Case Study
Apparel Wholesaler
Apparel Wholesaler Achieves Supply Chain Efficiencies, Including Facility and Processing Optimization
Due to its explosive growth via acquisition beginning in 2000, one of the largest wholesalers of imprintable apparel in the nation recognized the need for a common Warehouse Management System (WMS) throughout all sites. In 2001, a program was initiated to overhaul existing facilities and procedures. TranSystems | ESYNC was engaged to develop an integrated Project Roadmap(SM) for implementation of the selected WMS for both the central DC and branches; provide program management and implementation services on several supply chain projects including the rollout of existing WMS software to newly acquired full-line sites; analyze slotting/SKU profiling and Standard Operating Procedures (SOPs) for branches and central DC; conduct a Centralized Returns Analysis; and prepare Layout, Facility Design and Throughput Analysis of central DC, including a study of multiple MHE options consisting of conveyor, sortation, tilt-tray and others.
Among the challenges were an aggressive roll-out schedule for the WMS product (six sites in seven months), the apparel wholesaler’s desire to maintain its existing distribution network, despite a recent acquisition that was expected to increase sales by 40%, and communication of the importance of daily replenishment to forward pick locations (this was a new concept to the central DC and the TranSystems | ESYNC team wanted to foster understanding and gain commitment to this important process).
TranSystems | ESYNC worked with the apparel wholesaler to optimize their central DC - these efforts involved facility layout and design, storage media analysis and software enhancements, as well as deployment and start up support for the project. The system and related technology was deployed in the branches according to plan.
Some of the more significant improvements for the apparel wholesaler included 11% reduction in personnel costs; 4.5% reduction in total operating costs, with a 36% growth in throughput for the central DC with minimal investment; avoidance of a near $3.5 million investment in mechanization; and a 50,000 sq. ft. planned expansion. SOPs to support a single site returns procedure and optimal flow of goods were determined via analysis of service processes and returns.
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