How do you achieve optimal efficiency and flawless logistics? That’s the challenge Bileko Car Parts set themselves when they wanted to increase delivery accuracy when automating their warehouse. The answer – intelligent video analysis from SiB Solutions. Two weeks after subscribing to the service, faults decreased from 0.32 to 0.16%.
Bileko Car Parts includes Mekonomen and MECA, two of the largest car servicing groups in the Nordics. The company automated its warehouse in Strängnäs, Sweden, but was still not entirely satisfied with the delivery accuracy. Until it subscribed to intelligent video analysis from SiB Solutions, a Swedish logistics technology company, which opened up a whole new world of insights.
Two companies one warehouse
In 2017 Bileko Car Parts streamlined its distribution by putting all parts in one automated warehouse. While efficiency was good, it wasn’t optimal. Delivery accuracy was in average 0.32%. While this was efficient, the company felt they didn’t have the quality they required.
Halving faults within two weeks
Bileko Car Parts worked with LEAN processes and added extra resources in a bid to further reduce their fault percentage. They wanted to test the SiB Solutions subscription service for intelligent video analysis directly. After 2 weeks they reduced faults to 0.16%.
“The reduction in picking faults and improvement in delivery accuracy was way over our expectations,” says Christoffer Olsson, productions manager from Bileko Car Parts. “We had expected automation to bring us to 0.20%, but we needed to add Intelligent video analysis to achieve this goal. The actual large improvement positively influences the whole company. Everything from once the order is placed, customer service, sales and of course our customers.”
Changes based on facts people see
“Before deploying intelligent video analysis from SiB Solutions, we couldn’t physically see what happened in the warehouse, we could just guess,” Christoffer Olsson. “We could only make assumptions. Now we see exactly what happened in our processes and can give constructive, fact-based feedback to improve operations throughout the supply chain.”
Best result ever
With these new insights, Bileko Car Parts has worked with article data, feedback to suppliers, transport, customers and more to improve operations as they now know exactly what happened and when it happened. After one year their fault rate is down to 0.13% in average. During this period the company won 2021 year’s Retail Awards for its logistics journey, and the group reported its best result ever.
Customer services give add-on service, instead of chasing complaints
The SiB Solutions intelligent video analysis solution has had a fantastic effect on customer relations. As product volumes flowing through the warehouse increase, it is often accompanied by more complaints to customer services. But that has not been the case.
“Intelligent video analysis helps us secure stock accuracy, which has many positive effects, including minimizing express deliveries from our sub-suppliers. In addition, customer services can concentrate on answering value-added questions and upselling,” says Linus Persson, Supply Chain Manager at Mekonomen/Meca.
“Before we could have heated discussions between the warehouse supplier and customer. Now our customers see the facts, so it’s all about how to solve a situation we can see and stop it from happening again.” Says Christoffer Olsson. “Intelligent video analysis lets everyone see what happened so we look for solutions together. That makes operations better as everyone wants to deliver with quality. And giving feedback now is easy.”
Bye bye black hole
“Our intelligent video and AI services are based on following goods so they don’t disappear into a black hole,” says Staffan Persson CMO and co-founder at SiB Solutions. “The way to find a fault quickly is to search via our video system. Then you correct the fault and don’t multiply it to a lot of customers. Now, people don’t do wrong. They just see what happened and put it right, reducing waste, and increasing satisfaction for everyone.”Take your next step towards flawless logistics