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In the fashion world, speed, variety and constant product availability rule. This also increases logistics requirements, especially when brick-and-mortar retail and e-commerce increasingly merge. In 2012, NKD, one of the largest textile retailers in Germany, was faced with a groundbreaking decision. Its ambitious expansion plans called for a comprehensive modernization of its logistics, which forms the backbone of the retail company. A new logistics center was to be built at the headquarters in Bindlach near Bayreuth. Equipped with modern technology and high-performance warehouse management software that could cope with the complex requirements of a growing company. Today, ten years later, NKD Group GmbH and S&P Computersysteme GmbH from Leinfelden-Echterdingen can look back on a successful partnership. This journey has been characterized by productive cooperation and continuous development. Together they created the basis for future growth and are continuing this cooperation.
NKD chooses S&P as its strategic partner
After a tendering process and intensive testing, NKD opted for S&P's warehouse management software. The software provider not only impressed with its fulfillment of all technical requirements, but also with its flexibility to adapt the software to future needs. In addition, NKD was assured that it would be able to use the software immediately upon completion of the new logistics center.
"We wanted to ensure that we could rely on a solution that would support us in our expansion in the coming years. It was also extremely important for us to always be able to deliver when implementing this Herculean task. S&P gave us this security. The software made it possible to gradually connect all logistics areas so that operations could continue without interruption during the go-live. Any difficulties that arose were quickly resolved. Adjustments were also possible at short notice, so that we were always able to deliver during the changeover phase," praised Alexander Schmökel, CEO at NKD.
Thebig logistics restart
When construction of the new main warehouse began in 2012, the desire for more efficient logistics processes also increased. The requirements were high: a seamless connection to the new warehouse, including the new "person-to-goods" picking system. Mapping the processes for the NOS (never out of stock) areas, the online store and the items for the stores in the existing warehouse, which was located in the immediate vicinity. It was also necessary to integrate the existing conveyor technology, the new automated high-bay warehouse and the electric monorail system into the warehouse management system. Smooth data exchange with the existing merchandise management system was essential. A precise inventory management system that localizes and records all items in real time was also required.
"Today, we know exactly where every single item is and in what quantity. This real-time data is crucial for efficient order processing. It helps to reduce errors and improve planning," explains Schmökel.
This has also led to NKD replacing the inventory on the reporting date with a permanent inventory.
"We used to carry out an annual inventory for the entire warehouse - a huge feat with more than 10,000 pallets. Today, the warehouse management system manages this process. This saves us a lot of time and the manual workload is significantly lower," adds Schmökel.
All processes united under one roof
The implementation of the project with S&P and the connection of the new warehouse, including the high-bay warehouse and the shipping and loading zone, began at the end of 2012. 80 percent of NKD's goods are picked in the new building. In the following months, all warehouse areas in the old building were gradually converted to the new software. This included the pallet warehouse, shelving and flow racks as well as the sorting and packing station for processing online orders. During the transition phase, the systems in the old warehouse were still running on a legacy system and were connected to the warehouse management system via interfaces. The gradual connection made it possible to make all processes more efficient, from goods receipt and picking to dispatch and returns processing. One of NKD's main objectives was to significantly increase productivity in all logistics areas. This goal was achieved by optimizing material flows and controlling all logistics processes via the warehouse management system. Despite an unchanged number of employees, NKD significantly increased its output. This is particularly remarkable in view of the company's expansion and the associated increasing challenges. The interfaces to the various systems such as merchandise management, the cash register system and customs processing ensure a smooth flow of information and enable coordinated processing. Shipping and route planning software are now also included.
Adaptability as the key to success
Since the beginning, the collaboration between the two has continued to develop. Numerous projects have been implemented in the last five years in particular. These include the storage and handling of hazardous goods, the automated export of logistics key figures to business intelligence software and the switch to international shipping barcodes. In addition, routes are continuously optimized in order to reduce travel times. Other important innovations were the introduction of a ticket system and a project management platform, which facilitates communication and ensures simple coordination between the project teams of the two companies. Regular quarterly meetings support forward-looking planning and resource reservation for future projects. NKD continuously invested in its warehouse infrastructure in order to meet the changing challenges. New shelving systems, extended and converted storage areas and the connection of an external warehouse for stock transfers and returns were integrated into the warehouse management system.
"The partnership with S&P over the last ten years has shown us that we are relying on the right software," emphasizes Schmökel.
Special processes that make the warehouse even smarter
NKD is delighted with the development and implementation of special logistics processes that have been tailored to NKD's individual needs. For example, a special process was developed for parcel shipping from consolidation. It enables NKD to reduce shipping costs by intelligently consolidating or repackaging shipments. Or the multi-order picking process to speed up order picking for the stores. NKD also has a simulation for planning employees and resources, linked to the order data. Such customized solutions not only contribute to economic efficiency, but also underline the innovative strength of S&P.
"The dynamic nature of retail and e-commerce requires flexible systems that adapt quickly to changing conditions. The SuPCIS-L8 warehouse management system has proven to be extremely adaptable and robust. Whether seasonal order peaks, collection changes or the integration of new processes - the software reacts flexibly and enables stable processing without interruptions," emphasizes Schmökel.
Despite the complexity of the system, the warehouse management system is very user-friendly. Picking with the mobile data collection device in particular is intuitive and self-explanatory, so that new employees are quickly trained. Specialized areas such as the control station or replenishment process require more intensive training, but here too the software offers clear structures and helpful functions.
Ten years and not a bit tired
The ten-year partnership illustrates how modern warehouse management software, intelligent processes and close cooperation can drive intralogistics forward. With this reorientation, NKD has increased productivity and improved transparency and efficiency in the warehouse.
Rémy El Abd, Managing Director at S&P, emphasizes: "The close and good cooperation of all those involved was crucial for this project. The logistics and IT departments at NKD and our S&P team cooperated perfectly and wrote this success story together".
Both companies plan to continue and expand this successful collaboration. Through the merger of S&P and Element Logic, NKD sees great potential for further innovations that will drive the company's logistics forward in the coming years, particularly in the area of automation.
Thanks to NKD for the interview and providing the images.
