MMK Modernises Warehouse Management System: Transforming Logistics Efficiency
MMK Trading House, part of the Magnitogorsk Iron and Steel Works (MMK), is implementing comprehensive upgrades to its warehouse management system (WMS) at its facility in Magnitogorsk. This project aims to enhance efficiency, ensure timely deliveries, and improve service quality for MMK's vast product range. The warehouse houses over 10,000 different items, including steel products like rebar, hot-rolled and cold-rolled steel, welded pipes, metal roofing tiles, and other essential materials. These products are distributed across Russia and internationally, using both rail and road transport.
The main goal of the project is to enhance customer satisfaction by streamlining logistics and ensuring the consistency and availability of services. By reducing the number of intermediaries involved in the process, MMK Trading House intends to optimize its operations while making the supply chain faster and more transparent.
The Role of AXELOT in Warehouse Modernization
To achieve these ambitious goals, MMK Trading House has partnered with AXELOT, a leading company specializing in the automation of warehouse management systems and logistics processes. AXELOT’s team conducted a comprehensive evaluation of the existing operations, identifying key inefficiencies and areas for improvement.
The recommendations made by AXELOT included eliminating bottlenecks and synchronizing incoming traffic flows to maximize the warehouse's capacity for handling transport vehicles. This will also involve improving the transparency of business processes by implementing better data management systems, which will allow for more effective decision-making and control.
AXELOT's involvement goes beyond mere optimization; it also includes the integration of a Yard Management System (YMS) to automate and optimize vehicle and transport management within the warehouse complex. This system will ensure smooth operations and efficient handling of goods, including a precise inventory system with bin location warehousing and the efficient use of available storage space.
Designing the New Warehouse Layout
The new warehouse design focuses on accommodating MMK Trading House’s projected growth in turnover. This includes redesigning the open-air warehouse and revising other on-site storage facilities, factoring in the different types of products being stored and their specific requirements.
In the planning stages, AXELOT worked to ensure that the new layout would optimize the movement of vehicles and streamline the flow of goods from the warehouse to the transportation area. The company also recommended a comprehensive shift plan that includes a flexible 3/3 shift pattern with night shifts, ensuring operational efficiency round-the-clock.
A key consideration in this modernisation was the ability to automate key processes in the future, which would further improve the efficiency and responsiveness of warehouse operations.
Operational Benefits: Minimizing Downtime and Enhancing Flexibility
The proposed changes aim to address common warehouse challenges such as vehicle idle time, queue formation, and delayed vehicle transfers between different warehouse locations. These inefficiencies often disrupt operations, but the new system will work to eliminate these bottlenecks.
To further reduce vehicle downtime, the process involves balancing inbound and outbound traffic, optimizing the flow of goods, and ensuring vehicles are used efficiently. The warehouse management system also supports segregating daytime and nighttime vehicle flows, preventing congestion and minimizing delays.
With these improvements, MMK Trading House anticipates a significant reduction in mileage and downtime, further streamlining the supply chain.
Future-Ready: Preparing for Full Automation
The goal of this project is not only to enhance MMK Trading House’s current warehouse capabilities but also to lay the groundwork for the future automation of various operational processes. As the system is integrated, the company expects to see continuous improvements in operational productivity, efficiency, and logistics coordination.
The ongoing warehouse modernization effort is expected to positively impact the entire technological cycle at MMK Trading House, aligning with the company’s broader strategy of continuous improvement and customer-centric service delivery.
Once completed, the new system will provide a flexible and scalable infrastructure, capable of supporting increased production volumes and enhanced service offerings to customers across Russia and beyond.
Key Takeaways:
• Comprehensive Warehouse Overhaul: MMK Trading House is upgrading its warehouse management system to improve logistics efficiency and service quality.
• AXELOT Partnership: AXELOT has been brought in to design and implement an advanced warehouse and yard management system.
• Over 10,000 Products: The warehouse supports a vast range of products, including rebar, steel, pipes, and other construction materials.
• Optimized Warehouse Layout: A new layout is being developed to accommodate future growth and increase the warehouse’s operational capacity.
• Automation Plans: The modernized system lays the groundwork for full automation of warehouse processes in the future.
• Vehicle Traffic Optimization: Improvements in vehicle flow will reduce downtime, queues, and the need for excessive vehicle transfers.
• Shift Pattern Changes: A flexible 3/3 shift system, including night shifts, will balance workloads and improve operational efficiency.
• Increased Efficiency: The warehouse system upgrade aims to reduce delays, improve transparency, and enhance overall supply chain operations.
• Enhanced Customer Service: These upgrades align with MMK Trading House’s commitment to providing faster, more reliable deliveries to customers.
