Background
Almost one-third of the world's food ends up in the trash. This unfortunate trend is due to various factors, such as minor flaws/defects in packaging, overproduction, seasonal trends, or short expiration dates.
Erik, Kalle, and Uffe, three friends from Katrineholm, Sweden, wanted to do something about all this waste. In 2013, they founded Matsmart, an online company that promotes sustainability and responsible consumption.
The three partners started buying surplus products and selling them online with a 20-80% discount compared to physical retailers. The business model soon proved successful, and the company gradually expanded to Denmark, Finland, and Germany.
"The advancements Matsmart has made with Bitlog WMS will only strengthen us in the future."
Conrad Edgren, Logistics Manager, Matsmart
Challenge
Matsmarts warehouse landscape is constantly evolving. Their business model entails an irregular warehouse setup, with varying sizes of received batches. Furthermore, the expiration date for certain products' sales impacts the prioritization of picking and shipping.
With a system based on picking lists, the warehouse staff struggled to locate the right products for each order. Overall, they faced difficulties in establishing and maintaining a simple and efficient workflow. It appeared that despite Matsmarts' mission to promote sustainability, their old warehouse management was anything but sustainable for a growing company.
Solution
Based on the recommendation from their ERP provider, Matsmart's management decided to implement Bitlogs WMS as an additional solution for their rapidly growing business. The first step was to digitize their operations and move their warehouse management to the cloud. They then introduced more structure on the warehouse floor with new workflows.
Now, for example, they have a clear shelf strategy. Additionally, the system provides instructions to the staff on which orders to fulfill first, the order in which to retrieve products, and when to replenish the inventory.
With Bitlogs' applications and tablet user interface, the pickers now have a digital roadmap that efficiently guides them through the ever-changing warehouse. Managers can now evaluate the inventory more accurately while also better monitoring the performance of the business.
Image: Matsmart's automated and climate-smart warehouse in Örebro.
Result
As a result of switching to Bitlog, Matsmart has implemented lasting structural changes within its organization. The entire interlogistics chain, from goods reception to picking and ultimately packaging, has been reworked and optimized.
They have also achieved a higher level of customization, which helps them better manage the fluctuating inventory levels closely associated with their business model. Perhaps most importantly, the Matsmart team now possesses a stronger structure and more efficient workflows to support their mission of eliminating food waste.
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