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Loscam Supports Department Store Supply Chain

2017-11-16

Yinchuan Xinhua Commercial Group Co Ltd (known as Yinchuan Xinhua Department Store) became the first Ningxia listed company in January 1997 and has since developed into a 3.6 billion dollar asset business, with seven subsidiaries, nine super stores and 200 chained stores.

Prior to 2004, each Yinchuan Xinhua Department Store had its own warehouse and warehouse management team, which caused resources wastage. Then in 2004, its first distribution centre was established, which transitioned its operation into centralized distribution, realizing the share of product storage, distribution resources, data and information.

In 2012, Ningxia Xinhua Modern Logistic Limited was formed (known as Xinhua Modern Logistic). Since 2013, the group has reconsolidated electrical appliances, supermarkets, superstore businesses and has built its own logistic park: the Xinhua Modern Logistic Park.

Xinhua Modern Logistic is Ningxia’s first five star logistic enterprise and the first gold medal winner in warehousing service enterprise. Using an innovative business approach, leading information systems, standardized logistic operations and highly efficient supply chain systems, it has become the most respected and trusted leading enterprise in the logistic industry.
 

Customer demand was calling loudly for a supply chain upgrade.

With the speeding growth of its brands, including Xinhua Supermarket, Xinhua Department Store, Xinbai Electrical Appliance Store, the group recorded rocket growth. During peak or festive seasons, the daily supermarket order capacity can reach 28 million dollars. Although the group could meet the growth needs, there was constant overtime work for staff and it was clear the supply chain required improvement.

Detailed analysis of the supply chain revealed that high demand was creating the following difficulties:

  • Low efficiency of receiving
  • High rate of product damage
  • Huge delivery delays
  • Huge transportation costs
     

Standardisation. The key to success in effectively enhancing a supply chain.

Xinbai Modern Logistic believes standardized logistic equipment among suppliers, DC and retrials are the foundation to break through the whole supply chain, to enhance operation efficiency as a whole.

The group partnered with Loscam, renting our wooden pallets and tote boxes – becoming the first mover to apply pooling for these two products internally. Later came extending the palletised delivery to upstream enterprises, promoting it to suppliers and retailers. Then at last came full utilization of palletised delivery through the whole supply chain.
 

The benefits of pallet pooling & full supply chain palletised delivery.

From supplier to DC and retail, then vice versa, aiming for complete palletised delivery. Currently 75% of Xinbai Modern Logistic suppliers are renting the Loscam standardized ECR pallet to perform palletised delivery. The palletised delivery between retailers and suppliers dramatically decreases the time for product transfer and receiving, reducing the manpower cost for second maneuvers and induced damages, while at the same time increasing efficiency.
 

Smart use of Tote Box & impressive innovation on the road.

To solve the problems posed by a load being small in quantity but big in SKU, Xinbai Modern Logistic is renting the Loscam Tote Box, for its capability to organize goods, its easy use with pallets and the cost reduction it delivers across the supply chain.
 

Planning a bright future ahead, full of exciting efficiencies.

In response to the growing business needs of Yinchuan Xinhua Department Store and Xinbai Modern Logistic, the areas of standardized logistic equipment, automated logistic facilities, information systems and software are the next focus of investment for the future.

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