Case Studies - Tompkins Supply Chain Consortium

Case Study – Omnichannel
Distribution Center
Tompkins Supply Chain Leadership Forum | August 31–September 2, 2015
Copyright © 2015
September 1, 2015
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Company Background:
• Quiksilver, Inc. is a diversified company that designs, produces and distributes
apparel, footwear, accessories and related products under the Quiksilver, Roxy and
DC Shoe brands
• Quiksilver’s diverse product line ranges from surfwear, snowboardwear, and
sportswear to action sports equipment including wet suits, snowboards and
skateboards.
• Quiksilver products are sold through multiple channels worldwide, including:
• Specialty Retail Stores
• Department Stores
• Company-owned Retail Stores
• eCommerce
Tompkins Supply Chain Leadership Forum | August 31–September 2, 2015
Copyright © 2015
2
The journey to omnichannel
distribution excellence began at
the Quiksilver’s Huntington
Beach campus, consisting of:
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•
•
•
•
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Five separate warehouse
buildings,
Along with 3 buildings in
Vista, CA,
Shipping 21 selling groups,
Across the three primary
brands,
In a very manual
environment,
Requiring up to 1,000 hourly
associates at peak
Tompkins Supply Chain Leadership Forum | August 31–September 2, 2015
Copyright © 2015
3
Quiksilver collaborated Tompkins International to develop a distribution
strategy that satisfied the following goals:
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Reduce distribution cost
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Improve overall customer service
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Provide distribution services for all of the Americas
•
Improve on-time order fulfillment
•
Safer work environment
•
Reduce Workers Compensation costs
•
Reduce the dependency on hourly associates
Tompkins Supply Chain Leadership Forum | August 31–September 2, 2015
Copyright © 2015
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Key Characteristics of Quiksilver Distribution Center
1.
Building is 683,200 sq. Ft. – 30 ft. Clear, 99 Dock Doors
2.
220,000 units per day order fulfillment capacity
3.
Shipping throughput of 29,000 cartons per day
4.
Over 150,000 active SKUs
5.
Crossdock capability for wholesale accounts (20+% of volume)
6.
Direct to consumer fulfillment for company owned eCommerce sites as well as
other marketplaces including Amazon and eBay
7.
Major MHE components include:
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Mantissa tilt tray sorter
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Two 3-level pick towers
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Automatic carton erectors
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VAS mezzanine for ticketing, hanging, repacking and promo insertion
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Shipping sortation system with 14 diverts
Tompkins Supply Chain Leadership Forum | August 31–September 2, 2015
Copyright © 2015
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Quiksilver’s IT systems have migrated to a series of best in breed
applications
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SAP ERP
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NSB Retail Allocation System
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HighJump WMS
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HighJump Load Management
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HighJump TMS
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Loftware label printing system
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Tompkins Control System (WCS)
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Mantissa Sortation Controller
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Creative Logistics Solutions (CLS) small parcel shipping system
Tompkins Supply Chain Leadership Forum | August 31–September 2, 2015
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Tompkins Supply Chain Leadership Forum | August 31–September 2, 2015
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Quiksilver Mira Loma Distribution Center
Tompkins Supply Chain Leadership Forum | August 31–September 2, 2015
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8
Tompkins Supply Chain Leadership Forum | August 31–September 2, 2015
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Primary Storage Methods
• 21,000 Pallet Storage Positions
• 123,000 Decked Rack Positions
• 36,000 Residual Locations
Tompkins Supply Chain Leadership Forum | August 31–September 2, 2015
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Primary Pick Locations
•Two 3-Level Rack Supported Pick
Modules with Carton Flow and
Shelving
•113,000 Total Forward Pick Locations
Tompkins Supply Chain Leadership Forum | August 31–September 2, 2015
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11
Tilt Tray Unit Sorter
• Mantissa Aardvark Tilt Tray Sorter
with 640 Sort Destinations
Tompkins Supply Chain Leadership Forum | August 31–September 2, 2015
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12
Packing Department
• 52 Packing/Value Add Workstations
Tompkins Supply Chain Leadership Forum | August 31–September 2, 2015
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13
Shipping Department
• Shipping Sorter with 19 Diverts and
Direct Trailer Load Equipment
Tompkins Supply Chain Leadership Forum | August 31–September 2, 2015
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Conveyor System
• 3.3 Mile TGW Conveyor System
Tompkins Supply Chain Leadership Forum | August 31–September 2, 2015
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Results
• Reduced DC labor by 40%-50%
• Reduced cost per unit from $.65 to $.35
• Reduced Worker Compensation cost more than 20%
• Improved order turn times for all channels:
• Wholesale from 5 days to 3 days
• Retail from 3 days to 24 hours
•eCommerce from 2 days to 24 hours, orders received by noon ship same day
• 67% of all orders received after noon ship same day
Tompkins Supply Chain Leadership Forum | August 31–September 2, 2015
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Discussion
Tompkins Supply Chain Leadership Forum | August 31–September 2, 2015
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