Synopsis
APL Logistics setup a Regional Distribution Center (RDC) in Singapore and bypassed the Hong Kong hub, helping to achieve FTA savings, and incorporated a new warehouse design which provided speed, flexibility, and scalability for operations.
Customer Overview
- Company: A leading retailer and exclusive distributor in South East Asia
- Vertical: Apparel, accessories, and footwear
- Volume: 3,600,000 pieces
- Storage capacity: 1,200 cbm
- Origins: South East Asia, China, Jordan, Latin America
- Destinations: South East Asia
Challenges
- Customer operates Hong Kong hub as consolidation center for South East Asia origins
- Distributor currently buys from Hong Kong hub thus does not receive FTA savings for shipments to South East Asia destinations
- Current warehouse configuration is floor stack with multiple SKU stored in one pallet
Apl Logistics Solutions
- Initial network analysis was done to determine the best hub location for distributor
- Proposed solution is to set up an RDC in Singapore and bypass Hong Kong hub
- Proposed facility layout of 17,000 square feet with a combination of pallet racking for palletized cargoes and shelving for pick face
- Proposed operation includes permanent staff and temporary staff to cope with seasonal volume fluctuation
Benefits
- FTA savings through APLL supply chain solutions
- New warehouse design provides speed, flexibility & scalability
- Space optimization: 27,000 square feet for 800,000 units to 17,400 sqft for 1,800,000 units