CASE STUDY OFFICEMAX OFFICEMAX POWERS DISTRIBUTION FACILITIES WITH JENNIFER™ OfficeMax is a leader in both business-to-business office product solutions and retail office products and one of the fastest growing companies in the past two decades. Headquartered in Itasca, Illinois, the company provides office supplies and paper, technology products and solutions, and furniture to large, medium and small businesses and consumers. With over $8 billion in sales, over 40,000 associates, almost 1,000 superstores, 25,000 products and a range of business services, OfficeMax meets the needs of enterprise-level, mid-size and small businesses, and individual customers. Each OfficeMax superstore offers approximately 8,000 stock-keeping units (SKUs) of name brand and OfficeMax -branded merchandise – a wide range of in-stock items not traditionally found in office supply stores. The company also reaches customers in the United States through its award winning ecommerce site, OfficeMax.com, its direct-mail catalogs, and its outside sales force, all of which are serviced by more than 30 delivery centers, two national customer call and contact centers and three 600,000 square foot PowerMax distribution facilities. THE OPPORTUNITY In 1998, OfficeMax built three 600,000 square foot PowerMax warehouses, located in Hazelton, PA, McCalla, AL, and Las Vegas, NV to help improve inventory turnover. All three warehouses run SAP’s warehouse management software and handle over 95% of the retail store inventory replenishment. The facilities in Hazelton and McCalla were equipped with pick to light systems for broken-case picking. The Nevada facility had a paper system, as it was serving a newer market and its processes were still evolving. When the time arrived to consider more automated capabilities for the Nevada facility, OfficeMax considered pick-to-light and also decided to evaluate voice. The principal goals of the project were to increase the accuracy and productivity of their piece picking operations. McCalla, AL PowerMax Facility CASE STUDY OFFICEMAX “ ―Training and support from Lucas during roll-out was great. Jennifer is easy to use. The associates picked it up very quickly and enjoy using it…. They would never go back to paper.‖ THE SOLUTION THE RESULT Implementation at the Las Vegas facility was done by a team of Lucas on site engineers to ensure a smooth ramp up. ―The Las Vegas team was our pilot site, and early results were great‖ states Alan McDonough, Director of Logistics Systems at OfficeMax. ―In a very short period of time, the entire warehouse team was able to successfully migrate from using paper to using Jennifer.‖ Today Jennifer is fully implemented for broken case and full -case picking in all three PowerMax facilities. Accuracy has increased from 99% to more than 99.9%. Productivity also increased by 10- 12% overall, a significant improvement given the productivity of the previous pick-to-light systems. McDonough adds, ―At first the warehouse associates were apprehensive because talking to Jennifer was different than other systems they had ever used. But they quickly adjusted, and now they would never go back to paper.‖ Concludes McDonough, ―Lucas was the best match for us. They are very strong in software, and Jennifer is easy to use. Our warehouse team picked it up quickly and now really enjoy it.‖ As a result of the smooth roll-out and positive accuracy and productivity gains at Las Vegas, OfficeMax decided to implement Jennifer at the other two PowerMax facilities in Alabama and Pennsylvania, both of which had been considering an upgrade to their existing pick-to-light systems. Armed with experience from the first Jennifer roll out, the OfficeMax implementation team was able to handle 90% of the training needed at the other facilities, reducing cost and reliance on Lucas. Based on the success of the Jennifer piece-picking solution, OfficeMax later turned to Lucas to extend the Jennifer™ solution to the case-picking areas using Motorola MC9000 terminals. ABOUT LUCAS SYSTEMS Lucas has delivered more voice-directed logistics solutions for distribution centers on a wider variety of mobile computers than any other company. We work with market leaders in many industries—food and beverage, retail, 3PL, manufacturing, and healthcare—to provide solutions that increase accuracy, productivity and employee satisfaction. Our solutions use best-of-breed voice technology, open SOA software standards, and open, multi-modal mobile computers from industry leaders like Motorola, Honeywell, and Intermec. Hazelton, PA PowerMax Facility To learn more, call (724)-940-7000, email Jennifer@lucasware.com or visit us at www.lucasware.com Special thanks to The Facility Group (www.facilitygroup.com), the design build firm for the PowerMax facilities, for allowing us to use their photos. Other photos courtesy of OfficeMax. Jennifer is a trademark of Lucas Systems, Inc. All other product or company names are trademarks of their respective companies. © 2007 Lucas Systems Inc. PAGE 2