U Co-op Association/Enshu Truck Co., Ltd. (Construction of Cold Distribution Center)
Mr. Atsushi Okazaki (General Manager, Production Logistics Department, General Planning Headquarters) / Mr. Kenji Ishikawa, Enshu Truck Co., Ltd. (Deputy General Manager of Kanto Division and Director of Atsugi Cold Center)
Challenges
- Improve picking/order fulfillment productivity.
- Expand the number of SKUs that can be handled.
- Thorough product temperature control.
- Improve system of goods-in and storage.
Results
- Increased the number of lines and doubled the put-away capacity.
- Improved productivity by implementing a state-of-the-art solution.
- Achieved better low-temperature control of the whole building.
- Built an environmentally friendly, energy-saving system.
BackgroundNeeded to reduce our over-capacity situation by increasing order fulfillment performance.
Background
Needed to reduce our over-capacity situation by increasing order fulfillment performance.
The Nakatsu Center, opened in 1996, expanded to home delivery and reached its limit of order picking based on increasing home delivery orders. Without significant improvements, we will be overcapacity in 2010. The temperature of the center is 15℃, and temperature control is a problem in the summer months.
A new center needed enough lines to accommodate the increase in frozen items while maintaining temperature control.
We outsourced the work to Enshu Truck which had experience working with Yoshida Dry Set Center. Our goal was to consolidate cold-storage, goods-in inspection and the Enshu Truck’s Atsugi cold storage center together in a large complex center called Morinosato Set Center.
Reasons We Chose Toyo Kanetsu Solutions:Toyo Kanetsu applied many years of expertise to propose a much better system.
Reasons We Chose Toyo Kanetsu Solutions:
Toyo Kanetsu applied many years of expertise to propose a much better system.
Enshu Truck Co., Ltd. expanded their operations to Yoshida Dry Set Center in Shizuoka. Toyo Kanetsu installed the equipment at the Yoshida center, which has an excellent reputation of operating smoothly and without trouble. U Co-op also has a long partnership with Toyo Kanetsu Solutions, and together, we have developed the distribution model for co-ops in Japan. Toyo Kanetsu was the natural choice to solve these problems.
We wanted to develop a totally new production control system so there was some trial and error at the beginning. Toyo Kanetsu was indeed a very trustworthy partner and gave us a lot of good advice, and pointed out issues or potential problems that we had not even thought to consider. The engineers and technicians at Toyo Kanetsu are true craftsman who take pride in their work, without ever cutting corners. We felt rest assured that the job would be done right.
BenefitAn innovative system with greatly improved productivity.
Benefit
An innovative system with greatly improved productivity.
The "Morinosato Set Center" is three times larger than the old center with a floor area of 9000 m2. It is a great location mostly surrounded by mountains, with a great view of Daisen from the front of the complex. By increasing the number of picking lines from 4 to 6, we were able to double our order picking capacity. We increased the number of items we handle from 230 to 350, and on average, pick 280 different types of items for orders per day. Since the center handles refridgerated itemsthe entire complex is held at 5°C with freezer storage as well. The put-away area allows for adjustments in temperature so in the morning, frozen food is stored (0°C) and then in the afternoon, the temperature is raised (5°C) for put-away of refridgerated items. The bottom shelves in some zones have a frozen showcase at a temperature of -25°C, and items such as ice cream and dried food can be kept extremely cold without melting.
Various automation and mechanization built into the process using new and innovative equipment has helped dramatically improve the performance. Based on suggestions from Toyo Kanetsu Solutions, U Co-op was able to be successful at its first attempt at a new and innovative warehousing solution that included 1) auto-film changing film inserter, 2) auto-labeler, 3) product tray system using RFID tags, 4) big shippers (freezer and refridgerator cases) that could be nested/stacked and finally, 5) an automated dry-ice pellet machine that measures and adds dry ice to frozen goods for shipping.
Since we went live 10 months ago, we have had no trouble to speak of and are very pleased with the results. We also requested that Toyo Kanetsu design and build the temperature control system for the center. Despite an unusually hot summer in 2010, we had no problems maintaining a stable temperature in the warehouse. This was possible because of the skill and expertise that Toyo Kanetsu brought to designing temperature controls but also the layout.
What’s Next? Maintain high levels of productivity as we continue to adjust to the changes demanded of logistics systems.
What’s Next?
Maintain high levels of productivity as we continue to adjust to the changes demanded of logistics systems.
We are very pleased with the high capacity of our picking lines. The assumed average pick time (the number of seconds to pick product per case) is 90% of what it was previously, for a total increase in capacity of 10%. This has helped us immensely.
We process 150 million items annually (the first year was 130 million). Currently consumer sentiment has weakened somewhat so we are uncertain about the growth of the home delivery business. The distribution system itself could change significantly. Our center is humming along so we will maintain operations as they are, and apply the know-how we have now to future needs.
* Source: Based on an interview conducted December, 2010. Data, organizational departments and personal names appear as they were at time of interview.
Products and Services Introduced
