AMAB Hydraul lifts the automation of its warehouse

AMAB Hydraul of Malmö has built a national network of 100 distributors that supply, service workshops, contractors, industries, and the agricultural sector with hydraulic components for their machinery. They promise end customers that orders will be dispatched from the central warehouse the same day that they are received. The warehouse building is also home to a growing department that assembles custom solutions in large volumes for OEM customers that demand just-in-time deliveries. With 21,000 different items in stock, time-dependent picking, and a continual need for more space, it became necessary to optimise warehouse operations. We are now beginning to see the introduction of four Compact Twins and a Compact Lift Heavy have many positive effects…

“We are hydraulic nerds who have taken our place amongst the market leaders”

AMAB Hydraul has a unique expertise that has been built ever since the company was founded in 1970. With a promise of 100% delivery reliability of the widest selection of hydraulic, hose, and pipe components, AMAB has become one of the three biggest suppliers in Sweden. The continually increasing number of orders we receive has seen the challenges we will face change to become more and more about the storage and production space available to us, which, despite being 4500 sq. m, is currently insufficient.

60-70% same-day delivery

–    For our contract installations, the difficulty does not lie in planning the storage and picking. However, a new contract request can create a degree of chaos if it becomes necessary for us to build a new installation station that needs to take space from storage areas. This happens time and again. We then come to the other part of our sales operation. To all those who place an order spontaneously due to emergency needs, which can never be predicted. In such circumstances, we must be able to deliver on the same day, otherwise they will go elsewhere. In order to satisfy such demands, we need to keep a huge number of items in stock at all times. According to Peter Ternerot, CEO of AMAB Hydraul, this means that 60-70% of the order lines that we deliver have been received on the day on which they have been received.

Single item picks, pack picks, and metre cutting 

–      Our challenge is how to manage orders that contain single item picks, pack picks, and hose cutting. In a worst case scenario, an order can cover 5-6 warehouse positions, which takes a full hour to put together. By installing vertical storage lifts that we fill with small items, we have been able to significantly shorten lead times. Instead of having to drive all the way around the warehouse, our operator Ronja can move quickly and seamlessly in their area between lifts and efficiently pick the individual items that usually take up several lines on the order. And picking accuracy cannot get any better! When we reviewed the situation after six months, we found that there were 0 picking errors, compared to 20-25 errors in the month prior when items were picked from pallet racks.

“When we reviewed the situation after six months, we found that there were 0 picking errors, compared to 20-25 errors in the month prior when items were picked from pallet racks.”                                         

Peter Ternerot, CEO

–      The major benefit of one person now being able to carry out multiple picks without making a mistake is that it is now possible to drastically reduce the need for overtime. Nor do we need to bring in additional staff to cover peak periods as the lifts enable all picks to be made during normal working hours. We manage this despite having to send items out the same day, says Ternerot.

Four Compact Twins free up 550 sq. m of warehouse space

–      We bought our first two Compact Twins in 2017, adding a further two in 2022 and a Compact Lift that was specially adapted to handle heavy items. Our four Compact Twins, which, including working area, have a footprint of 50 sq. m, enable us to store the same number of items that previously required 600 sq. m of pallet rack space. Despite the fact that the lifts can hold 3600 item numbers (more than half a million individual items), we have not managed to completely fill them yet. We have the potential to take around a further 1000 item numbers, depending on size, says Ternerot.

“We have also noticed a marked difference in that the products kept in the lifts are much cleaner than those kept on pallet racks. Because hydraulic parts need to be clean, this is a major benefit.”                                                       

Bo Thysell, Warehouse Manager

Heavy products easy to handle in Compact Lift

–      In our new Compact Lift, we can load up to 1500 kg of product per tray. This has had a substantial positive impact on health and safety, particularly when it comes to handling heavier items, including cylinders, pumps, and anything else that requires help to lift. Of course, these are products that are not picked very often, but we have decided to invest in this particular lift for reasons of health and safety. Many of the items stored there weigh more than 40 kg. Because the lift opening has a 100% pull-out and a crane, which can be equipped either with compressed air cushions, a grabber, or a hook, one person can easily handle heavy picks without any assistance, adds Warehouse Manager Bo Thysell.

Staff really appreciate the lifts

–      Everyone in the warehouse loves the fact that it’s now quicker to pick smaller items more accurately. Ronja, who is the main operator in the warehouse, likes being able to use Compact Store to pick at a comfortable height. The lifts have created the criteria for a good and efficient work rate and working environment. Up to now, Ronja has been managing all four lifts herself, but once we have completely filled them, we anticipate having them operated by two full-time employees, continues Ternerot, adding:

–      In the space of just six months, we have managed to double the percentage of order lines that leave the lifts. From having two lifts to now having four in operation, three of which are only being used to capacity, we have doubled our output and pick a third of all order lines from the lifts. The aim is to increase this to 50% before we are done.

The lifts have created a new and more efficient storage area

–      Because we are continually increasing the number of products we keep stock, we are delighted that the lifts have allowed us to free up some much needed space. In addition, we now also have space for a double rack, which has created room for another long rack, the upshot of which is that we now have a couple of hundred additional pallet spaces. The next step will probably be to implement a software solution that will also cover pallet rack storage, concludes Thysell hopefully.

“We have the lifts to thank for now being able to handle even more products, with better logistics and structure.”

Bo Thysell, Warehouse Manager