A Distribution Case Study That's Ahead Of Its Time.
Our Challenges.
Citizen needed to reduce their order processing time to maintain their
competitive edge while responding to ever increasing vendor compliance
requirements. They also needed to accommodate a diverse customer base
from "mom and pop" to the largest retail chains in the country, each
requiring the product with different configurations, labeling, and
packaging.
Simply put, figure out how to increase capacity, accuracy, service,
and timeliness while lowering fulfillment cost and time to market.
Sound familiar?
From Years Of Doing, We Quickly And Confidently Knew.
When we toured their distribution center, we observed a paper based
batch order process, manual ticketing and labeling, sequential processing
that required the entire order to be prepared before moving to the
next step, and dedicated inventory that had to be reworked when orders
where changed by the customers.
We knew there was a better way.
Must Be Our Experience In Retail Distribution Solutions.
That's easy to say, but it takes a clever eye and expert thinking
to assess the opportunity, determine the improvements that can be
made, and the corresponding benefits and ROI.
Top-Line, Here's What We Saw:
- Labor intensive ticketing and kitting process with the order
fulfillment process slowed by the slowest operator and highest volume
model.
- Complex sales kits that varied by account and watch model.
- Paper based orders and index card inventory location.
- No real-time on-line inventory management made responding to
changing requirements difficult.
- No real-time information on order status once orders were released
to
the floor for kitting and fulfillment.
- Multiple picking locations for the same watch based upon customer
and
packaging requirements.
- Shifting demand and back orders made production in advance of
requirement impractical.
Our Solutions - Here Are The High Points.
- Reconfigure inventory to increase product security, reduce picking
time, and reduce management of open-stock product.
- Change from paper based batch processing to fluid wave processing
using RF scanning.
- Increase efficiency by automatically combining orders with the
same product configuration.
- Reduce labor input through labor saving automatic ticket generation
and application.
- Increase efficiency by automatically delivering totes containing
all materials required for assembly to the next available operator.
- Eliminate packing rework by automatically cartonizing orders to
cartons before order fulfillment.
- Replaced labor intensive picking process with sophisticated automatic
sortation system.
Results.
- Eliminate Saturdays and overtime to meet peak demand.
- Reduced labor content by 1/3, or nearly 66,000 paid hours per
year.
- Reduce order fulfillment cycle by one half to one day, significantly
increasing the percentage of orders shipped the same day.
- Improved accuracy and reduced charge backs due to picking errors.
- Easily accommodated value-added requirements for Citizen's retail
accounts.
We Did, And Our Client Knows.
"Together we have designed a system that performs VAS very efficiently."
John Forbes, Sr. VP Operations & Administration, Citizen Watch
Company of America.
Expert Thinking At SDI Consulting.
We're the best group of experienced, strategic, logistical, customer-focused
materials handling expert thinkers on the planet. Our consultants
have over 125 years of collective industry solutions in the retail
distribution environment.
For more information on Citizen Watch contact:
Patrick Eidemiller
or Mary Adams