The solution: create a single crossdocking facility to replace existing distribution centers
In order to reduce operating expense, it was determined, that a single crossdocking facility would provide the best solution. The new center would not only reduce cost but provide service on a just-in-time basis to Saks stores.
By designing the material handling system first and allowing the building to be wrapped around it, Dematic minimized building size and created a very efficient facility. The building was also designed with an eye toward the future. It can be expanded to add more receiving doors and an entire wing of shipping.
The results are in
Saks Incorporated, teamed with Dematic, has created a successful distribution operation. The expectation is that savings realized as a result of the new consolidated DC will have a 100% return on investment in three years. The system is designed for 90% Crossdocking at 75,000 cartons per day.
Key Features
- Expandable for future growth
- Crossdocking improves service to stores
- Consolidated three DCs into one Flow-thru design reduces inventory
- Building wrapped around system to minimize size (171,000 sq. ft.)
"We expect that savings realized as a result of the new DC will produce a 100% ROI within three years."
-Harry Kiefer, Director of Facilities Development, SAKS Incorporated
