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SWEET SUCCESS

SWEET SUCCESS. By David Maloney. Burcu Küçük Büşra Durmuş Hale İshakoğlu. 3 Features of Eastern Distribution Center III. Distinct smell of chocolate in the air – 1,200 square foot building More cooler(55-60 degrees) & low humidity Little automation ; conventional design & smart slotting.

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SWEET SUCCESS

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  1. SWEET SUCCESS By David Maloney Burcu Küçük Büşra Durmuş Hale İshakoğlu

  2. 3 Features of Eastern Distribution Center III • Distinct smell of chocolate in the air – 1,200 square foot building • More cooler(55-60 degrees) & low humidity • Little automation ; conventional design & smart slotting • One of the three large distribution facilities in Pennsylvania

  3. Why was the new distribution center needed to build? • Dramatic growth in SKU count • Demand for space in overflow facilities because of not having enough capacity • a lot of handling to combine products During its peak seasons.. • August though October – preperation for Halloween • The weeks before Christmas • 125 trucks arrive • 150 full trailer loads depart • over 600,000 cases of candy passing through daily

  4. New distribution center was built… to accommodate growth in Hershey’s Food distribution network and to bring scattered inventory under one roof BENEFITS AT A GLANCE; • allowed for increased capacities • reduced handling and damages • eliminated the need for the overflow storage • required less labor

  5. Different SKUs in each facility • New facility; - typically perform the partial pallet processing - has improved slotting - has use of very dense storage - uses double-deep & 7-level high racks - has docks with 80 feet of staging space - has about 200,000 square feet co-pack area • All of the processes are controlled and monitored by an intelligent warehouse management system

  6. THE CHOCOLATE EXPRESS

  7. The Chocolate Express

  8. The Chocolate Express Docks surrounding the building.

  9. The Chocolate Express

  10. The Chocolate Express Pick are made in batches.

  11. Pick tunnels are replenished from items brought from nearby reserve storage. The Chocolate Express

  12. Pick tunnels are replenished from items brought from nearby reserve storage. The Chocolate Express Repacks products into merchandising displays

  13. Replenishment Schedule • Design -> Advantage?

  14. What is the goal? • Replenishment and storage efficiency -Dynamic slotting

  15. CHOC-O-LOTS Pick from both reserve storage racks and pick tunnels with 65% product is selected as full pallets by reach trucks.

  16. Comparison of Before and After BEFORE AFTER • Most picking was done to order. • One or two people on individual order. • Batch picking is employed as assignments are interleaved or multi-tasked. • With interleaving, 10 or more can work on that order. • Most picking was done to order. • One or two people on individual order. • Batch picking is employed as assignments are interleaved or multi-tasked. • With interleaving, 10 or more can work on that order.

  17. Now… • Batch picks are taken to assigned docks. • Case picks come from pick tunnels. • Walkie-rider trucks put most of these items together onto pallets, like mixed SKUs. • Know how much product will fit on the pallet by this software system. • Normally, pallet for only one customer. Sometimes, loads are sent to pool points to be broken down or combined with other items.

  18. Full pallet of items • Taken to the automatic stretch wrapping units. • Picked by reach truck/counterbalanced truck. • Taken to the staging lanes at the assigned dock. • Loaded into outbound trailers by counterbalanced trucks. • Shipped directly to customers/ sent to the consolidators or smaller Hershey facilities.

  19. References • http://images.google.com.tr/images?um=1&hl=en&tbs=isch%3A1&sa=1&q=christmas&aq=f&aqi=g10&aql=&oq=&gs_rfai=&start=0 • http://images.google.com.tr/images?hl=en&q=halloween&um=1&ie=UTF-8&source=og&sa=N&tab=wi • Sweetsuccescasestudy • Lecturenotes of Gürdal Ertek

  20. Thanks for listening….

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