案例研究

TK Maxx - Realtime Communications Improves Efficiency in Retail

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With 102 stores around the UK and an ambition to open another 25 within 12 months, it was clear to TK Maxx that its two distribution centres in Wakefield and Milton Keynes would simply not be able to cope with the added demand. Operating a time-intensive paper-based tracking system in both centres, yet with a business ambition to improve working practices, it was agreed that a new approach for the future was needed. Responding to both the volume and procedure improvement need, the decision was made to open a supporting purpose-built Processing Centre in Stoke - where sophisticated scanning technology would be implemented to help speed processes, improve accuracy and provide a real-time solution to communication with its head office in Boston, USA.

With a track record and real understanding of both the technology required and operational implications of implementing such a system, Gary Leppard, Development Manager at TK Maxx was given responsibility to implement the technology. “The brief was clear”, says Gary. “Implement the technology into a new Centre to help manage increased volume and deliver a more sophisticated way of working, improving traceability and tracking, speeding individual work rates and minimising errors. Essentially my brief was to follow the lead of the US operation in automating processes as much as possible. With that as my guide I was determined not to simply follow the US lead, but improve upon it by implementing the very latest technology.”

Having identified Stoke as the ideal location for the new processing centre, the next step for TK Maxx was to review all existing processes, identify areas for improvement and identify the best solution - not to mention complete the building works. But unlike the US implementation that took 20 months from initial review to completion, the entire UK project would need to be completed within just 9 months - and of course needed to be delivered within a strict budget.

Efficiency and Accuracy From The Start

With goods arriving at the Processing Centre throughout the day, efficiency would be key. But if the ambition was really to enhance the process by ensuring accuracy, improving individual worker productivity and providing useful management information, the best option had to be a real-time solution.

Realising that the job would require specialist knowledge, TK Maxx contacted Intermec Technologies, already a supplier to the US operation and one of the market leaders in the field of wireless infra-structure and mobile computing technology, to work in partnership with the TK Maxx team to develop a UK solution.

Unlike the legacy mainframe system operated at the other distribution centres, the solution identified for Stoke started with the Intermec 1551E integrated decoded laser scanners. Specially developed for industrial use, the 1551E’s have a rubber housing and a protected window, ensuring that they can withstand both harsh treatment and temperatures, while the high speed laser scanner engine reads both linear and PDF417 bar codes for increased flexibility and productivity.

With the warehouse management system pre-loaded with details of the coming delivery, the receiving bay worker simply signs on to a workstation and scans the goods on arrival to verify that the goods delivered match those expect

Discrepancies are immediately noted and any necessary action taken. Using a linked bar code printer, labels are immediately produced for all pallets arriving at the Processing Centre, ensuring easy traceability through the Centre to the point of loading on to distribution lorries.

“Verification from first arrival at the Centre is essential - if discrepancies aren’t caught at that stage then future stock check is a nightmare”, explains Gary Leppard. “We were particularly looking for an easy to use scanner which would help avoid any mistakes, but would require minimal training and could withstand the harsh working environment. The 1551E’s scored at all levels and have certainly delivered against all our criteria.”

Reducing Time and Errors

From goods in, the pallet then goes to storage with tracking again an essential component part. Collecting the pallets on forklifts, operators first scan the pallet to verify content and to update the system about which forklift - and which operator - is taking charge of this particular item.

Using Intermec’s 6400 hand held computers, the process delivers information to the central system real-time, with extra-long range scanners on trucks to enable operators to fire a long range beam up to the top of the racking system thus reducing time and increasing productivity.

Further support is provided via Intermec’s 5055 vehicle mounted computers, which provide warehouse operatives with full screen, full colour presentation of data while supporting interactive work process management. Icons and symbols help the user feel completely at ease with the computer applications, while the picking and delivering process is enhanced through real-time communication. Using this combination, TK Maxx is now able to undertake spot checks, improve accuracy control and undertake simple problem-solving without the hassle. For example, if a forklift driver forgets to scan the pallet before putting it away the system knows that it’s been missed, which truck it was on and which driver was responsible. Quite simply, identifying its location becomes a much simpler task compared to the horror of the old time-consuming stock adjustment and stock checking.

The final stage in the process is of course the distribution of the right goods to the right store on the right day. With complete clarity over location of items in the Processing Centre, operatives can easily select and pick goods using the Intermec scanning technology, then quickly allocate the right number of items to the right lay-up lane for loading.

Benefits

Using leading edge wireless technology, incorporating the latest 802.11b standard means that TK Maxx now has one of the most advanced and future proof systems in the business. But while it’s leading edge, the system is also very easy to use, explains Gary. “We have all new staff at the Stoke Centre and whereas we would normally take a week to learn the process, a day’s training has been all that’s required to make them comfortable with the system. The equipment is ‘intuitive’ and as it helps them do their job they tend to learn about our business much more quickly. And, of course, the more they understand about the business the more productive they become.

With information available real-time TK Maxx is now able to manage its workforce more effectively, helping to identify problem areas - or even personnel, using the time to better effect. Management can now analyse the efficiency of both departments and individuals, checking productivity hourly if need be - something that is simply far too time consuming to effectively achieve manually.

“Where an identical task at one of the other Centres may require three people to complete, just one person can now be allocated to the job - thereby saving time and cost”, explains Gary. “Of course with the accuracy of the system we are also finding that time spent on identifying errors or ‘missing’ stock is significantly less - again making the working day more productive.

“The solution we have implemented has more than exceeded our initial expectations and we are anticipating return on investment to be achieved well within 18 months - an exceptional rate for this level of implementation. I’ve no doubt that the way that the Intermec team has worked with us as real problem-solving partners both in the UK and the US has made the whole process run more smoothly and we already have plans in place to roll out the system to the two other Centres”, concludes Gary.