Paving the road to a bright future
A complete strategy to achieve long-term revenue growth for the world’s largest home improvement retailer.
Our customer is the world’s largest home improvement retailer with over 2200 stores across North America and manufacture in over 25 countries worldwide. They lead the Do It Yourself (DIY) category with in stock and focus on a postponement allocation strategy via transload usage. This allows them to get “the right product to the right place at the right time.”
To build on this proposition further, they need to strengthen their existing transload program in their two largest markets of Southern California and the Northeast US.
The current situation is that of a traditional transload program without any scope for optimisation of lead time and labour costs.
We started with our Warehousing and Distribution facilities in South Gate and Summer in 2012.
By 2019, we launched an Integrator Project with focus on the expansion of efficiencies throughout each segment of the supply chain. To achieve this, we did the following:
- Weekly block stow/peel off process
- Established best practice for communicating empty container return and shut out
- Summer yard management system PINC in process
- Automation of South Gate scheduled for deployment in 2020
- Proposed transload expansion to New Jersey (including automation)
- Backhaul proposal to move the customer’s domestic product on our empty ocean containers
The customer saw merit in our solutions and made us their lead partner through our ocean services. This resulted in optimisationof manual processes and upstream management and scalable solution for volume growth with potential for expansion of Free Trade Zone services.
We also saw more than 8% through our proposed transload program by 2019. With our 2020 deployment of automation of South Gate, we forecast long-term growth in revenues through further reduction in inventory and labourcosts.