Airam has been developing their warehouse operations in co-operation with Leanware since 2017. During this period, the warehouse has been transformed into a modern logistics center, which supports business efficiently. The warehouse is managed on the basis of data derived from the systems through carefully controlled processes. Results have significantly improved thanks to changes in purchasing and warehouse management systems and operating methods. Airam’s warehouse-picking efficiency has increased from less than 20 rows to about 30 rows per hour, and this change was not achieved at the expense of other work. Instead, the overall efficiency of the warehouse has improved proportionately. Leanware awards the Top Performance Warehouse recognition on April 28th, 2021 at their virtual event “Kilpailukyky”.
Leanware’s Top Performance Warehouse recognition will be awarded for the fourth time this year. When awarding the recognition, focus will be given to five different criteria: staff and management, co-operation between purchase and sales departments, intelligent management of the warehouse, facilities and solutions, and utilization of Lean methods.
“The idea behind the recognition is to reward such customers who develop their in-house logistics with devotion and passion and do understand the importance of continuous development. Therefore, Top Performance Warehouse recognition is not one single achieved milestone, but a recognition of the work done so far,” says Account Director Janne Leuhtonen from Leanware.
Airam’s purchasing and logistics operations are now controlled by LeanwareSCM (Supply Chain Management) and LeanwareWMS (Warehouse Management System). On the purchase side, using these tools, Airam has been able to develop management of inventories and work in progress, supply chain transparency and planning to ensure availability and the efficiency of purchasing operations. On the logistics side, the WMS system has comprehensively improved warehouse management.
“We can utilize this system in e.g. solutions for facilities and equipment. Thanks to the XYZ classification system, we now know how often each item is collected and the warehouse locations are determined accordingly,” says Timo Eronen, Airam’s Production and Logistics Director, explaining the benefits of the system.
With implementation of the WMS system, the warehouse is now committed to consistent operating methods and processes that help to improve operational efficiency and enable us to meet customer requirements. “At the end of the day, development work shows concrete results in terms of operational efficiency, quality development and the fact that we can evaluate and manage the operations of the warehouse based on exact numbers instead of guesswork,” Eronen concludes.
“We have re-organized and re-grouped. Supply chain management is now carried out through one single organization, meaning that customer service, purchasing, production and logistics reside in the same organization. This can be seen in day-to-day management in that the aim is to get information out there and moving quickly from us all the way to the customer. The staff is involved in the development work e.g. by attending meetings for continuous improvement. In these meetings, we review how development issues are progressing and how they are perceived by staff,” Eronen describes the comprehensive nature of development work running through the organization.
Co-operation between Airam and Leanware has also merged along the way into a partnership where the parties coach, motivate and challenge each other. Eronen tells how they receive support from Leanware for systematic development of the system, which is important as the needs of the world and business change. “You must be able to react to changes quickly,” Eronen emphasizes.
Leanware’s Account Director Janne Leuhtonen praises the attitude and culture of people at Airam while he explains the criteria for awarding the recognition: “Airam understands the importance of data-driven measuring. They have good and easy to interpret numbers available, but they do not blindly rely on them. The warehouse and logistics departments nurture a forward-looking culture where they are ready to experiment and develop. At Airam, both management and system expertise are at a high level. Good example of this is that collection times of shipments to major retailers were cut to one third compared to the time before introduction of WMS.”
Timo Eronen says that the recognition highlights work for which you can easily become blind yourself. “This reminds us that we have done right things as an organization and are moving in the right direction.”
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Production and Logistics Director
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Leanware Oy is an expert and software house specializing in information systems in commercial, industrial and logistics sectors. Leanware has more than 100 customers in Europe, China and Brazil in addition to Finland. The company’s turnover for the financial year ending in 2019 was approximately EUR 10 million, and the company employs nearly 100 professionals of the sector. www.leanware.fi
Airam – 100 years of bright everyday life
Airam Electric is a Finnish family-owned company traditionally known for their comprehensive range of lamps and bulbs. In addition to lamps and bulbs, we offer an extensive range of luminaires and intelligent lighting solutions for electrical professionals and consumers alike. Our product portfolio also includes electrical accessories, decorative lights and leisure products. For Airam, the core of business is customer orientation, starting from product design and ease of service to flexible deliveries. Airam’s products are carried by department stores, grocery stores, hardware stores, electrical specialty retailers and electrical wholesale outlets offering diversified portfolio. Airam AB is a subsidiary of Airam Electric Oy, and it operates in Stockholm with the market area comprising of Sweden and other Nordic countries. In both Finland and Sweden, Airam’s goal is to always be near our customers and to serve them smoothly and personally.