Two world famous brands partner-up with Loscam looking for efficiencies.
Walmart is a world famous brand in the retail chain enterprise, which entered China 20 years ago in 1996. In development since then Walmart has established brands under the group which include Supercenter, Sam’s Club and Online Sam’s Club.
Yihai Kerry Investment Company is a leading produce and food company, the largest manufacturer in China of seed oil pressing, cooking oil, small packing oil, special fat, chemical fat product, rice & noodles.
Walmart and Yihai constantly pursue supply chain efficiencies and cost enhancements in a long term partnership process. To achieve such objectives, pallet standardization along upstream and downstream supply chains plays the key. Palletised delivery brings benefits including increased loading efficiency, reduced product damage, increased warehouse utilization and truck turnover, reduced costs, manpower and warehouse rental - it also acts as a strategy for bringing synergy to forecasting, planning and stock replenishment.
Prior to adopting palletised delivery, the Yihai Guangzhou factory was using self-purchased pallets for delivery of products to its distribution centre. Upon arrival, the products would be separated and used in bulk cargo transportation to the Walmart Guangzhou Distribution Centre. These stocks would then be allotted according to retail store, then finally transported out.
For Yihai, this process lengthened the delivery time, increased the chances of product damage through numerous loads and unloads, and raised labour costs. For Walmart, the low efficiency of human maneuver occupied the loading bay for far too much time.
Loscam designed a palletised delivery solution, based on the pallet pooling system. The main highlights are:
Under the palletised delivery system, inefficient human maneuver is dramatically reduced. The supply chain efficiency is enhanced and costs are lowered, plus possible damage during product flow is decreased.
In this project, palletised delivery reduces product maneuver by 50% along the supply chain process.