Page 304 - DMGT546_INTERNATIONAL_TRADE_PROCEDURE_AND_DOCUMENTATION
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Unit 14: Information Technology in International Business
Notes
Case Study Argos Goes Full Speed Ahead with Automated DC
Customer Challenge:
Need to handle substantial growth in sales, number of sales channels and growth in
choice for the consumer, while at the same time increase competitiveness in the
market.
Solution:
TM
Automated distribution centre including VISION Warehouse Control System
integrated into Argos’ OMI WMS.
Benefits:
Lower operational costs
Higher efficiency, productivity and picking accuracy - Better control over direct
imports
More efficient handling of reverse flows
Outlook:
Continuous improvement program through on-site 2417 maintenance and support
team
The Customer Challenge
Argos is the largest non-food retailer in the UK with annual sales close to £4.3 bin (E 5.4
bin). The company sells a wide range of home, electrical, garden and DIY products through
its catalogue, website and over 700 shops in the UK and Ireland.
Faced with significant growth, Argos wanted to increase product availability and reduce
costs. Argos was dealing with a rapidly expanding product range and increasing price
competition in many core product areas. Being a catalogue retailer, the catalogue is in fact
an all-season promise of product availability to the customer. It means that Argos has to
stock all those products throughout the season. Security of supply and pick accuracy are
very important.
Argos decided to centralise the distribution of small items to increase national availability
by concentrating supplier deliveries to one site and improving picking efficiency. At the
same time Argos also wanted more control and continuity of supply of direct imports,
which make up a growing proportion of the product range.
The Solution
The distribution centre encompasses several processes, including a central warehouse for
imported products (CDI) and a store order picking function for small items (CDC). The
CDI operation is essentially a bulk storage and container-to-palletisation factory’ providing
speed and efficiency in replenishment and supply.
The CDC includes complex integration of technology, including automated storage and
retrieval, goods-to-man order picking, and associated warehouse management and control
systems. Vanderlande Industries’ vistorspi Warehouse Control System (WCS) is integrated
into Argos’ OMI WMS.
Contd...
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