Proctor & Gamble employs 130,000 workers in 80 countries, offering a variety of consumer products under an array of brand names. In 2005, this $55 billion company acquired Gillette, a Cincinnati, Ohio based company which provides razors, Oral-B dental health products, Braun shavers, Duracell batteries, and various small appliances. Gillette’s distribution center for products sold in the United Kingdom is in Reading.
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Situation
When Proctor & Gamble acquired Gillette, the company needed to integrate Gillette’s distribution into their own. Gillette relied on its own vehicles supplemented by sub contracted transportation companies to distribute its goods. DHL/Exel distribution partnered with Gillette for logistics services. Proctor & Gamble sought to upgrade the warehouse management system at the Reading distribution center of Gillette and chose Swisslog to provide the system. Their goal was to meet growing customer demands, to integrate Gillette’s distribution system into Proctor & Gamble’s established logistics system, and to improve the planning and order delivery at its Gillette warehouse in Reading. Gillette operates another U.K. facility in Islesworth.
Approach
Swisslog met with managers and decision makers of Proctor & Gamble and Gillette and developed a system to improve pallet stacking in the distribution trailers. They also incorporated a system of order picking and added new functionality to the process. The system was designed to handle the entire order process, from the time an order came in to the Reading facility until the product was dispatched via truck. The pallet stacking system was capable of identifying items stacked on pallets that were top only stackable, non-stackable, or rated for stackability factors.
Impact and Advantages
The result of Gillette’s new warehouse management system was an increase in the efficiency of pallet stacking in trailers of 35 percent. Workers and managers were able to get more accurate data on products set for transport and use a screen monitoring system to keep track of the progress. Loads stacked in trucks are now more stable, and Gillette is able to configure loads according to customer requirements.
This has resulted in a higher level of control over the distribution process, lower instances of errors during the process, and lower numbers of customer claims due to items damaged during transportation. It is now easier to plan for shipment transporting with the LoadBuilder system by Swisslog, which allows workers to stack pallets more efficiently as well as more safely.
Gillette states their level of customer service has improved, along with the efficiency of their operations. Operational costs are down, and workers have a more accurate picture of their inventory, orders, and the transportation process. Since computers plan for loading trailers, workers are freed from much of the hassle of planning how to load trucks efficiently and safely. Better use of vehicle space reduces transportation costs, adding the capacity for larger shipment loads so more products can be shipped with fewer truck loads, saving money on fuel, and other transportation expenses.
DHL/Exel have partnered with Swisslog to produce a web version of the system used by Gillette. This system should improve the processes in other warehouses and distribution centers around the United Kingdom. [/show_to]
