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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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