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Atlet pulls out all the stops for warehouse relocation
hesapeake is an international supplier of cartons, labels, leaflets, and specialist plastic packaging. Its pharmaceutical and healthcare packaging business has over 20 manufacturing facilities world- wide. Its UK distribution centre ser- vices four manufacturing sites and until April 2011 operated out of a 72,000 square foot warehouse in Northampton.
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The situation Moving to a larger, previously unused warehouse in Swadlincote provided Chesapeake with an opportunity to extend and improve its distribution operation. Its logistics team saw the potential to increase its product volume and picking capacity by installing a denser configuration of racking in a narrow aisle design. However, the new operation necessi- tated changes to its fleet of trucks and its operational processes. As Paul Oakey, logistics manager UK and Ireland Chesapeake, explains, Chesapeake turned to Atlet for assis- tance, “The new set up in Swadlincote was a complete departure from our previous operation, so we were reliant on Atlet to advise us on how the oper- ation would perform and what our new truck requirements would be.”
Sophisticated solution analysis Atlet deployed its Logistics Analyser, a sophisticated piece of software designed to analyse and simulate potential warehouse solutions. Using data provided by Chesapeake, Atlet produced a simulation of the most effective materials handling solution based on its chosen racking design. Alan Pitt, Atlet’s account manager for Chesapeake explains: “The Logistics Analyser allows us to opti- mise a client’s materials handling operation and deliver the most cost effective, efficient and flexible solu- tion. In the case of Chesapeake, we were able to demonstrate how the operation would work most efficiently, which included making every location a pick location, and what trucks the new operation would require.” The visual simulation also provided Chesapeake with the opportunity to identify potential challenges in their
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Relocating a national distribution centre is a huge challenge for any organisation, but when Chesapeake moved its UK pharmaceutical and healthcare packaging distribution centre, it had just 11 weeks to plan the move and 11 days in which to complete the relocation. Critical to the success of the transfer was materials handling supplier Atlet
processes. Paul Oakey adds: “The new warehouse operation required a differ- ent operational approach for us, but Atlet’s professional assistance and analyser tool proved invaluable. It gave us complete confidence in how the operation would work and an opportunity to iron out glitches in our processes before we went live.”
Keeping costs down
Atlet has been working with Chesapeake since 2009 when it was contracted to supply a new fleet of trucks for its Northamptom warehouse. The flexibility provided with Atlet’s five-year contract enabled Chesapeake to exchange equipment at the time of the move without any penalty. Pitt says: “We always work hard to keep costs down for our clients. We have achieved this in a number of ways for Chesapeake, including intro- ducing refurbished equipment, reduc- ing the first year rates, extending lease terms and providing clauses in con- tracts that enabled them to exchange equipment after a certain period. We were also able to significantly reduce their energy consumption when we first came on board.” Paul Oakey adds: “We’d had our pre- vious fleet for over seven years, which had kept costs very low for us, but we were not happy with the reliability of the equipment from that supplier. We turned to Atlet which has a reputation for good performance, but this meant taking on a new fleet which repre- sented a significant increase in costs. The option to take on Atlet’s refur- bished equipment and the fact Atlet reduced the rate for the first year was extremely helpful to the business.”
Pulling out the stops
Chesapeake was determined that the warehouse relocation exercise would be completed with minimum disrup- tion to its customers. The team identi- fied an 11-day window of opportunity to move which was provided by the consecutive Easter and royal wedding
Atlet T: 01844 215501
www.atlet.com/uk Enter 302
Atlet’s DCR trucks were included in the revised truck fleet supplied to Chesapeake which relocated to a larger warehouse
bank holidays in April 2011. However, this gave the project extremely tight timescales in terms of preparation and the physical move itself. The new warehouse’s revised truck fleet was to include three DCR trucks, built to bespoke requirements at Atlet’s production plant in Sweden. The pro- duction timescales were extremely ambitious, but Atlet’s team made sure that Chesapeake’s critical deadline was met. Paul Oakey says: “We had an exceptional requirement, but Atlet pulled out all the stops to ensure our new trucks were delivered on time. If Atlet had slipped on the delivery date in the slightest, the whole move would have failed – but it didn’t let us down.”
Project management services Moving warehouses requires immense planning, additional resources and, additional equipment. To facilitate it Atlet provided additional trucks on a short term hire basis. It also provided a project manager to oversee the materi- als handling requirements and the logistics of the move. Paul Oakey says: “We had to move 18,000 pallets in 11 days, which involved 45 people and the vehicles’ travelled a total of 42,000 miles. It was a logistical nightmare, but having, Atlet’s project manager on board, meant we had someone dedicated to ensuring we had the right equipment in the right place when we needed it and we could focus on our customers’ requirements.”
Conclusion
The relocation was completed on time and with minimum disruption. The materials handling solution has proved extremely successful, provid- ing Chesapeake with the capability to pick from every location, which has considerably improved operational efficiency. The introduction of pick and drop locations at the end of every aisle, serviced by Atlet’s reach trucks and DCRs has removed blockages in the marshall area, eased congestion and reduced potential damage.
SEPTEMBER 2012 Factory Equipment
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