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Andrew WelchAndrew Welch
Senior at Michigan State University
Major: Supply Chain Management
Minor: Spanish
Specialization: International Business
Division: Limited Logistics Services
Business: Victoria’s Secret Direct
Department: Decoupled Packing
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The Customer Rules!
EverythingEverything we do must begin and end with anwe do must begin and end with an
insatiable drive to anticipate and fulfill ourinsatiable drive to anticipate and fulfill our
customers’ desires.customers’ desires.
““VSD, thanks for your excellent job!!!VSD, thanks for your excellent job!!! My orders arriveorders arrive
earlier than expected very often, so I am highlyearlier than expected very often, so I am highly
satisfied. Customer support is the best I receivedsatisfied. Customer support is the best I received
from many other brands and product quality isfrom many other brands and product quality is
perfect.”perfect.”
-VSD Customer June, 2009-VSD Customer June, 2009
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ReceivingReceiving
Receiving ReplenishmentReplenishment
ReserveReserve
PackingPacking
SorterSorter
QMQM
DecoupledDecoupled
PackingPacking
PickingPicking ShippingShipping
ReceivingReceiving
• Every case has a unique
license plate that is
scanned
• 1 SKU (or type)/case
• System selects cases
for QM that are inspected
for quality
•The remaining cases are
sent to reserve
QM & ReserveQM & Reserve
Receiving ReplenishmentReplenishment
ReserveReserve
PackingPacking
SorterSorter
QMQM
DecoupledDecoupled
PackingPacking
PickingPicking ShippingShipping
QM and ReserveQM and Reserve
Arrive in QM consolidatedArrive in QM consolidated
by PO to be inspected forby PO to be inspected for
QualityQuality
Once items are passed,Once items are passed,
they are released for salethey are released for sale
The majority of the casesThe majority of the cases
head straight to reserve,head straight to reserve,
where they are put on holdwhere they are put on hold
until QM gives the O.K. foruntil QM gives the O.K. for
salesale
ReplenishmentReplenishment
Receiving ReplenishmentReplenishment
ReserveReserve
PackingPacking
SorterSorter
QMQM
DecoupledDecoupled
PackingPacking
PickingPicking ShippingShipping
ReplenishmentReplenishment
Replenishment cases (from reserve) areReplenishment cases (from reserve) are
opened and scanned into picking locationsopened and scanned into picking locations
PickingPicking
ReceivingReceiving ReplenishmentReplenishment
ReserveReserve
PackingPacking
SorterSorter
QMQM
DecoupledDecoupled
PackingPacking
PickingPicking ShippingShipping
PickingPicking
Pick labels are produced inPick labels are produced in
waves of customer orders,waves of customer orders,
but organized by location inbut organized by location in
the active pick tower.the active pick tower.
Associates pick piecesAssociates pick pieces
within a number of aisles,within a number of aisles,
which are picked bywhich are picked by
location of pieces, not bylocation of pieces, not by
customer order.customer order.
Once the pieces areOnce the pieces are
completed, they are sent incompleted, they are sent in
a tote on the conveyor toa tote on the conveyor to
be inducted.be inducted.
Packing SorterPacking Sorter
Receiving ReplenishmentReplenishment
ReserveReserve
PackingPacking
SorterSorter
QMQM
DecoupledDecoupled
PackingPacking
PickingPicking ShippingShipping
Packing SorterPacking Sorter
Pieces arrive from picking,Pieces arrive from picking,
and are dumped from theand are dumped from the
tote into a chute, where antote into a chute, where an
associate makes sure eachassociate makes sure each
label is facing uplabel is facing up
Pieces then run through aPieces then run through a
scanner, where they arescanner, where they are
separated by order andseparated by order and
locationlocation
Large orders areLarge orders are
processed at the Sort Toprocessed at the Sort To
Order StationsOrder Stations
Smaller orders are sent toSmaller orders are sent to
DecoupledDecoupled
PackingPacking
Decoupled Packing/ShippingDecoupled Packing/Shipping
Receiving ReplenishmentReplenishment
ReserveReserve
PackingPacking
SorterSorter
QMQM
DecoupledDecoupled
PackingPacking
PickingPicking ShippingShipping
Decoupled Packing
Totes from Sort To Tote arrive inTotes from Sort To Tote arrive in
Decoupled Packing stationsDecoupled Packing stations
Items are scanned, and placed inItems are scanned, and placed in
grids which separate ordersgrids which separate orders
Once the order is complete, theOnce the order is complete, the
system lets the associate knowsystem lets the associate know
which shipping container andwhich shipping container and
collateral should be usedcollateral should be used
The shipping container is sealed,The shipping container is sealed,
and the label appliedand the label applied
The package is put on the conveyor,The package is put on the conveyor,
and heads to shippingand heads to shipping
The Auto Bag
Items come to the Auto Bag fromItems come to the Auto Bag from
InductionInduction
Items are placed on the conveyor,Items are placed on the conveyor,
in a cleat, and are scannedin a cleat, and are scanned
When the item hits the firstWhen the item hits the first
scanner, an order is picked upscanner, an order is picked up
from the system, for that SKUfrom the system, for that SKU
When it reaches the end of theWhen it reaches the end of the
line, the items invoice and catalogline, the items invoice and catalog
are placed on a separateare placed on a separate
conveyor, and the piece falls onconveyor, and the piece falls on
the twothe two
The carton is automaticallyThe carton is automatically
bagged, a shipping label isbagged, a shipping label is
applied, and the carton is sent toapplied, and the carton is sent to
shippingshipping
ProblemsProblems
• Many items rejectMany items reject
• Different shifts do differentDifferent shifts do different
processes with the way they runprocesses with the way they run
unitsunits
• Generates problems withGenerates problems with
unwavingunwaving
•Items may have been forItems may have been for
decoupled stationsdecoupled stations
The Customer
Receiving ReplenishmentReplenishment
ReserveReserve
PackingPacking
SorterSorter
QMQM
DecoupledDecoupled
PackingPacking
PickingPicking ShippingShipping
Projects
Batch Relabeling
Auto bag Standard Operating Procedures
(SOP)
Batch Relabeling
Problem Solution
-Batch continuously rejected at the
auto bag (vendor labels)
-No orders were being picked up
-Each day new labels were printed
-Sometimes as much as 10,000 batch
units/shift were relabeled
-By printing labels, the case was
consumed
-Tested printing the labels, but running
the pieces without them
-This proved effective
-Started using RF guns to bypass the
printing state
Savings approximately $56,000/year
Auto Bag Standard Operating
Procedures
 Why a new SOP?
 It matters how we play the game
 Clear instructions for running the auto bag
 Not just how do we do it, but why do we do it the way we do?
 Important to work as a team
 FIFO
 Instructions on how to solve allocation problems
 Batch related issues
 Gives associates a better understanding of their work
 More responsibility
 Passion leads to success
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Responsibilities
 Daily Start Up Meetings
 Units report
 Information on the number of units for each type of order
 Attending daily meetings to discuss days plan
 Coaching associate
 Resolving allocation issues with aged totes and batch cases
 Communicating with supervisors from other departments
 Transition reports
Daily Plan
Experience
 Expectations
 Reality
 Communication
 Goals
 Education

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exampleprojects

  • 1. Andrew WelchAndrew Welch Senior at Michigan State University Major: Supply Chain Management Minor: Spanish Specialization: International Business Division: Limited Logistics Services Business: Victoria’s Secret Direct Department: Decoupled Packing
  • 3. The Customer Rules! EverythingEverything we do must begin and end with anwe do must begin and end with an insatiable drive to anticipate and fulfill ourinsatiable drive to anticipate and fulfill our customers’ desires.customers’ desires. ““VSD, thanks for your excellent job!!!VSD, thanks for your excellent job!!! My orders arriveorders arrive earlier than expected very often, so I am highlyearlier than expected very often, so I am highly satisfied. Customer support is the best I receivedsatisfied. Customer support is the best I received from many other brands and product quality isfrom many other brands and product quality is perfect.”perfect.” -VSD Customer June, 2009-VSD Customer June, 2009
  • 9. ReceivingReceiving • Every case has a unique license plate that is scanned • 1 SKU (or type)/case • System selects cases for QM that are inspected for quality •The remaining cases are sent to reserve
  • 10. QM & ReserveQM & Reserve Receiving ReplenishmentReplenishment ReserveReserve PackingPacking SorterSorter QMQM DecoupledDecoupled PackingPacking PickingPicking ShippingShipping
  • 11. QM and ReserveQM and Reserve Arrive in QM consolidatedArrive in QM consolidated by PO to be inspected forby PO to be inspected for QualityQuality Once items are passed,Once items are passed, they are released for salethey are released for sale The majority of the casesThe majority of the cases head straight to reserve,head straight to reserve, where they are put on holdwhere they are put on hold until QM gives the O.K. foruntil QM gives the O.K. for salesale
  • 13. ReplenishmentReplenishment Replenishment cases (from reserve) areReplenishment cases (from reserve) are opened and scanned into picking locationsopened and scanned into picking locations
  • 15. PickingPicking Pick labels are produced inPick labels are produced in waves of customer orders,waves of customer orders, but organized by location inbut organized by location in the active pick tower.the active pick tower. Associates pick piecesAssociates pick pieces within a number of aisles,within a number of aisles, which are picked bywhich are picked by location of pieces, not bylocation of pieces, not by customer order.customer order. Once the pieces areOnce the pieces are completed, they are sent incompleted, they are sent in a tote on the conveyor toa tote on the conveyor to be inducted.be inducted.
  • 16. Packing SorterPacking Sorter Receiving ReplenishmentReplenishment ReserveReserve PackingPacking SorterSorter QMQM DecoupledDecoupled PackingPacking PickingPicking ShippingShipping
  • 17. Packing SorterPacking Sorter Pieces arrive from picking,Pieces arrive from picking, and are dumped from theand are dumped from the tote into a chute, where antote into a chute, where an associate makes sure eachassociate makes sure each label is facing uplabel is facing up Pieces then run through aPieces then run through a scanner, where they arescanner, where they are separated by order andseparated by order and locationlocation Large orders areLarge orders are processed at the Sort Toprocessed at the Sort To Order StationsOrder Stations Smaller orders are sent toSmaller orders are sent to DecoupledDecoupled PackingPacking
  • 18. Decoupled Packing/ShippingDecoupled Packing/Shipping Receiving ReplenishmentReplenishment ReserveReserve PackingPacking SorterSorter QMQM DecoupledDecoupled PackingPacking PickingPicking ShippingShipping
  • 19. Decoupled Packing Totes from Sort To Tote arrive inTotes from Sort To Tote arrive in Decoupled Packing stationsDecoupled Packing stations Items are scanned, and placed inItems are scanned, and placed in grids which separate ordersgrids which separate orders Once the order is complete, theOnce the order is complete, the system lets the associate knowsystem lets the associate know which shipping container andwhich shipping container and collateral should be usedcollateral should be used The shipping container is sealed,The shipping container is sealed, and the label appliedand the label applied The package is put on the conveyor,The package is put on the conveyor, and heads to shippingand heads to shipping
  • 20. The Auto Bag Items come to the Auto Bag fromItems come to the Auto Bag from InductionInduction Items are placed on the conveyor,Items are placed on the conveyor, in a cleat, and are scannedin a cleat, and are scanned When the item hits the firstWhen the item hits the first scanner, an order is picked upscanner, an order is picked up from the system, for that SKUfrom the system, for that SKU When it reaches the end of theWhen it reaches the end of the line, the items invoice and catalogline, the items invoice and catalog are placed on a separateare placed on a separate conveyor, and the piece falls onconveyor, and the piece falls on the twothe two The carton is automaticallyThe carton is automatically bagged, a shipping label isbagged, a shipping label is applied, and the carton is sent toapplied, and the carton is sent to shippingshipping ProblemsProblems • Many items rejectMany items reject • Different shifts do differentDifferent shifts do different processes with the way they runprocesses with the way they run unitsunits • Generates problems withGenerates problems with unwavingunwaving •Items may have been forItems may have been for decoupled stationsdecoupled stations
  • 22. Projects Batch Relabeling Auto bag Standard Operating Procedures (SOP)
  • 23. Batch Relabeling Problem Solution -Batch continuously rejected at the auto bag (vendor labels) -No orders were being picked up -Each day new labels were printed -Sometimes as much as 10,000 batch units/shift were relabeled -By printing labels, the case was consumed -Tested printing the labels, but running the pieces without them -This proved effective -Started using RF guns to bypass the printing state Savings approximately $56,000/year
  • 24. Auto Bag Standard Operating Procedures  Why a new SOP?  It matters how we play the game  Clear instructions for running the auto bag  Not just how do we do it, but why do we do it the way we do?  Important to work as a team  FIFO  Instructions on how to solve allocation problems  Batch related issues  Gives associates a better understanding of their work  More responsibility  Passion leads to success
  • 30. Responsibilities  Daily Start Up Meetings  Units report  Information on the number of units for each type of order  Attending daily meetings to discuss days plan  Coaching associate  Resolving allocation issues with aged totes and batch cases  Communicating with supervisors from other departments  Transition reports
  • 32. Experience  Expectations  Reality  Communication  Goals  Education

Editor's Notes

  • #3: Hi, first off, I’d like to thank everyone that was able to make it today. This experience has been amazing, and I hope to demonstrate you that today. Also, from those that I’ve closely worked with, thank you for coming and supporting me today. I want to begin today by incorporating LBI’s values and how they applied to my time here, especially with VSD.
  • #4: Of course, the customer rules: As stated, everything we do must begin and end with an insatiable drive to anticipate and fulfill our customers’ desires. During my third week here, my supervisor sent me this comment made by a loyal customer (read) To fully understand how what we do impacts the customer, I decided to be one myself.
  • #5: I started by going online, from a customer standpoint, and ordering based on my needs (or, what they would be if I was her)
  • #6: For me personally, PINK seemed like the best option because the number one school in America is supported by them.
  • #8: From this page, I chose my size and quantity, and sent my order.
  • #9: So lets go back Before my order is even placed, the item is ordered based on demand My shirt, or specific SKU, may have been ordered weeks ago It arrives in receiving
  • #12: Explain how my shirt had been ordered previously to meet customer demands, but this is the process it had to go through
  • #13: As more items are ordered for a specific SKU, for instance, a lot of orders are placed for this shirt, cases are replenished in picking stations This way, when a wave comes through, they will be able to easily fulfill those orders
  • #15: My specific order is placed, and waved from the command center, based on customer orders
  • #21: Explain why items reject Why this is crucial to success I spent the majority of my time working with this machine
  • #24: Talk about first day experience Being new to the building and company helped me out- curiosity Describe the labor, time, and how this process has been communicated