48-Hour Turnaround from Receipt of Materials to Shipping

This case history about American Eagle Outfitters comes courtesy of Dematic. It has been selected and edited by the MHM editorial staff for clarity, content and style.

American Eagle Outfitters is a retailer of outdoor sports apparel and equipment. The company operates mall-based stores in about 40 states, and is continuing to expand. Since first automating its distribution in 1994, the chain had grown from 150 stores to more than 500 stores. The company was outgrowing the old system and needed a solution that could keep up with their "velocity distribution" goals. American Eagle Outfitters turned to Dematic to address this challenge.

The challenge: 48-hour turnaround from receipt to shipping
American Eagle Outfitters needed a solution that could deliver on their goal of 48 hours from receipt to shipping. AEO was having trouble keeping up with their goals, due in part to a post-receipt distribution system. Using the post-receipt system, AEO would wait until merchandise had arrived at the distribution center before entering it into the system. With 80 percent of inventory imported, a more efficient system became critical.

The solution: migrate from post-receipt to pre-receipt distribution
AEO migrated from post-receipt to pre-receipt distribution, with the help of a Dematic material handling solution. Using the new system, the final product destination is already known, even before the trailer arrives.

The results are in
With the help of the new system, AEO has been able to maximize its velocity distribution goals, consistently achieving a 48-hour turnaround from receipt of materials to shipping. With the help of its new system, AEO efficiently processes 70,000 SKUs each year for its 520 retail stores. The solution has worked so well that a similar distribution center has been designed to meet the growing needs of Midwest and Western stores, to keep up with expansion in those areas.

"We’ve been able to move from three 8-hour shifts to two, doubled our receiving volume, and achieved significant improvements in flowthrough operations. Previously, it could take anywhere from 12-24 hours to process a crossdock shipment. Using the new system, it can take only an hour or two." - Michael Fostyk, Vice President of Distribution for AEO

MHMonline.com welcomes relevant, exclusive case histories that explain in specific detail the business benefits that new software and material-handling equipment has provided to specific users. Send submissions to Clyde Witt([email protected]), MHM Editor-in-Cheif. All submissions will be edited for clarity, content and style.

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