Fixed path: Distributor uses automation to consolidate five facilities into one

Skechers USA is a global leader in the footwear industry with more than 3,000 styles. When building a new 1.8-million-square-foot DC, the company used two mini-load automated storage and retrieval systems (AS/RS) to combine five facilities into one.

Between 1997 and 2007, the company added DCs on an as-needed basis, resulting in the high cost of inconsistent equipment, systems and seasonal labor needs. Each building had different equipment and each handled a different piece of the order fulfillment process. The additional handling required to move product between buildings added considerable time and cost to the fulfillment process.

The company sought to unify the inventory management and distribution of nearly 70,000 SKUs from five smaller locations into a new 1.8-million-square-foot DC. The solution incorporated a 12-aisle, mini-load AS/RS with 58,000 square feet of storage space and nearly 106,000 storage positions. And, it also included a 44-aisle, mini-load AS/RS system with 150,000 square feet of space and more than 257,000 storage positions. These two systems can accommodate random master carton and repack box sizes.

Workstations, fed by motor-driven roller conveyor, were added to streamline value-added services. The automated storage of overflow cartons eliminated floor stacking. The new process, driven by picking and sorter efficiency, reduced dock space requirements and improved response time to truck loading. The supplier also designed and erected a 135,000-square-foot mezzanine.

The facility can now process approximately 17,000 pairs of shoes per hour—more than double the number handled in its old buildings—and the system is capable of handling expected growth of 25%. The number of times a product is touched between receiving and shipping has been reduced by at least 50%.

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