Customer service “fits” with the organizational model and distribution of “Scarpe & Scarpe”

20 June 2016

E-commerce, products and customer service range. That’s how “Scarpe & Scarpe Spa” opened the new hub in Tuscany in a coordinated way and more effectively the complexity of its distribution network.

Shoes & Shoes SpA is the Italian leader in the distribution of footwear, apparel, accessories and luggage. An important enterprise of the Italian economy which has started its activities in the fifties in Piedmont and Valle d’Aosta. Over sixty years of continuous development in the country, which led in 2012 to a network of 111 outlets constituting in fact the leadership of the sector in the Italian market. The annual turnover of nearly 280 million Euros and the number of pairs / pieces that come out during the year touching 10 million units through a dedicated transport system can optimize deliveries to local outlets ensuring windows drain defined and scheduled on a weekly basis. The logistics platform located in Borgaro Torinese (TO) and the match in 2008 was found by now to deal with what the world has exploded as the worst economic crisis since the 20s and have to face a new challenge: to review the processes, introducing new, impacts with the structure and customer loyalty. After four years we see how it is going.
SUPPLY CHAIN ​​AND ORGANIZATION
Throughout the organization, from the purchase of the collections to the local distribution passing through the storage and processing is handled internally. The store that is presented to the end customer multi brand embraces all product categories in the proposal of its retail segment of belonging with an integration that allows the exhibition to keep up with the seasonal pattern and it allows to read the day-to-day trend . The collections, styles, samples are defined and developed in the canonical six / eight months before the start of the season and the product gets to where custom warehouse and stored for subsequent output distribution store. The stock and all crossing phases until the final product delivery to the store are totally drawn in radio frequency ensures that, starting from a custom WMS to the structure and implemented in own, to certify the entire supply chain flow in quality and quantity.

THE NEW CHALLENGE
What characterizes the life cycle of products; the low predictability of demand and rising increasingly fast-paced and frantic the trend towards impulse characterized by weather conditions, unforeseen events, by decisions taken at the last moment in front of the product on display in the shop imposes, and imposed strategies of increasingly penetrating visibility and a supply chain model more and more effective, efficient and able to give quick responses with a operative flexibility constantly redefined and “fit” to the market.

THE NEW APPROACH
Kaizen was the lever that drove the company to seek possible organizational alternatives. Inspired by TFM (Total Flow Management) we are driven in the search for a new way to rethink operations following what are the canons of pull flow dropped in a distributive trade environment so less strictly productive. The actual request of the final customer has become the first of the model paradigms combined with the involvement and enhancement of all the resources with which we have worked and continue to work to become aware of “muda” and the search of the elimination of the same. But we see in detail a nod to the basic principles of Kaizen reshaped and Company organization.

Quality, customer-supplier chain. Despite being linked to the made in Italy, Shoes & Shoes has over the years Balanced purchases by sourcing in low-cost countries for labor and this has been the first push is opening a second distribution platform near the port of Livorno where it was decided to bring in 100% of imports. Making use of a bonded warehouse has improved the approach to product quality control prior to even nationalize parts and placing them on the market by discriminating also the best time to enter them.

Gemba orientation. It is given particular aspect to the warehouse involving internal and external stakeholders by changing the most of their working method to the final result: the dispatch and the arrival at the store. Has redesigned the process creating new ideas with follow-up continued to consolidate the new methodologies. The headquarters and main warehouse located in Borgaro Torinese began to “suffer” the remoteness with the openings of new stores, growing in central and southern Italy. The opening of a second store can receive all imports and to serve the Northeast stores, central and southern Italy was the winning key to developing a rapid response on replenishment objectives related to both sales and deliveries and to the objectives the stock in the store in the different periods of the year and the season shortening reference and ensuring the “master” supply within the first three days of the week allowing employees the total accommodation of the products within the weekend. The channel implementation Ecommerce yet allow more to get closer to the end customer by giving the possibility to find on the company website (www.scarpescarpe.eu) much of the catalog often linked to sales promotions. Loyalty to the client through a card that follows the buyer in every purchase has completed the circle.

Elimination of muda. The stock managed on its platforms has aligned placing and demand and was measured with the regularity of departures from suppliers. Shipments from the Far East use as a primary driver ship, the routes are linked to long lead times and the search for efficiencies in buying a local production area not really requires a thorough quality control both in qualitative and in legislative aspects. For such control to be based on a customs area in the warehouse where the most sensitive product is sieved before nationalize it and put it on sale. The stock, or more properly the product for sale in the shop follows a request for push / pull replenishment. The primary distribution in the shop is made in the neck / numbered and push type. The point of sale has entered the first of a new product linked to a formula for fit (size) in which are preferred in amounts sizes better sold referred to in Article sent. The next supply is run single cut and pull type, which ensures responsiveness and speed of peripheral replenishment Cut off daily on items under escort. The unsold generation season has seen and experienced as one of the heaviest “muda” it is called back to the warehouse and repositioned depreciated in the distribution network and / or a corner dedicated outlet. Managing and controlling the cost of transport and therefore the lead time measure is impacting on the organization of the company and that’s why the outsourcing of the routes to the various vectors is defined and controlled directly by the company through the Logistics Directorate.

Improvement of human resources. It is given and you give so much emphasis to the involvement of people in improvement activities, new work methods that help increase and improve the quality of customer service are the most important aspect in team work and professional growth.

Process and results. The attention to the “how” has led to the results. The detail enhancement, the absorption of the variability of the behavior on the purchase by the end customer is completed by the use of a complex corporate intranet that allows you to give a quick response to a request of a product out of stock or missing making the product available from the central warehouse or from another store using a chain of quick and short supply.

In conclusion we can say that the review process has given and is giving good results. The distribution is “pulled” from the shops with complementing the sending of the new collection, the forecasts entered following distributions of time-series mixed with the “fashion effect” dictated by the industry and by the time, the product of crossing time along the ” chain “was considerably cut down with the physical creation of streams dedicated to a single piece / pair, a single pallet, a single container. The Kaizen spirit is now established and the improvement you search every day and in every direction.

THE CUSTOMS WAREHOUSE IN “STRINGS”
The warehouse is a customs suspension arrangement by which it is possible to hold non-Community goods and the same are subject to payment of import duties. The goods placed under the customs procedure may undergo the usual forms of handling intended to preserve them improve their appearance or marketable quality or prepare them for distribution or resale. The storage function is to facilitate economic activities allowing operators to hold the non-Community goods differing in time the payment of duties and taxes to national and derogating from any commercial policy measures postponing the economic obligations are ready to use, allowing the supply of the product in good times and to bear the economic burden of the rights when actually using or selling the goods.

NUMBERS MORE ‘SIGNIFICANT
– Square meters of covered warehouse: 30.000. overdrafts 15,000
– Articles managed to rotations on seasons per year: 20,000
– Pairs / pieces per year managed input and output: 10,000,000
– Teu coming year: 1,000, in addition to all road entrances

The OUTSOURCER IN TUSCANY: DUOLOGICA SRL
Duologica Srl is a young company operating in the logistics services sector since 2008.
The working platforms are concentrated in the industrial area of ​​Pontedera Gello and the surrounding area, in the province of Pisa, near the highway linking the port of Livorno and Pisa airport to Florence (FI-PI-LI). The port of Livorno is about 25 km. The platforms are developed for a total of about 30 thousand square meters with about 20 thousand square meters of outdoor service areas and are divided by product sector.
All platforms are equipped with WMS owner and / or interfaced with WMS client. The warehouses are equipped with radio frequency systems and racks comply with safety regulations as well as all accompanying facilities. Oriented footwear industry and a wider spectrum to fashion, the bride holding a need of evasion timeliness orders combined with a wide range of items handled every day, about 10,000, with many expeditions ensuring the cut off and send on time daily.
Duologica Srl joined the Innovation Pole of the fashion industry, establishment of the Tuscany Region, which is proposed as an engine for innovation tecnicoeconomica productive sectors related to the sector of footwear, leather goods and clothing is a benchmark entity for the study, development and application of operational procedures in RFID in the field of fashion.

Article published Logisticamanagement.it