Availability of its products on display to consumers at prime retail locations like Madison Avenue is the lifeblood of the company

A parcel carrier has a contract with a British consumer good company to deliver to retailers round the world. The goods arrived at the carrier's hub in cartons of various sizes addressed to the retailers.

Problem

In many countries the carrier had to use other carriers for final delivery. Too many of these cartons went missing on the way to their destination. The company said it would not renew the contract.

As the cartons were identified only by the retailers' addresses their location was unknown. A carton either arrived or did not. Traceability from manufacturer to retailer was necessary.

Solution

Today the manufacturer labels each carton with a pack number. Handlers at the carriers distribution centre track the cartons when they arrive at the depot and when they leave. The carrier then tracks the goods through each stage to the final destination using existing methods for tracking numbered packages and consignments.

The carrier also fulfils some orders from stock. The Codetrack system allocates cartons to stock, controls picking and packing, and generates pack numbers.

Codetrack keeps track of all pack numbers, movements, and the last known location. This gives the company and the carrier visibility of the whole distribution network.

Wireless data capture

The handlers use wireless handheld scanners to read the barcodes on the pack labels. They attach routing labels and link them to the pack numbers. Finally they scan each consignment out for delivery.

Automatic labelling

There is an automatic line to handle variable weight, variable size cartons. It scans, weighs and measures each carton to verify the carriage charge. Finally it prints and applies the routing label.

System integration

The system uses Microsoft technology. It is in its third generation with SQL Server and a web portal.

An IBM system connection imports customer delivery data from remote sites. FTP with the manufacturer covers arrivals at the depot and despatches.

Operation

Traceability

The system knows which packs to expect for each delivery. When goods arrive at a hub or the destination a "received" flag is set in the database with date and time of receipt.

Visibility

Managers anywhere can get reports on deliveries, delays, and time at each stage. The manufacturer can also see the current situation.

Performance

The carrier can deal with delays and see where cartons went missing. The system tracks performance (KPMs)

Results

1. Retailers receive their goods.
2. The manufacturer has increased sales and brand performance.
3. The carrier has retained the contract and increased productivity.

PROCESS POINT SOLUTION

Problem Goods going missing indirectly due to deficiencies in manual recording at the distribution centre.

ERP IBM AS400 system

Solution 100% accurate recording of despatches allow strict controls along the supply chain to retail outlets overseas.

Logistics Provider Turnover: £100-250 million. Employees: 500-1,000

Brand Owner Turnover: £500-1,000 million. Employees: 5000-10,000