Rexel China North DC Opens

  As part of Rexel China strategy to build "One Rexel", the consolidation and development of leaner logistic platforms keep going. Indeed a new distribution center based in the North of China, closed to Beijing, brings together 4 warehouses of the region delivering now Hualongxing, Luckywell, Ouneng and Huaxing branches respectively.

Rexel news

Step by step relocation:
The new facility construction officially started January and last totally 3 months. Beijing Zhongheng was the first to move to the 5,800 sqm warehouse and completed the switch on April 3. Hailongxing and Luckywell are currently taking steps to move until July 8. Finally, Ouneng will end the transition and, expects to complete the relocation by July. At the end, more than 7,000 SKU from 25 different brands will be available for the next day delivery.

Leaner logistic with standardized process:
In terms of logistic, this new DC benefits from Eastern one's experience (based in Suzhou which has opened 1 year ago – See Newsletter #6) and will implement the same Warehouse Management System in order to optimize the supply by minimizing costs and ensuring on time fulfilment. The two DCs also share the basic procedures and even certain express service providers. 
Thru regional inventory consolidation and process optimization, the DC should definitely improve Rexel operational performance by eliminating stock overlaps, by accelerating products’ rotation, cutting operation cost, and supporting procurement centralization and SSC setup. For instance, the average performance of the 3 previous warehouses was about 51 lines/man/day, far behind the one from East DC which reaches 100 lines/man/day. After the transition, this situation will be notably improved.

This major step, in line with the ambitious plan that has undertaker Rexel China few years ago should streamline and standardize operations and at the end effectively improve customer experience in terms of quality, service level, tracking ability, etc.