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EPG implements LFS warehouse management system for KiK textile discount retailer

24.01.2024

EPG (Ehrhardt Partner Group) has successfully introduced its LFS warehouse management system for German discount retailer KiK Textilien und Non-Food GmbH (KiK). The German clothing and home textiles store opened a new logistics center in the Polish village of Rabowice, east of Poznan, in early December 2023. KiK opted for LFS so that it could manage its warehouse efficiently.

Together with the supply chain software specialist EPG, KiK also intends to introduce LFS at its two other large logistics centers in the German town ofBönen and in South Slovakia.

Supplying toys, clothes, textiles, and decorative items,KiKhas grown steadily over its almost 30-year history. This growth has meant that requirements have increased for logistics processes inwarehouse management. Its old warehouse management system had reached its limits. As a result, KiK decided to introduce a new solution at its new location inRabowice: theLFS warehouse management system by EPG. The supply chain software specialist ensured swift implementation and provided ahigh-performance warehouse management systemextensible in modules. LFS is expected to optimize all processes in the KiK Group in the future. »We chose to implement LFS when launching the Polish location, aiming to gradually standardize logistics workflows across the company and enhance the transparency of our processes,« states Michael Fröhlich, Managing Director at KiK Logistik GmbH. The core of KiK’s success lies in its highly efficient, well-established supplier chains, striking an optimal balance between speed and cost-effectiveness.

LFS ensures a perfect material flow

On introducing LFS, KiK is not only focusing on process standardization but also on future semi-automation inBönen, an upgrade based on performance indicators, anincrease in efficiency, and state-of-the-art lean management practices. Given the seasonal peaks at Christmas and Easter, particularly for decoration items,KiKrecognizes the critical importance of a perfect material flow and the ability to readjust to varying order volumes.LFSincorporates various modules and specialized functions designed for this purpose, includingcomprehensive analysis capabilitiesfor stocks, access frequencies, occupancy by different items, and warehouse capacity utilization. LFS is also scalable at all times.

Rabowice supplies all Polish and eastern German branches

The newly built logistics center in Rabowice will play a key role in the future. »It’s a highly important location for us, given our increasingly stronger presence in Eastern Europe. The center will serve as a hub between Central and Eastern Europe,« affirms Fröhlich. The new logistics location boasts almost 35,000 pallet storage spaces and 50 loading ramps over 40,000 square meters. A hazardous goods area is also integrated into the new location, where items such as helium tanks for balloons are stored. From 2024 onwards,130 employees are expected to ensure efficient incoming and outgoing goods flows.
EPG managed to implement LFS at the new location within a matter of months. Thewarehouse management systemwas first put into operation for incoming goods in early December; thego-livefor outgoing goods is expected to be completed in January 2024. TheKiKrange will then be distributed to both Polish and potentially eastern German branches of the company group from Rabowice.

LFS also to be implemented in Bönen and South Slovakia

As soon asLFSis fully implemented in the new logistics center inRabowice, the idea is to introduce the warehouse management system at thegroup’s headquarters in Bönenand inSouth Slovakia. Bönen dispatches thelargest volume of goodswithin the company. The company also plans to integrate an automatic small parts warehouse in Bönen.