Agrostroj Pelhrimov - Czech Republic

Accellos WMS in Agrostroj Pelhrimov

The Company

Established in 1886 in Pelhrimov, Czech Republic, Agrostroj Pelhrimov (Agrostroj) has been providing North and South America, Europe, and Russia with a wide selection of specialized agricultural machinery for over a century. The sole manufacturer of agricultural machinery in the Czech Republic, Agrostroj builds agricultural machines and precise engineering tools in addition to partnering with other multi-national agricultural machinery companies such as Volvo, Mitsubishi, and Caterpillar. Agrostroj’s product output consists of 20% finished machinery, 13% engineering tools, and 67% joint collaboration projects. With over 900 employees and sales reaching 37 million Euros in 2005, Agrostroj is a widely recognized leader in its space. The organization prides itself on innovation in its products as well as the nature of its manufacturing process.

Key Benefits

  • Increase in accuracy from 50% to 98%
  • Picking process time reduced by 50%
  • Reduction in number of picking errors
  • Sales order cycle time 3 times faster
  • Able to reduce labor by two personnel

The Challenge

Agrostroj was expanding due to the ambitious projects it undertook, its commitment to meeting strict customer requirements, and the expansion of their manufacturing capacities. In order to accommodate their growing business, the organization sectioned off a 25,000 square meter area within their production facility to act as their new warehouse designed to store extra parts for the manufacturing area of the production facility. With a larger warehouse area and a greater number of stock items, the company realized their need for specialized software to manage inventory.

Agrostroj had undergone several large structural changes to better meet the changing needs of the agricultural marketplace, transitioning from a state-owned and operated business to a privately held joint stock company. Due to their continued success, resulting in an average annual growth of 5%, the organization was finding it difficult to meet customer demands. As the company continued to grow, it became more difficult to keep track of all necessary components.

Agrostroj’s warehouse used selective pallet racking with over 3,800 pallet positions, and pick racking with 4,000 positions. With no system in place to track inventory location, employees were forced to rely on memory, locating items by recollection, which led to long pick times and poor order accuracy. With one out of every two orders incorrectly picked, accuracy was of great concern to the company.

"We had outgrown our old way of storing machinery parts, and needed to find a warehouse management system that would take care of our products while allowing us to continue to expand," says Jaroslav Kudyn, IT Director, Agrostroj Pelhrimov. "Now, with Accellos WMS, we never need to worry about our warehouse holding back our sales process again. Accellos keeps track of everything we have, from a single bolt to a finished machine."

The Accellos Solution

In 2005, Agrostroj turned to Czech Republic-based Accellos partner, Kodys, to help them find a solution for their warehousing needs. A specialist in implementing barcoding solutions, Kodys has been helping customers improve supply chain and logistics management for over 15 years.

"Our partnership with Accellos has enabled us to expand our service offerings to include a complete portfolio of supply chain management solutions, bringing about new opportunities for both us and our customers," says Zdenek Vonasek, Managing Director, Kodys. "We are pleased to be able to offer our clients a solution to help them save both time and manpower in addition to increased accuracy and real-time visibility onto the warehouse floor."

Kodys developed a custom interface integrating Orfert ERP, a locally developed solution, with Accellos WMS and guided Agrostroj’s staff through the transition to an automated WMS to ensure a smooth conversion.

"We are delighted with our new ability to manage our warehouse with improved accuracy and transparency. Since implementing Accellos WMS in our warehouse, we have seen efficiency improvements, reductions in the number of shipping errors, and doubled our picking speed." Jaroslav Kudyn, IT Director, Agrostroj Pelhrimov.

Benefits of Accellos WMS

Since implementing Accellos WMS, Agrostroj has seen a 50% increase in accuracy while cutting pick times in half. The organization has also seen a significant decrease in the number of errors occurring throughout the day’s processes, since all inventory movement is now tracked using RF barcodes. Accellos WMS automatically logs all processes drastically reducing the possibility for human error.

With Accellos WMS, Agrostroj has achieved 98% inventory and order accuracy, and has been able to add a new product line to their business which they were logistically unable to accommodate under their old system. The company now processes between 100 and 300 orders per day, with each order consisting of 5-10 lines.

"I’m very happy with our Accellos system," says Jaroslav Kudyn, IT Director, Agrostroj Pelhrimov. "We are now able to accurately track our entire inventory within our warehouse, and our workers don’t have to locate items by memory any more. With all of these benefits, and the fact that Benefits of Accellos’s ROI is already becoming apparent, we would have to say that this is a very cost effective system."