Transcript S.P.Richards Company Capabilities Overview

Georgia Tech
January 27, 2005
“Our Mission is to be the Reseller’s
Preferred Source of
Business Products and Services
through Leadership in
Operational Excellence,
Customer Support,
and Integrity”
S.P.Richards Sales Results
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2004 $1,543,943,000
+ 6.0%
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2003 $1,457,149,000
+ 4.3%
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2002 $1,396,453,000
+ 1.2%
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2001 $1,379,882,000
+ 2.5%
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2000 $1,346,844,000
+10.5%
S.P.Richards History
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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
GPC Overview
Sales Results 2000 – 2003
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2003 $8,449,300,000
+ 2.3%
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2002 $8,258,927,000
+ 0.5%
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2001 $8,220,668,000
- 1.8%
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2000 $8,369,857,000
+ 5.3%
GPC Overview
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Automotive Parts Group ( NAPA )
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Industrial Parts Group ( Motion Industries )
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Office Products Group ( S.P.Richards Co. )
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Electrical/Electronic Materials Group ( EIS )
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Common to all divisions is expertise in
warehousing and distribution
17%
3%
53%
27%
2003 Sales
Automotive
Industrial
Office Products
Electrical
GPC Overview
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NAPA - Automotive Parts Group
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Motion Industries - Industrial Parts Group
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S.P.Richards - Office Products Group
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EIS - Electrical/Electronic Materials Group
22%
1%
54%
23%
2003 Operating Profit
Automotive
Industrial
Office Products
Electrical
Office Products Supply Chain
VENDOR
WHOLESALER
DEALER
DEALER
END USER
S. P. Richards Competitive Overview
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National wholesaler - United Stationers
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Regional wholesalers
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Computer supplies wholesalers
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Furniture wholesalers
How Our Customers Compete
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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
How Our Customers Use Us
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Items Mega Dealers don’t buy direct
 Retail versus Commercial business
Items Independent Resellers don’t stock
 The smaller the Reseller the fewer items they stock
Total Fulfillment services to Internet Resellers
How Our Customers Use Us
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‘First Call’ business relationships
 No such thing as a backorder
 Missed order is lost business
Most orders are for pre-sold merchandise
Wrap & Label
 Consumer packaging
To: End User
 From: Office Depot
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Approximately 75% of our orders
- Atlanta
- Charlotte
S.P.Richards Strengths
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36 full stocking Distribution Centers
2 Furniture DC’s
3 Horizon USA ( Data Supplies ) DC’s
4 Canadian Distribution Centers
Broad inventory offering
 24,000 catalogued items featured at every DC.
 Over 30,000 total items in inventory
Best service
 Fastest delivery
 Highest service levels
 Fewest errors
Lowest cost structure
S.P. Richards Logistics Challenges
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Rapid Delivery
 Orders received today are shipped today
 Unattended; key access
 All customers have merchandise at the start of
the next business day
 Requires reduced cycle times for S. P. Richards
S.P. Richards Logistics Challenges
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Rapid Delivery - Examples:
 Corporate Express - Whippany, NJ
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Shipped from:
Order cutoff:
Truck departs:
Delivery:
Moorestown, NJ
6:30 PM
7:00 PM
8:00 PM
Staples - Ontario, CA
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Shipped from:
Order cutoff:
Truck departs:
Delivery:
Mira Loma,CA
5:00 PM
5:45 PM
6:00 PM
S.P. Richards Logistics Challenges
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Rapid Delivery
 No pre-planning of orders
“Real-time”
 Constantly adjusting
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Difficult to plan quantity and timing of labor
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Statistically based
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Tuesday, Wednesday, Thursday are heaviest shipping
days
Managing overtime a challenge
Adjust and stagger starting times as appropriate
Many facilities use part time labor
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S. P. Richards Company Order Lines by Hour
3,500
3,000
2,500
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S. P. Richards Company Order Lines by Hour
100%
14,878
90%
13,390
80%
11,902
70%
10,415
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8,927
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7,439
5,951
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30%
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2,976
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1,488
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Philadelphia 1/10/01
S.P.Richards Philadelphia DC
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8,000-9,000 lines per day
Three kinds of pick zones
 18 inch shelving – B and C zones
 30 inch shelving – A and B zones
 Pallet Racking – F and W zones
Active – Each Pick
Reserve – Overstock
Focus on B, C, F and W zones
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S.P.Richards Philadelphia DC
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B and C Zone Analysis
 B intended to be a quick pick area
 B a combination of both 18 and 30 inch
shelving
 C zone for slower moving items
 Re-vamp just before going live on PkMS
 B zone has top shelf reserve
 Overstock for items in C zone is in R zone,
another section of shelving
S.P.Richards Philadelphia DC
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B and C Zone Analysis
 Picking in batches
 Batches built by WMS System
 Pick Truck volume defined in PkMS
 User Defined groups
B & C zone cartons
 B Only
 C Only
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PkMS orders each group by first pick location
 Creates pick trucks, assigns pick truck
number
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S.P.Richards Philadelphia DC
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B and C Zone Analysis
 Increase pick truck size
 Separate B and C zones
 Move high movers from C to B
 Some improvement, but not significant
S.P.Richards Philadelphia DC
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B and C Zone Analysis
 Boxes vs. Totes
Currently pick directly into boxes
 Option of picking to totes
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More picks will fit onto the pick cart
Double Handling
Separate one line and multi-line cartons?
Highly efficient pulling for one liners
 Potentially visit the same location twice
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S.P.Richards Philadelphia DC
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Challenges/Questions for B and C Zones
 Propose new slotting for B and C zones,
maintain vendor lines together in C zone
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Stockers do putaway by vendor
Determine the amount of product to put in the
active location for each item
 Recommend whether to pick to totes or boxes
 Recommend whether or not to separate one
line orders and multi line orders
 Should Flow Rack be used in B zone for fast
moving items? Other MHE?
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S.P.Richards Philadelphia DC
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F and W Analysis
 Pallet Racking
 Primarily reserve, some active in F zone
 Two types of reserve locations
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Case Reserve
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Pallet Reserve
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Cases removed from pallets when stocking and
stacked on shelves
Entire single sku pallets are stocked
PkMS directs pickers to pull full cases from
either of these reserve locations
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S.P.Richards Philadelphia DC
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F and W Analysis
 Items exist in B zone with overstock in W
 Replenishment would be significantly faster if
B overstock was in F zone
 Not properly slotted
 F and W zones can run out of work before B
and C zones
S.P.Richards Philadelphia DC
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Challenges/Questions for F and W zones
 Determine the best slotting of the items in F
and W given current layout
Some locations may be forced to be case or
pallet locations
 How much will it improve picking if the changes
are made?
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Suggest changes to location sizes/beam
height that may change the slotting and
improve productivity
 Provide a tool that can be used to give a list
of moves to relocate the product efficiently
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S.P.Richards Philadelphia DC
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Available Data
 Order Data
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Order lines and quantities
Item Data (not complete)
Length, Width, Height of each and case
 Number of eaches in a case
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Pick Truck Sizes
 Standard Box Sizes
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Questions?