CASE STUDY

PROCTER & GAMBLE, UNITED KINGDOM

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Efcient warehouse distribution solution to reduce transport costs and increase exibility.
Swisslog developed the LoadBuilder module for our UK distribution to reduce transport costs and provide exibility in meeting customers delivery requirements. The development has been so succesful that a Web version is now available to Gillettes UK customers.
Mark Ragot, Operations Manager UK / Ireland

The customer and his requirements

Gillette (a part of the Procter & Gamble Group) markets a number of category leading consumer products globally. For UK Distribution these products are stored and despatched from a Distribution Centre in Reading using both own transport and sub-contract carriers. In 2005 Gillette was acquired by Procter & Gamble, adding their brands to P&Gs extensive portfolio. In the UK DHL/Excel undertakes distribution for Gillette. Prior to Gillette becoming a business unit of Procter & Gamble Gillette decided to

upgrade the WMS at Reading to the latest version of Swisslogs WarehouseManager WMS. This upgrade assisted with meeting the increasing demands from Gillettes customers for deliveries that integrated with their own evolving logistic systems. During the upgrade process Gillette requested that Swisslog investigate how improvements could be made to Transport Planning and Order Delivery. To meet this requirement the LoadBuilder concept was created and subsequently developed.

PROCTER & GAMBLE, UK

The solution
Although the system enhancement to meet the operational requirements was labelled with a generic name LoadBuilder it involved all aspects of customer order processing control from the time the order was communicated to the WMS through to the Confirmation of Despatch. The functionality was delivered in several phases. Phase 1 optimised the transport planning of customer deliveries by applying customer driven pallet build and load stack build rules to each order and sequencing pallet build using product and pallet stackability factors. It has been designed to achieve maximum vertical fill of each load stack in the context of specified trailer configurations thus creating a Load Plan. Each Product can be specified as, Top-Only or Non-Stackable, or assigned a stackability factor to be applied when building pick pallets. Each pallet or layer(s) of product are also assigned stackability factors to assist with load stack build. Phase 2 converted the pallet configurations in each load plan to full pallet retrieval and order picking instructions. The order picking functionality is based on WarehouseManagers pick run concept. A pick run is a sequenced set of pick tasks that creates a licensed pick pallet when completed. By taking account of pallet configuration and stackability (including weight) WarehouseManager can group and order the pick tasks for each pick run, thereby delivering a pick strategy optimised for creating a stable and stackable pick pallet. These pick pallets have a suggested location within the despatch vehicle/ trailer that maximises the use of available storage capacity. Voice picking was progressively implemented during the above development.

LoadBuilder Objectives
Enhance Transport Planning > Provide the transport planning department with a more accurate assessment of pallet stacks associated with each order. > Provide system visibility of these pallet stacks to provide on-screen building of despatch loads. > Through web solution create full internal visibility to maximise truck fill. Reduce Transport Costs > Optimise the stacking of pallets in each despatch vehicle/trailer. > Improve management of own and sub-contract vehicle fleet by matching vehicles to load stacks for each load. Improve Customer Service > Greater system control over pick pallet configurations that are built to a customers requirements. > Create Load Stacks that match customers delivery requirements. > Allows customers under trade terms to achieve a full load every time.

LOGISTICS DATA
Overall site Customer order processed per day Cases despatched per day 64 60 000 Transport operations Despatches comprise approx. Full pallet cases Pick pallet cases Transport carried out by Own fleet Sub-contract carriers In a typical day vehicles / trailes required to deliver customer order 20 / 30 65% 35%

Order Picking System Manual picking using Vocollect Talkman terminal No. of pick faces 590

55% 45%

PROCTER & GAMBLE, UK

The benefits
> LoadBuilders impact on pallet stackability has increased the number of cases/stack by up to 35%. > The improved utilisation of stack height has created an increase in the cases/trailer despatched by up to 36%. > This increased utilisation of vehicle space has given a net reduction in Transport Cost expressed as Pence/ Case of 30% for the sites served by Readings own fleet. Other operational benefits are: > Accurate order stack data for transport Planning > On-screen assessment of outbound customer loads > System created pick pallets and load stacks > Stable pick pallet build and load stack build > Pallets and Load Stacks configured to customer requirements > System created Load Plans from pallet and load stack data > A Reduction in non value added customer claims

Swisslogs scope of supply

> Swisslog WarehouseManager WMS > LoadBuilder module including: Software assessment analysis and concept evaluation Software specification and system configuration Software and hardware installation testing and training > Vocollect Talkman system for voicepicking > Database servers and Application Servers > Comprehensive support & maintenance

CUSTOMER DATA
Company Gillette is a Business Unit of Procter & Gamble which has its base in Cincinnati Ohio. Within the UK Gillette has sites in Isleworth and Reading. Reading is the base of UK Distribution. Products, brands Gillette has a number of market leading brands, razors and associated consumables, Oral-B dental care products, Braun shavers and small appliances and Duracell batteries..

www.pg.com

PROCTER & GAMBLE, UK

INTERVIEW WITH MARK RAGOT, OPERATIONS MANAGER UK / IRELAND

What made you decide on having a solution like LoadBuilder created for you? The impact of transport Rate Cost Inflation and legislation such as the Working Time Directive created a need for improved control over transport planning. This could be achieved by providing a LoadBuilder module, linked to the sites Warehouse Management System (WMS), that pulled orders for planned loads through the distribution centre rather than the transport department having to make late changes to loads during and following order picking. The decision to upgrade the sites WMS to Swisslogs WarehouseManager meant that LoadBuilder needed to be an integral feature of the WMS and Swisslog were commissioned to develop the LoadBuilder concept as imagined and specified by the DHL/Exel team and myself. The module creates Load Plans of load stacks and despatch pallets that are system converted to order picking in-structions that create Stackable pick pallets. What opportunities were there to reduce transport costs? The transport department had reports that indicated the number of load stacks that each order would create but this data made no allowance for the impact of pick pallet build where a pallet comprises multiple products in layer/case quantities or changes in pallet configuration due to customers own requirements. The aim was maximise the number of pick pallets that could be stacked to improve the utilisation of vehicle/trailer capacity. Maximising the number of cases in a load stack and the storage capacity utilisation in each vehicle were key objectives for the development. All orders would be passed through the load assessment module to determine the number of load stacks for each order. This data would be visible to transport planners so that they could plan loads directly at a WMS workstation and select the best vehicle/ trailer for each load.

Which benefits has LoadBuilder provided you with concerning transport operations? As anticipated LoadBuilder plus the implementation of Voice Picking has extended the functionality of the WMS to provide a net reduction in Transport Costs, expressed as Pence/Case of over 20%. Also, the ability to order pick to specified load plans has improved picking productivity and reduced the requirement for Groupage loads where the carrier has responsibility for outsorting customer orders as well as delivery. Has the system driven case picking of licensed pick pallets created any operational improvements? Yes, there has been an improved flow of goods through the distribution centre and productivity has increased. The order picking and marshalling process is more controlled and timely. This has been assisted by the voice picking system that provides targeted instructions at the start of each pick pallet Pick Run. Has Load Builder helped to improve Customer Serviceability? There has been Improved control over the presentation of orders. This control has reduced the error rate and created a reduction in claims by customers.

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