1) Fred's, a regional retail chain, upgraded its aging distribution center server and order fulfillment software from Intelligrated to increase productivity and efficiency. 2) The upgrade to the latest version of Real Time Solutions order fulfillment software was seamless and didn't disrupt operations due to being implemented during Fred's slow season. 3) The new software provides enhanced reporting, user customization, and suspend functionality to improve accuracy and worker efficiency in Fred's distribution center.

1. CASE STUDY
FRED’S

2. Fred’s Values Consistency
Required to replace its aging distribution A Long Relationship
center server, a regional retail chain takes
the opportunity to upgrade its order
Fred’s relationship with Intelligrated dates back to
fulfillment software — and doesn’t miss a
beat during the changeover. the retrofit of its 800,000-square-foot Memphis
distribution center in 1998. The DC features four
Intelligrated multilevel pick-to-light modules for full-
Please note: Intelligrated acquired the North and South
case picking, one multilevel pick-to-light module for
American operations of FKI Logistex® in June 2009.
less-than-full-case picking, an Intelligrated sliding shoe
sortation system for shipping full and less-than-full-
When the first Bargain Center opened in Coldwater,
case cartons to retail stores.
Mississippi in 1947, a 12-ounce bottle of Pepsi sold for
five cents. More than 60 years and a name change later,
With more than 10 years of experience using Real Time
what was once a humble variety store has grown into
Solutions ® (RTS) order fulfillment software, Fred’s is
a regional retail powerhouse consisting of more than
a believer in the software. Corey Punches, Director
700 Fred’s stores and 300 Fred’s pharmacies. But after
of Distribution Systems, Fred’s Memphis, appreciates
six decades of growth, one thing hasn’t changed —
how seamless the transition to RTS order fulfillment
the company’s dedication to offering values that rival
software version 16 was. “The interface is familiar, so
a nickel soda.
even though it has additional functionality we didn’t
have to train associates out on the floor,” he said. “In
That’s why, when faced with the need to replace the
fact, it’s even easier to use than the previous version.”
aging Hewlett Packard HP D270 server at its 10-year-
old distribution center in Memphis, Tennessee, Fred’s
management team decided to upgrade its order New Functionality Enhances Efficiency
fulfillment software at the same time. ”Productivity and Convenience
is a key factor in all of our decision-making processes.
This is the one area where we can continue to drive
One of the new features of RTS software is its
leverage into our business, which allows us to protect
“suspend” function. When a picker comes to a location
pricing for our customers,” said Reggie Jacobs,
that is out of stock, he or she can place the missing
Executive Vice President of Distribution, Transportation
item on hold and move to the next location. The
and Store Services, Fred’s Headquarters. “We’ve been
system will send the picker back to the suspended pick
using Real Time Solutions order fulfillment software
location when the item has been restocked. “Allowing
from Intelligrated® (formerly FKI Logistex®) since
workers to move past a problem and continue picking
1998, so as long as we were going to have to load
adds to their work efficiency,” said George Christian,
software on the new server anyway, we decided to
an Intelligrated senior project manager. “By reducing
take advantage of the added functionality of the
the potential for an operator to confirm a pick without
latest version of Real Time Solutions order fulfillment
actually picking an item, the suspend function also
software.”
increases the accuracy of orders,” he added.
www.intelligrated.com 2

3. In addition to the suspend function, the latest RTS upgrade also adds enhanced
reporting tools for workload planning management, quality assurance and audits,
productivity, order status, wave management and user maintenance. Users can create
detailed and customized reports, which can be exported to Crystal Reports and other
business intelligence applications.
Using the dynamic zoning tools offered by RTS version 16, Fred’s supervisors and order
pickers can easily manage the system during operations. Supervisors can reassign
workers to order-picking zones based on available personnel or remaining time in a
shift, and order pickers can reduce or increase their zones by scanning bar codes to add
or drop sections.
The new version of RTS also includes a “My View” feature, which allows logged-in users
to customize screen views and specify the section ranges that appear on employee work Fred’s uses the Real Time Solutions
status, workload planning, and work history screens. pick-to-light order fulfillment
system from Intelligrated to
increase productivity and
The software’s new graphical user interface connects through an application efficiency in its distribution center.
downloaded onto the computer, instead of through a browser. This technology
provides intuitive navigation and supplies users with the convenience of remote access
via an intranet or internet connection. Fred’s Memphis
DC Volume and
Upgrade is Completed Without Missing a Shipment Usage Stats
7.5-hour shifts 2
To minimize disruption to its distribution operation, Fred’s decided to implement the Pick locations 6,000
new system in mid-December, its slowest time of the year. Intelligrated completed all
Real Time 236
of the design work, hardware purchasing (including the new HP server), and system Solutions sections
testing at their Alameda, California facility in the fall of 2007 and began installing
Orders per shift 8,200
the system at the end of the day shift on Friday, December 14. The system was up and
Order lines per shift 140,000
running by the following Monday.
Orders in the 16,500
database at one time
“This was a very easy process for us,” Punches said. “Intelligrated did a great job with
the upgrade. Once they finished installing the new system all we had to do was plug it Order lines in the 280,000
database at one time
in and turn it on.”
Batches in the 250
database at one time
With the new hardware platform supportable for another five to ten years, it is fully
capable of keeping up with Fred’s future growth. Fred’s plans to upgrade its Dublin, Simultaneous order 56
fillers using tethered
Georgia DC to the latest EASYpick release soon, which will provide company-wide scanners
consistency and allow the chain to maximize order fulfillment efficiency. Working with
Intelligrated, Fred’s can continue to offer the values and customer service that have
fueled its growth for more than six decades.
www.intelligrated.com 3

4. About Intelligrated Intelligrated Service & Support
Intelligrated is a leading American-owned, single-point The in-house Customer Service and Support (CSS) program
provider of automated material handling solutions with offered by Intelligrated backs all of our products. Services
operations in the U.S., Canada and Mexico. Headquartered available include:
in Cincinnati, Intelligrated designs, manufactures and • IN-24x7® technical support hotline
installs complete material handling automation solutions,
• Spare parts logistics
including IntelliSort® line sortation systems, Crisplant®
• Field service
tilt-tray and cross-belt sortation systems, conveyor systems,
Alvey® palletizers and robotics, Real Time Solutions® • Equipment and system audits
order fulfillment systems, warehouse control software • Upgrades and modifications
and advanced machine controls—all supported by 24x7 • Full service and maintenance contracts
Customer Service and Support.
• Preventive maintenance
• Customer training
Serving the warehousing, distribution, consumer product
CSS is available 24x7 to provide all of the services needed
manufacturing, 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 via
solutions and responds to their needs throughout the life
our hotline, Intelligrated has the most comprehensive
of their material handling systems.
customer support program in the industry.
Service and Parts Hotline
Phone + 1 877.315.3400
Intelligrated Products www.ontimeparts.com
and 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.com
CSF01 1.10 © 2010 Intelligrated. All rights reserved.