The challenge: After numerous mergers and acquisitions, the upscale fashion merchandiser SAKS Inc. was faced with a complex logistics landscape across different distribution centers, and needed to take action. By consolidating the various centers into one, the merchandiser hoped not only to increase efficiency but also to improve around-the-clock service for its 144 stores.
Our solution: The first step was the logistics solution. It was developed in close cooperation between SAKS and Dematic, after which the building - at a mere 60,000m² - was built around it. The new, highly automated distribution center replaced three previous centers. About 75,000 cartons are moved here daily, 90% of them via cross-docking. Likewise, the share of shipments that are delivered via Advanced Shipment Notices (ASN) is 90%.
The material handling system controls the entire process, including receiving, quality inspection and sorting, as well as transport to the right exit dock, and monitors everything in real time.
Benefits for SAKS:
- Lower costs through the integration of three distribution centers into one
- Average time a carton is on conveyor network: 8 minutes
- From 3 days to 1 day to process cartons in the facility
- Order accuracy increased 30%
- Level of service improved through cross-docking
- Return on investment in 18 months (50% faster than planned)
