Office Depot shd excellence in logistics l
completed external benchmarking exercises with non-direct competitors and our accuracy levels compare very well. It is an area we are extremely proud of.
ShD: The productivity and quality enhancements are impressive; how significant a role does the automation play? MM: There are several elements of our operation that have been automated. The primary features are probably the A-Frames and the ASRS. Our facilities are equipped with several miles of conveyor system, and linking this with automated picking and stocking mechanisms has proven effective.
ShD: Who provides the automation? MM: We have a long-standing relationship with SSI Schaefer Peem as our primary provider of warehouse equipment. Their understanding of our operations coupled with our clarity of direction is what adds value. The enhancements delivered in recent years are a combination of Office Depot’s commitment to deliver excellent service to our customers, and the expertise of SSI Schafer Peem with regards to improving operational efficiency with new innovative systems. Our Distribution Centres now process double the activity they did five years ago, with half of the resource requirement.
ShD: What is the strength and depth of the relationship you have with SSI Schaefer – you’re not just buying kit off them? MM: The relationship with SSI Schafer Peem is good. They support our requirements throughout the planning, implementation, and support stages of any project. Our vision and need is translated into solutions that are jointly implemented. This collaborative approach to problem solving and opportunity seeking has benefited both parties along the way. There is a real sense of partnership.
ShD: So the nature of the business is that these DCs are always a work in progress – you’re constantly reworking and looking for new efficiencies? MM: Yes, our operational requirements are continuously evolving in line with changing customer needs. As a business, we continue to adapt our product and service ranges in line with market conditions. This results in changing service priorities, and this can sometimes result in finding alternative
www.PressOnShD.com December 2011 ShD 15
working methods. This is our ongoing approach. We also operate a strategy which involves re-engineering our sites every three years to ensure that we stay at the forefront of modern-day warehousing.
ShD: There is a thought process that automation can prove restrictive? MM: It really is dependant on your business model and how you future- proof the relevance of what you do. Within Office Depot we currently operate across three main channels: direct mail, contract, and e-commerce. Within these channels are myriad sectors, and each contains varied needs and wants. The distribution model we have applied satisfies all of our current customer requirements, and we have demonstrated in recent months the ability to diversify where required.
ShD: What is relevant and topical in terms of customers in the office supplies world at the moment? MM: Our customers approach us with regards to packaging reduction, order consolidation, and flexibility on a daily basis. Operationally, we proactively ensure that we are delivering solutions to our customers, not just pens and paper.
ShD: How do you do this? MM: With regards to packaging reduction, we have processes in place to ensure that we achieve the maximum quantity of product within each, which results in minimum waste
for our customers. This is achieved via a mixture of system configuration and, again, some automation. We operate a Jivarro machine that cuts cartons to size prior to despatch. We offer our customers the opportunity for selected delivery days to reduce the number of deliveries made, and we consolidate the quantity of cartons dispatched by combining
In terms of productivity, we have the same service model as we did five years ago; however we are approximately 40% more productive today.
specific orders. The contribution that an efficient and effective Supply Chain can have in terms of delivering customer value is significant.
ShD: What is the future for Office Depot in terms of Distribution Centre performance? MM: We have a clear priority to continue to lead the way in terms of identifying collaborative approaches to generate value-added services for our customer base, both existing and new. We have effective supplier
relationships, none more so than with SSI Schafer Peem. This positions us well in terms of demonstrating the required innovation to ensure that we exceed our customer expectations in terms of providing them with solutions for their personal business needs.
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