EDC Conveyor System Details
"What we've really done is consolidate our expenses and honed in on profit
margins"
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Previous conditions
- Marketing and sales efforts resulted in continuous growth
- Massive growth and order volumes required weekend and overnight work
shifts to attempt to meet demand
- The average order backlog was 40,000, with peaks of over 125,000
- Labor issues plagued efforts to grow, as order pickers were in demand
and difficult to hire
- EDC's old facility was too small to service its growing business and
sales network
- Error rates were far too high, at nearly 7%
System improvements
- A new, larger facility was purchased, and a new order fulfillment
system implemented in that building
- The system utilizes Deposco WMS
- The system includes a large conveyor system, pick-to-light, high-density
carton flow and more
Order fulfillment improvements
- Order fulfillment costs were slashed by 77% per order
- These savings went directly to EDC's bottom line
- The weekend and night shifts were eliminated. Most of the time, EDC can
operate on just one shift
- EDC can now execute most orders in one day, even on its busiest days of
the year
- The system allows EDC to execute more than 10,000 orders per shift. It
has done as many as 15,000 and believes that it can meet future demand
- Back orders have been eliminated
- Error rates have been dramatically slashed, allowing EDC to remove its
quality control department (all employees were reassigned to other jobs in
the company)
- Packing and fulfillment have become much faster and more automated
Business improvements
EDC hit all-time stock price highs and continued to increase its business.
Its sales consultants are empowered by the high level of service the company can
deliver its customers, resulting in more repeat business and happier customers.
