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Delivery by category for increased shipping and receiving efficiency
Beisia Group is a large conglomerate whose yearly consolidates sales exceeds 800 billion yen. Beisia Co., Ltd. (headquartered in Maebashi, Japan) is a parent corporation of the Beisia Group that specializes in retail.
In October 2012, Beisia built the Chiba Distribution Center in Togane, Japan. It is the company's second comprehensive logistics center, handling items for both inventory and delivery. It uses an automated "Surfing Sorter" and a variety of storage equipment to manage operations. The Chiba center has a greatly enhanced Beisia's throughput capacity. The improved, category-based delivery system reduces lead times and increases receiving and displaying efficiency at stores.
Second logistics center handles twice the distribution
Beisia operates 134 shops, mostly concentrated in Japan's Kanto region, and had annual sales of 286.7 billion yen during the 2012 fiscal year. In the past, most items were delivered to each shop from the Maebashi Distribution Center, a comprehensive logistics center established in September 2004. Excluding areas north of the Kanto region, delivery to shops were frequently performed via transfer centers located in five prefectures (Tochigi, Chiba, Nagano, Shizuoka, and Aichi), which required additional shipping and receiving work at each center. Company expansion led to increased traffic at the Maebashi Distribution Center, which was forced to handle almost double the inventory it had dealt with back in 2004. The Chiba Distribution Center was built to distribute products for the south Kanto region, making shipping and receiving more efficient while reducing traffic at the Maebashi center.
New sorting and storage equipment increases throughput
The new center currently manages delivery of commodities, clothing, housewares, and processed foods (shelf-stable only) for 34 shops throughout southern Kanto and the Tochigi transfer center. Transfer items are fed to the transport conveyor immediately after reception, sorted according to destination by the Surfing Sorter, and loaded onto distribution carts according to product type. Stock items undergo inspection after reception, and are then sorted according to purpose; items for case shipment and replenishment are stored in heavy-duty racks, while items for piece shipment are stored in regular or flow racks. When an order comes, items are picked via forklift trucks or distribution carts, placed into collapsible containers, and then fed onto conveyors where they are processed the same way as transfer items. The new Chiba Distribution Center shortens lead times performs delivery by category. This allows transfer items to be received at shops without having to undergo unnecessary inspection and reloading processes before shipping. This system also allows Beisia to use storage more efficiently since items being transferred are sent directly to delivery.
General Manager, Chiba Distribution Center
"Our new system is expected to reduce the cost of distribution by 10%, and has already reduced Maebashi Distribution Center's operating time by 30%. We plan to further reduce costs by increasing handling volume and by dividing products into more specific categories."