Kato Sangyo Co., Ltd. (Construction of a Warehousing/Distribution Center)
Mr. Tomomoto Yamamoto (Dedicated Manager, Logistics Department)
Challenges
- Limitations in capacity due to an increase in volume.
- Delivery by category depending on size of store.
- Shorten lead-time in the warehouse.
- Improve accuracy and efficiency of apparel and household item deliveries.
Results
- Supports high performance with a sorting system that can process 14,000 cases/hour.
- Shortened leadtime to delivery from between 2-5 hours after receiving order.
- Handles deliveries in up to 13 categories.
- Improved efficiency of work with placement of inbound goods line in the piece area and a waste line.
- Improved accuracy and productivity with a dedicated line for clothing and daily necessities.
BackgroundConsolidation of centers for better accuracy and faster shipping.
Background
Consolidation of centers for better accuracy and faster shipping.
Our customer, a major supermarket, was operating two separate distribution centers. We believe that a highly advanced logistics and distribution system is essential for accuracy and efficiency, and our company, with experience in design and operation of distributions centers was entrusted with this contract business. The distribution center was opened in Suminoe-ku, Osaka with total area of the complex at 23,1400 sq. m and total floor space of 36,363 sq. m on 3 floors. In order to improve accuracy and shipping times to stores in the Kinki area, we needed to optimize high-performance material handling equipment, which is a key element in the overall design of a warehouse and distribution center.
Reasons We Chose Toyo Kanetsu Solutions:Material handling design for optimal sorting capability.
Reasons We Chose Toyo Kanetsu Solutions:
Material handling design for optimal sorting capability.
The primary reason for selecting Toyo Kanetsu is that their concept met our needs as far as being high performance and low cost while optimizing sorting capability. Cycle times in the warehouse are short, and sorting must be completed in 2 to 5 hours. The Toyo Kanetsu concept had two primary sorters, each with a capacity of 7,000 cases/hour for a total of 14,000 cases/hour. We were able to optimize our operations for maximum efficiency with this ultra high-speed system in the minimum amount of space. Toyo Kanetsu had a lot of experience in other systems.
Benefits:Significantly shortened the warehouse order cycle time and improved the split-case picking efficiency.
Benefits:
Significantly shortened the warehouse order cycle time and improved the split-case picking efficiency.
The 3rd floor of the warehouse is the piece picking area, 2nd floor is case picking and 1st floor is shipping.
Items assembled on the 3rd floor picking area are shipped out in single units. Inbound velocity is high with about 40,000 lots replenished on average per day. Since the warehouse is 150m deep, automating and systemizing the operation to minimize movement greatly benefited efficiency. We also introduced a sorting machine dedicated to replenishment and a conveyor to collect waste material to contribute improved efficiency.
Case picking is done on the 2nd floor and shipped out. The shipping, pick-to-conveyor line matches picking labels with ITF for a high level of shipping accuracy. The high-speed merge area brings material from 12 conveyor lines down to two lines. It is not such a simple task to smoothly merge cases of various size at high speed without changing the direction of the item but the team was successful.
On the first floor, is an inbound and ship sorting line. Order-to-ship lead time has been significantly reduced by moving orders from the 2nd floor, sorted by the primary sorter and then shipped via the New Posi-Sorter.
The operation has been trouble-free and the results have exceeded our expectations.
What’s Next?We are challenging new improvements using the DC as a tool.
What’s Next?
We are challenging new improvements using the DC as a tool.
As part of our overall risk management, we anticipate and prepare for emergencies and plan for them accordingly. At our center, we take great care to keep operations going even if one of the sorters stops in an unforeseen situation. Sorting of clothing and other household items from dock-to-stock, and then to store destinations has become known for accuracy and speed. With Toyo Kanetsu’s material handling concept, we are using a SCM labeling system which has greatly improved the quality of distribution and reduced labor for a dramatic improvement in efficiency. We are actively utilizing the tools and experience of Toyo Kanetsu in high-speed, high accuracy distribution centers to further enhance our approach.
* Source: Based on an interview conducted April, 2010. Data, organizational departments and personal names appear as they were at time of interview.
