S.P. Richards Project Presentation
Rick Weeks – Director, Operational Excellence
S.P. Richards Company
Amy Severance – Manager, Supply Chain Applications
Genuine Parts Company
1
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)
2
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
3
S.P. Richards Co. ~ Supply Chain Network
4
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)
5
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
6
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
7
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
8
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)
Lines/Day
# of SKUs
% of SKUs
% of Lines
Zone 1
2+
427
2.1%
29.4%
Zone 2
1-2
790
3.8%
17.8%
Zone 3
0.2
5,794
27.9%
38.7%
Zone 4
0.1
3,972
19.2%
8.8%
Zone 5
<.1
7,883
38.0%
5.3%
Zone 6
0
1,864
9.0%
20,730
100.0%
100.0%
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
14