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Warehouse Management System

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Digital transformation mastered with ease

In the distribution center of the production and trading company Hisert, the implementation of the PSIwms warehouse management system has halved the throughput times for picking and shipping processes. With intuitive user interfaces, the manual inventory of almost one million items is completed in barely 48 hours. From the initial analyses to complete process control and networking in the IT infrastructure, Hisert successfully implemented the digital transformation of intralogistics within four months with this investment project.

© PSI Logistics

With its six fashion brands Merry Style, Ladeheid, Timone, Antié, Bellivalini and Be Mammy, Hisert, founded in 2011 in Mescherin, Brandenburg, is one of the most prosperous production and trading companies in the fashion segment. In the very first year after its foundation, the company took the step towards internationalization and opened its first foreign subsidiary, Hisert Polska Sp. Z o.o. in Szczecin. Special feature: the brand manufacturer does not operate any brick-and-mortar stores, but sells its clothing, shoes and accessories online on the world's largest e-commerce platforms.

Hisert opened a new logistics center for storage and shipping at the company headquarters in Szczecin in mid-2022. Several thousand shipments are dispatched there every week on an area of 11,500 square meters. Hisert sends the entire shipping volume dispatched from the new warehouse to customers of marketplace platforms such as Zalando, eBay and Amazon.

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Need for new warehouse management system

The opening of the new logistics center was intended to strengthen Hisert's competitiveness and fully digitalize the company's logistics processes. However, within the first few weeks of the distribution center going into operation, it became apparent that Hisert's warehouse management system was unable to cope with the strong order growth and digitization requirements. The decision-makers decided to replace the old solution with a new warehouse management system (WMS).

"The choice of WMS system provider for our first distribution center in Poland was determined by several key criteria," explains Wojciech Drobczynski, Process Management Manager at Hisert. "We were looking for a system that had already been tried and tested by companies with e-commerce sales, particularly in the fashion industry. Another priority was rapid deployment without a long project phase. The system also had to offer us the opportunity to expand our business in the future."

Preconfigured omnichannel solution

The contract was awarded to PSI Polska, the Polish branch of PSI Logistics, with PSIwms after a vendor comparison. Hisert opted for an industry-specific, pre-configured omnichannel solution from PSIwms, whose system scope is precisely tailored to the requirements and processes of e-commerce and omnichannel. The best-practice complete package is based on PSI Logistics' experience from several comparable projects, offers, among other things, already created returns work masks and workflows and is designed for the most important processes, such as order production and mixed pallet handling.

The industry solution is available both cloud-based and on-premise, requires no additional programming and enables short project runtimes and implementation times. "In order to offer customers functionalities that go beyond the standards, IT solutions do not always have to be extensively customized," explains Michal Tokarczyk, Senior WMS Consultant and project manager at PSI Logistics. "The solution implemented in Hisert's Szczecin distribution center is based on all of our previous experience and deployments in other e-commerce warehouses with complex processes and offers a corresponding functional scope."

Implementation in ten days

© PSI Logistics

PSI Logistics has already implemented PSIwms in several warehouses and logistics centers of leading fashion companies in Eastern Europe. The Berlin-based software developers offer various models of the standard software for system implementation - including the preconfigured e-commerce industry solution, which has been ensuring coordinated intralogistics processes for efficient order processing at Hisert's Polish distribution center since January 2023.

It took just ten days for the system to go live under the watchful eyes of the PSI consultants. The entire project, which included the analysis, configuration of the topology, tests and final system implementation, took barely four months in total - including the integration of PSIwms into the host systems. "We were able to rely on the professional and comprehensive support of PSI Logistics in every phase of the project - even after the launch," states Hisert Process Manager Drobczynski. "This was all the more important because when we opened our first distribution center in Poland, we had not yet specified all of the logistics processes, as most WMS providers would expect."

With the preconfigured PSIwms, Hisert was able to fall back on proven solutions. Nothing had to be developed from scratch. The preconfigured processes were simply adapted slightly to the business processes in the Hisert distribution center. "This significantly accelerated the system implementation and minimized the risk of our project failing," says Drobczynski. "With projects like this, it's important to become a true partner of the system provider and to be able to use their experience."

Commissioning in two phases

To ensure a smooth process, PSI Logistics divided the commissioning into two phases. "We had planned to introduce the system within two weeks," explains PSI project manager Tokarczyk. "In consultation with the customer, the system was operated with ten percent of the volume in the first week. In the second week, PSIwms then took over full operation and the entire product range as well as all warehouse processes." In addition, the software company supported Hisert in the pre-deployment phase with a complete training package for the employees, so that the setup of the infrastructure and the tests of the ready-to-use functionalities were comprehensively communicated and accompanied.

The Hisert distribution center works a single shift from Monday to Friday. At the end of the week, the order load increases enormously because several thousand orders placed by customers on the online platforms on Fridays, Saturdays and Sundays have to be processed at the start of the shift on Monday. More than 70 percent of these orders are single-item orders. In January 2023, immediately after PSIwms went live, the company's productivity was still close to the busiest time of the year, i.e. November and December.

At such times, the picking and dispatch processes previously took eight hours. With PSIwms, this time was halved to just four hours in the first week after the system was introduced. "The introduction of PSIwms has increased the efficiency of our warehouse processes and given us more control over goods movements and stock levels," says Marcin Rudzinski, Head of the Hisert Distribution Center. "Thanks to the intuitive user interface for the MDT scanners, the training period has been significantly reduced."

Inventory of one million items

Two weeks after going into full operation, the inventory of almost one million items was carried out at the Hisert distribution center. The entire process was carried out using the newly introduced PSIwms and took barely 48 hours. Many employees were involved in the inventory who had never worked in a warehouse or used an MDT scanner before. Thanks to the system, however, they mastered their task with flying colors. The picking processes now run twice as fast as before the introduction of PSIwms. Operating errors are virtually eliminated.

© PSI Logistics

"Given my previous experience with software implementation in the WMS sector, I was really surprised at how quickly and smoothly we got to grips with PSIwms," summarizes Logistics Manager Rudzinski. Hisert also emphasizes that the company managed a smooth transition from analogue to digital with the implementation of PSIwms, which can be a real challenge in such extensive conversion projects.

According to analyses by the market research company Gartner, up to 75% of implementation projects in the WMS sector fail, regardless of the size of the company. The projects represent a major challenge for system providers and investors alike. In this context, PSI project manager Tokarczyk emphasizes that Hisert's openness and willingness to draw on the know-how and experience of the PSI Polska project team made the difference.

"Often, a standard system with basic but proven solutions is the best choice there is," summarizes Tokarczyk. "This is especially true for small and medium-sized companies. With the preconfigured version, system implementation in companies that sell products in the omnichannel model or are planning to do so is much faster and less cost-intensive than with lengthy system tailoring and programming. The commissioning at Hisert is a successful reference project for this."

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