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Direct Online Services Ltd (DOS) Case Study

The Supply Chain Consulting Group Review And Design Distribution Centre For DOS Ltd

DOS Ltd is a leading multichannel retailer of solid wood work surfaces, servicing customers through a portfolio of e-commerce websites, dedicated sales phone lines and showrooms. DOS Ltd engaged The Supply Chain Consulting Group (SCCG) to design and manage the fit-out of a new Distribution Centre (DC) to meet the business growth rate of 25% year on year.

With a stock of c.150 SKUs for worktops, which are determined by species of wood, length (2m, 3m and 4m) and thickness (27mm and 40mm), DOS Ltd was operating out of a 7,000m2 facility, stocking approximately 5,000 worktops and despatching on average 400 to 500 worktops per day and up to 800 per day during peak periods. The existing facility pick face was all floor-based locations picking from pallets, with the bulk storage and replenishment area in an adjoining chamber.

The existing facility did not have suitable Materials Handling Equipment (MHE) and no Warehouse Management Systems (WMS) to interface with their otherwise comprehensive multichannel sales order processing systems.

The SCCG team of Specialist Supply Chain and Logistics Consultants reviewed the existing DC operations and developed an optimised design and implementation plan for the new 3,000m2 (6m height) facility in terms of layouts, SOPs, WMS requirements, MHE and racking requirements, shifts and resource patterns, and to calculate the capacity of the new facility if it was running in an optimised state, including consideration for appropriate automation in the future.

SCCG designed a much more efficient facility with cantilever racking to store and pick products from, making full use of the head height and floor space available to them.

In addition, the SCCG team developed the functional specification for a new WMS system and oversaw the implementation of all warehouse equipment and systems testing through to the ‘go-live’ date only a few months after the initial enquiry.

The result is an optimised and much improved operational warehouse and distribution facility which enables DOS Ltd to meet its growth requirements over the coming years.

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