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In November 2014, Rexel China opened its first operational distribution center (DC) located in the suburb of Suzhou. With almost 7,000m² of storage capacity, the center is able to stock more than 18,000 references and can directly deliver customers. This 1st DC is part of an ambitious logistics overhaul in China, which aims to cover strategic regions of the country:
> East DC – located in Suzhou
> North DC – located in Beijing
> South DC – Located nearby Guanzhou
In this DC, warehouses from the 3 banners operating in the South of China (Suzhou Xidian, Hualian and Huazhan Automation) are brought together under the same roof.
The overall objective is to optimize the supply chain; improve operational efficiency and enhance service levels to customers. In order to do this a Warehouse Management System (WMS) has been implemented to minimize costs and fulfillment times. This is done via a set of computerized procedures for the management of:
• Warehouse inventory: ensuring there is enough available stock to meet demand,
• Space: optimizing storage, for example, more popular products can be stocked near the delivery area,
• Equipment: using automatic identification and data capture devices like barcode scanners, car terminals etc., to follow all the flows in real time
In this way, everything is optimized from reception of products from our suppliers, to the shipment of customer orders. Leaner logistics not only improve operational effectiveness but also the quality of our service levels.
The WMS works on a continuous-improvement basis with. Six Key Performance Indicators (KPIs) identified, that measure the performance of the DC - safety, work efficiency, delivery reception, on-time delivery, monitoring of complaints and the implementation of regular actions plan to improve quality. Rexel has also set-up a service standard indicator for the entire supply chain called OTIF (On Time In Full), which refers to goods or value-added services delivered to the customer respecting all requirements in terms of quantity and quality.
This DC is a key step in Rexel China’s development and represents a competitive advantage by significantly increasing product availability (more than 8,000 references are available for next-day delivery) and offering added-value services such as customizing service for over-packaging etc. Moreover, thanks to the implementation of lean processes, operations will be safer and faster, ensuring customer satisfaction at lower logistics costs to Rexel.
• 47 Employees
• 0 incidents
• 8,000 references (12,000 for the end of June)
• 7,000 m²