As market competition intensifies, the demand for diverse, small-batch, frequent, and timely delivery from supermarket operators places higher efficiency demands on distribution centers.
To cater to the diversification and personalization of consumer lifestyles, maintain the freshness of perishable goods, reduce store inventory, expand product variety, enhance sales floor efficiency, and minimize opportunity losses in product sales, supermarket operators have proposed a demand for multi-variety, small quantities, frequent, and timely delivery of goods. This has raised higher efficiency demands on distribution centers.
Efficiency in distribution centers refers to the strategic measures, talent development, and technological approaches taken to achieve efficient delivery of a wide variety of products in small quantities, multiple times, and on time. It also encompasses the means and methods to enhance organizational, information, and operational efficiency. The main aspects to analyze and address in the pursuit of distribution center efficiency include:
The logistics system and management. Comprehensive analysis of the overall logistics management system and organization for the enterprise, including logistics service management, logistics cost management, issues and corresponding methods for multi-product, low-volume logistics, and integrated efficiency analysis of procurement, inventory, and distribution stages, as well as comprehensive logistics efficiency for suppliers and procurement locations.
Logistics Policy. This encompasses the confirmation of distribution center configurations, selection of locations, legal restrictions, and more. It includes the design and construction of buildings and internal layouts, as well as the equipment for the distribution center, construction, completion inspections, and operations. Additionally, it covers the use of borrowed and entrusted warehouses, and the establishment and operation of logistics subsidiaries.
Characteristics of distributing goods. Considerations include the type, size, shape, weight, price, packaging, processing, and necessary conditions for measurement, labeling, and packaging. Also, the number of product varieties handled, loading and unloading conditions, annual distribution volume, seasonal variations in distribution (days, weeks, ten days, months, quarters, etc.), the likelihood of damage and spoilage, new product development in terms of variety, quantity, and frequency, the discontinuation of product varieties, quantity, and frequency, as well as other product characteristics.
Logistics Equipment: Automatic warehouses, refrigerated and frozen storage, handling and transportation equipment, storage devices, distribution equipment, sorting machines, packaging and bundling machines, price tagging machines, sorting systems, and other automated and mechanized equipment. Information processing devices, yard and inventory platforms, as well as air conditioning, disaster prevention, and security equipment, pallets, containers, packaging materials, and more.
Inventory Policy and Management. Policies related to controlling product inventory levels, inventory management, methods for accepting orders and placing orders with suppliers, replenishment order systems, and inventory counting.
Relevant operations include inventory handling, product inspection, transportation and storage methods, documentation processes for accepting orders and ordering from suppliers, product location management, picking techniques, inspection and counting methods, processing such as repackaging, measuring, labeling with price tags, packaging, bundling, etc., methods of stacking outgoing goods, sorting techniques, transportation and delivery methods, as well as the recycling process for universal delivery boxes, receiving and handling returned goods, and responses to factors like return quantities, defect rates, countermeasures for non-compliant products, and emergency additional orders.
Logistics Information Processing System: Inventory management, order reception and processing, generating shipment instructions, stock level detection, replenishment order systems, distribution plan verification and execution, shelf management, generating picking lists, procurement planning and modifications, payment processing, control of automated equipment, generating vehicle loading instructions, calculating cargo loading efficiency, determining distribution plans, selecting transportation methods for various delivery locations, calculating individual delivery personnel costs, analyzing distribution budget and actual discrepancies, personnel planning and determination, usage and status of classification and sorting codes, POS sales management systems or logistics barcode labeling, levels of integrated systems, and correspondences with VAN value-added networks.
Transportation and Distribution Management. Standardization of goods storage and handling, containers, packaging, and price tags, improvement of packaging (including bundling and packaging materials), methods to enhance logistics services, distribution methods (distribution means, vehicle types and quantities, self-distribution, hiring vehicles, or outsourcing), planned distribution (time distribution, sequential distribution, night distribution, common distribution possibilities, etc.), freight calculation methods, human resources and labor management (proportion of contracted personnel, work ability), staff education and training, establishment and implementation of work standards, group discussions (QC: Quality Control), internal processing and outsourcing management of distribution center operations, measurement of distribution center operation effectiveness, quality and hygiene management, temperature and humidity control, safety management, disaster prevention and mitigation systems, equipment maintenance systems, etc.
Logistics Cost Control. Calculating logistics costs for different forms, functions, and cost centers, as well as the standards and methods for calculation and control.
