The ability to provide on-demand fulfillment of merchandise tailored to meet orders by each store and SKU looms as a critical requirement for many manufacturers. This ability to direct ship from centralized manufacturing and packaging facilities can eliminate the need for retailers to inventory and re-handle merchandise at regional distribution centers. The savings and efficiencies of this type of material handling could make the difference in profitability, competitive advantages and customer satisfaction.
Timex Corp. (Middlebury, CT), the powerhouse brand in wristwatches, is taking the lead among global marketers of consumer products, in the direct distribution of Timex products to its clients worldwide, especially to its vast US and European markets. Timex will now have the ability to directly ship product from the new Global Distribution Center located in Cebu, Philippines.
The key to the new Direct Ship program is a sophisticated material handling system. Components include an advanced pick-to-light system, automated price and compliance labeling, package sorting and verification plus other powerful tools to expedite air shipment.
“The center is equipped with technology and has a system designed to produce 170,000 watches a day, packed and shipped in 16 jumbo airline containers per day to stores worldwide,” explains Andrew Ledesma, manager of the distribution engineering and worldwide transportation of Timex. He adds that, thanks to the highly automated material handling processes designed and installed by Numina Group (Burr Ridge, IL), the process of releasing the order from retailer customers to the loading of their products in airline containers takes less than 60 minutes.
Ledesma says that there are a lot of ramifications to the new Times Direct Ship program. “If you can build on demand with the great number of SKUs Timex has, there are substantial improvements in efficiencies among the material handling and warehouse management systems involved. In the end, these improved efficiencies and accurate through means successful order filling with significantly lower costs.”
“The Direct Ship program is no doubt viewed as highly beneficial by the many major chains who carry the broad line of Timex watches,” says Dan Hanrahan, Numina Group president. Now the stock of each individual stores is replenished on demand within 48 hours, instead of bulk shipments going to a chain’s regional material handling center where the products have to be inventoried and then re-handled whenever orders have to be shipped to individual stores. The savings in warehousing, handling and re-shipping could be stunning.”
Hanrahan adds that the small size and light weight of Timex products allow them to be air shipped to cities around the world. “You wouldn’t direct ship bicycles from the factory to stores by air, but there are probably logistic operations that could nevertheless significantly improve shipping programs and lower costs.”
As a system integrator and material handling automation provider, Numina Group has worked with Timex Corp in the past on advanced [distribution processes. “We got involved with Numina on earlier projects when they installed a customized label print and apply system,” says Ledesma. “They showed us a great deal of flexibility and innovation. There is no doubt about it that they have tremendous capabilities in these technologies.”
For more information: Dan Hanrahan, Numina Group, 60 Shore Drive, Burr Ridge, IL 60527. Phone: (630) 323-0110 x 404, or visit the Web site: www.numinagroup.com
Source: Numina Group