Presentation is loading. Please wait.

Presentation is loading. Please wait.

Georgia Tech February 4, 2003. Go Dawgs !!! “ Our Mission is to be the Reseller’s Preferred Source of Business Products and Services through Leadership.

Similar presentations


Presentation on theme: "Georgia Tech February 4, 2003. Go Dawgs !!! “ Our Mission is to be the Reseller’s Preferred Source of Business Products and Services through Leadership."— Presentation transcript:

1 Georgia Tech February 4, 2003

2 Go Dawgs !!!

3 “ Our Mission is to be the Reseller’s Preferred Source of Business Products and Services through Leadership in Operational Excellence, Customer Support, and Integrity”

4 S.P.Richards Sales Results  2001$1,379,859, %  2000$1,336,500, %  1999$1,218,367, %  1998$1,122,000, %  1997$1,081,000, %  1996$1,035,000, %  1995$ 948,000, %

5 S.P.Richards History  Established in 1848  Over 150 years of experience in the Office Products Industry  Oldest continuously operating business in Atlanta, Georgia  Purchased by Genuine Parts Company in 1975

6 GPC Overview Sales Results ,261,904,000 5,720,474,0006,005,245,000 6,614,032,000 7,981,687,0008,369,857,0008,220,668,000

7  Automotive Parts Group ( NAPA )  Industrial Parts Group ( Motion Industries )  Office Products Group ( S.P.Richards Co. )  Electrical/Electronic Materials Group ( EIS )  Common to all divisions is expertise in warehousing and distribution GPC Overview 2001 Sales

8  NAPA - Automotive Parts Group  Motion Industries - Industrial Parts Group  S.P.Richards - Office Products Group  EIS - Electrical/Electronic Materials Group GPC Overview 2001 Operating Profit

9 S. P. Richards Competitive Overview  National wholesaler - United Stationers  Regional wholesalers  Computer supplies wholesalers  Furniture wholesalers

10 How Our Customers Compete  Mega Dealers ( Office Depot, Corporate Express )  National scope ( National contracts )  Next day delivery  Purchasing control  Low price  Independent Reseller  High service  Next day ( or same day ) delivery  Internet Reseller  Ease of ordering  Quick delivery

11 How Our Customers Use Us  Items resellers don’t stock  The smaller the reseller, the fewer items they stock  Economic decision  Expand selection  Their catalog  Our catalog  Backup during transitions ( new catalogs )  Backup for temporary out-of-stocks  Can be huge volume  Impossible to forecast

12 How Our Customers Use Us  Business relationship with S. P. Richards and United  No such thing as a backorder  Missed order is lost business  Most orders are for pre-sold merchandise  End user order to our customer  Item they don’t have  Wrap & Label  Consumer packaging  To:End User  From:Office Depot  Approximately 77% of our orders

13

14 - Charlotte - Atlanta

15 Trends Favoring Wholesale Distribution  Inventory reduction  Traditional resellers  Stockless resellers  Total Fulfillment  E-commerce  “Pure Play” Internet resellers ( No“Bricks or Mortar” )  Resellers expanding beyond their geographic reach  Nationwide drop shipping  Niche specialists seeking to provide a complete business product offering

16 S.P.Richards Strengths  36 full stocking Distribution Centers  2 Furniture DC’s  3 Horizon USA ( Data Supplies ) DC’s  Broad inventory offering  22,336 catalogued items featured at every DC.  Over 30,000 total items in inventory  1% - 2% list price advantage over our major competitor  Best service  Fastest delivery  Highest service levels  Fewest errors  Lowest cost structure

17

18 S.P.Richards Competitive Advantage  Intense focus on our customers  Highly personalized service  Flexible - Do anything they need us to do to further their business  Physical delivery  Information Systems  Best customer relationships in the industry “Every customer is our only customer”

19 S.P.Richards Competitive Advantage “At S. P. Richards, We make money the old fashioned way”… Manually

20 Disclaimers  The information presented here represent the views of the presenter, not necessarily that of S. P. Richards Company  You can’t improve without looking at your weaknesses  “… it has been said that democracy is the worst form of Government except all those other forms that have been tried from time to time.” - Winston Churchill - Winston Churchill  S. P. Richards might look like a poor distributor, except in comparison to all the others. except in comparison to all the others.

21 * Excludes restructuring charge

22

23 Virtual Tour - Atlanta

24

25

26

27

28

29

30

31 S.P. Richards Logistics Challenges  Rapid Delivery  Business began as same day order picking, next day delivery  S. P. Richards moved the industry to “same night” deliveries 20 years ago  Everyone wanted the first AM delivery  Allowed resellers to deliver earlier to their customers  Deliver more rapidly than the competition  Unattended; key access  All customers have merchandise at the start of the next business day  Required reduced cycle times for S. P. Richards

32 S.P. Richards Logistics Challenges  Rapid Delivery  No pre-planning of orders  “Real-time”  Constantly adjusting  Difficult to plan quantity and timing of labor  Statistically based  Tuesday, Wednesday, Thursday are heaviest shipping days  Housekeeping Monday and Friday  Managing overtime a challenge  Adjust and stagger starting times as appropriate  Part time labor a huge plus where available  Continuous manual expediting  More flexible than systems driven prioritization

33

34

35 S.P. Richards Logistics Challenges  Rapid Delivery - Examples:  Corporate Express - Whippany, NJ  Shipped from:Moorestown, NJ  Order cutoff:6:30 PM  Truck departs:7:00 PM  Delivery:8:00 PM  Staples - Ontario, CA  Shipped from:Mira Loma,CA  Order cutoff:5:00 PM  Truck departs:5:45 PM  Delivery:6:00 PM

36 S.P. Richards Logistics Challenges  Rapid Delivery - Examples:  Lindy Office Products - Los Angeles, CA  Shipped from:Mira Loma,CA  Order cutoff:6:00 PM  Truck departs:8:00 PM  Delivery:9:00 PM  Independence - Cleveland, OH  Shipped from:Pittsburgh, PA  Order cutoff:6:00 PM  Truck departs:7:00 PM  Delivery:11:30 PM

37 S.P. Richards Logistics Challenges  Rapid Delivery  WMS Implications  Order prioritization is paramount  Multiple picking zones  Different travel times through system  Order completion needs to be prioritized, not order initiation  How do you maintain the same degree of responsiveness with an automated system that you had with a manual one?  Accuracy vs. Cycle time

38 S.P. Richards Logistics Challenges  Stockless Fulfillment  USA Express  EDI transmissions  70% of orders  Another 15% remotely entered by our customers  Real-time acknowledgement  Auto-routing by zip code  Out-of-stocks routed to alternate facilities  Wrap and Label  Order up until 3:00 PM, UPS shipment same day  Order tracking

39 S.P. Richards Logistics Challenges  Stockless Fulfillment  USA Express  Can ship to 96% of the US population next-day UPS ground  Still a small percentage of the overall business  All 36 Distribution Centers must be small package experts  Enforcing consistency a challenge  Premium on high order fill rate from one DC  Minimizes number of boxes  Consistent delivery times  Developed a system that allows customer to prioritize:  Quickest shipping  Fewest packages  Automated with the EDI transmission

40 S.P. Richards Logistics Challenges  Service Levels  Don’t get a second chance - order lost if out of stock  Demand often not statistical  “Random hits”  Different DC’s  Different items  Different times  Communications important  Learn more about customer’s business  Collaborative inventory management?

41 S.P. Richards Logistics Challenges “Forecasts are always wrong, and planners are always surprised” and planners are always surprised” - George Plossl

42

43

44

45

46

47 S.P. Richards Logistics Challenges  FIFO  LIFO  FISH

48 S.P. Richards Logistics Challenges  Service Levels  Developed SPRinter network  Same night service from other DC’s  Raises fill rates 1% to 2% to customers  Wrap and Label  Efficient merging for resellers  Creates extra box(es) for consumers

49

50 S.P. Richards Logistics Challenges  What I didn’t mention  Transportation  Most deliveries on our private fleet  Every stop every night

51 S.P. Richards Logistics Challenges  Learnings  World class is doing more than what your customer needs with excellence  It’s about process design and organization  Must eliminate work  Lower costs  Reduced cycle times  Automation where it helps meet ( or anticipate ) customer requirements

52 Your mission, should you choose to accept it…  Increase order picking efficiency in C and D zones  Reduce labor costs  Equal or better quality  Decrease number of multi-zone orders  Increased customer satisfaction  Reduce packaging costs  Reduce empty space (air) in the shelves  Increase efficiency of UPS orders  Improve full case/broken case picking (paper)  Capital investment that fits the business SPR Philadelphia

53  Currently picking with carts  Every picker travels the whole zone each picking tour  Average tour consists of 50 order lines  Pick directly into final packaging  Except for customers who demand it, pack separate boxes in each zone  Multi-zone orders have to be sent downstairs on a conveyor and completed  Drastically increases order cycle time SPR Philadelphia

54 C Zone - Floor Level - Mostly 18” Shelving Checking/Packing Start / Finish * Conveyor From Upstairs (Unfinished) Finished UPS From Upstairs Conveyor From Upstairs (Finished)

55 D Zone - Mezzanine - Mostly 30” Shelving SPR Philadelphia

56 SPR Philadelphia - Data D Zone ( Small goods - Mostly 18” Shelving )  Picking aisles numbered as labeled  Bins A, C, E, Etc. to the left  Bins B, D, F, Etc. to the right  All bins 42” wide  Pallet positions in center open area and along right wall  Location ending with “B” denotes an item with reserve stock somewhere else  Bin location only denotes shelf, not position

57 C Zone - Mezzanine - Mostly 30” Shelving SPR Philadelphia Start / Finish *

58 C Zone - Mezzanine - Mostly 30” Shelving SPR Philadelphia

59 C Zone ( Light Bulk - 30” Shelving )  Picking aisles numbered as labeled  Bins 1, 3, 5, Etc. to the left  Bins 2, 4, 6 Etc. to the right  All bins 42” wide  Pallet positions in center open area, along with checking and packing  Location ending with “B” denotes an item with reserve stock somewhere else  Bin location only denotes the bin, not the shelf

60 SPR Philadelphia - Data

61  Sales  Date, Item, Order #, Line #, UOM, Qty Ordered, Qty Shipped  Item  Item, Description, Status, Item Class, Vendor, Bin Location, Zone, Sales & Case UOM’s, Dimensions  Locations  Bin Location, Zone, Bin, Location Type, Reserve Location?  Zone Descriptions  Items Needing Dimension Information  Lists  Information on Atlanta stocking status

62 Limitations  Mezzanine supported by shelving uprights  COMPUTER SYSTEM doesn’t (today) support multiple locations for an item  Philadelphia not yet on WMS (PkMS)  Items stored by manufacturer  Items assigned different size spaces based upon normal volume on hand SPR Philadelphia

63 General Data Limitations  Selling UOM’s quantity per case missing in many cases  In many cases, case dimensions also missing  Provided vendor in item file  Provided S. P. Richards catalog  Provided Atlanta stocking information  Multiple SKU’s assigned to one location  Locations not to the item level SPR Philadelphia

64 * Excludes restructuring charge

65 Questions?


Download ppt "Georgia Tech February 4, 2003. Go Dawgs !!! “ Our Mission is to be the Reseller’s Preferred Source of Business Products and Services through Leadership."

Similar presentations


Ads by Google