination.
K2 has developed a special logistics approach for this purpose: Identical items may come from different countries of origin, and not every country of origin is entitled to preference in every destination country. AEB Warehouse Management halts orders that may be subject to preferential treatment and does not simply allow them to be automatically processed as part of the normal picking process. Employees review the orders and can fulfill them specifically with goods whose country of origin is relevant to the respective destination country.
Result
Marcel Grilo, Head of Supply Chain Management at K2 Systems
Fewer errors and higher productivity
K2 Systems has high standards for quality. For this reason, quality assurance was implemented not as a separate follow-up step, but as part of the logistics process. Inspection processes are integrated into the packaging process and the WMS to verify items and quantities. These inspections are particularly helpful in manual counting processes for identifying errors before the goods are shipped.
"With the introduction of the AEB software, we were able to reduce the logistics-related error rate from about 0.3 percent to approximately 0.1 to 0.15 percent. At the same time, our throughput has increased significantly. We were able to significantly reduce lead times, increase our efficiency, and thereby cut back on external services by handling those tasks in-house," says Marcel Grilo with satisfaction.
"K2 had a new warehouse with a lot of potential. The key was to make this operationally viable," says Dr. Jochen Fuhrmann, Project Manager and Intralogistics Expert at AEB. “With AEB Warehouse Management, we were able to design our warehouse processes in such a way that movements are reduced, space is freed up, and material flows run significantly faster and more efficiently.”
Working as equals through challenging project phases
As the project progressed, Lina Barner took over as project manager on behalf of K2 Systems. Following the completion of her work-study program, this allowed her to take on this crucial role as a young professional.
At AEB, this decision left a lasting impression. “Lina took on responsibility in a challenging project situation and did a great job, working alongside the young AEB project team members,” says Benjamin Müller, Project Manager at AEB. “We worked together very closely, pragmatically, and with a focus on finding solutions, which enabled us to successfully complete the project in a short amount of time.”
Marcel Grilo sees this as a great example of the partnership in action: "Of course, in a project like this, things don't always go according to plan. It was crucial that we were able to exchange ideas and then consistently worked towards our goal – with success."
