the modern distribution center...the modern distribution center john friel – distribution director...
TRANSCRIPT
THE MODERN DISTRIBUTION CENTER
JOHN FRIEL – DISTRIBUTION DIRECTOR
REPUBLIC NATIONAL DISTRIBUTING COMPANY
October 23, 2017
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RNDC AT A GLANCE
ANNUAL VOLUMES
Total Cases Shipped
78,000,000
Bottles Shipped
82,000,000
Total Picks
160,000,000
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ANNUAL DELIVERY INFORMATION
• Over 217,00 Delivery Routes • Making 3.96 million
individual deliveries • Driving 34.5 million miles
• More than 1300 trucks • Over 950 pieces of material
handling equipment (MHE)
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MARKET FOOTPRINT
R N D C
N D C
C O N T R O L
R N D C / Y O U N G S
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RNDC MICHIGAN OPERATIONS
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RNDC OPERATES IN THREE ROLES TODAY IN MICHIGAN
AUTHROIZED DISTRIBUTION AGENT (ADA)
SPIRITS BROKERAGE
WINE DISTRIBUTION
BUSINESS
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MICHIGAN BUSINESSES
Main Distribution Center in
Brownstown, MI
Escanaba, MI
Crossdock
Saginaw, MI Crossdock
Grand Rapids, MI
Hyper Terminal
Traverse City, MI
Crossdock
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MICHIGAN TODAY
FULL CASES
• 2,600,000 from Brownstown DC • 966,000 from Grand Rapids DC • 3,200,000 Total for Michigan • 5.7% of Total RNDC Case Volume
BOTTLES
• 29,600,000 from Brownstown DC • 12,600,000 from Grand Rapids DC • 42,200,000 Total for Michigan • 51% of Total RNDC Bottle Volume
TOTAL CASES
• 5,000,000 from Brownstown DC • 2,200,000 from Grand Rapids DC • 7,200,000 Total for Michigan • 9.2% of Total RNDC Cases Shipped
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ANNUAL VOLUMES - MICHIGAN
• Spirits Bottles • Spirits Full Cases
Orders are placed 48 hours before
delivery
• Wine Full Cases • Wine Bottle Orders
Orders are placed by 5PM, the day before
delivery • All wine orders are packed and merged
• All full case spirit orders are packed and merged.
Trucks are loaded for delivery
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TODAY’S ORDERING CYCLE
BROWNSTOWN PICKING 24 HOURS A DAY FIVE DAYS PER
WEEK THREE SHIFTS
GRAND RAPIDS PICKING 18 HOURS
PER DAY FIVE DAYS PER WEEK
TWO SHIFTS
TOTAL HEADCOUNT PICKING BOTTLES IN
MICHIGAN
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BOTTLE PICKING - LABOR
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SYSTEMS IN USE TODAY
Voice picking application used in Brownstown bottle picking
only
Sortation system integrator (formerly Contech)
Appian Routing systems
How can we reduce the cycle time for customer spirits
orders?
How can we drive greater through put in
our DC?
Are we centrally located for statewide
distribution?
What can we do to reduce out of stocks to
our customers?
How do we uphold our core values of servicing
our internal and external customers?
Does our current distribution system set
us up for long term success?
What technology can we leverage for
productivity improvement?
How are we positioned to handle additional
growth?
Are we delivering best in class service?
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RNDC’S CHALLENGES
LIVONIA, MICHIGAN
MODERN DISTRIBUTION CENTER
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RNDC MICHIGAN DC
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LIVONIA, MICHIGAN
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RNDC MICHIGAN SITE PLAN
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OVERALL FLOOR PLAN
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RNDC MICHIGAN OFFICE PLAN
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OVERALL RACK LAYOUT
RNDC MICHIGAN RACKING TOTALS
NOTE
1. Total number of full pallets = 28,905 (In Rack) 2. Total SKU’S = 26,143 (In Rack) 3. Total number of cases = 1,692,552 (In Rack) 4. Floor storage (Based Upon 3 High Average) = 6,780 5. Total Cases – Floor Storage = 379,680 6. Total Facility Storage as built – 2,072,232
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PICK MODULES
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MODULE #1
“BOTTLE ROOM” / UBER SPIRIT” --- (TWO LEVELS SYSTEM) A. Floor level carton flow (1,344) SKU’S – “Bottle Pick” B. Mezzanine level carton flow (648) SKU’S – “Bottle Pick” C. Mezzanine level static shelving (5 levels) – (9,625) SKU’S –
“Bottle Pick” D. Total SKU’S in Module #1 – (11,617) – “Bottle Pick”
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MODULE #2 & #3
FLOOR LEVEL “BOTTLE PICK” (CARTON FLOW) MEZZANINE LEVELS 2 AND 3 “FULL CASE” (PALLET FLOW) – (THREE LEVEL SYSTEM) A. Floor level carton flow (1,412) SKU’S – “Bottle Pick” B. Mezzanine levels two and three (full pallet pick) (40) SKU’S in “Dedicated Pick” (288) SKU’S in “Cluster Pick” (8) Empty pallet return lanes
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MODULE #4
FLOOR LEVEL “FULL CASE” (CARTON FLOW) MEZZANINE LEVEL 2 “FULL CASE” (PALLET FLOW) LEVEL THREE “FUTURE” – (TWO LEVEL SYSTEM) A. Floor level carton flow (884) SKU’S – “Full Case Picking” B. Mezzanine level 2 (full pallet pick) (20) SKU’S “Dedicated Pick” (144) SKU’S “Cluster Pick” (4) Empty pallet return lanes
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MODULE #5
200ML SPIRITS “BOTTLE PICK” (CARTON FLOW) FLOOR LEVEL ONLY A. (456) SKU’S – “Bottle Pick”
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SUMMARY
SUMMARY OF SKU’S IN MODULES #1, #2, #3, #4 AND #5 A. (5,272) SKU’s “Bottle Pick” – “Carton Flow” B. (9,625) SKU’S “Bottle Pick” – Static Shelving” C. (884) SKU’S “Full Case” – “Carton Flow” D. (100) SKU’S “ Full Case” – Dedicated” E. (720) SKU’S “Full Case” – “Cluster Pick” F. (20) Empty Pallet Return Lanes G. (16,601) Total available SKU’s – “Pick Locations”
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PICKING AND SORTATION SYSTEM
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RNDC LIVONIA CONVEYOR SYSTEM
Four distinct bottle rooms
Six full case pick lines
Four Aisle Shuttle system
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RNDC MICHIGAN SHIPPING SYSTEM
MEDIA1.MP4
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SHUTTLE/BUFFER SYSTEM
Single deep system –Allows higher rack utilization –Ensures smoother inbound processing 4 aisles (future 5th aisle) –15,260 locations, expandable length in future 8 lifts 64 shuttle vehicles total, plus 2 spares 2,400 cases/hour
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SHUTTLE/BUFFER SYSTEM
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SYSTEMS IN USE TOMORROW
Voice picking application used in Brownstown only
Sortation System Integrator
Roadnet Routing Systems
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SYSTEMS IN USE TOMORROW
Shuttle/Buffer System
GreenMile Driver Tracking Technology
Geotab Drive through Gridline for ELD and Driver
Performance
Blue Violet Networks Video
Verification
Manhattan Associates WMS
& LMS 38
SYSTEMS IN USE TOMORROW
WMS, LMS AND SLOTTING
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• MANAGES THE FLOW OF PEOPLE, PRODUCT AND INFORMATION THROUGH THE WAREHOUSE TO EFFICIENTLY AND ACCURATELY SERVICE OUR CUSTOMERS
• PROVIDES REAL TIME INVENTORY VISIBILITY AS PRODUCT MOVES THROUGH THE WAREHOUSE
• ACTS AS AN INFORMATION HUB PROVIDING DATA FOR OTHER APPLICATIONS; LABOR MANAGEMENT, SLOTTING, WAREHOUSE CONTROL SYSTEMS, VOICE PICK, AND HOST INVENTORY LEVELS
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WHAT WMS PROVIDES RNDC
FUNCTIONALITY PROVIDED BY WMS
Inventory Management
Execution
Inventory Consolidation
Putaway
Vintage Management
Cycle Count
Inventory Control
Warehouse Transfers
Inbo
und Shipment
Scheduling Receiving Returns
Material Handling Interfaces RF & Voice Support User Profile & Security Bar Code Compliance (GTIN)
Activity Tracking Task Management
Planning
Cartonization Dynamic Pick Locations
Inventory Allocation
Fulfillment Wave
Management Replenishment
Out
boun
d
Pick/Pack Exception Handling
WMS • Engineered
Standards
• Individuals
•Teams
Labor Management
Time and Attendance
100% Web-based Application
HOW DOES LMS WORK
GOLDEN ZONING SLOT FASTEST MOVING ITEMS IN THE BEST PICKING LEVELS.
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SLOTTING’S LOGIC
medium fastest demand
slowest
golden zone
HOW THIS CHANGES OUR BUSINESS
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ORDER CYCLE TOMORROW
• Spirits Bottles • Spirits Full
Cases
Orders are placed 24 hours before delivery
• Wine Full Cases • Wine Bottle
Orders
Orders are placed by 5PM, the day before
delivery • All orders are packed and merged
Trucks are loaded for delivery
Livonia Distribution
Center
Traverse City
Crossdock
Escanaba Crossdock
Grand Rapids
Crossdock
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NEW DISTRIBUTION MODEL
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2019 OPENING – LIVONIA, MI