Kovax leverages Data Science for brilliant warehouse optimization
All hands on deck for the realization of the new warehouse layout.
At Kovax, a leading supplier of sanding and polishing solutions, substantial revenue growth prompted the optimization of the warehouse. For efficient warehouse design, advice was sought from Data Science consultant CQM. In record time—of just 5 weeks of research and 3 days of company-wide reorganization—the new warehouse layout was realized and data-driven processes were implemented. Curious how the new warehouse layout came about? Read on!
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Warehouse optimization as the basis for future growth
From Almelo, deliveries are made Kovax its products to Europe and part of Africa. The range varies from fine sandpaper for luxury cars such as Lamborghini or Porsche to polishing products for yachts. And although they have been around since 1930, their turnover has grown enormously in recent years: from 2.5 million to 20 million euros in turnover per year. The warehouse grew with the expansion of the range, from 3000 to 5700 m2. Nine years ago, the company had already anticipated future growth by purchasing additional warehouse space. It has gradually taken more and more of the temporarily rented warehouse space into use itself. And although the warehouse team integrated the expansion into existing processes in an exemplary manner, things eventually started to break down.
Willem Mulderij, CEO of Kovax, managed to convince his team that it was necessary to critically evaluate the warehouse with a view to future growth. Are the fast-moving items still in the right place? How efficient are the buffer locations? And how ideal are the walking routes for the pickers themselves? To find a data-driven solution for a new warehouse layout, Kovax sought out a Data Science consultancy with experience in analyzing logistical bottlenecks in distribution centers.
SME with a big vision for warehouse innovation
“Many people think that such a specialized approach to Data Science is reserved only for large multinational distribution centers, and not for optimally setting up a relatively small warehouse,” says Willem Mulderij. “But we occupy a unique position in the market, dare to do things differently, and believe in the power of innovation. Instead of striving for market dominance, we focus on building sustainable relationships with our partners, customers, and employees.”
Behind this vision lies a deep respect for promises made to customers and a genuine commitment to his employees. That is why Kovax attaches great value to honoring agreements. “If we do not deliver that order on time, it can have major consequences for that customer. And that is not only bad for the figures on paper, but also for the people who work for us.” It is primarily the well-being of his employees that he has in mind when thinking about the future of the company, because: “A company stands or falls with the people who work there — you need them. That is why it was so important to involve them in this project from the very beginning.”
Teamwork makes the lean work
You would expect that a company with a Japanese parent company would be strongly inspired by Eastern philosophies and methods such as Six Sigma to work as efficiently as possible. And while these elements are certainly present, the CEO of Kovax draws his main inspiration from an unexpected source: his past as a basketball coach. He has experienced that even with the best individual players, a team is only truly successful when the members work together. "When do you play better," he asks, "when everyone wants to score at the same time but gets in each other's way, or when you ensure, as a team, that the best player receives the ball at the right moment?" It is precisely because of this experience that 'lean working'—that is, eliminating waste and optimizing processes—is an important part of the corporate culture. To foster this collaboration, the company organizes weekly sports classes for all employees and selects partners who not only possess expertise but also share a vision on teamwork and customer focus. Such as CQM, which, alongside warehouse layout and logistics processes also has a strong focus on the human side of the story.
Technology only works when people participate.
CQM helped us implement the latest technologies in a way that aligned with the needs of our employees. Thanks to this connection and the personal approach throughout the project, we were able to work quickly and purposefully towards delivery and concrete results.
Willem Mulderij CEO, Kovax
CQM brought more than knowledge about smart warehousing
“It was clear that we needed a partner with expertise in Operations Research—in other words, optimizing complex systems—Smart Logistics, and Data-Driven Warehousing,” explains Willem. The choice quickly fell on CQM because, just like at Kovax, they value personal contact, loyalty, and short lines of communication. And: both constantly strive for connection. “CQM helped us implement the latest technologies in a way that aligned with the needs of our employees. Through this connection and the personal approach throughout the entire project, during which we collaborated intensively and communicated openly, we were able to work quickly and purposefully towards delivery and concrete results.”
Data-driven approach + human factor = future-proofing
Choosing CQM as a partner proved to be a stroke of genius. Minou Voortman, who led this project for CQM, also speaks enthusiastically about the successful collaboration: "Our data analysis indeed showed that the existing warehouse layout was no longer optimal. After an intensive period of diving deep into the figures and observations to discover patterns, we presented a detailed plan for a new warehouse layout. By centralizing the fast-moving items and optimizing the picking routes, we were able to significantly shorten order picking times. To give just one example: With the old layout of hall A, the chance of a short picking route was 10%; with the renewed layout, this chance is 46%! At the same time, we ensured that the new layout is flexible and future-proof. By working closely with the Kovax team, we designed a solution that is not only efficient but also aligns with the needs of the employees and contributes to increasing customer satisfaction."
Realization of the new warehouse layout
Naturally, the new warehouse layout still needed to be realized. So, at the end of September, all Kovax employees rolled up their sleeves to reorganize the warehouse together in just three days. The entire company helped clear out the spaces, relocate the packing stations, and restock the shelving. Thanks to this extraordinary commitment from all employees, combined with the power of data analysis, a future-proof work environment has been created that saves costs and time and – hopefully – will also increase employee job satisfaction. Satisfied employees and a warehouse in tip-top condition contribute, in turn, to faster deliveries and satisfied customers. A win-win situation!
Thus, this project demonstrates that Data Science is not just about numbers, but also about people. Only by placing the human factor at the center can you get the most out of data. We can also conclude that Data Science is a powerful tool for achieving significant improvements, even in smaller organizations.
Want to increase the efficiency of your warehouse and your customer satisfaction as well?
Then the Warehouse Quick Scan might be right for you! Contact Minou and discover how data-driven insights can help your organization move forward.
