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Georgia Tech January 27, 2005. “ Our Mission is to be the Reseller’s Preferred Source of Business Products and Services through Leadership in Operational Excellence, Customer Support, and Integrity ”. S.P.Richards Sales Results. 2004 $1,543,943,000 + 6.0% 2003 $1,457,149,000 + 4.3%
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Georgia Tech January 27, 2005
“Our Mission is to be the Reseller’sPreferred Source of Business Products and Servicesthrough Leadership inOperational Excellence,Customer Support,and Integrity”
S.P.Richards Sales Results • 2004 $1,543,943,000 + 6.0% • 2003 $1,457,149,000 + 4.3% • 2002 $1,396,453,000 + 1.2% • 2001 $1,379,882,000 + 2.5% • 2000 $1,346,844,000 +10.5%
S.P.Richards History • Established in 1848 • Over 150 years of experience in the Office Products Industry • Oldest continuouslyoperating business in Atlanta, Georgia • Purchased by Genuine Parts Company in 1975
GPC Overview Sales Results 2000 – 2003 • 2003 $8,449,300,000 + 2.3% • 2002 $8,258,927,000 + 0.5% • 2001 $8,220,668,000 - 1.8% • 2000 $8,369,857,000 + 5.3%
GPC Overview • Automotive Parts Group ( NAPA ) • Industrial Parts Group ( Motion Industries ) • Office Products Group ( S.P.Richards Co. ) • Electrical/Electronic Materials Group ( EIS ) • Common to all divisions is expertise in warehousing and distribution 2003 Sales
GPC Overview • NAPA - Automotive Parts Group • Motion Industries - Industrial Parts Group • S.P.Richards - Office Products Group • EIS - Electrical/Electronic Materials Group 2003 Operating Profit
Office Products Supply Chain VENDOR DEALER WHOLESALER DEALER END USER
S. P. Richards Competitive Overview • National wholesaler - United Stationers • Regional wholesalers • Computer supplies wholesalers • Furniture wholesalers
How Our Customers Compete • Mega Dealers ( Office Depot, Corporate Express ) • National scope ( National contracts ) • Next day delivery • Purchasing control • Low price • Independent Reseller • High service • Next day ( or same day ) delivery • Internet Reseller • Ease of ordering • Quick delivery
How Our Customers Use Us • Items Mega Dealers don’t buy direct • Retail versus Commercial business • Items Independent Resellers don’t stock • The smaller the Reseller the fewer items they stock • Total Fulfillment services to Internet Resellers
How Our Customers Use Us • ‘First Call’ business relationships • No such thing as a backorder • Missed order is lost business • Most orders are for pre-sold merchandise • Wrap & Label • Consumer packaging • To: End User • From: Office Depot • Approximately 75% of our orders
- Atlanta - Charlotte
S.P.Richards Strengths • 36 full stocking Distribution Centers • 2 Furniture DC’s • 3 Horizon USA ( Data Supplies ) DC’s • 4 Canadian Distribution Centers • Broad inventory offering • 24,000 catalogued items featured at every DC. • Over 30,000 total items in inventory • Best service • Fastest delivery • Highest service levels • Fewest errors • Lowest cost structure
S.P. Richards Logistics Challenges • Rapid Delivery • Orders received today are shipped today • Unattended; key access • All customers have merchandise at the start of the next business day • Requires reduced cycle times for S. P. Richards
S.P. Richards Logistics Challenges • Rapid Delivery - Examples: • Corporate Express - Whippany, NJ • Shipped from: Moorestown, NJ • Order cutoff: 6:30 PM • Truck departs: 7:00 PM • Delivery: 8:00 PM • Staples - Ontario, CA • Shipped from: Mira Loma,CA • Order cutoff: 5:00 PM • Truck departs: 5:45 PM • Delivery: 6:00 PM
S.P. Richards Logistics Challenges • Rapid Delivery • No pre-planning of orders • “Real-time” • Constantly adjusting • Difficult to plan quantity and timing of labor • Statistically based • Tuesday, Wednesday, Thursday are heaviest shipping days • Managing overtime a challenge • Adjust and stagger starting times as appropriate • Many facilities use part time labor
S.P.Richards Philadelphia DC • 8,000-9,000 lines per day • Three kinds of pick zones • 18 inch shelving – B and C zones • 30 inch shelving – A and B zones • Pallet Racking – F and W zones • Active – Each Pick • Reserve – Overstock • Focus on B, C, F and W zones
S.P.Richards Philadelphia DC • B and C Zone Analysis • B intended to be a quick pick area • B a combination of both 18 and 30 inch shelving • C zone for slower moving items • Re-vamp just before going live on PkMS • B zone has top shelf reserve • Overstock for items in C zone is in R zone, another section of shelving
S.P.Richards Philadelphia DC • B and C Zone Analysis • Picking in batches • Batches built by WMS System • Pick Truck volume defined in PkMS • User Defined groups • B & C zone cartons • B Only • C Only • PkMS orders each group by first pick location • Creates pick trucks, assigns pick truck number
S.P.Richards Philadelphia DC • B and C Zone Analysis • Increase pick truck size • Separate B and C zones • Move high movers from C to B • Some improvement, but not significant
S.P.Richards Philadelphia DC • B and C Zone Analysis • Boxes vs. Totes • Currently pick directly into boxes • Option of picking to totes • More picks will fit onto the pick cart • Double Handling • Separate one line and multi-line cartons? • Highly efficient pulling for one liners • Potentially visit the same location twice
S.P.Richards Philadelphia DC • Challenges/Questions for B and C Zones • Propose new slotting for B and C zones, maintain vendor lines together in C zone • Stockers do putaway by vendor • Determine the amount of product to put in the active location for each item • Recommend whether to pick to totes or boxes • Recommend whether or not to separate one line orders and multi line orders • Should Flow Rack be used in B zone for fast moving items? Other MHE?
S.P.Richards Philadelphia DC • F and W Analysis • Pallet Racking • Primarily reserve, some active in F zone • Two types of reserve locations • Case Reserve • Cases removed from pallets when stocking and stacked on shelves • Pallet Reserve • Entire single sku pallets are stocked • PkMS directs pickers to pull full cases from either of these reserve locations
