Regional retailer, Nakumatt Holdings, has announced the first phase completion of a Warehouse Management System (WMS) integration project, at its Nairobi logistics hub.
The successful completion of the project, featuring one of the most advanced WMS systems in sub-Sahara Africa, will now see Nakumatt Holdings, deploying an automated warehousing solution, to boost its supply chain efficiencies, across East Africa.
Speaking when he confirmed the project completion, Nakumatt Holdings Managing Director, Mr. Atul Shah, said the integration of an automated WMS is part of the firm’s cost containment strategies.
Among other advantages, Shah said the integration of the WMS provides a suitable cash flow management solution as it helps to curb and manage over stocking challenges. Optimum stock holding, enables the organization to avoid unnecessary holding of capital which will ultimately assists the business to grow.
The WMS integration project, Shah added, provides Nakumatt with a much needed corporate transition from manual, to new generation automated stock management systems. The WMS, Shah said, will provide the retailer, with a much needed supply chain transformation solution and platform to support growth.
The Nakumatt WMS solution, developed by Zensar Technologies, is powered by an Oracle Retail Enterprise Resource Planning (ERP) software engine and incorporates hardware solutions by Zebra Technologies.
The completion of this first phase Warehouse Management System project, further confirms Nakumatt’s commitment to maintain cutting edge information technology solutions, Shah said.
With the WMS Integration, Nakumatt has already started to enjoy significant operational cost savings, with the average dispatch values almost doubling within its existing space.
“At its optimum performance level and with added features including an auto replenish system, we hope to enjoy maximum savings on our average dispatch value per day while managing shrinkage risk more effectively,” Shah said, adding that, “This world-class system provides us with a clear dash board to track our stocks from supplier delivery to customer pick up on the shelves allowing for proper business planning.”
At the next phase of the integration project, Nakumatt Holdings, has set its focus on the delivery of an auto replenish system; which will easily, place the retailer on a top pedestal as an Information Technology reliant chain.
Adding; “this helps the organization to significantly raise its operational efficiencies and reduce stock out incidences at all our 64 branches and Central Warehouses across the region, for the customers benefit.”
The installation of the online WMS, has also seen a massive skills transfer at Nakumatt, with more than 800 staff members now undergoing specialized user training.
As part of the project rollout milestones, staff at Nakumatt’s central warehouses, have managed to cut their official working days to six from seven, while significantly raising the firm’s stock inventory accuracy.
“With the installation of the WMS, Nakumatt Central Warehouse staffers in Nairobi, have for the first time in more than 20 years successfully managed to process more than 5billion shipments monthly up from an average of 3billion previously,” Shah disclosed.
With the new WMS system, supplies to the Nakumatt Central Warehouse, are now electronically scanned, verified, loaded and shipped to the respective branches. Technically, WMS also works on the pre distribution process where allocation can be made prior to receipt of goods and cross dock to shipping area when it is received.
Prior to the WMS integration, goods were manually loaded and delivery notes generated with poor rates of accuracy.
The new WMS system also allows Nakumatt to process a double rate of supplier deliveries to its warehouses reducing the need to make direct branch deliveries. Technically, the WMS also enhances warehouse storage space optimization through system defined storage locations by department and the nature of products.
The significance of Oracle Warehouse Management systems, helps retailers to: improve operation efficiency, increase inventory accuracy with intelligent task management, create a distributed warehouse to service multiple companies, deploy and integrate advanced robotic warehouse equipment along with maintenance services and also monitor and manage warehouse personnel performance and efficiency.