Int dsi case_study_0

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Int dsi case_study_0

  1. 1. CASE STUDYDISTRIBUTIONSOLUTIONS, INC.
  2. 2. DSI Builds Shipshape DC forLeading Department Store ChainThird-party logistics provider turns W&H Systems and Intelligratedto W&H Systems and Intelligrated to Provide an Automated Solutionboost material handling speed andefficiency for one of the nation’s largestdepartment stores W&H Systems President Don Betman and his team gathered data, put together a five-year plan and began design, but they had a few obstacles toPlease note: Intelligrated acquired the North and South overcome along the way. The manual equipment hadAmerican operations of FKI Logistex® in June 2009. to be moved out, and the DC had to be relocated to a different building to accommodate the new machinery.In the summer of 2005, Jeffery Wolpov saw an In addition, the team needed to obtain the properopportunity. His third-party logistics (3PL) company, permits from the City of Newark.Distribution Solutions, Inc. (DSI; acquired by PortLogistics Group in 2008), was approached by a leading With the pressure of receiving high volumes ofU.S. department store chain to help with container merchandise, the store chain wanted assurance thatprocessing at its Newark, N.J. import facility. the new automated distribution center was going to work, and fast. Working with supplier Intelligrated®Previously, a major logistics company handled the (formerly FKI Logistex®), the W&H team provided peace3PL tasks for the chain’s containers of merchandise as of mind for the store chain and for DSI. The entirethey crossed the Atlantic Ocean and were unloaded maneuver could have easily required up to 12 monthsfor distribution to stores around the country. But the of planning, design and installation, but W&H andlargely manual picking, fulfillment and shipping system Intelligrated completed it in just over five months.made the process an inefficient and costly endeavorfor all parties involved. “We got it done so quickly, I don’t think the department store chain had even decided whichWolpov and the DSI team took over operation of products were being shipped to the East and Westthe facility for the short term and started making coasts when the first cartons went through theimprovements. Wolpov knew that to handle the high system,” Betman said. The fast-paced project camevolumes required by the store chain, they needed to in under budget, ahead of schedule, and exceededautomate. DSI turned to material handling integrator expectations.W&H Systems, Inc. to overhaul the antiquateddistribution center and install a high-speed sortationsystem.“As a 3PL, we needed a sufficient amount of volumeor a large contract to justify the investment inautomation,” explained Wolpov. With the promise oflarge volumes from the department store chain, DSIwas well-positioned to build a modern DC that couldhandle the new business and take on other contractsin the future. www.intelligrated.com 2
  3. 3. “The team comprised of DSI, W&H and Intelligrated As DSI contracts more business, it will be able to addstaff worked harmoniously to get this done in up to six more receiving doors and 23 more shippingtime,” added Betman. “The most important thing doors to increase capacity. The W&H sorter is alsoIntelligrated did was secure us production time at a designed to handle the store chain’s products on onevery busy time of the year for both Intelligrated and side of the sorter and other products on the other sideW&H. They stepped it up, and went over and above to accommodate future growth.what was required.”Following the rapid implementation, the lastingresult has been a system that continues to improvedistribution operations. “The reliability of the systemhas really exceeded our expectations,” Wolpov said.“The combination of proper planning, engineering,construction and maintenance has created anextremely reliable solution with less than one percentdowntime.”High-Speed Sortation Systems ProvideFlexibility for Future GrowthAt DSI’s new facility, a cross-docking system is usedfor cartons direct from containers and Garments On An Intelligrated high-speed sliding shoe sorter routes merchandise destined for store distribution centers.Hangers (GOH) packed flat into cartons — as well asother value-added services merchandise — and readyto ship directly to stores. The system also includes wave The Cross-Dock Processplanning with both full-carton and break-pack pickingfor the replenishment process, where merchandise can Full cartons that are packed and ready to be shippedbe warehoused and sent to stores when needed. to department stores are received at the distribution center and off-loaded directly from an importDSI’s new system incorporates the unique RSU™ tilted container onto a powered extendible conveyor. Thetray sorter from W&H Systems, as well as Intelligrated’s conveyor can be extended into the import container tohigh-speed sliding shoe sorter, which sorts facilitate the unloading of cartons. There are six cross-merchandise for direct loading of outbound trucks dock inbound receiving lines. Each carton passes underdestined for specific store distribution centers. a scanner and is identified by the purchase order and SKU bar codes. The data from these bar codes are used“One of the benefits of our high-speed sliding shoe to print and apply a new shipping label, which the DSIsorters is that they can seamlessly integrate with other system will utilize for sortation processing. The cartonshigh-speed material handling equipment,” said Steve are then transported to the outbound system andMaisch, Intelligrated integrator sales account manager. sorted directly to their proper destinations.“Their compatibility with W&H Systems’ productsmeant that we were able to get this project up andrunning in short order, and get merchandise movingfrom the shipping containers to the store shelvesrapidly and efficiently.” www.intelligrated.com 3
  4. 4. sort location ID bar code. Wave requirements are downloaded from the host to the sorter control system and the sort operation is now ready to begin. The RSU™ sorter, developed by W&H Systems, consists of tilted carrying trays that travel on an enclosed track conveyor. The DSI system is configured as a 965-tray, single-level system. The sorter operates at a speed of 120 feet per minute, which presents approximately 60 trays per minute to each of the two induction areas. There are three manual inductions at each end of the sorter. The trays are presented to the productCartons containing merchandise that does not match inductors at a five-degree angle for easy placement ofthe department store chain’s content requirements items onto the sorter trays. The maximum capacity ofmust be repacked. These cartons are then directed this sorter with full tray utilization is 7,200 pieces perto a special area where each carton is opened and hour.repacked to the department store’s requirements. Therepacked cartons are placed on a takeaway conveyor Items are loaded with the bar code facing up, orand transported to the outbound system. forward into trays, and are scanned by an overhead camera. The data contained in the product’s barGarments on Hangers (GOH) are off-loaded at code is transmitted to the sorter control system andtwo receiving doors and staged on trolleys for identified. It is then matched to the wave informationpacking into cartons. These garments are packed in previously downloaded, and assigned a specific sortcartons according to the department store chain’s location.specifications (style, color, size and quantity). Shippinglabels are applied to full cartons and they are pushed As the carrying trays reach their proper discharge point,onto a takeaway conveyor, where they pass through a the divert mechanism is fired by the W&H controlsemi-automatic sealing machine and are transported system that releases the bottom edges of the RSU™to the outbound system. carrying trays. Gravity is utilized to allow the products to gently slide from the tilted trays into a chute whereReplenishment Process they accumulate. Each side of the RSU™ sorter has a total of 142 sortIndividual Unit Picking Merchandise that is to be locations: 139 order locations; one for items that havestored at the distribution center and shipped as non-readable bar codes; one for not-identified itemsindividual units is received, unloaded and palletized that the bar code can read but for which there is noaccording to SKU. Orders are generated for this requirement; and one jackpot location.merchandise by store department and carton. 139order cartons are grouped and the items batch-picked Operators pick the pieces out of the holding traysfor that group/wave. and pack them into the cartons on pack-out tables. When the carton is full, or the wave is complete, theAt the beginning of each wave, cartons with store- operator pushes the carton onto a takeaway conveyororder bar codes attached are placed onto pack-out under the sorter. The cartons are then transported totables at the sort locations of the RSU™ sorter. A an accumulation conveyor that feeds a tape-sealinghandheld short-range RF scan gun is used to scan machine. The tape-sealing machine then moves theeach carton bar code and assign it to the RSU™ cartons onto the outbound system. www.intelligrated.com 4
  5. 5. Full-Carton Picking Delivering theFull cartons are stored at the distribution center and picked when they are required Resultsfor an order. The full cartons are palletized and then brought to a staging area. Here DSI’s new DC has meant better efficiency through better timethey are labeled and placed onto a take-away conveyor and then transported to the management, reduced labor and overall costs. Since theoutbound system. facility went into operation, Port Logistics Group has achieved the following results:Outbound “Cross-Dock” System • Record production numbers with zero overtimeCartons are merged into one line via a high-speed combiner from Intelligrated. The • Cross-dock operations routinely exceeding operational plans bycombiner directly feeds the shipping sorter. An Intelligrated high-speed sliding shoe 10 percentsorter diverts cartons into 23 pitched gravity conveyor lines that are designed to • Up to 380,000 units processedaccumulate cartons for either processing or truck loading. This high-speed sorter in a one-week timeframe with the RSU™ sorter – twice the one-gently directs cartons to their proper shipping line at a capacity of up to 6,000 week maximum of the old facilitycartons per hour. • Increased individual labor productivity by 50 percentOf the 23 lines, 20 are utilized for direct loading of outbound trucks destined for • Consistent pricing and greaterspecific store distribution centers, one line transports cartons to a repack area, one line marginsto a lay down area where cartons are held for other distribution centers that are not • Twelve-month on-time deliveryactively being loaded, and one line to a no-read/jackpot area for bar codes that cannot performance of 99.7 percentbe read. Cartons can exit off the end of the sorter if their destination line is full and • Less than one percentrecirculated back to sorter induction for another divert attempt. downtime DSI’s 3PL Distribution Center in Newark, N.J. takes advantage of automation to streamline receiving, storage, processing and shipping of merchandise fulfillment.The carrying trays of the RSU sorter are tilted in preparation for sortation. A roller mounted underthe carrying tray rides on a support rail, and the carrying trays are tilted by simply modifying theirelevation. www.intelligrated.com 5
  6. 6. About Intelligrated Intelligrated Service & SupportIntelligrated is a leading American-owned, single-point The in-house Customer Service and Support (CSS) programprovider of automated material handling solutions with offered by Intelligrated backs all of our products. Servicesoperations in the U.S., Canada and Mexico. Headquartered available include:in Cincinnati, Intelligrated designs, manufactures and • IN-24x7® technical support hotlineinstalls complete material handling automation solutions, • Spare parts logisticsincluding IntelliSort® line sortation systems, Crisplant® • Field servicetilt-tray and cross-belt sortation systems, conveyor systems,Alvey® palletizers and robotics, Real Time Solutions® • Equipment and system auditsorder fulfillment systems, warehouse control software • Upgrades and modificationsand advanced machine controls—all supported by 24x7 • Full service and maintenance contractsCustomer Service and Support. • Preventive maintenance • Customer trainingServing the warehousing, distribution, consumer product CSS is available 24x7 to provide all of the services neededmanufacturing, postal and parcel markets, Intelligrated to keep your equipment running at peak efficiency.collaborates closely with its clients to develop productivity Whether it’s on-site support or troubleshooting viasolutions and responds to their needs throughout the life our hotline, Intelligrated has the most comprehensiveof their material handling systems. customer support program in the industry. Service and Parts Hotline Phone + 1 877.315.3400Intelligrated Products www.ontimeparts.comand Services• Systems Integration• Sortation Systems• Conveyor Systems• Palletizing Solutions• Software & Controls• Order Fulfillment Systems• 24x7 Technical Support• Design & Build Headquarters in Mason, Ohio For more information, contact: 7901 Innovation Way, Mason, Ohio 45040 + 1 866.936.7300 info@intelligrated.com www.intelligrated.comCSDSI01 12.09 © 2010 Intelligrated. All rights reserved.

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