FPS DISTRIBUTION CENTRE STOCK & SERVICE PROGRESS UPDATE
03 Jul 2019
It’s no secret that FPS has been suffering from some growing pains since the unprecedented growth in volume from the recent AAG acquisitions. Nonetheless, the DC crew are working tremendously hard to restore the service levels our customers expect from FPS and rectify prior shortcomings.
Stock
Customer orders coming through the DC have been steadily increasing throughout 2019 after a relatively flat 2018; the highest customer order figure for 2019 is 20,034 compared to the 2018 high of 18,064. These higher order numbers are being delivered by a smaller employee base, meaning productivity in the DC has also seen a notable increase with average lines per picker per hour increasing by 33% since September 2018. Supplier changes and additions have had significant impact on the DC. The introduction of KYB, NRF, and Stabilus have all taken up substantial amounts of space in the extension. Having an additional 45,000sq.ft. of product on site this year means space is now at a premium. New, more efficient ways of storing products are currently being investigated, but various measures have been put in place this year to make life in the DC easier in the meantime. A major part of this has involved reorganising the racking to optimise pick times.
Storage changes have included:
1. Material stored by velocity – Fast moving materials are stored closer to packing stations to reduce walking distance.
2. Material stored in single locations – Each SKU is in a unique bin meaning the picker doesn’t need to decide which part they need or look through the bin to find the necessary part.
3. Material stored within easy reach – Material has been moved down from top locations and up from low level locations to make picking more efficient by decreasing use of ladders.
4. Aisles kept clear – Aisles are being kept clear to reduce traffic, slowing pick walks.
5. Material stored in right size locations – Material has been moved to locations that are the correct size to reduce rework.
Other initiatives include 6S Activity. 6S Activity is a continuous improvement workplace methodology designed to improve efficiency and organisation by completing the following processes – safety, sort, straighten, shine, standardise, sustain. This has been implemented on the packing benches and in packing areas within the building to ensure the packer has all the necessary material in a convenient location. In addition, rack sacks have been introduced to reduce waste in locations, which improves picking efficiency, and goods are being sold in pack sizes which has reduced the number of bin visits.
Rack Sacks
New packing area on floor 3
Service
Delivering the right part to our customers at the right time has always been a priority for FPS and the DC. However, this aim does not come without its challenges. Factors like supplier changes, volume fluctuations and seasonality all affect the DC’s performance. Despite the constantly changing environment, the DC still needs to cater to diverse service demands including:
• RDC Replen – replenishment picks for the RDCs.
• DOBOs – Deliveries On Behalf Of the RDC to customers, which leave on vans throughout the morning.
• Customer Orders – Customer orders sent out via the RDC network on FPS transport.
• Sheffield RDC – Delivering goods to the local RDC in Sheffield to distribute to their customer base.
• Collections – The DC also provides a collection facility for local customers.
• Carriers – Deliveries through carriers to Ireland and eFulfilment.
This level of complexity means plenty of monitoring is required to ensure staff are in the right place at the right time so all tasks get completed. The FPS management team, led by Jonathan Eden, is constantly evaluating best practice to make sure the right processes are in place. Thus, there is also an ongoing conversation with warehouse staff to highlight performance. Points of discussion include utilisation (how long the user has been active for during their shift), efficiency (how they have performed during the time they were active), and quality (have they made any errors whilst carrying out their allotted task). Shift patterns are also reviewed to improve efficiency and ensure that a day’s work is completed in a day. Recent shift changes have proven successful at driving improvements in RDC replenishment completion and the putaway process.
We are very thankful for our marvellous teams who work incredibly hard. Your commitment and drive make all the difference to our business, without which, all the technology available to us wouldn’t have nearly as much impact.
Having said that, throughout 2019, we are looking at implementing new technology and levels of automation which will drive improvements and simplify warehouse processes. Look out for more updates later in the coming months.
Sortation system. Planned implementation in Q4 will reduce “sent to wrong branch” errors
While it is great that so many improvements are being made in the FPS DC, it’s even better to see the positive impact across the network. FPS RDC managers over the country have noted the recent improvements in the service they’re getting from the DC.
There may be a long way to go, but all progress is valuable and wouldn’t be made without the support and continued feedback from all colleagues.