Gakken Logistics Inc. (Tokorozawa Center)
Mr. Shin Sakabe (Deputy General Manager, Logistics Division)/Mr. Yoshikazu Yamahata (Chief of Distribution Management Dept., Logistics Division)
Challenges
- Develop a system that would support increase in in-store business and sales to agents.
- Reduce labor and human error.
- Improve efficiency in order to eliminate overtime.
Results
- Developed a system that would support multichannel sales–in-store and agent.
- Reduced shipping errors and the rate of damaged goods due to shipping.
- Complete work within normal work day and avoid overtime.
BackgroundA new, intelligent distribution system was required to meet the needs of our growing sales in-store and to agents.
Background
A new, intelligent distribution system was required to meet the needs of our growing sales in-store and to agents.
We have two business channels–sales to bookstores and directly to users or agents. We need a system that can support growth in both channels. Because our distribution within the group was limited, we expanded the ratio of sales to outside distributors. Our system was built to support internal sales originally, and we expanded this model as needs dictated. With the new sales channel to distributors and agents, however, we have begun to recognize the limitations our current system had toward supporting the new demands. To fully support an increase in customer base and improve quality, we needed a distribution system that could support the external sales model and adapt to an increase in volume handled so we launch a completely new distribution system project. Furthermore, our parent company decided to transition to an industry standard ERP (SAP) application after using a customized application for many years. In line with that change, our company, which is in charge of logistics and distribution for the group companies, decided to completely replace the old material handling system with a new warehouse management system.
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Reasons We Chose Toyo Kanetsu Solutions:We felt that Toyo Kanetsu’s vast experience would help them come up with an ideal, optimized solution for our needs.
Reasons We Chose Toyo Kanetsu Solutions:
We felt that Toyo Kanetsu’s vast experience would help them come up with an ideal, optimized solution for our needs.
In this new project, we wanted to adopt a WMS that could flexibly respond to changes and increases in our business. Moreover, we wanted to improve quality in shipping both in terms of shipping errors and damage occurring in shipping with the goal of reducing human error to zero. In addition to that, better efficiency and zero overtime were also primary goals. Instead of inflexible, heavy-duty logistics equipment of the past, we were looking for simple, highly functional equipment that can flexibly respond to needs. Out of the several companies, we selected Toyo Kanetsu which proposed a turn-key package solution that would meet our needs and goals, assuming construction and renewal of the material handling system. One of the reasons for our selection was the experience and expertise that Toyo Kanetsu has with WMS. No matter how wonderful a system may be, if it does not fulfill the intended function, the goals and desired results will not be forthcoming. But with Toyo Kanetsu and a wealth of past experience successfully installing effective systems, we were confident that upon understanding the unique logistics of the publishing industry, they would develop and build a system that would meet our needs and be easy-to-use.
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BenefitError in packing has been reduced to almost zero over several months.
Benefit
Error in packing has been reduced to almost zero over several months.
In the past, the process from inbound goods to outbound was not consistent, and the matching of work orders and shipping documents relied on skill of workers. It was extremely inefficient and prone to human error. With the introduction of a new distribution system, we have improved accuracy and efficiency in almost every aspect. The industry’s first of its type, the label loop (rewritable labeling system) eliminated the old system where the label had to be removed and reattached to the collapsible totes. This improvement reduced human effort and the need for label paper while improving efficiency, which reduced our environmental impact and operating costs. To handle high velocity items, we use a digitial pick and scan operation and for mid-to-low velocity items, we use a handheld terminal (HHT) pick and check. Then the container is weighed and goods are checked once more before shipping. With shipping accuracy improving to the point where we had almost zero shipping issues, we spent less time fixing the problems and efficiency increased so work was completed within a regular work day. With complete visibility of products and locations centrally managed by a WMS, we could centralize and streamline our inventory, improving the quality of the overall system.
What’s Next?Our new distribution system has become known among our partners with a resulting increase in our customer base.
What’s Next?
Our new distribution system has become known among our partners with a resulting increase in our customer base.
The vast majority of material that we handle is either books or magazines, but we have more than 8,000 varieties in our warehouses. With a system designed with the specific characteristics to meet the needs of a publisher like Gakken, some major agencies have approached us to train employees on logistics for the publishing industry, signifying our leadership in this area. Perhaps the biggest impact is that we can now support a growing business model with an expanding customer base in addition to seeing some direct improvements in employee motivation.
* Source: Based on an interview conducted August 2011. Data, organizational departments and personal names appear as they were at time of interview.
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