Following its successful expansion into the online arena, TSC now stocks 15,000 high-quality products. These are stored at TSC’s headquarters in Mississauga, Ontario, in a warehouse measuring almost 28,000 m2. The bigger product range and fluctuating customer demand called for more efficient processes in the area of jewelry distribution, which accounts for 20 percent of the overall business.
A highly efficient and flexible solution was needed, because demand is subject to significant fluctuations – on some days the company receives 600 orders, while on others it receives just 100. Twenty two employees were previously needed in the incoming goods, order picking, distribution, and returns departments to absorb these fluctuations. Since the items are also high quality and therefore valuable, it also requires a system in which the items are securely stored.
The items can now be picked in batches following the installation of three Megamat RS vertical carousels with innovative inventory management software. As such, it has been possible to quadruple throughput from an average of 40 order lines per hour and employee to around 165 order lines. It is even possible to pick 240 lines per hour and employee at peak times. The design of the batch station allows each employee to handle up to 120 orders simultaneously. They are assisted in this process by a monitor that shows them the right place in the order box and the number of items requested for each order.
The items are stored in the space-saving vertical carousels, which are nine meters high. Since this is an enclosed system, the goods are protected from dirt and theft. The ability to retrieve them directly at the workstation saves additional space and creates more ergonomic working conditions. Due to the relocation of the returns operation to a different department, the use of the new storage systems made it possible to reduce the number of staff needed in the jewelry section to just ten. Overall, productivity in TSC’s warehouse has increased by 600 percent following the integration of Kardex Remstar’s system.
The advantages at a glance:
- 600 percent increase in productivity
- 75 percent less space needed
- Staff requirements reduced by 54 percent
- 120 orders can be simultaneously processed in batches
- Flexible system throughput