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Designing a Distribution Centre

INTRODUCTION

Cranfield Reliable Stationery (CRS)* is a well-established wholesaler of stationery and associated products serving a number of retail chains, business organisations and public sector bodies.

CRS has experienced rapid growth during recent years by taking market share from its competitors. Its growth has been largely due to its aggressive marketing and sales campaigns, which have stressed the company's advanced product portfolio, coupled with extremely high service levels. The company's business strategy is to maintain its perceived leading edge position in the market place and to generate further growth.

In order to achieve this, it now needs to invest in a new National Fulfilment Centre (NFC), as it has outgrown the capacity of its existing facility. This new facility will be located at Cranfield, which is in an incredibly picturesque area in the heart of the British countryside blessed by both frequent sunshine and a strategic location.

GROUP TASKS

You are asked to prepare a group presentation on the proposed National Fulfilment Centre for the Board of Directors of CRS. On the basis of your presentation, the Board of Directors will decide whether to approve the funds for the project, and to authorise a search for a specific site, detailed design work and tendering to commence.

Your presentation should detail the following aspects:

1. The role of the new National Fulfilment Centre in the supply chain (include a diagram of the overall supply chain).

2. An explanation of the zoning adopted for the warehouse.

3. A warehouse flow diagram, in the form of a "day in the life of the warehouse".

4. An explanation of the main operating principles and unit loads, together with an indicative time profile for each activity.

5. An evaluation and selection of relevant equipment types.

6. A listing of the five main information system functionality requirements (i.e. the functionality that may be required for the proposed solution that may not be found in all standard WMS software).

7. Recommended internal layout, indicating number of square metres of warehouse space required (plus indicative external layout).

INDIVIDUAL TASKS

Individually you need to prepare and submit a report that reflects on your group design and potential benefits and shortcomings of your design decisions.

In particular, you want to reflect on the following aspects:

1. Describe the key requirements for a distribution centre in general and critically evaluate the specific requirements for the National Distribution Centre of CRS.

2. Present your group design. Include all information required to fully illustrate the characteristics of your proposed design concept.

3. What are the benefits and/or strengths of your design and how does your design support the requirements at CRS?

4. In hindsight, which aspects of your warehouse design could be improved and how? Reflect critically on your design choices.

5. In your report, identify and explain three potential issues that are likely to be of critical importance when bringing the distribution centre into service.

Prepare a report that provides coverage of these aspects. Make sure to structure your report in coherent way and support your arguments with suitable material from literature if required.

Attachment:- Cranfield Reliable Stationery - Case Study.rar