Crossroads increases volume on Samsung contract by 40%

For Crossroads, the prize for developing these capabilities was a contract for the warehousing, stock management and distribution of Samsung parts throughout sub-Saharan Africa. Distribution in South Africa represents 80% of the total orders fulfilled in the region. Enhanced visibility and the ability to combine advanced warehousing and cross-docking capabilities with the largest long and short haul fleet in the country, has enabled the company to handle an increased volume of 40%, in just over a year. It has also set the company up as the logistics partner of choice for the ICT industry.

The client's products affect the complexity of the task and Samsung parts range from giant plasma screens to minute digital and electronic components. The spares are despatched from various worldwide suppliers, mainly in the Far East, by air and by sea freight (40 ft containers) and are received at Crossroads' new, multi-principal warehouse in Jet Park. Here each item is unpacked, checked, catalogued and shelved. The process is recorded in a modern warehouse management system that ensures control and global visibility. Small items are repackaged, bar-coded and labelled to expedite the fine picking process.

Picking system critical

Order picking is the most costly and labour intensive process in any warehouse. Costs for this process are estimated to be as much as 55% of the total warehouse operating expenses, so choosing the right picking system and integrating it into the supply chain system is crucial to improving service delivery and reducing risk and cost. The Jet Park warehouse combines optimal design with advanced distribution modelling and a flexible operating system that can be reconfigured to suit specific needs. Fixed and overflow facilities can be arranged for clients, to accommodate peaks in demand.

Transparency, access and control are key to handling the demands of a fast moving, multinational brand. The company has incorporated the Samsung SAP system to manage its stock, which gives total, real-time visibility of the inventory and stock movements to all parties involved. This includes the Samsung control centre in Korea, Crossroads, the warehouse and all the agents, suppliers and providers of Samsung goods in sub-Saharan Africa. Meticulous efficiency is crucial.

Efficient and cost effective transportation is assured for its clients through its in-house courier and parcel delivery company, Skynet Worldwide Express. This company utilises 1000 trucks and 35 distribution hubs/cross dock facilities across South Africa to ensure rapid and accurate delivery of client's parts. It offers the most comprehensive last mile delivery service in the country with daily deliveries to 450 towns across South Africa.

For more information, go to www.crossroads.co.za.