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  1. S.P. Richards Project Presentation Rick Weeks – Director, Operational Excellence S.P. Richards Company Amy Severance – Manager, Supply Chain Applications Genuine Parts Company

  2. S.P. Richards Company Overview • Wholesale Distributor of Office Supplies and Furniture • 2009 Sales of $1.6 billion • Stock over 40,000 distinct items • Sell to over 4,000 independent Office Products Resellers • National Customers • Staples • Office Depot • OfficeMax • FedEx Kinko’s • Subsidiary of Genuine Parts Company (NAPA)

  3. S.P. Richards Company Footprint • 35 Full Service Distribution Centers across US • Average 140,000 sq ft • Range 72,000 to 272,000 sq ft • 2 Furniture only warehouses in US • 2 Full service warehouses in Canada • 3 Furniture only warehouses in Canada • 3 Redistribution Centers for imports

  4. S.P. Richards Co. ~ Supply Chain Network

  5. S.P. Richards Company Order Profile • 69,000 Orders per day • Average order size 2.4 lines • Average line value $42.50 • 165,000 lines per day • Over 80% EDI • 20% Drop Ship directly to the end consumer • Next day delivery • Orders delivered primarily on SPR Trucks • Approximately 18% of orders delivered by a parcel carrier (UPS/FedEx)

  6. Business Overview • Wholesale distribution • Types of orders • Wrap and Label • Drop Ship • Stock Orders • Will Call • Storage Location description • Active vs. Reserve • Examples of types of items • Pens – Active in Shelving and Reserve in Shelving • File Folders – Active in Shelving and Reserve in Bulk • Standard cases pulled from reserve if inventory available • Waving strategy – pick batches

  7. Picking Process in Detail • Picker uses Pick Cart Summary label to initiate picking process with Voice Picking application • Voice directs picker to the storage location • Picker picks product and returns to cart, placing item(s) into the correct slot in the tote • Voice directs picker to next storage location • When picking is completed, picker returns totes to the packing area • Picker retrieves labels for next pick batch

  8. Dallas Warehouse Layout • Drawing is to scale and each cell on spreadsheet represents a 2’ square • Shelving bays are 24 inches deep by 48 inches wide • Within each bay there are 6 shelves, 18 inches apart • Top shelf is Reserve only

  9. Project Description - Dallas Distribution Center Study • Question 1: Should SPR pursue pick-to-conveyor as a picking strategy, as an alternative to cart picking? Study the potential benefits of such an investment. • Would such an arrangement make sense at SPR-Dallas? • Predict the effects on rate of order-picking. • How would each warehouse process be adapted to such an arrangement? • How much volume would be required to be picked out of a certain zone to justify a conveyor?

  10. Slotting Strategy • Extract sales data from Warehouse Management System • Calculate lines ordered per week (with data for active picks only) • Use this data to break items into “velocity zones” (as opposed to geographic zone)

  11. Slotting Strategy • Determine “velocity zones” in layout using highlighting • Zone 1 – 4 to 5 weeks on-hand space allocation • Zone 2 – 5 to 7 weeks on-hand space allocation • Zone 3 – 8 to 10 weeks on-hand space allocation • Other zones – 12 weeks on-hand space allocation • Balance minimizing pick face in order to minimize pick path with manageable replenishment

  12. Slotting Strategy • All items from a given manufacturer are kept together as much as possible to facilitate stocking, then slotted by “velocity zone” within that manufacturer • Allocate shelf space for at least a full case for each item • Small, loose items are more ideal in middle shelves, rather than top/bottom shelves. Items in boxes can be picked more easily from higher and lower shelves than loose items. • Avoid putting like items next to each other (black, blue, red of same pen). • Group items with common traits such as dated items, security items, items with expiration dates, and hazmat items

  13. Project Description - Dallas Distribution Center Study • Question 2: Use the planned slotting arrangement (provided) and description of slotting strategy to make slotting recommendations for the forward pick area. • Should SPR use a different slotting strategy? • Is there a slotting plan which would improve the operation? • Recommend a location naming scheme, meeting the following criteria • Should be 7 characters • Zone, Aisle, Bay, Level, Position • May be a combination of letters and numbers