"Warehouse Operators Are Like F1 Drivers" – Marián Šarišský on Warehouse Management and Logistics at Dedoles

Warehouse operations in the dynamic e-commerce sector face numerous specific challenges, particularly in optimizing warehouse logistics, managing seasonal fluctuations, and maintaining a balance between efficiency and service quality. Dedoles’ warehouse stands out as one that effectively leverages modern technologies to manage warehouse and picking processes, with the integration of a WMS system and constant adaptability playing key roles.

Covering an area of approximately 3,500 m² and capable of processing thousands of orders daily, Dedoles’ warehouse is equipped to handle high volumes of operations. A flexible approach to processes and an emphasis on inventory optimization are fundamental principles of its operations. Seasonal fluctuations require adjustments ranging from reorganizing inventory to modifying logistics strategies. At the same time, quality is prioritized, with error rates minimized through the implementation of double-check systems.

Marián Šarišský, who serves as Operations and Logistics Manager at Dedoles, shares insights on how the company’s high-turnover warehouse logistics function and how systematic improvements, meticulous planning, and the use of advanced technologies such as a WMS system contribute to high efficiency and customer satisfaction.

How would you describe Dedoles’ approach to logistics?

I often hear the opinion that logistics is just about moving goods from point A to point B. However, it’s neither rocket science nor something to underestimate, as it has its own challenges. In my view, good logistics is primarily about finding a balance between speed, quality, and costs. At Dedoles, we’ve realized that this balance is key. That’s why we strive to find solutions that work efficiently, even when we don’t have unlimited resources at our disposal.

Working with a limited budget forces us to be creative and to look for ways to do things better and more efficiently. This doesn’t mean we don’t invest in technology; rather, we focus on “tidying up at home” first. This means optimizing our processes and fully utilizing what we already have before considering major investments.

Our strategy is one of continuous improvement, whether it’s optimizing warehouse processes, the way we pick orders, or improving inventory management. We know that perfection lies in the details. Even small adjustments, such as the proper placement of goods in the warehouse or changes to the packing process, can lead to significant savings.

At Dedoles, we believe that logistics is the engine of customer satisfaction. If we can deliver the right product to the right customer on time, without errors and at a reasonable cost, we build trust and loyalty. That’s why our philosophy is simple: "fast, high-quality, low-cost." And we achieve this under conditions that are realistic and sustainable. Every day, we ask ourselves, “How can we be better than yesterday?”

So what do you think is the key to effective warehouse management?

Everything depends on the right “setup,” much like in Formula 1 racing. In this analogy, every detail plays a crucial role, from technical equipment to strategy, and finally, the team that aligns everything together. The same applies to logistics. If you want to succeed, you need not only a quality “vehicle,” meaning a technological infrastructure, but also a team of “mechanics” who understand the system, know how to adapt it, and keep it in top condition.

The key is to have well-designed processes that are both flexible and adaptable. The world of logistics is constantly changing: seasonal fluctuations, unexpected shifts in demand, and the need to react to external factors keep us on our toes. This means it’s not enough to simply set up a system and let it run. We have to continuously monitor, analyze, and adjust it based on the current situation.

Adaptability is particularly important during seasonal peaks. During such periods, the warehouse becomes a highly concentrated hub of activity. Without properly set priorities – such as optimizing the picking zone or reorganizing inventory based on turnover – we could face unnecessary losses of time, capacity, and ultimately customer satisfaction.

However, system flexibility alone is not enough without a team that can quickly respond to these changes. People are an essential factor. Warehouse workers, operators, and planners all need to understand why certain adjustments are made and how these changes impact overall efficiency. Their ability to adapt and collaborate is as crucial as any technological tool.

Everything we do has a common goal: to be as efficient as possible while ensuring high quality and customer satisfaction. Just like in Formula 1, where the winner is the one who perfectly aligns all factors – processes, technology, people, and performance – into flawless harmony.

Can you explain how you manage seasonality in your warehouse?

Seasonality plays a huge role and requires constant adaptability in our processes. For example, during peak seasons when order volumes increase, our goal is to maximize speed and efficiency. To achieve this, we expand the capacity of the picking zone, which eliminates the need for frequent restocking and allows workers faster access to products. We also distribute the most in-demand products evenly throughout the zone to prevent bottlenecks in specific areas, enabling workers to operate optimally across the entire space.

Additionally, we modify the way picking is done. During the high season, we switch to a “snake” picking mode, which involves a unidirectional flow through the warehouse aisles. This system prevents workers from blocking each other or waiting for space to free up. It’s a simple yet highly effective measure that ensures smooth operations even during peak workloads.

Outside of peak seasons, however, our strategy changes. When order volumes are lower, we focus on optimizing each operation for maximum efficiency. High-turnover items are relocated to the most accessible locations near the packing area, minimizing the number of steps needed for picking. This approach allows us to operate cost-effectively while maintaining efficiency, even when staffing levels or order volumes temporarily decrease.

We also adjust packing processes to match current demand. During peak seasons, for example, we designate specific packing stations for different types of orders – some focus solely on priority orders, while others handle large-volume shipments. Outside of peak seasons, however, we can afford to have more versatile workstations to make the most of available resources.

Our work is never finished – seasonality sets the rhythm, and we must remain flexible. The result is an efficient operation capable of high performance, regardless of whether it’s a peak or off-peak period.

So speed is crucial. But how do you manage to maintain high quality while focusing on speed?

Our error rate is consistently around 0.0004% throughout most of the year, thanks to our diligence and emphasis on quality. This success stems from a simple yet highly effective double-check system. Every product passing through our warehouse is first checked during picking. At this stage, we have processes in place to identify any discrepancies. Then, each product undergoes another check during packing.

This approach gives us confidence that if a mistake occurs during picking, we have another opportunity to catch and correct it. It’s based on a simple rule: an error caught early won’t cause problems for the customer. The double-check process isn’t about mistrusting our people or technology; it’s about ensuring flawless service for our customers.

Diligence and quality are fundamental to us. We understand that a satisfied customer is one who receives exactly what they ordered, in the expected quality. That’s why we’d rather put in the extra effort and time for these checks than risk disappointing a customer. Furthermore, this system helps us avoid additional costs that would arise from handling complaints or returns of incorrectly delivered goods.

For us, quality is more than just a number; it’s a promise we make to our customers. That’s why we’ve embedded it into all our processes and are constantly seeking ways to improve.

But focusing on quality must come at a cost. Is it still possible to optimize warehouse operation costs?

We have been working on reducing costs over the long term because we know that efficiency is the foundation of sustainable growth. We have achieved costs of 15 cents per picked item, thanks to ongoing process improvements and practical solutions. Our approach is based on optimizing every step, from planning to picking, packing, and shipping.

Every saved cent is significant because it translates into substantial savings at the end of the year. Our path to efficiency isn’t about cutting costs at all costs; it’s about performing each step with maximum focus on the value it brings.

One key tool we use is warehouse defragmentation. This allows us to work efficiently with warehouse capacity without having to expand space, which would incur additional costs. For example, during off-peak periods, when the warehouse isn’t fully utilized, inventory is arranged flexibly and adjusted to current needs. However, during peak seasons, when the volume of stored inventory increases significantly, we can rearrange products through defragmentation to make the most of available space while maintaining order and clarity.

This approach enables us to handle seasonal peaks without the need to rent external warehouses or invest in expanding infrastructure. It also reduces unnecessary product movements and shortens the time employees spend searching for items. Everything is organized to ensure we can operate efficiently even at extremely high volumes.

Our cost-reduction philosophy goes beyond space optimization; it’s also about setting detailed priorities across all processes. Similar to the previously mentioned Formula 1 analogy, the winner isn’t the one with the fastest car but the one with the fastest car on all tracks, backed by the right strategy. That’s why we adjust priorities and processes throughout the year or based on current demand to make the best use of available resources.

Constant changes and inventory movements in the warehouse must have some impact. Don’t they create issues with stock accuracy and inventory audits?

No, they don’t, because we focus on diligence and prevention in this area as well. We use continuous inventory audits and self-correcting mechanisms, which form the foundation of our strategy for maintaining high-quality inventory. Continuous audits allow us to regularly check stock levels throughout the year, eliminating the need for lengthy and costly one-time audits. This approach is not only time-efficient but also precise – problems are addressed immediately, not during a large audit when they could cause serious complications.

Our self-correcting mechanisms act as tools to detect and address errors in real time. For instance, if the WMS system detects an incorrect quantity of items at a specific location, whether it’s a shortage or an excess, it automatically creates a task for correction, and the issue is resolved as a priority. This process is quick and accurate, improving not only inventory quality but also overall operational efficiency.

The WMS system is designed to identify errors before they can affect customer orders. For example, if an employee notices a missing item at a designated location, the WMS system logs this situation and immediately assigns it to the control tasks. Similarly, if there are more items than expected at a location, the system flags it for correction. This way, we maintain ongoing “cleanliness” in our inventory, ensuring that customers receive exactly what they ordered and that the warehouse runs smoothly and efficiently.

This methodology has another significant benefit: it reduces the burden on the team. By catching and fixing errors early, employees don’t have to deal with problems later, such as incorrectly picked orders or the need for repacking. In the end, this leads to better organization and less stress in the workplace.

Continuous inventory audits and self-correcting mechanisms are not just about stock quality; they’re also about efficiency, customer satisfaction, and the long-term sustainability of our logistics processes. This system has proven to be an invaluable tool in our daily operations.

The process management system at Dedoles is truly complex. What tools allow you to achieve such detailed optimization?

We have a highly flexible WMS system that allows us to quickly adapt processes to current needs. This system is an integral part of our operations. Thanks to it, we can respond swiftly to seasonal fluctuations, changes in demand, or even unforeseen situations, such as issues in the supply chain.

Despite the complexity of our operations – or perhaps because of it – we abide by one fundamental rule: first, you must "tidy up at home." Before investing in expensive technology or extensive automation, it is essential to optimize your internal processes. Technology alone won’t solve problems caused by poorly designed processes. On the contrary, if you embed these problems into a technological solution, the outcome could be even worse – technology will only amplify inefficiency.

In practice, this means that we first conducted a thorough analysis of every step in our processes, identified weak points, and devised solutions that didn’t require immediate large investments. For example, we introduced more efficient picking procedures, optimized inventory placement within the warehouse, and implemented regular continuous inventory audits. These steps allowed us to make the most of existing resources and lay the groundwork for future innovations.

When you have well-optimized processes, technology becomes a tool that supports and enhances them. However, if you invest in technology without prior optimization, you risk acquiring an expensive solution with minimal added value. That’s why at Dedoles, we chose the opposite approach: we first maximize what we already have, and only when we reach the limit of our capabilities do we consider further investments.

This approach has enabled us to achieve rapid returns on every investment. Five years ago, the payback period for cutting-edge technology in our operations might have been around five years. Today, for some specific technologies, it’s closer to ten years. This is because we prioritized investments in software improvements for operational management, which consistently delivered returns within a year. This strategy avoided burdening the company’s cash flow while doubling our efficiency over time. Ironically, it also meant that some technologies became less relevant to us – simply because they weren’t the right solutions for our needs.

Technology is an excellent tool, but only when it’s used correctly. And for that, you first need to have your "house in order" – internal processes, people, and systems working together as a harmonious unit.

What is Dedoles' philosophy regarding continuous improvement?

We compete with ourselves. This isn’t just a slogan but a philosophy that drives us forward. Every month, we look at what we’ve achieved and seek ways to be even better. We’re never satisfied with what already works. We always aim to find room for improvement, whether in small details or broader processes.

Continuous improvement is at the core of our approach. For us, this means ongoing analysis – identifying what works, what doesn’t, where the weak points are, and where we can be faster, better, or more efficient. Once we identify an opportunity for improvement, we move on to testing and implementation. It’s not about random experimentation but carefully thought-out, incremental steps that allow us to progress without unnecessary risks.

An example of this is optimizing our warehouse processes. During peak seasons, when specific areas of the warehouse become overburdened, we don’t immediately jump to investing in expansion. Instead, we first look at how we can better distribute goods, adjust picking sequences, or introduce new procedures to minimize time losses. After the peak season, we evaluate these changes, analyze what worked, and refine them further. This cycle of continuous improvement is what drives us forward.

This approach isn’t just about technology or processes – it’s also about people. We constantly involve our employees in the improvement process. Warehouse workers are like “drivers” in our metaphorical Formula 1 – they know best where processes falter and what could work better. Their feedback is invaluable because the changes we implement must work not only for the system but also for the people who use it. In Formula 1, the driver is often referred to as the most important and precise sensor in the car. It’s just as vital to view warehouse employees in the same way.

At the end of the day, every small gain in efficiency matters to us. Even if some changes result in just a fraction of a percent improvement, when combined, their overall effect can be significant. This is what sets us apart: constantly comparing ourselves to our own results and striving to surpass them. Because if we’re better today than we were yesterday, that’s already a victory.

How would you summarize the main challenges and benefits of your approach?

The main challenge is achieving efficiency and quality at low costs. This is the balance that everyone in logistics strives to achieve. At Dedoles, however, we believe it’s not just about finding compromises but about constant improvement and utilizing every available tool to its fullest. Our results speak for themselves. We can offer a high level of service at competitive costs, all without compromising on quality.

The secret lies in the combination of three key factors: detailed planning, a flexible WMS system, and team collaboration.

Detailed planning allows us to predict problems before they arise. For example, during seasonal peaks, we thoroughly prepare by analyzing historical data, optimizing warehouse layouts, and adjusting processes to handle the increased order volume without unnecessary delays or stress.

A flexible WMS system is the second pillar. The world of logistics is constantly moving, and flexibility is essential to stay competitive. Our WMS system allows us to easily adapt processes to the current situation, whether it’s changing priorities in warehouse operations, reorganizing picking zones, or adjusting picking methods according to seasonality.

Adjustments to the WMS system are made through a set of parameters. Throughout the year, we implement several such configurations. It’s very similar to how Formula 1 cars have specific settings for each circuit. Flexibility means that changes are simple and quick, enabling us to respond to challenges without unnecessary loss of time or resources. It’s important to mention that we often need to make various adjustments on the fly, sometimes overnight, when the entire team agrees to react to an unexpected situation—like unexpected cold weather in Formula 1 or a sudden spike in sales of a product category outside its primary season in Dedoles.

Finally, team collaboration is what ties everything together. Our employees are not just process executors; they are active participants in their development. Warehouse workers and operators are the ones who know best what works and what doesn’t, and their feedback is invaluable. By involving them in the improvement process, we not only increase efficiency but also enhance their motivation and sense of belonging.

Our goal is always to maintain high customer satisfaction. That means delivering the right product at the right time, without errors, and at a competitive price. Thanks to our approach, we can meet these expectations while constantly pushing the boundaries of what is possible in logistics. For this reason, we can confidently say that quality and efficiency are not just our goals—they are deeply rooted values that guide us in every aspect of our work.