Optimised inbound processes and vendor scheduling for a large retailer

Abstract

A large retailer has established that its vendor truck’s turnaround time within its distribution centre is not entirely satisfactory. The retailer aims to decrease this turnaround time in a way that would provide the retailer to allow for an increase in throughput opportunities. This report will first cover the introduction and background the companies involved as well as providing details of the entire process in order to give a full understanding of the large retailer and its distribution centre. The aim of the project was to optimise the grocery inbound process within the large retailer’s distribution centre by creating an improved scheduling system and minimising turnaround time (TAT) within the distribution centre (DC). The main problem that the large retailer deals with was an inefficient vendor schedule as well as poor day-to-day activities that resulted in a large turnaround time and high labour costs. In order to solve the problem, research was conducted in the form of a literature review, which highlighted the use of a successful simulation model to address the issue. Outputs of the simulation model provided successful measures in reducing both the turnaround time and labour costs. This was completed in the form of a new, optimised vendor arrival schedule, as well as recommendations for general day-to-day efficient activities.