ABOUT GLOBAL HOUSE
Global house, in recent years, has grown to become one of the leading home improvement companies in Thailand. With the growth of the home improvement industry, Global House has been expanding rapidly to meet the demand of the market. Global House has a selection of products with SKU numbers in the tens of thousands. In the past, Global house rented traditional distribution centers and storages to fulfill their logistic needs. Global house also relied on their suppliers’ logistic network as part of their logistics strategy, asking their suppliers to deliver certain products straight to each branch store. This significantly increased their logistic costs.
Global House wanted to significantly decrease their logistics cost by making changes to their existing operations and supply chain. As the home improvement industry traditionally has low margins, it is important for companies to reduce other expenses to stay competitive. Thus, Global House looked to create and manage their own distribution center to stay competitive. The company wanted to consolidate incoming supplies before efficiently distributing it to their various branches around Thailand in full truck loads.
The solution we offered Global House’s distribution center was a fully automated storage and retrieval system, integrated with a sorter that allowed picking employees to utilize the smart picking technology. This system features 10 cranes, standing at 20 meters tall. All together, the system holds 40,000+ locations, and has a throughput of 300 pallets/hour both IN/OUT.
The Global House picking system automatically consolidates SKUs according to branch, utilizing minimal labor and creating a picking system that is 99% accurate. The smart picking system reduces the skill of labor needed to perform the job, this is done by using conveyors to bring each item to pickers automatically with instructions of how many to pick out of each pallet. After the branch consolidation is done, the pallet is then stored back into the system to await for transport to their respective branches, eliminating the need for a product staging area for outbound products.
The system also features a smart restocking system. By utilizing data analytics on product selling rates, size of packaged goods on each pallet, and the transportation routes of the restocking truck, the system automatically restocks the product efficiently without the need of any human involvement. The system optimizes the cost efficacy by restocking products dependent on truck routes and stock out predictions. The smart restocking system minimizes labor and is a fully paperless system.