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Fred'S: Case Study

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CASE STUDY

FREDS

Freds Values Consistency


Required to replace its aging distribution center server, a regional retail chain takes the opportunity to upgrade its order fulfillment software and doesnt miss a beat during the changeover.
Please note: Intelligrated acquired the North and South American operations of FKI Logistex in June 2009.

A Long Relationship
Freds relationship with Intelligrated dates back to the retrofit of its 800,000-square-foot Memphis distribution center in 1998. The DC features four Intelligrated multilevel pick-to-light modules for fullcase picking, one multilevel pick-to-light module for less-than-full-case picking, an Intelligrated sliding shoe sortation system for shipping full and less-than-fullcase cartons to retail stores. With more than 10 years of experience using Real Time Solutions (RTS) order fulfillment software, Freds is a believer in the software. Corey Punches, Director of Distribution Systems, Freds Memphis, appreciates how seamless the transition to RTS order fulfillment software version 16 was. The interface is familiar, so even though it has additional functionality we didnt have to train associates out on the floor, he said. In fact, its even easier to use than the previous version.

When the first Bargain Center opened in Coldwater, Mississippi in 1947, a 12-ounce bottle of Pepsi sold for five cents. More than 60 years and a name change later, what was once a humble variety store has grown into a regional retail powerhouse consisting of more than 700 Freds stores and 300 Freds pharmacies. But after six decades of growth, one thing hasnt changed the companys dedication to offering values that rival a nickel soda. Thats why, when faced with the need to replace the aging Hewlett Packard HP D270 server at its 10-yearold distribution center in Memphis, Tennessee, Freds management team decided to upgrade its order fulfillment software at the same time. Productivity is a key factor in all of our decision-making processes. This is the one area where we can continue to drive leverage into our business, which allows us to protect pricing for our customers, said Reggie Jacobs, Executive Vice President of Distribution, Transportation and Store Services, Freds Headquarters. Weve been using Real Time Solutions order fulfillment software from Intelligrated (formerly FKI Logistex) since 1998, so as long as we were going to have to load software on the new server anyway, we decided to take advantage of the added functionality of the latest version of Real Time Solutions order fulfillment software.

New Functionality Enhances Efficiency and Convenience


One of the new features of RTS software is its suspend function. When a picker comes to a location that is out of stock, he or she can place the missing item on hold and move to the next location. The system will send the picker back to the suspended pick location when the item has been restocked. Allowing workers to move past a problem and continue picking adds to their work efficiency, said George Christian, an Intelligrated senior project manager. By reducing the potential for an operator to confirm a pick without actually picking an item, the suspend function also increases the accuracy of orders, he added.

www.intelligrated.com

In addition to the suspend function, the latest RTS upgrade also adds enhanced reporting tools for workload planning management, quality assurance and audits, productivity, order status, wave management and user maintenance. Users can create detailed and customized reports, which can be exported to Crystal Reports and other business intelligence applications. Using the dynamic zoning tools offered by RTS version 16, Freds supervisors and order pickers can easily manage the system during operations. Supervisors can reassign workers to order-picking zones based on available personnel or remaining time in a shift, and order pickers can reduce or increase their zones by scanning bar codes to add or drop sections. The new version of RTS also includes a My View feature, which allows logged-in users to customize screen views and specify the section ranges that appear on employee work status, workload planning, and work history screens. The softwares new graphical user interface connects through an application downloaded onto the computer, instead of through a browser. This technology provides intuitive navigation and supplies users with the convenience of remote access via an intranet or internet connection.
Freds uses the Real Time Solutions pick-to-light order fulfillment system from Intelligrated to increase productivity and efficiency in its distribution center.

Upgrade is Completed Without Missing a Shipment


To minimize disruption to its distribution operation, Freds decided to implement the new system in mid-December, its slowest time of the year. Intelligrated completed all of the design work, hardware purchasing (including the new HP server), and system testing at their Alameda, California facility in the fall of 2007 and began installing the system at the end of the day shift on Friday, December 14. The system was up and running by the following Monday. This was a very easy process for us, Punches said. Intelligrated did a great job with the upgrade. Once they finished installing the new system all we had to do was plug it in and turn it on. With the new hardware platform supportable for another five to ten years, it is fully capable of keeping up with Freds future growth. Freds plans to upgrade its Dublin, Georgia DC to the latest EASYpick release soon, which will provide company-wide consistency and allow the chain to maximize order fulfillment efficiency. Working with Intelligrated, Freds can continue to offer the values and customer service that have fueled its growth for more than six decades.

Freds Memphis DC Volume and Usage Stats


7.5-hour shifts Pick locations Real Time Solutions sections Orders per shift Order lines per shift Orders in the database at one time Order lines in the database at one time Batches in the database at one time Simultaneous order fillers using tethered scanners 2 6,000 236 8,200 140,000 16,500 280,000 250 56

www.intelligrated.com

About Intelligrated
Intelligrated is a leading American-owned, single-point provider of automated material handling solutions with operations in the U.S., Canada and Mexico. Headquartered in Cincinnati, Intelligrated designs, manufactures and installs complete material handling automation solutions, including IntelliSort line sortation systems, Crisplant tilt-tray and cross-belt sortation systems, conveyor systems, Alvey palletizers and robotics, Real Time Solutions order fulfillment systems, warehouse control software and advanced machine controlsall supported by 24x7 Customer Service and Support.

Intelligrated Service & Support


The in-house Customer Service and Support (CSS) program offered by Intelligrated backs all of our products. Services available include: IN-24x7 technical support hotline Spare parts logistics Field service Equipment and system audits Upgrades and modifications Full service and maintenance contracts Preventive maintenance Customer training

Serving the warehousing, distribution, consumer product manufacturing, postal and parcel markets, Intelligrated collaborates closely with its clients to develop productivity solutions and responds to their needs throughout the life of their material handling systems.

CSS is available 24x7 to provide all of the services needed to keep your equipment running at peak efficiency. Whether its on-site support or troubleshooting via our hotline, Intelligrated has the most comprehensive customer support program in the industry.

Service and Parts Hotline Phone + 1 877.315.3400

Intelligrated Products and Services


Systems Integration Sortation Systems Conveyor Systems Palletizing Solutions Software & Controls Order Fulfillment Systems 24x7 Technical Support Design & Build

www.ontimeparts.com

Headquarters in Mason, Ohio

For more information, contact:

7901 Innovation Way, Mason, Ohio 45040 + 1 866.936.7300 info@intelligrated.com www.intelligrated.com

CSF01 1.10 2010 Intelligrated. All rights reserved.

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