3. “Due to the rapid increase in volumes and the
complexities of orders, Dexion introduced more
sophisticated solutions and moved from paper based
to RF picking as well as automating the movement
of orders via conveyor systems to pick modules.”
With sales already in excess of half a Back then Super Cheap Auto operated a
billion dollars this year, the Super Cheap small 600-700m2 warehouse that serviced
Auto Group, incorporating Super Cheap four or five stores.
Auto BCF (Boating, Camping and Fishing),
In the mid 90’s Super Cheap moved to a
is growing rapidly.
significantly larger site in Newmarket
Without an industry-leading supply chain which was again fitted out with Dexion
management system, the Super Cheap pallet racking and shelving. Whilst there
Auto Group would be unable to service the business started to grow rapidly and
this growth, and deliver customers the to cope the storage equipment was
level of service they demand. completely reconfigured to add more
storage capacity.
The Super Cheap Auto Group philosophy
is simple - right product, right place, right By the end of the 90’s it was obvious that
time or else! The product must be there the Newmarket facility would not cope
when you need it to be there, at the right with the projected growth and plans to
price or customers will take their business move to the current site in Lawnton began
elsewhere. to take shape.
Super Cheap began operating the new
Super Cheap Auto Group and warehouse, two low level buildings,
Dexion: A long-term relationship. in 2001. Due to the rapid increase in
Dexion has been managing the storage volumes and the complexities of orders,
and materials handling requirements of Dexion introduced more sophisticated
Super Cheap Auto for many years. Keith solutions and moved from paper based
Clarris and his team at the local Brisbane to RF picking as well as automating the
Dexion Supply Centre have been associated movement of orders via conveyor systems
with Super Cheap since the late 80’s. to pick modules.
Dexion Case Study – Super Cheap Auto
4. “A typical 6 day week will see a million units into the
facility and out again, we’ve pretty much doubled the
volume through this place with the same resource levels.”
Super Cheap then concluded the low level company culture that emphasises true
buildings would not suffice and these were “partnerships” with its suppliers, to ensure
consolidated into one large warehouse. its rapid growth is sustainable and
Dexion again managed the move, installing manageable.
an advanced order fulfilment system as
Super Cheap Auto operates over 230
well as dismantling the existing rack systems retail outlets throughout Australia and
and reconfiguring them in the new facility. New Zealand. In 2003, the Super Cheap
According to Steve Tewkesbury, General Auto Group identified camping and
Manager – Overseas Sourcing, the outdoor leisure products as a retail A number of key changes have been better with the increased volumes,” he said.
philosophy behind the upgrade is based category which provided an opportunity to made to the operation which included the
“This is a high density warehouse,” said
on enhancing systems with inherent develop a new and innovative retail format. extension of the mezzanine above the
In only its 2nd year of operation, there are Walsh, “and a typical 6 day week will see
flexibility that support a supply chain existing sortation lanes, utilising the wasted
now 32 BCF retail stores in Australia. a million units into the facility and out
designed to carry the business forward air space and increasing the mezzanine
The Super Cheap Auto Group’s supply again, we’ve pretty much doubled the
and into the future. floor area by 65%.
chain ensures that 97% of available stock volume through this place with the same
“The Super Cheap Auto Group is working is in all stores at all times and 98% of the According to Brendan Walsh, Queensland resource levels.”
on an aggressive growth vision that will “top 200” lines are in stock. Distribution Manager, a number of changes
see the company reach a billion dollars in at an operational level have led to dramatic “Dexion has been able to share in Super
sales by 2010,” said Tewkesbury. “For this In the last 15 months the storage capacity Cheap Auto Group’s success,” said Walsh.
increases in productivity and storage
has increased from 4,500 to 9,500 pallet “They have worked very closely with us,
to happen we need to continually assess capacity. “We altered the carton live
positions as a result of Dexion redesigning
our warehousing and distribution techniques storage system and extended the depth progressively advising regarding our
the rack configuration in the distribution
to ensure we can distribute product to our by 20% and increased the capacity by storage and order fulfilment requirements.
Centre and the introduction of Deepstor
retail outlets efficiently and cost effectively.” 50%,” said Walsh, “and by extending the The relationship has proven valuable in
drive-in racking in an adjoining warehouse.
Today, the Group uses a combination The adjoining warehouse enables product depth of the CLS we reduced the travelling terms of aligning with a world class
of the latest technology, processes and to be delivered into one pick face, distance of the pickers by 50%. We also organization that delivers what it says it
applications, together with a unique reducing the number of handling phases. installed high density rollers which cope will,” he said.
Dexion Case Study – Super Cheap Auto
