New semi-automated National Distribution Centre (NDC) can hit an item throughput rate of 5.2 million per week – and underpins John Lewis’s multi-channel strategy and environmental credentials…
John Lewis Partnership and LCP Consulting won the Chartered Institute of Logistics and Transport (UK) Award for Excellence in Materials Handling Equipment and Technology. The award recognised the 850,000 sq.ft semi-automated NDC, based in Milton Keynes, for its use of technology and the resulting operational improvements.
In 2004, John Lewis’s distribution team decided a strategic review of their network and distribution development options was required. They selected LCP Consulting to work with them on the strategic review who developed the volumetrics and material flows and prepared the design for the NDC that was put out to tender. LCP also fully supported John Lewis in the tender and implementation process.
The NDC provides the following key benefits:
- 95% of products are sent to stores as shelf ready, single products, organised by department
- Pick rates of about 750 items per hour are achieved with a 5.2 million item throughput per week achieved during peak 2010 - up 66% on 2009
- A 99.7% picking accuracy is achieved via pick-to-light technology
- The NDC helped John Lewis achieve a record £40 milion online sales (achieved in the first two weeks of December 2010)
- Eco friendly design including a rainwater harvesting system and sustainable urban drainage system, a solar thermal water heating system, and roof lights which reduces the demand for artificial lighting by around 10,000kWh a year
Business strategy enabled technology....
The introduction of the NDC clearly demonstrates business strategy enabled through technology. Julian Mosquera, Technical Director, LCP Consulting comments:
“We are delighted to be recognised for our work with John Lewis. On the face of it this was a network logistics project with some big challenges on accommodating range, storage and throughput. In actual fact, it was more important to understand the business requirements – especially how John Lewis wished to trade and service stores.
This transformation has been seen and felt across the business, not just in the supply chain. At the same time, the investment has minimised the impact on the environment, already accounting for £250,000 in savings. This underlines why eco-initiatives formed an integral part of the NDC's design ethic."
Dino Rocos, John Lewis Operations Director, said:
"We are constantly striving to improve the service we offer to our customers. For the supply chain this means improving availability by establishing the right footprint to continue the improvements we have in providing a better service to our shops and customers at a lower cost."
Pace of change is relentless...
A further £13 million investment is committed to 2011/12 primarily to support the drive towards £1 billion online business, where efficiency gains reduce the inherent high cost of sale. This investment will increase automation capacity, and the introduction of new capabilities with automated packaging and bagging lines will further improve Partner and overall site productivity.
