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New DC of the Company

MS304 Dr. Gürdal Ertek Case Study Presentation Özge Aydınlı 9428 Ufuk Çöğür 10313 “ Fashionably on Time ”. New DC of the Company . Moved their new building to Secaucus, N.J. and leased space at three nearby locations Aim of new DC: Consolidation of distribution

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New DC of the Company

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  1. MS304Dr. Gürdal ErtekCase Study Presentation Özge Aydınlı 9428Ufuk Çöğür 10313“Fashionably on Time”

  2. New DC of the Company • Moved their new building to Secaucus, N.J. and leased space at three nearby locations • Aim of new DC: • Consolidation of distribution • Limited capacities especially at peak order times

  3. Benefits of new buildings • Plenty of room for future growth • Boasts improved handling efficiencies • Shortened order turnaround time • Additional space for extensive value-added services and returns processing • Features borh pick-to-light and put-to-light systems • Greatly increase pick rates over the paper-based systems • Allows orders to be processed quickly

  4. Better processing • Allows to give smaller accounts the same attention as previously reserved only for larger customers • Put-to-light system • Items are bought from VA areas • Divided into individual orders using the 630 staging locations • Shipping cartoons are placed within the locations to gather products for each order • Lights direct the work to be performed. • When order is complete, pushed off onto a takeaway conveyor.

  5. Pick-to-light system: • Used for gathering products for large customers, drugstore chains, supermarkets and optical shops. • Product is stored in flow racks arranged in zones within a three-level module • Order cartons are scanned as they are conveyed through each zone • Prompts lights to illuminate next to location slots containing product for that order • Items are removed from the slots and placed into the order carton.

  6. Benefits of these systems to Lantis • Flexibility • Plenty of capacity • Much lower costs than other high demand sorting systems, such as tilt tray or cross belt.

  7. Assembly and Value Added • Assembling point-of purchase displays-the racks that hold dozens of sunglasses at mass retailers • It helped to get product to market more quickly • Displays are big cost, this area will save $250.000 only this year.

  8. Display racks are erected and; labels and mirrors are attached within the dedicated assembly area. • When racks are filled; • It is surrounded by corrugated packaging and shipped as a full unit • Loaded with product that is ready for sale

  9. Increase in VA services • Private label ticketing • Extensive private labeling, so Lantis is not seen as a brand name. • 4 million returned items this year. • Arrival and inserted into wash baskets • Industrial washers to clean off dirt, marks and fingerprints. • Inspection and cleaning by hand Returns

  10. Designed for Peak • Designed to meet peak demand such as; • Added packing stations • Adequate conveyor accumulation • Possessing extra facility is not beneficial because; • Underutilize the building’s potential during the rest of the year. • So, seeking a partner with holiday peak distribution needs

  11. Finally; • Efficient returns, value-added services and fast fullfilment capabilities at new facility in Secaucus.

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