60 Seconds with Carl Marcinkowski: Destination Maternity

Modern: The theme of the July issue is technology and automation, and your new facility is highly automated and takes a cutting-edge approach to distribution software. Yet, it replaced a fairly conventional DC. What changed in making that transition?

Marcinkowski: A tremendous amount. For starters, our management team really had to step up because we were not only implementing new technologies, but we were embracing new processes. They also had to understand the new equipment, a new building and the new order flow, which is very different from the way we used to do things. They also had to understand what now constituted success for a shift or the day.

For example, the entire way they approached their job and performance changed. Every one of our managers went through numerous training sessions prior to starting in the building. Every single person coming into the building was also trained because everyone had a totally new job. We started training very early, before they even stepped into the building, and that helped.

Modern: Were you able to retain staff, since you moved about 30 miles from your original DC in Philadelphia?

Marcinkowski: Part of our network analysis and site selection was based on keeping core employees so we didn’t have to start up with a completely new labor force that didn’t know our customer or company. We were lucky to have supplemented this staff from a great workforce in the local area.

Modern: One of the differences between a conventional DC and a highly automated DC is what’s required to keep it running.

Marcinkowski: You’re so right. Look at something like maintenance of equipment. We were able to keep a large percentage of our existing maintenance team. However, they went through extensive training with Invata Intralogistics, our system integrator, and the equipment manufacturers. Now they’re analyzing problems with iPads instead of screwdrivers. Our team has progressed to a new level along with our technology. I have to tell you that watching a maintenance guy who spent 20 years fixing a very simple mechanical garmenton- hanger system now using an iPad linked to our warehouse execution system (WES) and embracing our new technology is a pleasure to see.

Modern: Someone from a major consumer products company told us that the eye-opener for them in making this transition was when the line shut down for want of a $6 sensor. Have you had to rethink your spare parts strategy?

Marcinkowski: Our spare parts inventory is completely different from what it used to be. The old parts went away, and we started with new parts and an inventory tracking system. For one, you’re dealing with a higher cost level of spare parts than before. We worked with the manufacturers of equipment to develop our spare parts list to minimize downtime exposure. We’ve worked hard to keep the right spare parts in inventory. This is truly a joint experience for us and our integrator, to collaborate on keeping the equipment downtime to a minimum.

Modern: Having gone through a successful design and implementation process, do you have advice?

Marcinkowski: First, you have to have a good team. I am thankful that I have a great team. Getting them involved early in the process was critical. I think too many companies rely on consultants and a small group of employees. Our whole team was involved in the analytics and vetting process early on—they owned it. That kind of involvement and commitment has a better chance of success than if we just handed them a system that we picked and told them to run it.

Second is that due diligence is critical. We’ve had a lot of people who are considering automation come to visit our new building to see what we’re doing, but there are a lot companies that don’t perform that level of due diligence. In the end, the more you see, the more you’ll learn and the more successful you will be.