Picking up the pace: solution for grocery distributor

Overview
The client is a national grocery distribution center and leader in supply chain solutions. One of the largest wholesale suppliers to independent supermarkets and chain stores serving more than 7500 clients, the distributor was experiencing a problem in one of its distribution facilities – challenges with storing and using its pallets efficiently to fulfill orders in a timely way at its California distribution center. The company came to Cherry’s seeking a solution. Cherry’s Account Manager Russ Catt worked directly with the national distributor to evaluate, identify and address its needs.


The Challenge
Space – and time – are at a premium in this California facility. Large stacks of loose pallets in storage are used by order pickers, loaded with product and then prepared for shipping. In this fast-paced environment, the order pickers are constantly at work. Prior to its work with Cherry’s, the challenge that the company faced is that it had these pallets retrieved by hand for fulfillment.
 
This distributor had never previously used a pallet dispenser in its operations. The order pickers would retrieve the pallets from the storage area to begin the fulfillment process. It becomes easy to understand the enormity of the task – and need for an improved system –when considering the sheer volume of business that the center does each day. There are 50 order pickers working on a 24/7 schedule. Each picker picks and palletizes between 100 and 180 loads per eight-hour shift. At the facility, pickers touch over 300 pallets per day per person. In any given shift there are thousands of pallets moving—primarily by hand and forklift.
 
The client approached Cherry’s for a solution to significantly reduce the number of human touches on the pallets, and improve speed and efficiencies in the overall process.


The Solution
Russ Catt engaged with the client in a series of meetings and discussions; and, over a several-month discovery phase, recommended the design and implementation of several custom-designed pallet dispensers to automate the supply chain process while also reducing the need for much of the human handling of the pallets.
 
These particular dispensers are designed for use in high-traffic, high-volume facilities. Each dispenser stands 20 feet tall, can store 90 pallets and can dispense pallets as often as every seven seconds. Order pickers approach the machine by forklift, retrieve the empty pallets, and go on their way to fulfill the order that will be placed on the pallets – and the next picker can arrive literally seconds later. The entire process takes a fraction of the time that the multi-step, by-hand process does. The machines include auto-functions, an HMI touch screen, integrated safety gates and an integrated foot safety feature. With literally thousands of pallets being moved on the floor, time is money. And this solution will save the client both.


The Results
Our work with this grocery distributor is an initial pilot program for two machines in its main facility. Our early estimation is that the return on investment on these machines will be less than a year, which is significantly quicker than might be expected.


Conclusion
This is a national company and first-time client for Cherry’s. The company had struggled with this particular problem for years. Once the Cherry’s team was able to collaborate with the company’s key personnel impacted by the challenge we were able to provide a viable solution, one that will save them hundreds of labor hours, reduce the likelihood of worker injury, and significantly speed up the process by which they can fulfill orders for their 7500 clients nationwide.
 
Our company experience and support were key in securing this win. What is promising also is that this is a pilot program and if this solution works as we anticipate that it will, there may be opportunities for additional future business.
 
It’s also worth remembering that this particular design is very successful for high-level, high-service businesses, particularly the grocery industry – and that while it may have applications in other industries, such as pharmaceutical, the return on investment will be the determining factor in what industries would benefit most from this solution.