Shopko/Shopko Hometown
Retailer improves efficiency, reduces cost using Pick-to-Light
About Shopko
Shopko Stores Inc is a $2 billion retailer headquartered in Green Bay, Wis. The 50-year-old company
operates 134 stores in 13 states providing name
brand merchandise, pharmacy and optical services
to mid-size communities. The company also owned
Omaha-based retail chain, Pamida, and recently
chose to roll these stores under the Shopko brand,
naming them Shopko Hometown. Shopko Hometown operates in smaller markets and offers a
similar but scaled down version of products.
The Challenge
The company’s distribution centers provide product
for both store operations. However, Shopko experienced challenges maintaining a streamlined operation capable of handling two distinct supply chains.
Orders were mixed and delays occurred. Shopko
needed to increase its distribution center accuracy
while reducing costs.
“We had shipments delayed because orders for
our flagship stores got mixed with Shopko Hometown deliveries,” explained Kail Plankey, Manager
of Distribution Systems for Shopko Stores Inc. “We
needed a paperless order fulfillment system that
offered flexibility to meet the needs of both our
Shopko and Shopko Hometown operations.”
Shopko/Shopko Hometown
The Process
Shopko considered several options and providers
before making a decision. In-house attempts to resolve
the problem failed, so the company looked to order
fulfillment providers for solutions. None seemed to
meet all the retailer’s needs that included adaptability,
self-configurable, and a robust selection of reporting
tools.
“Several vendors offered a solution to our challenge,”
Plankey said. “However, every vendor’s solution failed
to meet our requirements until we talked with System
Logistics.
The Solution
System Logistics showed Shopko how to design a
paperless order fulfillment system that delivered the
flexibility required to pick orders for Shopko and
Shopko Hometown stores simultaneously. The DirectPick™ Pick-to-Light system provided an intuitive,
self-configurable solution.
Vendor containers travel along the conveyor to a put
station. Operators remove items from the containers,
placing them in designated totes on a rack. The put
lights indicate the quantity of items for each tote.
When a tote is full, the operator pushes the tote
through the rack where it is placed on another
conveyor headed to shipping and ultimately to stores.
The reporting tools in the system allow Shopko to
monitor and measure productivity. This makes it easy
for on-the-fly changes and advance planning.
The Results
Since its installation, the DirectPick™ Pick-to-Light
system helped Shopko achieve a 99.69% accuracy in
shipments. Furthermore, the reporting tools combined
with the excellent metrics allow Shopko to measure
the improvements in accuracy and efficiency. Finally,
because the system is flexible and self-configurable,
Shopko is confident in its ability to handle future
growth.