Flamingo increases performance in new warehouse

Optimal shelf plan for 8,500 products, pick-to-light technology and customized picking carts

A state-of-the-art warehouse the size of 33,500 m², or eleven soccer fields. That's what Flamingo Pet Products built to support its growth. "Our current capacity allows us to fulfill our ambition: to double sales in five years," says Kevin Schellens, warehouse manager. To maximize the efficiency of the new warehouse, he enlisted the supply chain experts at valueXstream. 

Flamingo Pet Products, which specializes in pet accessories and snacks, operates in 65 countries, from South America to Australia. The company sells and ships 8,500 pet products around the world. Customers include pet stores, wholesalers and supermarkets.

Up to 70,000 pallet spaces

The company was considerably out of its depth. A brand new warehouse provided relief, good for three immense halls and 62,000 pallet spaces. "We can even scale up to 70,000," says Kevin. "Anticipating growth, indeed. Before, we were forced to rent 20,000 pallet spaces externally, with all the logistical difficulties that entailed." 

Migration perfectly prepared

The new warehouse opened in November 2023. Effectively moving the stock took six months, at 10 trucks per day. "Without a day's interruption for our customer, we lived up to that huge migration," says Kevin. "We owe that in part to thorough preparation." Flamingo Pet Products enlisted the assistance of valueXstream, senior experts in supply chain issues. How do you set up such a huge warehouse logistically optimally? "It's complex thinking that starts with in-depth analysis," says Hendrik Reynaert of valueXstream. "Data are the most important thing. We categorized the products based on their logistical properties, such as size and popularity. Flamingo Pet Products processes 10,000 order lines and ships about 300 pallets a day. Annually, it ships 1,500 TEU - say sea containers - via the Albert Canal and 600 loads by road. Sixty percent are smaller products. Pallet picks, in which a warehouseman picks up an entire pallet at once, account for 35 percent of orders."

Optimal location for each item

"Based on our analyses and numerous conversations with the operators, we determined the best location for each of the 8,500 products, the ideal location and altitude. For each item, we considered whether manual or automatic picking was most appropriate. Thus, after months of analysis and calculation, we arrived at the optimal laying plan. This ensures the greatest possible efficiency of the logistics flows," Hendrik explains. "ValueXstream helped us from a to z," Kevin adds. "They helped with the analysis, making the right technological choices, the design of picking carts and packaging machines, the tenders with suppliers and the execution of the plans."

Listening to the team

New to the distribution center, for example, is pick-to-light technology, which makes it easier for the warehouse worker to locate products. He scans a bar code that triggers a light signal. Together with valueXstream, the operators tested custom designed and made pick carts. Kevin: "The team's opinion was decisive. With twelve orders on one cart, we increased efficiency per run, and at the same time increased ergonomic comfort. People can put goods in a box along two sides. The aisles are 3.40 meters wide so that two carts can pass at the same time. Every figure was thoroughly considered." For smaller products, Flamingo Pet Products made nine types of flow-through racks for various sizes. These are racks where goods are loaded on one side and pushed through to the other side by gravity. The modifications to the existing warehouse management system went smoothly. 

Flawless switching

Remarkably, going live went smoothly. "There was no delay in deliveries," says Kevin. "Making a switch like that without any interruptions, that's an exceptional achievement. We used to have a performance of 80 pick lines per hour for the smaller products, and now we are at 110. As for pallet picks, we went from 50 to 40. Way more efficient, and we continue to optimize to improve." Despite the increased efficiency, employee numbers grew. "That's because we are expanding so ambitiously," says Kevin. "Recently a new sales team started in Italy. New markets help our growth, and we can now handle that logistically."

The warehouse remains 80% manual. "Gadgets like voice-picking and Google Glasses are certainly interesting, but everything in its own time. The participation of our people and continuing to deliver flawlessly to our customer is the most important thing," said Kevin.

Big challenge

One of the current challenges is integrating new products. "Every month we launch a hundred new items, and a hundred disappear from the range," Kevin says. "Without concrete sales figures, it is not yet possible to predict the ideal position of the item. With business intelligence, we hope to find answers to that. We are investing in Qlik Sense to get the forecasts right."

Kevin Schellens of Flamingo Pet Products: "Building a warehouse in-house goes against the international logistics trend of outsourcing. But I notice that people are increasingly coming back from it. As a warehouse manager, that is the ultimate: creating a European warehouse from scratch. That gives enormous satisfaction. It was a daring feat, but I am proud that together with the team and thanks to valueXstream's know-how, we accomplished this flawlessly."

The immense building of Flamingo Pet Products stands out along the Kempense N13, especially in summer when the gray facade turns pink from the sun. "Like a real flamingo," says Kevin, "it also colors brighter in sunlight." The showpiece is the 1,740 m² showroom where all the products are on display.

A few years ago, the future for the growth company did not look so bright. It almost faltered after an acquisition by a foreign investor group in 2016. But Flamingo Pet Products managed to turn the tide and doubled its sales. It grew from seventy to two hundred employees today.