DISTRIBUTUON CENTER OPERATIONS DESIGN –
SPECIALTY, HIGH END RETAILER
WITH EXTENSIVE CUSOMIZATION REQUIREMENTS

CLIENT:

Specialty retailer, whose merchandise offerings include an extensive selection of: jewelry, timepieces, sterling silverware, china, crystal, stationery, fragrances and accessories. Customer shipments are through five channels: direct, E-commerce, corporate sales, program recognition and retail.

DESCRIPTION OF OPERATION:

The client places a great emphasis on maintaining the high quality level that is implicit in their name. All incoming product is sampled and tested prior to storage. Before storage the product is washed, wrapped per a specific protocol to assure a consistent presentation.
The distribution center performs additional services including engraving, etching, and watch and clock repair. Returns are an integral part of this consumer-oriented business.
A higher then expected growth rate, the addition of e-commerce business and other factors resulted in distribution requirements that exceed the design capacity for the existing building far ahead of the expected schedule. A new DC was needed to address the customer shipments.

OBJECTIVES:

The primary objective of this project was to design a DC that will contribute to high levels of customer service and increased capacity. Client management emphasized the need to reduce order cycle time without adversely affecting the high standards of quality and care that are evidenced in all of their value added services.

CONSULTING SCOPE OF WORK:

1. Provide operations design services
2. Develop WMS functional requirements to support the new operational processes and material handling infrastructure (includes performance of a high-level “gap analysis” between existing WMS functionality and requirements to support the new operation design)
3. Define functional equipment specifications, prepare bid packages, and assist with the administration of the bid process
4. Provide general implementation assistance on an as needed basis

RESULTS:

The client implemented Gross & Associates’ operations design including; the mini-load automated storage and retrieval system; mechanized systems for receiving, material transfer between workstations and shipping; and custom workstation designs. The operation has met or exceeded expectations.