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Telecommunications Provider Consolidates Regional Distribution Centers

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    Features/Benefits Provided:

     

  • 10 regional centers reduced to 1 NDC
  • Reemployment of 1,000 staff
  • 50% in stock reduction and 30% reduction in delivery lead times
  • Annual logistics savings of $70MM

Problem This nationwide telecommunications provider had 10 regional distribution centers, resulting in multiple distribution points, numerous inventory management systems and very high inventory levels. Multiple locations also resulted in lengthier delivery times for the customer as well as inefficient and labor intensive operations.

Solution Utilizing the latest material handling techniques, including a WMS, the customer worked with vendors to design and implement a new 380,000 sq ft National Distribution Center to replace the 10 regional centers. This has allowed the reemployment of 1,000 employees, next-day delivery capability to 25,000 field engineers, as well as a 50% reduction in inventory levels.

To cope with the huge variety in the type, size and flow rates of the different products, picking subsystems were developed with flexibility and managed flow primary design objectives. These ranged from dedicated automated mini-load to manual picking cranes with multi-order put-to-light features, to a multi-aisle pick-by-light and case conveyor area. The whole system utilizes a case handling conveyor system, which supports all areas and deposits the cases to 13 shipping lanes where the individual orders are packed for delivery.

The fully integrated material handling solution is supported on-site by a 24-hour dedicated site maintenance team.



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FKI Logistex
9301 Olive Boulevard
St. Louis, MO 63132-3299
Tel: 1-877-935-4564
manufacturing@fkilogistex.com
www.fkilogistex.com
 

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