Logistics 5.0: Digitization of logistics processes and inventory optimization for Iren Group

Greater accuracy in inventory visibility and physical space utilization, precise tracking of spare parts and maintenance activities, predictive scheduling of supply chain logistics including production, storage, distribution, and digitalization of warehouse outbound movements. These are the drivers behind Iren's logistics digitalization and automation project, a multi-utility company operating in electricity, gas, district heating, environmental services, integrated water services, and renewables sectors.
The technological transformation project is the key enabling factor of the ambitious Logistics 5.0 Program devised by the Iren Group to ensure timeliness, cost-efficiency, and responsiveness in operational and organizational processes within its maintenance chain.

Iren's Logistics 5.0 project implements a substantial overhaul of the operational and organizational model to continually enhance efficiency in its supply chain, addressing new challenges in the market.

It constitutes a comprehensive supply chain management ecosystem seamlessly integrated with SAP, centered around Infor's Warehouse Management System that automates processes and provides comprehensive process visualization. Together with the innovative Pick&Go process and AI-driven material replenishment, Infor pioneers in logistics digitalization.

"The functions of Logistics have never been as strategic as during this period of rapid transformations in the global economy, particularly in the multi-utility sector," says Vito Gurrieri, Director of Procurement, Logistics, and Services at the Iren Group. "In increasingly volatile and uncertain markets, driven by post-pandemic and global geopolitical conditions, there is a growing need for digital processes based on data sharing, crucial for managing future challenges. Themes such as economic, environmental, and social sustainability are gaining prominence, leading to organizational, procedural, and competency evolution within companies." 

The Warehouse Management System supports the operational management of physical flows within a warehouse, from goods receipt to preparation and shipment to customers, overseeing critical processes such as:

• Goods identification,
• Warehouse mapping,
• Picking and shipping,
• Inventory activities.

The introduction of the Warehouse Management System for managing products and spare parts required for Iren's facility maintenance allows:

• optimization of operational management in handling goods,
• efficient performance monitoring of the system,
• use of warehouse locations based on ABC logic tied to product rotation,
• management of expiry dates, batches, specific product "statuses," etc., while iteratively interfacing with the ERP.

Infor WMS application, on AWS's multitenant cloud SAAS platform, effectively supports key logistics execution processes for both Iren's distribution centers (HUBs) and local warehouses, featuring highly configurable and customizable processes and functionalities.

The project also includes inventory monitoring and processes such as goods receipt, allocation, picking, and outbound shipments, offering a quick, high-level view of warehouse operations through operational KPI summaries for continuous process fine-tuning and decision support.

The "Pick&Go" process is the new digital method for material retrieval from the warehouse by Iren Group operators in the absence of warehouse personnel and for immediate or unplanned needs (e.g., emergency response to breakdowns). Depending on the warehouse, it can be managed via QR code, where operators use their smartphones for retrieval, or through Gate/RFID mode, allowing automatic warehouse exits.

The Pick&Go process enables 24/7 management of warehouse outbound processes, significantly optimizing maintenance resolution times.

Automating the calculation of material replenishment needed for maintenance through optimization algorithms and simulations reduces resource waste and optimizes resolution interventions, thereby improving customer satisfaction.

These goals are achievable thanks to Ublique©, Spindox's decision intelligence platform integrated with Infor solutions managed by Lutech. It is specifically designed to support the design and management of complex systems and processes through a powerful engine based on artificial intelligence algorithms.