Pick Productivity at C.C. Dickson Co. Jumps 340% with PathGuide® Latitude
Warehouse Management System
July 2007
Overview
Founded in 1933, C.C. Dickson Co. is one of the largest wholesale distributors of
heating, air conditioning, ventilation and refrigeration equipment in the southeastern
United States with more than 500 employees and 110 branch locations in nine states.
In 2001, as part of an aggressive growth plan for gaining market leadership, C.C. Dickson
Co. determined it would move from its “paper-based” system for inventory management
to a radio frequency (RF) scanner based system. The company turned to the Latitude
Warehouse Management System from PathGuide Technologies, a leading provider of
warehouse management systems for wholesale and industrial distributors.
Since deploying Latitude, C.C. Dickson Co. has experienced the following productivity
results:
 Pick productivity has increased by almost 340 percent while maintaining the same
level of warehouse staff. (In 2001, prior to the Latitude deployment, 41
warehouse employees processed about 6,000 lines per week. In 2007, 34
warehouse employees now process about 17,000 lines per week.)
 Inventory management accuracy consistently runs at 99.9 percent.
 Inventory levels were reduced by more than two-thirds. C.C. Dickson Co. now
operates one distribution center at 80 percent capacity compared to three
distribution centers at 60-75 percent capacity each.
 Shipments from the distribution center to branch stores decreased by three days.
Latitude is a software suite that automates warehousing and distribution to provide realtime online information about all inventories. Latitude automates all operations from
receiving and order picking to manifesting and truck route/stop management. It integrates
seamlessly with ERP business systems and is designed to help industrial distributors pick,
pack, and ship orders faster and more accurately, resulting in greater productivity and
profitability.
The Challenge
Prior to Latitude, C.C. Dickson Co. utilized a paper-based system and its branch stores
operated autonomously with minimal communication between branches. Under the paper
based system, warehouse employees were required to memorize product names, as well
as the specific location of each product within the warehouse.
The company was running a “spoke and wheel” operation where inventory would be
transported from distribution center to distribution center before arriving at a branch
location. Regular shipments took three to four days to reach an outlying branch, and
branch transfers could take up to two weeks based on the trucking route.
The Solution
C.C. Dickson Co. sought a wireless (RF) warehouse management solution that would
provide branch stores with real-time information and improve communication from a
distribution perspective. The company also aimed to increase productivity and efficiency
within the distribution centers.
“We considered several solutions on the market and Latitude really was the best fit in
terms of offering all the warehouse functionality we needed at a reasonable price,” said
John Ponder, logistics director at C.C. Dickson Co. “We didn’t want something overly
complex, and we appreciated that Latitude integrated with our Prophet 21 ERP system,
which enabled us to have a robust solution without making any sacrifices.”
Latitude was deployed in the main distribution center located in Rock Hill, South
Carolina, as well as in two smaller distribution centers. At the time, C.C. Dickson Co.
was moving about 1,000 lines a day through the main center. After nearly six months of
using the new system, the company determined it was holding far more inventory than
needed. C.C. Dickson Co. subsequently was able to close down the two smaller
distribution centers while continuing to significantly increase overall productivity.
“With Latitude we could clearly see our inventory and determine what was needed as
well as identify duplicates,” continued Ponder. “Since closing the two centers and
consolidating inventory we have drastically reduced distribution center total inventory
levels – they have yet to reach the levels they were at with the three centers. By reducing
this inventory we have been able to move more inventory to the branches for improved
point of sale availability. As you can imagine, the cost savings and improved customer
service have been phenomenal.”
Higher Pick Productivity, Faster Service
With Latitude, employees are quickly directed to items within the warehouse and no
longer need to memorize product names and locations. With the increased efficiency
brought by Latitude, C.C. Dickson Co. has maintained the same level of warehouse staff,
but pick productivity has increased almost 340 percent. Pick productivity continues to
grow approximately 25 percent annually. Inventory management accuracy consistently
runs at 99.9 percent.
Transportation times have also significantly improved. Today, when a product ships out
of the central distribution center it typically arrives in one day (rather than three to four
days), and branch transfers now take three days maximum (rather than two weeks).
“Latitude has helped us be more competitive in the market by providing the branch stores
with real-time information about inventory availability,” continued Ponder. “Now when a
2
customer walks into a store and needs a product that is out of stock, the store associate
can immediately find the product and have it delivered the same day. This level of service
sets C.C. Dickson Co. apart.”
Aggressive Growth Plans
Today C.C. Dickson Co. is one of the most technologically advanced HVAC/R
distributors and is a company well poised for growth. It is currently on track to add 20
new branch stores within the next three years and anticipates the ability to increase sales
by 75 percent without expanding the size of its current distribution center.
“Our goals for growth wouldn’t have been feasible prior to Latitude,” says Ponder. “Our
relationship with PathGuide has been a critical part of our success and it’s key to our
strategy moving forward. We’ve been very pleased with PathGuide’s openness to new
ideas and solutions, as well as their commitment to our growth.”
About PathGuide Technologies
PathGuide Technologies, Inc., a privately held company founded in 1989, is a leading
provider of warehouse management solutions for small to midsized wholesale and
industrial distributors across North America. PathGuide’s software and services help
suppliers increase productivity and order accuracy, improve customer service and lower
labor costs, ultimately driving greater profitability. To learn how distributors of all sizes
can benefit from improved warehouse management, visit www.pathguide.com.
###
PathGuide is a registered trademark of PathGuide Technologies Inc. in the United States.
3