Case Studies
(A) DGI helps our customer reduce picking times for high volume parts
The challenge:
Our customer identified 800 parts numbers that were very high volume based on daily bin trips. The pick path was in excess of 2400 linear feet. They wanted to reduce this pick path significantly without compromising their order fill rates.
The opportunity:
DGI was able to support our customer by packing these parts into small totes instead of the traditional pallet box. This allowed the customer to reduce the pick face from 3 feet to 1 foot. In addition to this process DGI became the national warehouse for these 800 high moving parts. Through automated electronic file transfers DGI is able to produce a daily pick list for all 800 parts and ship them on a daily milk run which gets the parts into the live pick bins in advance of the daily customer order call offs. DGI also replenishes the customer's other DC's on a daily basis by utilizing their computer systems and picking orders to meet their top to max inventory protocols.
The result:
The customer was able to reconfigure their live pick area based on the daily replenishment of parts from DGI that reduced their pick route from over 2400 linear feet to less than 300 linear feet. They have realized significant savings on picking labour, floor space, and order to shipment cycle times. The lead time for daily replenishment to the field PD has also been reduced and performed in a more cost effective manner, as an unplanned benefit.
(B) DGI provides fine sortation services to reduce placing labour in Distribution Centres
The challenge:
DGI's customer operates 4 distribution centres across the country. Each of these facilities has numerous warehouse areas serviced by dedicated receiving docks. These areas are designed to store parts based on type, size, and quantity. Delivering the right part to the right dock and performing a fine sort and consolidation would greatly reduce labour costs and cycle time of part to bin at the distribution centres.
The opportunity:
DGI worked in concert with each distribution centre to identify the specific requirements at the part number level based on location and quantity data. This allowed DGI to deliver parts to the correct area of the warehouse through the closest dock. Parts were identified as full lifts that are destined for storage and partial lifts that are destined to replenish the live pick bins.
The result:
DGI sorts all inbound product based on real time data for each DC at the part number level. Each order is distributed to each DC based on their current inventory levels by using electronic interfaces with the customer's computer systems. DGI identifies each part number DC line item as either a full lift or a partial lift. Full lifts are assigned an on-line storage record and affixed with a barcoded storage tag. Partial lifts are consolidated with other parts whose live bins are in the same area to maximize shipping cube and all orders are dock specific loaded and shipped to the optimum receiving dock. The result of this process is reduced receiving labour hours, cycle times, and freight costs through maximum cube utilization.
(C) DGI helps our customer receive parts from off shore suppliers and distribute in accordance with their local standards:
The challenge:
DGI's customer sources parts from offshore vendors who ship in sea containers. These parts in many cases are not packed or labeled in accordance with local standards.
The opportunity:
DGI worked with our customer to have all of the sea containers routed directly to our facility from the freight forwarders. DGI would then unload the containers, provide receiving functions and determine the status of the load on a part number basis. These parts may need repacking due to local standard or merchandising packs as well as local labeling requirements. DGI provides full service to ensure that all parts meet the customer's local standards and if required, inspect and rework.
The result:
The customer was able to accept the standard packaging and shipped configurations of the off shore vendor thus avoiding any additional costs associated with customization of requirements to meet their local standards. The customer also realized savings due to maximizing shipping cube utilization. The costly unloading , inspection and reworking/repacking process was minimized by utilizing DGI's capabilities and economies of scale.
(D) DGI helps our customer open new retail opportunities:
The challenge:
Our large multinational customer was presented with a new retail sales opportunity that had specific requirements for E-commerce, packing, labeling, shipping and documentation.
The opportunity:
Like most large companies it is very difficult for our customer to adapt to external processes and electronic requirements. While this was a legitimate business opportunity the requirements did not align with the standard operating procedures of our customer on a physical and electronic basis. In order for the customer to meet the needs of the retailer the investment in systems, training and non-standard operations may well have made the project cost prohibitive. DGI was approached and asked to participate in this project to operate as the intermediary that would allow the customer to take advantage of the sales opportunity in a cost effective manner.
The result:
DGI opened a communication dialogue with the retailer and subsequently developed the knowledge base, hardware and software solutions to act on behalf of our customer to meet the unique requirements of the retailer. The customer could leverage the skills and capabilities of DGI to meet the needs of the new retailer's business with little or no actions required by the customer. DGI acts on their behalf and fulfills all of the requirements of the retailer. The success of this program has prompted our customer to pursue other product lines through this retailer. A new market has been opened for our customer by using DGI's facilities and expertise.