CASE STUDY
Product: Nordic ID Morphic Barcode
Text: Pilot Editing: Carl Michener / ID BBN Images: Shutterstock & Nordic ID
VESCH!
Russian fashion retailer hikes efficiency by 20 % with real time data
Vesch! is a multi-brand Russian retailer of affordable clothing for men, women and children. Founded in 1999, Vesch! currently has a total floor space of more than 13,000 square meters in Moscow, Nizhny Novgorod, St. Petersburg and many other Russian cities. Since 2008 Vesch! has grown over 30% and now employs over 1000 people. In 2008 the retailer added 21 new stores, with a further five new retail outlets opened in 2009.
“Our distribution center is essentially a warehouse with simple operations, and the Nordic ID Morphic handheld turned out to be a perfect match for our needs.” In May, 2005 the Swedish IKEA Group (STK “MEGA”) became a partner in development, and today there are Vesch! stores in each of its MEGA malls in Russia, making Vesch! one of the fastest growing companies in the Russian apparel market. The introduction of new IT processes follow Vesch!´s growth strategy, which the company has also served by increasing the number of stores, diversification, improving customer service and launching a customer loyalty program.
14 • Nordic IDea
MODERNIZING OPERATIONS The Vesch! distribution center uses a cross-docking model: incoming goods are immediately redirected to retail chain outlets in smaller quantities, without being kept in storage. To optimize the distribution center’s operations and to increase its efficiency, Vesch! decided to move to a low-cost, quick setup system and to upgrade equipment. The main goal of the modernization was to significantly reduce paperwork and processing time by moving it online. IMPRESSIVE RESULTS Now that all the data is delivered directly to the online system, processing time for goods and documents has decreased by 20%. This is enabled by the introduction of the Nordic ID Morphic units, new exchange processes and the fact that data verification is no longer required. Thanks to the instant product information update upon delivery,
staff is freed up to perform other warehouse operations. Alexey Neumyvakin, Vesch!’s IT Director and project supervisor, is pleased with the solution: “Our distribution center is essentially a warehouse with simple operations, and the Nordic ID Morphic handheld turned out to be a perfect match for our needs. Now there is no need to invest in expensive equipment–building up the right business processes is more important for us today”. He also finds that barcode technology accelerates Vesch!´s warehouse operations and saves costs. “I should say that Nordic ID Morphic fully met our expectations and did not give us a single reason for complaint. Small and ergonomic, yet robust and reliable, with its IP54 protection class and high impact resistance, this device absolutely complies with the sometimes rough operating conditions of Vesch!’s operations center,” states Neumyvakin.