Thermos Tripled Storage Capacity And Consolidated Distribution Activities Into One Facility With The Addition Of Daifuku Automated Equipment
At its start in 1904, Thermos produced vacuum-sealed glass bottles. In 1978, a company called Nippon Sanso Corporation invented the world's first stainless heat-insulated vacuum bottle. At the time, Thermos of England, the United States and Canada were affiliated with Nippon Sanso, which eventually led to the establishment of Thermos KK in Japan in 2001. Today, Thermos KK is one of the world's leading vacuum bottle manufacturers, distributing product to over 120 countries.
In May 2007, Thermos KK opened a new distribution center at its Niigata plant. A Daifuku unit load Automated Storage & Retrieval System (AS/RS) with eight Storage Retrieval machines and 6,952 storage locations was introduced into the facility to consolidate inventory stored within multiple commercial warehouses and to improve operational efficiency.
Inventory from 10 locations was consolidated under one roof
Nippon Sanso originally developed the stainless vacuum bottles at the Niigata plant; however, the majority vacuum bottle production was transferred to Malaysia and China in 2002. Currently the Niigata plant serves as a production site for more expensive specialty products including thermal containers and coolers. The facility is also the main distribution center for products destined for locations within Japan.
Previously, products manufactured overseas were stored in an existing AS/RS at Niigata and also at 10 commercial warehouse locations. This setup contributed to unnecessary product transfers, overly complicated operations, and poor product storage, which often resulted in load damage.
The new distribution center built near the existing plant expanded storage capacity 3.5 times with the introduction of a new unit load AS/RS. Inventory from the multiple locations was consolidated and inventory data was organized within an inventory management system developed by Daifuku. The new system reduced order processing time by half and enabled first-in, first-out order fulfillment. In the new system, inventory is categorized as "awaiting inspecting," "ready-to-ship," or "unqualified."
Additional unit load AS/RS was built to address demand increases
In November 2009, a second unit load AS/RS with five Storage Retrieval machines and 4,345 pallet locations was installed to meet the increased demand for portable vacuum insulated mugs and tumblers.
Handling about 700 SKUs, Thermos receives 3,000 cases of product daily. Orders are shipped to approximately 200 wholesale locations and retail stores. Orders received by noon are delivered to customers same day.
Six employees work half day to receive items and fill orders. These same operations once required 18 employees working one and a half days. "Both demand and small-lot orders are increasing, however, we have tripled storage capacity since last year and we continue to maintain inventory levels and can fill orders quickly and accurately," explains Yoshiyasu Kimura, general manager of logistics for at Niigata.
