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Case study: Structured Flexibility with IBS Dynaman WMS

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Benny Winther, the founder and owner of Skanlog had a bold vision when SKANLOG opened its doors as a logistics provider. That was 20 years ago, and that vision is now a reality. Today, Skanlog is the largest independent Scandinavian Third Party Logistics (3PL) solutions provider across Scandinavia.

The family-owned and independent nature of Skanlog has resulted in a business known for decisive and streamlined operations. “Often, once a company reaches a certain size, it becomes sluggish,” notes Winther. To avoid this, Skanlog shuns unnecessary hierarchy and instead creates a work environment where its employees can work directly with management to get things done.

Consistently putting the customers’ needs first has paid off. The company successfully operates in logistics with mainly two core lines of business – spirits and white goods – from 13 warehouses across three countries. “Our customers are the reason why Skanlog has always remained independent,” explains CFO/CIO Troels Nedergaard. “This independence allows us to maintain our flexibility and complete customer focus.”

The Challenge
With its focus on efficiency, Skanlog’s IT systems became a concern. Kim Sorensen, the company’s IT Manager, explains: “Skanlog’s success and ongoing organic growth as well as growth through acquisitions had resulted in an IT patchwork of six different warehouse management systems (WMS) and at least five different ERP solutions.” Skanlog’s management recognised that if it could find a single WMS solution, it would once again be able to increase efficiency in its customer relations as well take advantage of potential savings.

Downtime is not an option for an industry leading service provider, so SKANLOG would need to find a WMS that was based not only on best practice processes, but also one that would require very few modifications, if any. This was further complicated by the need for a WMS that could handle each customer’s specific requirements for shelf space, shelf-life of beverages, and FIFO/FEFO rules. Balancing one customer’s specific requirements in this industry is complex, but balancing all customers’ requirements is almost like an art.v

In Response
Never one to walk away from a challenge, Skanlog’s management team threw itself into the task of selecting the right WMS for its business in Q4 2012. The team identified 21 different criterion and then weighted each of these. From there, seven different WMS solutions were assessed against these weighted criteria.

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