Atlantic Grupa Case Study

ATLANTIC GRUPA UNLOCKS WAREHOUSE PRODUCTIVITY GAINS WITH HONEYWELL VOICE.

Case Study

STOJAN PAŠALIĆ, SUPPLY CHAIN DEVELOPMENT MANAGER, ATLANTIC GRUPA: “By analyzing our picking processes, we were able to calculate for the first time exactly how much time was taken up by picking, moving around the warehouse and other activities.” OVERVIEW Headquartered in Zagreb, Croatia, Atlantic Grupa is one of the largest fast-moving consumer goods (FMCG) producers and distributors in Southeast Europe. Founded in 1991, the company operates in eight countries and exports products — both its own and other brands — to more than 40 markets around the globe. Steady acquisitions, combined with a well-earned reputation for quality goods and excellent service, have resulted in solid year-over-year growth for the company. To keep pace with demand, Atlantic Grupa sought a voice-directed, order-picking solution that would boost productivity and reduce errors in its distribution operations. Atlantic Grupa ultimately invested in Honeywell Voice for its built-in integration flexibility, pick-up-and-go capabilities and superior data insights.

BACKGROUND Atlantic Grupa was experiencing growing pains. Order volumes solution for order picking at its warehouses in Zagreb and Split. By were rising by roughly 10 percent per year, requiring that freeing the eyes and hands of its pickers, Atlantic Grupa aimed to employees complete between 350,000 to 400,000 picks per streamline processes, boost productivity, and reduce error rates. month. While permanent staff increases were not a long-term Within short order of implementing Honeywell Voice, Atlantic option, training temporary employees to address peak season Grupa achieved its goals. The company has increased production fulfilment spikes only added to the challenge. without adding significantly to its payroll. Picking and accuracy Atlantic Grupa needed to improve operational efficiency so it rates have soared. The intuitive system slashed new employee could accelerate production using its existing workforce and onboarding from days to hours. And Atlantic Grupa is using the quickly train temporary employees to reach productivity levels. solution’s advanced data collection capabilities to optimize routes The company worked with IT service provider Špica Sustavi and and workflows. the Honeywell Voice team to implement the Honeywell Voice QUICK FACTS Honeywell Solution Customer Results Why Atlantic Grupa • Honeywell Voice • Increased productivity by Chose Honeywell • Customer: Atlantic Grupa approximately 20 percent • Wanted the industry’s leading solution for best-in-class, voice- • Improved accuracy to • Locations: Zagreb and directed workflow Split, Croatia 99.95 percent • Required a solution that • Reduced employee onboarding • Industry: Fast-moving integrated with SAP and from days to hours consumer goods Symphony GOLD • Enhanced operational visibility • Website: • Needed to reduce onboarding to optimize workflows https://www.atlantic.hr/hr time for new and temporary employees • Desired deeper insights into operations

SOLUTION fully concentrate on the task at hand. The versatility of the solution meant Greater Efficiency With Fewer Errors Productivity is further gained through Atlantic Grupa could devote resources the solution’s voice recognition software. to improving processes, rather than The introduction of Honeywell Voice has The system builds voice profiles for overhauling its systems or trying to force revolutionized order fulfillment at Atlantic every employee based on their tone and a workaround into place. Within months Grupa. When an order is received in the dialect, minimizing the need to repeat of selecting Honeywell Voice, Atlantic company’s warehouse management spoken interactions. This inherent Grupa was able to roll out its pick-by-voice system (WMS), it is transferred to a picker’s adaptability keeps the workflow moving solution to its employees. The conversion Talkman mobile device. The order is while improving employee uptake of the to voice-directed order picking went converted to a clear voice command and technology. smoothly, thanks to the commitment of relayed via Bluetooth® to the picker’s SRX2 Špica Sustavi, among other factors. headset. Pickers are instructed on where The intuitive system has also reduced to go and how many items to retrieve; their the time required to onboard new “During the implementation phase, I was audible confirmations ensure they have employees. Previously, Atlantic Grupa able to reach my Honeywell Voice contacts the correct items and then transition to the could lose up to six days onboarding new at any time, even on a Sunday, and the will next set of instructions. staff — a significant drain on resources, to succeed was tangible,” said Pašalić. particularly during the peak summer The increased efficiency and fluid months, when the company hires dozens movement enabled by Honeywell Voice of temporary workers. are measurable improvements over the old system. Previously, pickers had to juggle “With Honeywell Voice, learning how to use both handheld devices and integrated the new system now takes only two hours scanners as they went about their tasks. per employee,” said Pašalić.

“The employees didn’t have their hands Seamless Integration With Existing free because of the handhelds and had to Platforms switch between looking at the display, the The ability to integrate with the Symphony merchandise and the aisles,” said Stojan GOLD warehouse management system Pašalić, Atlantic Grupa’s supply chain and SAP® was a key driver behind the development manager. selection of Honeywell Voice. IT provider Not only was the process inefficient, it Špica Sustavi recommended Honeywell also frequently led to errors. Now with Voice in part for this reason. their eyes and hands free, pickers can BENEFITS “By analyzing our picking processes, we Honeywell Voice proved its worth almost were able to calculate for the first time immediately: exactly how much time was taken up by picking, moving around the warehouse • Picking performance increased by and other activities,” Pašalić said. about 20 percent. He estimated that picking accounted • Error rates dropped to 0.05 percent. for about 35 percent of working hours, • Employee onboarding has been while 55 to 60 percent of workers’ time reduced from 4– 6 days to 2 hours. was spent walking around. With this in mind, the logistics manager has already • Data-driven insights are optimizing launched the next project. With the aid workflows. of artificial intelligence and machine Atlantic Grupa’s management and learning, Pašalić wants to adapt the leadership teams are not the only ones warehouse layout and merchandiser delighted with the results. The company’s positions to the respective demand pickers, who are paid largely on their situation. In taking this measure, he performance and accuracy rates, have believes Atlantic Grupa can raise the become advocates for using the voice proportion of picking hours to at least technology solution. 40 percent using its core workforce.

Another key advantage: Honeywell Voice With Honeywell Voice supporting is expanding Atlantic Grupa’s ability to its operations, Atlantic Grupa is well maximize its workflows. With 60 Talkman positioned to unlock future growth and wireless SRX2 headsets deployed opportunities while keeping a close check between its Zagreb and Split warehouses, on operational costs. That is a win-win for the company has 60 points of data that the FMCG company, its employees and its paint a picture of operational efficiencies customers. — and bottlenecks.