Since its launch in March, Log:Nett by Locus Solutions has been making waves at Jøtul’s factories in Norway and Poland. “We’re now dispatching goods on time and can track them geographically in real-time. Just a few months into operation, the transition to the new Transport Administration (TA) system has met our expectations,” says Ole Hustad, Supply Chain Manager, and Kristoffer R. Nebb, Group IT Manager at the company headquartered outside Fredrikstad.
Log:Nett’s Competitive Advantage
The most significant advantage of Log:Nett is its efficiency in label printing and error reduction, a stark contrast to the issues faced with the old off-the-shelf system. Log:Nett seamlessly handles all transport administrative challenges. “Our reliance on Electronic Data Interchange (EDI) for better customer control over shipments is critical. We need a system that supports EDI with readable, accurate labels and transport lists that are easily understandable by carriers. Without dispatching our stoves, there’s ‘no business’ for Jøtul,” Hustad emphasizes.
Optimizing Distribution Processes
As goods are labelled, they move from warehouse locations to shipping areas for domestic and international transport. “The shipping area is divided into different lines for Norway, Sweden, and the rest of Europe. When we locate and pick goods in the warehouse, they’re transported by truck to the correct line area, where they’re labelled for shipping and accompanied by a packing slip,” explains Nebb.
A World Leader in its Field
Jøtul stands as one of the world’s leading manufacturers of wood stoves, fireplace inserts, and fireplaces. Combining Norwegian tradition with solid craftsmanship, the company has been combating cold for over 170 years. Today, Jøtul holds a market-leading position in 45 countries across six continents.
Transitioning from an Old System
Previously, Jøtul used a self-developed logistics system, later transitioning to Infor M3. “We moved from an outdated off-the-shelf system from a now virtually non-existent provider, which was ingrained in all our processes and operations. Initially, we faced a few transaction challenges with Log:Nett. We hadn’t anticipated all the consequences of such transactions. The test phase and switch to the new TA system were extremely short, but we managed to dispatch critical goods from day one. Now that the system is embedded, we’re gradually increasing automation and improving customer communication,” Hustad shares.
A Smooth Transition
When asked about the complexity of moving from the old system to Log:Nett, Nebb remarks, “We’re talking about a new way of conducting transactions. All data in Infor M3 was centralized, not decentralized, which created some limitations that we’ve now internally addressed. We’ve also trained staff at two geographically different locations in using the TA system. Overall, the transition has been very successful.”
ERP-Heavy Operations
“We use Infor M3 for planning production, purchasing, customer orders, and invoicing throughout the supply chain. Much of the operational work happens in M3. We have significant potential for improvement in the packing process. Once a stove is reported as packed and documents are printed in M3, the order moves to Log:Nett for transport administrative handling. Jøtul is extremely ERP-heavy. We couldn’t survive without such a comprehensive system. Reverting to Excel and manual entries would be like going back to the Stone Age. We rely on robust data tools to ensure our 60,000 items from purchasing, planning, production, drilling, grinding, and painting are completed on time,” Hustad concludes.
AI: Not a Top Priority Yet
Looking to the future and the potential use of Artificial Intelligence (AI), Hustad and Nebb agree, “AI is still quite far down on our priority list. In our view, much of today’s machine learning is not yet mature enough for our manufacturing business. However, we can’t rule out the future benefits of AI, but for now, the technology is still in its infancy for production purposes.”
Contact Locus Team for more details on Log:Nett Solution or to schedule a Demo!
Erik Egelund, Customer Success Manager TMS, +47 982 81 851, Erik.Egelund@enghouse.com Jo Are Aslaksen, Sales Manager TMS, +47 908 23 884, JoAre.Aslaksen@enghouse.com.
