Overseas / Origin Logistics
The brief
Design and manage a direct to store fulfilment model from China to stores whilst bypassing the customers own UK distribution network.
The solution
SEKO SYNERGY operate 2 logistics operations in China, one in South China and one in Shanghai. SEKO worked with the customers supplier base to establish a “pre retail� hub in Futian FTZ in South China to receive FOB product and then pick and pack directly to store. Product was allocated directly from EPOS results in store with a direct interface to Supply Stream© with an over-ride capability built in for merchandisers. This allows for product to be picked directly to store based on EPOS results or manual forecasting. SEKO SYNERGY pick and pack the product and load into ocean containers and ship directly to the UK where the product enters a parcel carrier's hub and is delivered to store within 2 days of arrival at a UK port.
The result
Since moving to a China Direct model the customer has realised close to £1 million in direct cost savings in various areas from labour costs, facility costs and QC returns. SEKO SYNERGY undertake all origin QC within the facility prior to export and any product that fails QC is returned to the vendor prior to despatch, something that the client never used to do.
The operation has allowed the customer to move to a “unit� cost from FOB to store without the allocation of distribution overheads. When deploying the Supply Stream © suite of solutions SEKO SYNERGY also hard coded the customers store allocation business rules which allowed picks to be directly associated with the store grading and thus the product volume with little or no human intervention. This was a major time and cost saving opportunity for the customer in its own right.
This solution was recognized by BIFA (British International Forwarders Association) as the best example of supply chain management innovation of 2005 and resulted in SEKO SYNERGY being awarded a gold award.
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