ZIEHL-ABEGG: Significantly faster inventory in the warehouse

ZIEHL-ABEGG SE now saves up to 75 % of labour costs for inventory

The rules are clearly defined: A warehouse should contain at least 1,000 items or partial storage bin relations so that the annual inventory based on a few random samples is economical. This means that smaller locations with less than 1,000 storage positions are actually excluded from this time-saving method of inventory.

ZIEHL-ABEGG SE from Künzelsau was not satisfied with this restriction. The manufacturer, which specializes in fans, electric motors and associated control systems, has been relying on inventory sampling for more than 15 years at its small parts warehouse with 2,500 to 3,000 items. There, the counting effort could be reduced by about 80%. The same effect occurred six years ago in another area with 5,000 article numbers. “The previous full inventory took two full days with ten employees. Now five colleagues can do it in five hours”, reports Karsten Gaschnitz from Controlling, who is responsible for the inventory area at ZIEHLABEGG SE. However, most of the other 180 or so warehouse locations have fewer than 1,000 items and are not really suitable for a changeover. “Unless we combine several small areas into a storage unit or a sample population,” explains Gaschnitz. This in turn requires inventory software that can combine several storage locations and thus manage them as one client. “The Stasam 8.1 program we use fulfils this requirement.”

"The previous full inventory took two full days with ten employees. Now five colleagues can do it in five hours",

reports Karsten Gaschnitz from Controlling, who is responsible for inventory at ZIEHLABEGG SE. However, most other of the total of around 180 warehouse locations have fewer than 1,000 items and are actually out of the question for a changeover. "Unless we combine several small areas into one storage unit or one sampling population," explains Gaschnitz. This in turn requires inventory software that can combine several storage locations and thus manage them as one client. "The REMIRA STATCONTROL program we use meets this requirement."

REMIRA STATCONTROL meets all requirements

“Since the release upgrade in 2007, we have been able to manage several such clients in parallel,” explains the IT department. The further changeover began with three storage areas at the Künzelsau site, where small and spare parts as well as iron are stored. “All goods stored there are combined into one population and serve Stasam as a database for determining the samples”, explains the IT department. So far, the full inventory in the three storage areas still takes 2.5 days.

In the future, ZIEHL-ABEGG SE wants to save a whole working day 

The incentive is great, because in the past, four employees were busy with the inventory on two full days. “Here we see our goal with two employees who complete the whole thing in half a day,” says Gaschnitz.

"Along with the much easier data entry, we have saved 20.000-30.000 Euro."

Gaschnitz has identified further potential in the high-bay warehouses with finished products and components. Of these, ZIEHL-ABEGG SE maintains a total of nine areas at the Künzelsau, Hohenlohe and Bieringen sites, which also have yet to be converted.

“We started with the Würzburger Strasse location here in Künzelsau,” reports Gaschnitz. There are 4,700 storage locations there, which are counted within one day with the help of inventory sampling. In addition to the time saved, ZIEHL-ABEGG SE has employed only two instead of four employees for this purpose. “The colleagues are pleased that they will be able to take turns in the inventory in the future and only have to work for two to three years during the Christmas holidays”, says the IT department and adds: “The time and cost savings are not only achieved by the faster counting on the day of the inventory, but above all by the elimination of the permanent inventory throughout the year”. Even if this item is not taken into account, the annual cost reduction is considerable: “In the past, inventory costs of around 80,000 to 120,000 euros were incurred in wage costs,” Gaschnitz calculates. He wants to save 60 to 75 % of this figure by taking the appropriate measures.

Facts

• 4.300 employees, 16 production plants, 113 sales locations
•  Counting effort reduced by 80% with inventory sampling
•  Several locations combined into one storage unit
•  Savings of 20.000-30.000