Retail/
Wholesale
Itochu-Shokuhin Co., Ltd. (Construction of a Warehouse/Distribution Center)
Mr. Shinji Tanioka (Director, West Japan Administration Division, Logistics Management Department)
Challenges
- Distribution center had to be integrated into the reorganization of Ito-Yokado’s logistics system.
- Include two temperature zones, dry and chilled, operating together at the same center.
- Effective use of space for greater efficiency.
Results
- Streamlined operations by integrating both temperature zones.
- Removed the wall between temperature zones for better use of space and improved efficiency of a 24 hour operation.
BackgroundWe wanted to design and develop a highly efficient DC as part of our logistics systems reorganization at Ito-Yokado.
Background
We wanted to design and develop a highly efficient DC as part of our logistics systems reorganization at Ito-Yokado.
Toyo Kanetsu proposed a plan to achieve higher efficiency logistics operations as part of the Ito-Yokado reorganization project including the building and operation of the Ito-Yokado Osaka IDC. The challenge of this center was the integration of dry and chilled storage zones. The major question was how to control the chilled zone within the overall shared space of the dry center. Controlling temperatures, along with maximizing performance of the limited space to achieve maximum improvements in efficiency made this project challenging.
Reasons We Chose Toyo Kanetsu Solutions:TKSL had a wealth of experience and the ability to creatively meet our requirements.
Reasons We Chose Toyo Kanetsu Solutions:
TKSL had a wealth of experience and the ability to creatively meet our requirements.
We had previously worked with the Toyo Kanetsu team on a dry good distribution center so they were our first contact. They were able to quickly and accurately meet our needs at a cost that made their proposal attractive. This project required that both dry and chilled zones be installed in the same center, and since it was our first attempt that this model, we decided to go with Toyo Kanetsu which has a breadth of knowledge in the logistics industry. After resolving some issues through testing such as controlling the temperature of the chilled zone and preventing condensation in the summer months, we were able to confidently launch operations.
After ImplementationPerformance has increased dramatically while maintaining a stable operation.
After Implementation
Performance has increased dramatically while maintaining a stable operation.
This center runs 24 hours per day as the main distribution point for Ito-Yokado in the Kansai region. On the first floor, cross-dock, split-case and other pass-though goods are received and sorted by destination store. On the second and third floors, goods are put-away into inventory, and picking (case, split case and single) is performed. At night, part of the center is closed off into a chilled zone where fresh produce is shipped and received. Since the shipping label for cross-dock goods is issued by the center based on retail store data, vendors can deliver quantities without having to attach a label to the case. With the advanced hand-held “HiT” system, which is used to sort same-day, split case items and perform picking from inventory, we can fulfill items categorized according to the department where they are sold. This eliminates a lot of the work required by the destination store. With the implementation of the Parcel Posi-Sorter, automatic sorting of same-day shipping cases and goods in collapsible containers has improved productivity greatly. To use the system at night-time chilled zone, we stop part of the Parcel Posi-Sorter and block off the dry area from chilled area. The sorter chute in chilled zone is raised so it can be used while effectively utilizing space and controlling temperature. Successive, redundant auto-labelers provide back up on conveyors in the inventory area which ensures fast process and high efficiency. Since we have launched the material handling system designed and implemented by Toyo Kanetsu, our operations have been stable and trouble-free.
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What’s Next?Flexible response to Ito-Yokado’s logistics needs going forward.
What’s Next?
Flexible response to Ito-Yokado’s logistics needs going forward.
The center stores 6 million cases of products annually and delivers those goods to Ito-Yokado group stores. Currently we have available distribution capacity and are more than able to meet a high demand during peak seasons. Although we have no current plans to expand or refurbish equipment in our current operation, we are ready to meet changes that the future might bring such as new stores being added or changes in the distribution system. We can trust Toyo Kanetsu as a specialist intralogistics provider whom we can trust and rely on for our future needs.
* Source: Based on an interview conducted January, 2016. Data, organizational departments and personal names appear as they were at time of interview.
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