Like a complex puzzle, the components of a storage and distribution system need to fit together precisely, or else the resulting picture is chaos. Peter Simons, president of upscale clothing retail chain La Maison Simons, states the concept another way. "Every cubic volume has to be divisible into some sort of master number. Otherwise the process won't work."
For Quebec-based La Maison Simons, the components of the master storage and distribution system include conveyor belts and a rail system moving through a 150,000 ft warehouse, and trucks delivering goods to stores where they are ultimately put on display for customers to purchase.
Another integral component of the system is the containers that hold the goods in storage until they are picked, packed, and then shipped to one of La Maison Simons' seven stores in Montreal, Quebec, and Toronto. For many years, the 150-year-old company used corrugated boxes. When Peter Simons began considering the use of returnable crates, his primary concern was the impact of the crates on the entire system. After considerable review, the company chose IPL, Inc and its FlapNest™ Series attached lid totes. FlapNest containers stack with lids flapped shut and nest with lids flapped open to combine product protection and security with efficient return shipping and storage.
"IPL did a good job of incorporating their product into our global system," recalled Simons. "They're a good company. Pretty dynamic, really."
Not only do the crates fit well into the process, they are also saving La Maison Simons money. The family-owned company began using the IPL FlapNest 2416-14 distribution system in 1994. In just over two years, the company recouped its cost.
"The biggest savings was in the net costs of the cardboard boxes," recalled Simons. However, the company has also achieved savings in other ways, from gaining efficiencies in distribution to eliminating the cost of shelving.
The company's distribution center in Quebec City is divided into two areas. One area is for processing and the other is for storage where goods are requisitioned. Items for storage are sorted by SKU, put in green FlapNest crates and stored on the second floor. The containers have large open holes for easy access for picking. The holes were custom made for the containers to fit La Maison's picking process.
Items are picked from the green containers and placed in other FlapNest containers that are color coded, labeled, and barcoded for each individual store. The crates move along the warehouse rail system as workers fill them with the desired contents. When full, the picking hole is "plugged" for security. The larger green crates are recycled through the warehouse, back to the storage area. When there is peak demand for a particular product, the warehouse also ships the green storage crates directly to the stores.
"The containers are very versatile," explained Simons. "We can send everything to the stores in peak times. The storage container becomes a shipping container."
At the warehouse, the crates are stacked upon themselves, eliminating the need for shelving. "They're a pretty robust piece of equipment. They have turned out to be very durable," said Simons. When the company used cardboard boxes, the containers would become dented and weakened, sometimes damaging the goods inside. Also, when pickers tried to take goods from a bottom container, the boxes on top would collapse, recalled Simons. "The stackability of the IPL containers and the customized picking holes give us much better access, while maintaining the neatness of the warehouse and our products."
As a result, the stores receive the goods in better condition. They also receive the clothing that that is pertinent to their store. "The bar- and color-coding of the crates has improved efficiencies and reduced confusion at the stores, "said Simons. Ergonomic handles make it easier for workers to lift and move the crates.
Freight costs on the return trip to the distribution center are decreased by the nestability of the empty crates, which fit in a 4-down pattern when nested. When closed and stacked, they can be placed in a 5-down pattern. The crates' 24 in. x 16 in. footprint is optimized for industry standard GMA pallets.
"IPL really worked with us on the design of these crates so they would fit into our distribution system," said Simons. "We found them very cooperative in terms of working with us on our specific needs. The service was quite good."
As a result, the IPL crates fit within La Maison Simons' master storage and distribution system. And the resulting whole is a picture of cost and operational efficiencies.