eCommerce Retail Distributor

Create efficiencies and increase productivity

CHALLENGE

A national e-commerce electronics retailer, is successfully growing its business, which brings operational challenges to maintain or improve customer service. To meet demands and improve fulfillment efficiencies, the company considered increasing its labor force. Alternatively, the retailer explored implementing an automated process within its existing 40,000 sq. ft. distribution footprint without disruption to its daily sales requirements.

PHASE 1

SOLUTION: STREAMLINED PICKING

PeakLogix streamlined the facility’s picking by designing and installing a picking system using automated, MDR conveyor and pick divert technology that integrates into the existing order processing software. Racking was repositioned and carton flow replaced wire decks for greater access to high volume inventory. A warehouse control system was designed to improve picking accuracy and capacity, and to direct fulfillment orders to staff based on zone, reducing excessive travel and increasing overall efficiency.

RESULTS

The retailer was able to decrease head count and labor costs associated with picking, reduce the amount of handling during the fulfillment process, and increase its productivity. It’s seen a 25% gain in picking throughput, a savings of nearly $250,000 per year, and a 60% decrease in time to replenish. The facility is on track to achieve its ROI for this installation within 3 years.

PHASE 2

SOLUTION: Eliminated Shipping Bottleneck

PeakLogix removed the facility’s shipping bottleneck by refurbishing and re-purposing the facility’s 12-year-old sorter. Installing new MDR conveyor to replace outdated, noisy lineshaft conveyor significantly reduced the noise level in the shipping area. The print and apply machines were upgraded with Numina’s current, all-electric models, reducing the facility’s three units to two and eliminating the need for compressed air. A new PC-based conveyor control system was installed to ensure accuracy and efficiency.

RESULTS

The facility has doubled its shipping throughput from 19 cases/minute to 38 cases/minute and more than tripled the amount of accumulation between packing and shipping.

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