Modern Materials Handling - November 2012

®This month in modernEDITORIAL OFFICES111 Speen Street, Suite 200Framingham, MA 01701-2000(800) 375-8015MICHAEL LEVANSGROUP EditorIALDIRECTORMichael LevansGroup Editorial Directormlevans@peerlessmedia.comBob TrebilcockExecutive Editorrobert.trebilcock@myfairpoint.netNoël P. P. BodenburgExecutive Managing Editornpbodenburg@peerlessmedia.comJosh BondAssociate Editorjbond@peerlessmedia.comSara Pearson SpecterEditor at at Largesara@saraspecter.comRoberto MichelEditor at at Largerobertomichel@new.rr.comJeff BermanGroup News Editorjberman@peerlessmedia.comMike RoachCreative Directormroach@peerlessmedia.comWendy DelCampoArt Directorwdelcampo@peerlessmedia.comDaniel GuideraIllustrationdaniel@danielguidera.comBrian CeraoloGroup Publisherbceraolo@peerlessmedia.comPeerless Media, LLCwww.peerlessmedia.comKenneth MoyesPresident and CEOEH Publishing, Inc.Brian CeraoloPublisher andExecutive Vice PresidentPeerless Media, LLCMAGAZINE SUBSCRIPTIONSStart, renew or or update your FREEmagazine subscription at atwww.mmh.com/subscribe.Contact customer service at: at:Web:www.mmh.com/subscribeEmail: mmhsubs@ehpub.comPhone: 1-800-598-6067Mail:Peerless MediaP.O. Box 1496Framingham, MA 01701eNEWSLETTER SUBSCRIPTIONSSign up up or or manage your FREEeNewsletter subscriptions at atwww.mmh.com/enewsletters.MSC honorssame-day pledgeThe term “same-day shipping” hasbecome inexorably linked to thecustomer-service pledge of any e-tailer looking to stay in the game. And whileAmazon and subsidiary Zappos built theirfortunes on it, rarely do we turn our attentionsto how same-day shipping can helpan industrial distributor build competitiveadvantage—and even take the lead in itsrespective market.You can add MSC Industrial Supply tothe list of companies that built its reputation—andsubsequent success—on thesame-day pledge. In fact, the distributor ofindustrial supplies to durable goods manufacturershas been putting its money whereits month is since 1991: “We’ll ship yourorder the same day you place it or send youa cash-back guarantee.”But what’s most impressive about MSC’ssuccess is how that simple pledge pushedthe distributor to stay on the cutting edgeof current best practices—from a pick-andpassorder fulfillment process in 1991 to anewly automated, RF-driven process thatkeeps up with the multi-pronged, e-fulfillmentchallenge of today.As executive editor Bob Trebilcock chroniclesthis month, when MSC first launched theprogram, different regions of the country haddifferent order cut-off times—some regionscould place orders up until 8 p.m. ET whileothers had until 1 p.m. ET.But in these early stages, MSC was ableto make good on its promise becauseorder times tended to be fairly consistent.“When most of our customers phoned orfaxed orders in, we would get 45% of ourvolume for the day before lunch,” DougMemberMember ofJones, executive vice president of globalsupply chain operations, tells Trebilcock.“The pick-and-pass method served us wellfor years.”But between 2005 and 2012 the company’sbusiness doubled, mostly throughacquisitions, and the supply chain team felta sudden jump in new volume that had tobe absorbed into the existing system. Andthis surge just so happened to take placeduring the same time period that customerorder patterns were changing due to theInternet.“Instead of getting 45% of our volumebefore lunch, we now get 60% to 70% ofour volume between 3 p.m. and 6 p.m.,”Jones says. “If you take an order at 4:45p.m. in a region with a 6 p.m. ship time, thatthree-hour cycle time is a problem.”What unfolds on page 18 is an e-fulfillmentevolution success story that’s basedon more brains than brawn. It incorporateswave-planning software, highspeedbelt conveyor, narrow-belt sortation,put-to-light technology and mobilecomputing and bar code scanning. Thenew system has resulted in reduced ordercycle times and one order cut-off-time forsame day shipping no matter where thatcustomer is in the country.“For many retailers and industrial distributorslike MSC, the ability to order atany time of day and from any device createdby the Internet has really changedthe game,” says Treblicock. “Now, distributionand order fulfillment systems needto keep pace with these new demands,and MSC is a great example of this phenomenon.”WinnerJesse H. NealCertificates of Meritfor JournalisticExcellenceOfficial Publication ofwww.peerlessmedia.commmh.com Modern Materials Handling / N o v e m b e r 2 0 1 2 7