Flexibility required
Optimized warehouse logistics meet the high demand
Flexibility is essential in modern logistics operations. For a fast-growing retail company, it is therefore particularly important that the logistics processes can cope with the challenges of expansion. If it is possible to get employees enthusiastic about the system used, then you are on the right track.
Normal is a Danish-based retailer of personal care products and was founded in 2013. In its colorfully designed stores, the company relies on a wayfinding concept based on the Ikea model and has thus become the first address for hair, body and skin care products, deodorants as well as shaving and cosmetic products. Normal is represented in six countries - in addition to Denmark, these are Norway, Sweden, Finland, the Netherlands and France. The company is currently opening one to five new stores every week, where customers can buy "affordable and exciting branded products for everyday use". The company now operates more than 350 stores and continues to grow.
For a retailer, rapid growth not only brings new requirements and challenges, but also opportunities for warehouse logistics. In the case of Normal, the warehouse developed from a manageable basement in the first store in Silkeborg in western Denmark to a 37,000 square meter warehouse in the port city of Horsens in just five years. In order to cope with the high demand, a standard warehouse management system (WMS) was introduced during this time. The disadvantage of this was that the picking processes had to be rethought. The picking numbers were high, the employees worked quickly, but the quality had declined and the error rate was slowly increasing.
Another problem was the hand scanner system used: the pickers had to put the device aside to remove the goods. This process is prone to error, as even the most conscientious picker can quickly reach into the wrong shelf if he does not always have the storage location in view. This problem was to be solved with a new technology.
Into the digital future with a voice solution
In the summer of 2018, Logistics Development Manager Mette Margrethe Poulsen and her team were given the task of redesigning and optimizing order picking as part of a more comprehensive digitalization and modernization programme in logistics. It was already clear that the existing warehouse in Horsens would be too small for future requirements. This important factor had to be taken into account during the planning phase. The new warehouse with an impressive area of 60,000 square meters and a height of twelve meters (instead of the previous six meters) is scheduled to open at the beginning of 2023, around 20 kilometers from the current location.
"We considered how we could further develop and improve the systems - both in terms of updating the IT solution to better adapt it to the company's needs and in terms of the hardware," explains Mette Margrethe Poulsen. "It turned out that pick-by-voice technology was the perfect fit for our growth trajectory."
The team also evaluated other, non-voice-based technologies. However, the advantages of the voice solution ultimately prevailed. "My colleagues and I had already worked with voice systems. We hadn't come across any technology that was better or more advanced. Pick-by-Vision, for example, was not yet fully developed, so we opted for Pick-by-Voice," says Poulsen. The first step was to find the right voice solution for the company from the available options. "Our WMS supplier already had a partnership with another voice provider. However, it was important for us to find the best solution based on our requirements," emphasizes Poulsen.
EPG solution convinces in practical test
The team's first meeting with Ehrhardt Partner Group (EPG), provider of the Lydia Voice solution, took place in the fall of 2019. Poulsen was already familiar with the system, having worked successfully with the German supply chain software and technology provider on a project for another company. However, she had not yet had the opportunity to experience the Voice solution in practice in combination with the existing WMS in the warehouse in Horsens.
"It was very important for us to see the solution in action," she recalls. "That's why we visited a large international retailer in Switzerland together with the EPG team, where we were able to see the solution in action at an existing customer." The visit was a success, and EPG made it onto the shortlist as one of two providers. This was followed by an important second step in the process: the practical test with the employees.
Normal attaches great importance to an appreciative corporate culture. "It's important to us that all employees are successful and feel that they are part of the decision-making process," explains Poulsen. "If the chemistry isn't right, they won't stay, so it's important for all of us that everyone lives the same values." This has resulted in a corporate culture in which colleagues from the warehouse contribute many innovative development ideas. The employees also live competition among themselves. "We want to use the system that also convinces the employees the most," says Poulsen.
Clear favorite among employees
The key question now was: what do the employees think of the new equipment that they are expected to use on a daily basis? Lydia's picking vest, in which all electronic components are integrated so that it can be used without headphones, offered added value according to the normal employees. "The Lydia VoiceWear was clearly the preferred solution for our staff," confirms Poulsen. "In a practical test, we simulated picking orders that were carried out with the vests and with headsets. The favorites were then determined by vote."
Lydia was chosen. Many employees had previously worked with a different voice system and found headphones restrictive and uncomfortable. With the Lydia VoiceWear, they now had the opportunity to communicate with their colleagues while carrying out the picking processes. "The hardware spoke for itself," says Poulsen, "it was much more innovative than what we had seen from the competition." In one fell swoop, Lydia also solved the problems that had arisen when picking with a hand scanner. With Lydia, there are no interruptions in the workflow. Thanks to the "hands-free/eyes-free" concept, employees can focus better on the right storage location without being distracted.
Normal was also impressed by the fact that EPG incorporates user feedback when improving its product. This fitted in perfectly with the way Horsens works. "If you don't listen to users, you'll never innovate, you'll just stand still," argues Poulsen. "At Normal, we want to avoid standing still at all costs. We like companies that challenge the status quo and have the courage to leave the beaten track. We felt that EPG's values matched our own very well."
No language training required
Another clear advantage of Lydia over competitor products is that the solution is ready to use immediately without training and is easy to operate. This is a factor that should not be underestimated, especially as there can be high fluctuations in a warehouse, particularly due to seasonal peaks. "No language training is necessary, you can start immediately and rely on Lydia's reliable speech recognition," says Poulsen. "This also makes it easy for new users to get started." This is a key unique selling point compared to the competition, she adds. "With competitors' products, a certain amount of time has to be spent repeating words, which can lead to delays and even some frustration among managers and new employees. The Lydia Voice system is completely straightforward to use and employees are immediately productive."
Significantly reduced error rate
After the decision in favor of EPG was finally easy to make, the next step was implementation. Normal started the tests in daily operations with five employees and rolled out the solution step by step. Due to the coronavirus restrictions, this was done remotely, which was successful. EPG always strives to maintain a close, partnership-based relationship with its customers - regardless of whether the company works directly with a customer, as was the case with Normal, or whether contact is made via trained and certified solution partners. It was therefore important to maintain this customer proximity despite the pandemic-related restrictions. In future, the number of Lydia devices in the new warehouse is set to increase from the current 60 to over 400. The EPG solution has become an integral part of operations. This also means that any new WMS to replace the existing system must be compatible with Lydia Voice.
The article appeared in materialfluss 10/22.










