DC Velocity - October 2017

the order has been verified as correct and complete. As a final step, the worker places the packing list that has been riding along with the order into the carton and applies the shipping label.

To accommodate orders that require specialty packaging services, such as giftwrapping and special labeling, the Kanto facility includes a value-added pack area. Meeting customers’ expectations is very important at FANCL, so the company assigns its veteran workers to this station.

As a result of the automated systems and attention to detail, order accuracy is quite high. Nonetheless, FANCL continuously works toward the ideal of the “perfect order.” For instance, cameras are positioned throughout the various workstations to capture work performance. “The cameras are not there to find fault, but to confirm quality and to resolve issues,” says Nakazawa.

After packing, products move on declining conveyors to the first-floor shipping area, where another sliding-shoe surfing sorter diverts cartons to one of six lanes, each of which is assigned to a specific postal or parcel carrier. Overall, approximately 4 million shipments are handled monthly at the facility. As an indication of how quickly this all happens, most orders arrive in the shipping area within 30 to 40 minutes of the time the packing list and label were printed.

ECONOMICAL AND ECO-FRIENDLY

Since the new facility opened, FANCL has met its goals of improving customer service while providing more efficient distribution. The automated system has reduced shipping errors from four per 1,000 to less than two per 10,000.

The move has produced other benefits as well. Consolidating facilities and switching to paperless picking has eliminated 7. 4 million paper documents annually, saving the company money while making the operation more environmentally sustainable. Transportation miles have also been reduced. The company calculates that by consolidating its distribution facilities, shipping efficiency has improved, cutting CO2 emissions by some 130 tons annually.

As for the material handling systems used in the new operation, FANCL managers say they are pleased with the equipment’s performance. “Daifuku has been a good partner with the design, implementation, and ongoing maintenance of the technology. Daifuku has been able to respond incredibly quickly to any issues. The equipment has operated almost problem-free,” Nakazawa says.

But perhaps the biggest testament to the project’s success is this: FANCL says it has already started to plan for a new highly automated distribution facility to be built in the near future.