New WMS improves Thermia's warehouse logistics: "Platform that controls and documents everything"

When Therese Nilsson started as a Logistics Project Engineer at Thermia three years ago, she was met by a logistics organization that largely worked manually. The company did have SAP as its business system, but lacked a functioning warehouse management system, a WMS. 

“We had no WMS when I started, much was handled manually, and that made it difficult to get an overview, ensure traceability and optimize processes. A previous attempt with a simpler version of a WMS had been abandoned before I started, because there was a lack of both data and established processes to make it work”, she says.

Despite the fact that Thermia is now a global export company, its roots and base remain in Arvika in the county of Värmland, Sweden. The company's headquarters are located there, as well as their modern production facility and research and development center. The facility develops and produces heat pumps and geothermal heating systems for both single-family homes and larger properties, for an export market that extends over large parts of Europe.

Since 2018, Thermia has been part of the German group Stiebel Eltron, a fact that would prove decisive for the next step in warehouse management. Stiebel Eltron already had previous experience with SAP Warehouse Management, a simpler version of WMS. Stiebel now saw the need to upgrade its system to SAP Extended Warehouse Management and therefore purchased licenses for the entire group.

The fact that the group decided to purchase licenses for the entire group was very welcome news for Therese Nilsson, who, with a background from, among other things, Volvo, already had a good understanding of the system's capacity. 

“I knew how much could be done in the system. Many functions that we had previously, had to be developed by ourselves and are now available as a standard in EWM. This makes both implemen­tation and future management easier and more efficient”, she says.

Once the decision was made, Thermia needed a partner who not only knew EWM technology, but also understood the everyday life of logistics in depth. The choice fell on German SAP-specialist IGZ, with extensive experience of implementing EWM in both manual and automated warehouses. 

“We were captivated by their combination of cutting-edge technical expertise and a holistic logistics perspective. They offer everything from process design and system configuration to de­ployment and management. In addition, they have a working methodology that allows you to quickly go from theory to practical use”, says Therese.

Before the first line of code was written, great importance was placed on preparations. Almost a year was spent on ensuring data quality, mapping processes and setting the priorities that were required so that the project could be implemented within the planned timeframe. 

“Building a new warehouse management system is not just about installing software. It is just as much of a change project, where you must dare to question old routines and think newly. In addition, great commitment and patience are required from the employees involved in the project.” 

For IGZ's project team, this was also an oppor­tunity to get to know Thermia's operations in depth. Although much of the design work could be done remotely, it soon became clear that physical presence in Arvika was crucial to success. 

“The longer the project went on, the more we understood how important it was for them to be on our warehouse floor and see how we worked in practice. Then the discussions became more concrete and decisions could be made more quickly”, Therese continues.

A theme that both parties return to is the cultural differences between Sweden and Germany. It was not about conflicting goals, but rather about different ways of working, decision-making paths and expectations of pace and documentation. 

“It took time and energy to fully understand each other. But as we got to know each other, the collaboration also grew. By the end of the project, it almost felt like we were working in the same company”, Therese says with a smile.

The project plan was tight from the start, and during the journey, unforeseen obstacles were encountered. A heavy snowstorm in Germany meant that the project manager from IGZ did not arrive in Arvika as planned, and an outbreak of disease on both sides stopped the work for two weeks. 

“We had to reprioritize and take certain short­cuts to keep up the pace. It was not always easy, but thanks to our open dialogue and a common goal, we managed to succeed within the set time frame”, says Therese.

With the new warehouse system in full operation, Thermia has gained a completely new basis for its warehouse work. The processes are standardized and thus more robust, traceability is significantly better and the working day has become more structured for everyone who works in the warehouse. 

“It is safe to know that the system gives us correct information in real time. We have gone from being dependent on manual notes and verbal agreements to having a common platform that controls and documents everything”, says Therese. 

For IGZ, the project also meant proof that their working method works in practice – that is, combining technical implementation with close customer dialogue and an understanding of the business's day-to-day operations.

Although the implementation project itself is now completed, the collaboration between Thermia and IGZ is far from over. A service and management agreement is planned, and the focus going forward is on fine-tuning the processes and implementing more EWM's capabilities. 

“We see great opportunities to further develop functions for work management and traceability, and in the long term also integrate more automation where it brings the greatest benefit. It's nice to know that we have a partner who knows our business and can follow us on that journey”, says Therese. 

When asked what was most important for the project to succeed, Therese's answer is clear: trust and openness. 

“We dared to be honest with each other when something wasn't working, and we always had a common focus on the goal. This created a working environment where we could solve problems quickly and move forward. That is what makes me look back on this project as a joint success.”