Warehousing and Distribution in the Kingdom of the Zulu

Warehousing and Distribution in the Kingdom of the Zulu

Less than truck load warehousing and distribution in the Kingdom of the Zulu

Carrus has successfully implemented a solution in the Northern Natal region for a group of companies which identified the potential of bulk procurement and “Just-in-Time” distribution whilst utilizing both warehouse and fleet capacity to their benefit at optimal levels. The warehousing component of the solution entailed bulk receiving, put away and storage followed by pallet and case picking, system transfer and/or invoicing with a stock holding of 750 pallet positions utilizing the available warehouse space at a capacity utilization more than 90%.

The following SLA drive the process:

1. From truck (super-link) arrival to receipt in less than 6 hours.
2. From Receipt to put-away 3 hours.
3. From order to pick 3 hours.
4. Cycle count daily.
5. Validated wall to wall stock take once a week.
6. System audit once a week.
7. Stock accuracy >99.50%.
8. Warehouse damages under 0.25%.

The distribution model takes over at the dispatch function in which the loads are checked and audited, fine distribution carried out making use of the Carrus fleet of vehicles on an outcomes-based remuneration model.

This is governed by the following SLA:

1. Pre-plan routes 24 hours prior to dispatch.
2. On route monitoring and active liaison with receiving store to ensure ETAs are maintained.
3. On time delivery result of 99.00%.
4. Clean POD communication to client within hour of delivery execution (Verbal).
5. Full POD documentation available to client within 12 hours of delivery.
6. Distribution damages under 0.25%.

During this project, it became evident that the larger supply chain function would act as enablers to:

▪ Optimise the flow of stock.

▪ Have the correct SKU at the right time at the right location.

▪ Improve Days stock on hand management.

▪ Improve rate of sale analysis and integration.

All of this enabled a replenishment function and changed the process from a “Pull” solution to a “Push” solution which in turn delivered the following benefits:

▪ Better purchase power and negotiation leverage (Product purchased at better prices);

▪ Interbranch balancing of stock levels.

▪ Reduced stock holding at store level.

▪ Freed up strategic resources to focus on the consumer experience rather that inventory management.

▪ Faster reaction times to replenish KVI (Known Value Items) lines.