Case Study:
Daryl Flood Logistics helps growing company become "Walmart compliant"
Situation
Dezine News markets men’s and women’s belts. The company recognized a great opportunity to grow the business through sales to Walmart but needed a logistics partner with strong systems capabilities to comply with the retailer’s Direct Store Distribution Center (DSDC) program requirements. The DSDC program requires rapid order turnaround time and advanced EDI capabilities. In addition, it requires that orders be labeled for each store and then consolidated with other orders on a pallet for shipment to a Walmart DC. When the product arrives at the DC, the pallet is separated and individual store labeled boxes are loaded on the Walmart store delivery fleet for that service area. Suppliers that can meet these requirements gain a decided competitive advantage since it qualifies them as a preferred Walmart supplier.
Strategy
Rather than invest in logistics systems and warehouses, Dezine News outsourced distribution to Daryl Flood Logistics and its warehouse in Coppell, TX, just outside of Dallas. Daryl Flood leveraged its warehouse management system from HighJump and voice-directed picking from Vocollect to increase both the volume and accuracy of orders. Pick productivity went from 220 picks an hour in an RF picking environment to about 400 picks per hour using voice-directed picking. Once new processes were in place, the facility went through a rigorous, four-month qualification process, during which Walmart audited order volume and accuracy and timeliness of EDI feeds on executed orders.
Results
- Helped Dezine News become DSDC compliant and significantly increase its business with Walmart
- Improved order turnaround time from 5 to 3 days
- Increased order accuracy to 100%
- Reduced labor costs by doubling pick productivity.