We provide solutions to market leaders from various business and industrial sectors, to the most advanced companies, which are looking for innovation in logistics. Our customers are distributors, manufacturers, logistics, courier and postal companies and others.
Lietuvos paštas has seen an astonishing growth in the volume of parcels being sent. More than 800.000 customers trust the efficient and reliable handling of these parcels. In order to continue carrying out the shipping process quickly and accurately, the company needed to change its parcel sorting flow. Kastytis Valantinas, COO at Lietuvos Paštas, was part of the project team that created this new sorting flow and explains how they found a solution to the challenges they faced.
The increase in parcel volume is nothing new. Over the past few years, e-commerce has been driving the growth in parcel shipments. However, during the COVID pandemic in 2020, this reached an entirely new level. According to the Pitney Bowes Parcel Delivery Index [1], global parcel volumes in 2020 reached 131.2 billion. A total of 4.160 parcels were shipped every second!
"The project included a solution for our courier service and parcel flow," – says Kastytis Valantinas. "We decided to separate the parcels into two flows. By choosing a separate flow, we increase the throughput and efficiency of our parcel center without compromise."
By closely examining the range of parcels passing through the sorting center, the appropriate parcel sorting systems can be selected. After sketching several different flow diagrams, it quickly became clear that creating a separate flow would be the most beneficial. Two flows were defined: a small parcel flow for large envelopes and parcels up to 5 kg, and a courier flow, which mainly includes large and heavy parcels up to 30 kg. The parcels will be sorted using the appropriate SD sorting system (SD – Single Door) and a crossbelt-based sorting system.
At full capacity, the system will be able to process 340.000 small parcels per day. This is a result of how Lietuvos Paštas is handling the growth of parcel flows in Lithuania. It is worth mentioning not only the system's efficiency but also its distinctive appearance features.
First and foremost, the small parcel sorting system is designed with the unique yellow color of Lietuvos Paštas, which immediately catches the eye when entering the parcel sorting center. However, the system also features a unique parcel feeding solution for the sorting system. To fully utilize the available space, this feeding system is designed not with a standard conveyor belt for lifting parcels to the equipment height, but with a compact spiral conveyor that lifts the parcels into the sorting system.
SD sorting system for small parcels has an open layout. Since the space for this sorting system was relatively limited, a smart solution was needed for sorting and feeding parcels into the system. This layout is known as an exceptionally wide oval.
This allows operators to work within the inner area of the equipment. This approach enables sorting into chutes (destinations) located both inside and outside the system. By doing so, we maximize the number of sorting chutes within the operational space of the equipment. This system features 381 sorting chutes, each holding a postal bag where parcels are sorted.
Six operators manage the sorting system at the parcel feeding point. They place items onto the parcel feeding conveyor, which then transports the parcels to the sorting system via a spiral conveyor. This solution enables the processing of 10.000 parcels per hour.
The new solution enables Lietuvos Paštas to confidently handle the growing volume of both small and large parcels. The smart distribution program has optimized their efforts to serve customers efficiently. With this new solution, the company has turned a new page in its operations and is ready for the future!
As a leading parcel delivery service provider, DPD Lietuva works every day to fulfill its promise: fast and reliable parcel delivery. With the number of parcels growing daily, this promise is constantly tested and proven. Deividas Šimėnas, COO at DPD Lietuva, knew that to keep up with the growing number of parcels, further automation was necessary.
To increase the throughput of the sorting facility, DPD Lietuva collaborated with Equinox in search of a solution, which consisted of:
"One of the challenges of this project was finding the right way to sort a wide variety of parcels," – says Deividas Šimėnas, COO at DPD Lietuva. "We handle small parcels, large parcels, and everything in between. Think of a single set of earbuds in one parcel and a mobile air conditioner in another. As you can imagine, not all sorting systems can handle such a diverse range of parcels. However, to operate efficiently, we wanted to use a single flow and process all our parcels within the same system – no exceptions. The system then determines how to handle different types of parcels."
Sorting such a wide range of parcels within the same system often causes problems. For example, if a small, fragile parcel is sorted into a destination or container, and then a heavy parcel follows, the small parcel will simply be crushed. This project required an advanced solution to maintain efficiency while preventing any damage to the parcels.
We found the solution in two LR-sorters with primary flow pre-sorting and a heavy items carousel. After scanning the volume and weighing the parcels before they enter the LR-sorters, parcels that are too large for this sorting system are redirected to the conveyor carousel, where they are sorted through a separate process. The sorting system's throughput is up to 8.000 parcels per hour.
"In our existing warehouse, we had available space for this system. We tested various Equinox Europe sorting systems and layouts to find the right option," – continues Deividas Šimėnas, COO at DPD Lietuva. "LR-sorter provided an excellent solution in terms of achievable throughput, technical characteristics, and occupied warehouse space. However, in the space we had, there was room for only 267 out of 356 sorting destinations."
This required creative thinking. By installing two LR-sorters and connecting them with a specialized automated conveyor, it was possible to fit all 356 sorting destinations within the designated space. The last sorting destination of the first LR-sorter acts as a bridge. Parcels directed to this destination are automatically transported to the second LR-sorter.
The chute design may seem simple, but its functionality is greater than it appears at first glance. Each chute has a hinged flap at the end, and each pair of chutes features a removable divider. It is designed using a "click-on" system, allowing the divider to be quickly removed and reattached without the need for any additional tools.
The flaps at the end of the chute can be closed to buffer parcels inside the chute, allowing operators to remove them for further processing. If the flap is open, parcels are sorted directly into bags or boxes.
The divider between two chutes can be removed, and the bag holder can be folded down to allow the use of pallet boxes in the chute.
"This implemented parcel sorting system helps us achieve our set goals and keep up with the growing demand for parcel delivery. We have been working with the system for some time now and are truly pleased with the quality and efficiency of the solution," – says Deividas Šimėnas, COO at DPD Lietuva.
Publication date: May 25, 2021
LEMONA – the leading international company in the Baltics which main business is the wholesale and the retail of various electronic components, tools, materials and smart solutions for home and business – confirms the well-established assumption that the most successful companies are those seeking innovation and those that can quickly adapt to an ever-changing market.
The pandemic has significantly changed operation processes in many areas of business, the rapid change of purchasing habits and the sudden forced shift from wholesale to retail and e-commerce were particularly noticeable. These were the challenges that our client LEMONA faced during the crisis.
LEMONA is trusted by more than 300 suppliers from all over the world, fast and efficient supply and delivery of goods is ensured by maintaining a high level of stock with more than 15 000 different items from light bulbs and wires to accessories for cars, household appliances and computers.
Many of us had to adjust our environment and comfortably set up our "new" workplace after moving from office to home. Social and cultural constraints have encouraged to find out other ways to spend leisure time without leaving home. Thus, the wide range of LEMONA products, including audio equipment, computer hardware and other electronic products, remained the demanded product category.
Lockdown showed that the need for goods disappeared nowhere, but the path of goods from the warehouse shelf to the consumer has changed fundamentally, which required a review of logistics organization.
LEMONA accepted the crisis as an opportunity to improve customer service by shifting the focus to an e-shop renewal and offering various channels to ensure fast delivery: physical stores turned into pick-up points, also, order delivery to the parcel locker or to the specified address became possible.
Business changes determined the need to optimize logistics, to expand the functionality of an e-shop and to adjust the principles of work organization in the warehouse. LEMONA was able to rearrange smoothly, meanwhile well-timed investments in logistics efficiency before the pandemic paid off and allowed to overcome the unexpected challenges in cold blood.
In 2018, the modern LEMONA central warehouse in Kaunas opened its doors. While moving to a new warehouse, the optimization of logistics processes by completely rearranging the principles of work organization in the warehouse was inevitable, therefore the cooperation with logistics experts from EQUINOX started well before the equipping of the new warehouse.
After EQUINOX specialists reviewed the existing processes at that time and proposed ways to improve them, eliminating unnecessary procedures, EQUINOX Warehouse Management System was implemented, and the technological design of the new central warehouse was carried out.
"Before the implementation of EQUINOX WMS, we worked only with the financial system, the need for the management of goods and warehouse navigation was met to a minimum. We worked without scanners, we had to remember the locations of items, there was a constant shortage of warehouse space, human errors recurred, and we experienced higher time costs. When it came to control the increasing flow of orders, we realized that we needed a proper tool to manage the warehouse," – says Vitoldas Čejauskas, Manager of LEMONA central warehouse.
According to Vitoldas Čejauskas, during evaluation of a potential WMS supplier, successful WMS implementation examples in other large Lithuanian companies had the greatest impact on the choice. After taking into account the experience of EQUINOX specialists, comparing the functionality of the system itself with other offered alternatives from other suppliers, and considering the flexibility offered by WMS developer and system's adaptability, preference was given to the time-tested and wide-ranging EQUINOX WMS.
According to Manager of LEMONA central warehouse, to this day, after the implementation of WMS the level of warehouse order processing efficiency has increased by 36%, there has also been a significant increase in warehouse throughput and capacity has grown to store larger quantities of stock.
Changes of the work organization principles in the warehouse created dynamic product locations, which allowed the optimal placement of 15 000 different items in the warehouse. The dynamic warehouse helps to save warehouse space, and WMS eliminates the need for warehouse staff to remember the locations of items, because at every step WMS shows the warehouse operator where to look for the required item, therefore WMS implementation made the dynamic warehouse an accessible and easy-to-use tool.
Manager of LEMONA central warehouse appreciates the function activated during WMS implementation – double-checking, which allowed to reduce the probability of errors to a minimum. Vitoldas Čejauskas notices that the implementation of WMS has made it easier to manage the warehouse staff because the motivation can be supervised according to WMS report on the productivity of warehouse employees: "We can accurately trace and quantify errors, easily manage quantitative employee indicators, speed and quantity of order picking. As WMS accompanies operators at every step, staff replacement has become easier and simpler requirements apply for new employees."
Most of all, Vitoldas Čejauskas, Manager of LEMONA central warehouse, is fascinated by EQUINOX WMS ability to combine orders, thus saving human resources and time:
Vitoldas Čejauskas is also pleased with EQUINOX WMS courier module: "Integrations have been made with the carriers we need. The system allows to offer the consumer different ways of picking up goods – without packing, self-picking up, combining orders, delivering to the parcel locker. More convenient order management allows to save on shipping costs."
Vitoldas Čejauskas, Manager of LEMONA central warehouse: "EQUINOX specialists have a lot of knowledge on how to adapt the system to each customer. From standard functionality, we have strongly adapted WMS to our needs and we are constantly perfecting it as we go. We acquired a system that enabled us to find solutions to problematic areas in warehouse management."
Vitoldas Čejauskas, Manager of LEMONA central warehouse, says that implementation of EQUINOX WMS allowed to solve efficiency problems in the warehouse: "We see great potential in working on and improving the process of using WMS in our warehouses. During the pandemic, the amount of orders had increased significantly, WMS helped to manage the increased flow of orders, showed the maximum possible number of orders to be processed in a limited time. Thanks to the flexibility of WMS, we were able to start trading on Amazon and Ebay, to integrate strategically important partners such as Deutsche post."
Speaking about the growing business potential, Vitoldas Čejauskas notes that there are no limits to business and process improvement, so in the process LEMONA plans to set further logistics optimization goals and implement them.
Publication date: January 13, 2021
Today’s issues, COVID-19 pandemic caused business overturns and strong growth of e-commerce sector, have significantly expanded the need for 3PL logistics companies (3PL – Third-party logistics), when a manufacturer or an e-shop owner entrusts the logistics of its products to the professionals, who carry out the transportation, storage, inspection, repackaging and the delivery of the goods, while a manufacturer simply allocates his available resources to the product development without any worries.
Hegelmann Group – German capital freight and logistics company with extensive experience in the field, entered the Lithuanian market 16 years ago. When Hegelmann Transporte decided to materialize the idea of its own logistics center in Kaunas district two years ago, it was planned to apply "Work Green" sustainability principles by implementing the new warehouse with not only all possible smart energy-saving stuff, but also with a modern Warehouse Management System, which was expected to reduce the use of paper and, of course, to optimize the logistics processes – to save human resources, to speed up order processing, etc. For this purpose, Hegelmann Logistics has chosen Equinox Warehouse Management System – WMS VISION.
During project implementation, Equinox team installed a specialized WMS for the customer and adapted it for the 3PL business processes. This version of the system made all 3PL service users appear as owners of the goods, and each item in the warehouse is assigned to its appropriate owner. All work done on the goods is accounted for and afterwards the owners of the goods are automatically charged with an individual storage price for their products. This way created an undoubted transparency in the warehouse of the 3PL service provider.
Since the partnership between Hegelmann Logistics and Equinox Europe lasts for two years already, the customer shares its impressions and successful experiences.
A. Šumskis most appreciates the possibility of Equinox WMS to integrate with courier systems, which significantly saves time, as it is no longer necessary to fill in data separately in courier programs, while generating orders for dispatch. The courier module ensures the integration of WMS with the most popular couriers, that deliver goods to the final consignee. The usage of this module means that the package prepared in the warehouse is registered within the courier in real time with the help of WMS and a label of the courier consignment is generated, which then is attached onto the package.
A. Šumskis also compliments other features of Equinox WMS:
We are happy that our customer Hegelmann Logistics started its operation in the new logistics center right away with Equinox Warehouse Management System and, while moving forward successfully, handles all its tasks quite easily.
Once we get in touch with a customer and establish a relationship with him, we have a good practice of constantly taking care of him – we maintain consistent mutual cooperation, while improving customer’s logistics processes as he grows, develops and expands. One such beautiful example is our long-term partner – Eugesta – one of the largest distribution companies in the Baltics, which distributes well-known brands of FMCG (fast-moving consumer goods) to retail chains. We are counting over 15 years of partnership – friendship with Eugesta started in distant 2004, when we implemented VISION 5 system at Lithuanian warehouse. As customer felt tangible benefits and noticed the results of efficient work, in 2010 the decision was made to implement warehouse management system at Estonian warehouse as well.
„Equinox Europe“ offers a complete, user-friendly and easily modifiable automated warehouse management solution. This system is successfully adapted to the specifics of our company, different needs of suppliers, customers and storage requirements. It is also fascinating that at any stage of warehouse process it is clear: what, where, how and when happens with a particular product, who performs each procedure. All these reasons and the successful experience of cooperation have led „Equinox Europe“ to become our partner in Estonia as well (translation from Lithuanian).
Povilas Laukys
Head of logistics, Eugesta
Time and technology do not stand still, everything moves forward. Our warehouse management system is constantly evolving as well. Five years ago, we combined practical knowledge and insights of our logistics and IT specialists with our vast global experience gained over 25 years into one piece and created an upgraded, fully developed and perfected product – warehouse management system VISION 7. This new version is flexible, dynamic, with highly extended functionality, which is being constantly updated to this day along with the changing market situation. VISION 7 has several key features compared to the previous version:
- Support for Tobacco EU Directive (tobacco module);
- Updated graphical user interface, more convenient intuitive control;
- In most cases user can independently change system configurations and algorithms;
- Full multi-warehouse support (multi-warehouse module);
- Courier module support;
- Support for multiple languages in one system;
- Unlimited number of accounting warehouses, etc.
Eugesta is an international and innovative company, business leader, who is in constant search for advanced solutions. After discovering the potential to develop logistics more efficiently, as well as following the new regulations of Tobacco EU Directive, in 2018 it was decided to take privilege of being our long-term existing customer and upgrade warehouse management system to VISION 7 at Lithuanian warehouse with lower costs. Once again, after experiencing positive changes and achieving the planned efficiency, it was decided to upgrade WMS version at Estonian warehouse as well. This final optimization and step forward was completed this year, the process was finalized in July. Customer is already happy with the possibilities of the new system and expresses only kind words of gratitude.
I would like to give big-big thanks to all EQ team who were behind our WMS upgrade project. Especially to EQ Customer Support specialists, who were at the frontline and did fantastic job supporting our people over this intense and crazy week. Today we already see that VISION 7 is quite a big step forward for our clients and all our team members are happy to work with this new version. Of course we are eager to unlock more potential of this new version, but it will be step-by-step process in near future.
Martin Arula
Supply chain manager, Eugesta Eesti
UAB "Equinox Europe" is implementing an EU-funded project, during which, through R&D activities, a unique product in the field of warehouse process optimization and management will be developed – a new, innovative warehouse management system utilizing artificial intelligence technologies.
The system will have the following innovative features: order-based goods picking and grouping into picking batches, optimizing the picking operation; goods placement in the warehouse picking zone and optimization of location sizes for items; and the ability to split picking orders into separate parts. The development of the new product is focused on the small and medium-sized business segment, where no warehouse management systems with these innovative features are currently available.
The project is being implemented under the 2022–2030 development program managed by the Ministry of Economy and Innovation of the Republic of Lithuania, as part of the Economic Transformation and Competitiveness Development Program, Measure No. 05-001-01-05-07 "Create a consistent innovation activity promotion system" Activity "Encourage innovation supply" Impact Activity "Invest in the development of new APV products and create conditions for researchers to participate in company R&D activities, promote intellectual property, early-stage pilot production of new products, and market preparation" (Central and Western Lithuania region).
Project value: €1.510.173, of which €799.910 is EU funding. The project is co-financed by the European Union.
Project implementation duration: from June 2024 to June 2026.
For more information: www.esinvesticijos.lt