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The cosmetics supplier slashed DC space 60% and invested $5 million in materials handling to streamline distribution.
In the past year, it was expanded from 265,000 to 400,000 square feet. The layout of the facility was completely revamped, and $5 million spent on materials handling from a sortation system to very-narrow-aisle storage. Furthermore, this single DC's customer base for its cosmetics and fragrances increased from 7,000 to 35,000 retail stores and regional warehouses, explains Roy Drilon, senior vice president of distribution.
"Our response to orders is so good now," says Drilon, "that we truly act as the backroom warehouse for stores. We have become an integral link in the supply chain of our customers."
To coordinate the movement of inventory, a warehouse control system was added to the facility. It directs picking and controls conveyors that move inventory through pick modules and between levels before accumulating prior to sortation. The warehouse control system also directs sortation, ensuring cartons are delivered to the correct shipping lane.
From receiving to shipping, bar codes play a large role in managing inventory. Receipts from Elizabeth Arden's manufacturing sites arrive with bar code labels. All others receive bar code labels at the DC.
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