Stairway to Success

When Wal-Mart expanded its RFID compliance order to include its top 300 suppliers with a January 1, 2006 compliance date, intimate apparel company SaraMax had to implement changes quickly, efficiently and inexpensively. Because AL Systems had previously played a major role in SaraMax' ascension to Wal-Mart's Direct Store Distribution Center (DSDC) supplier list, SaraMax called on the company again to help obtain RFID compliance.

 

To meet the requirements of Wal-Mart's DSDC supplier list, a corporate initiative that requires individual pallets be created for each Wal-Mart store, SaraMax needed to improve turnaround time and accuracy performance, as well as double distribution center capacity.

 

"SaraMax could not use its current paper-based practices because it would have increased labor costs significantly to meet the throughput and deadline requirements," says Steve Lind, director of distribution, SaraMax.

 

SaraMax chose AL Systems DynaPick Pick-to-Light solution, an order fulfillment system that uses light indicator modules mounted to shelving, pallets, conveyors racks or other storage locations. Whenever product is needed from a particular location, an indicator light turns on, drawing attention where action is required. The operator picks the product quantity displayed and confirms the pick by pressing the lighted button. Real-time feedback audit stations visually confirm the order was picked correctly.

 

"The DynaPick solution allows SaraMax to process orders quickly, cost-effectively and accurately," says Lind. Just three months after implementation, SaraMax was named to Wal-Mart's DSDC supplier list.

 

The task of ensuring that every SaraMax shipment bound for Wal-Mart's apparel distribution center (DC) in Sanger, Tex. is properly RFID-tagged began with a comprehensive study of the company's facility in Sayreville, N.J. Engineers from AL Systems determined requisite changes to warehouse layout, equipment, processes and systems for an effective RFID operation. They then provided and installed the RFIDenabled printers and scanners required to make the system functional. The RFID system prints labels that go on boxes of orders that the AL Systems picking system built. This is tied to the SaraMax warehouse management system. Lind explains the process:

 

"We create product and develop styles that are then sold to customers. The same style master information and product description flows seamlessly through the system, so we have virtually risk-free production. The company communicates this style data to its contract-manufacturing network in production packages sent via Web-based systems. Then when product comes into the DC from manufacturers, it is recognized by an allocation system that compares it to open order files, ensuring that incoming product is queued for allocation and shipment to accounts. Our replenishment programs retain about a five- to six-week stock level for each SKU. Replenishment orders come in three days before delivery is expected by the retailer. We receive the order, process it, allocate it, run it through our pick-to-light system and ship within around a day, day and a half of receipt."

 

SaraMax now processes more than 65,000 to 75,000 units per day at an accuracy rate of approximately 99.75 percent (before auditing). It originally processed 50,000 units per day, but has increased throughput by 15,000 units. After auditing, orders are effectively fulfilled on a 100 percent basis. Plus, there are no more chargebacks.

 

"SaraMax' market share is growing and the system is flexible and scalable enough to handle even seasonal peaks," says Lind. The company has added more light expansions to cover more lines. Its biggest objective operationally is to continually improve all communication and operating technology. "That takes cost out of the system, and we take that cost and pass it over ultimately to the consumer to provide improved value in our products.