Flexible two-stage distribution solution from Dematic drives win for Repco

Repco’s new Queensland Distribution Centre (QDC) in Brisbane, developed in conjunction with logistics systems integrator Dematic, was completed earlier this year, and is a significant milestone in Repco’s supply chain improvement program.

Instead of operating large DCs in most states, plus specialty warehouses in some, the new distribution strategy is based around two major DCs, in Adelaide and Brisbane, which are supported by three rapid response warehouses in Sydney, Melbourne and Perth. The DCs fulfill basic store orders on a bi-weekly or weekly basis depending on location, with the rapid response warehouses delivering up to three times a day in their service area. The rapid response warehouses carry a limited range of high volume items, responding to orders within a couple of hours.

The QDC provides a total storage capacity of 6600 pallets, and houses around 57,000 active stock keeping units (SKUs) in a variety of Colby storage solutions including Selective Racking, PushBack Racking, Longspan and Steel Shelving.

The QDC features two types of picking:

• Larger products are picked from rack locations, with the type of storage depending on the product volume. These goods are typically picked directly into the crate which is shipped to the store.
• Smaller products are picked from steel shelving in high density ground floor and mezzanine level pick modules. Products are placed into tote bins which circulate through the two level pick module before being automatically sorted to the required sort lane for consolidation with other products for the same order.

Our two-stage design of the new QDC gave Repco a low-risk solution that fulfils their current order processing requirements and enables them to meet their high customer service demands, yet provides them with the flexibility to cost-effectively enhance the performance of the logistics systems in the future when appropriate from a business perspective.

With this innovative Dematic solution Repco has won the coveted Storage and Handling of Materials Award at the 2006 Australian Supply Chain and Logistics Awards.