The Penshoppe Group (Golden ABC) is a multi-brand international fashion enterprise, home to some of the most iconic brands in the Asia Pacific region: Penshoppe, OXGN, ForMe, Memo, Regatta, and BOCU. Founded in 1986, the retailer now has more than 1,000 strategically located stores across Southeast Asia.
With a product range of 50,000skus, ranging from fashion apparel and footwear to fragrances and accessories, The Penshoppe Group offers its products to consumers through their owned and operated retail outlets and online platforms.
The Penshoppe Group realised that with its significant forecasted growth, especially in e-commerce, it would quickly outgrow its current warehouse operations. https://threesixtyscg.com/wp-content/uploads/2022/08/GABC-Website-Image-1.png was engaged in 2019 to develop an appropriate solution and the commercial justification to meet the future strategy and growth expectations and implement the solution to an operational steady state.
The Challenge
The significant growth in both retail and e-commerce over the last few years has led to an increase in demand for industrial properties in urban areas. The Penshoppe Group were fortunate to own a plot of land close to their head office and existing warehouse in the Philippines.
One of the major challenges was ensuring the new facility could accommodate The Penshoppe Group’s increase in inbound and outbound volumes. Due to the growing congestion on major thoroughfares in the National Capital Region, the local government had to impose restrictions on the schedules of the use of large vehicles during peak traffic hours. The use of smaller vehicles has led to an increase in vehicle traffic at the facility which needed to be considered during the solution design process.
Another challenge was introducing automation into what has predominantly been a very manual industry, due to the lower cost of labour in the region. However, this was a necessity as the manual process would no longer be able to support the forecasted volume. Based on the current manual operations The Penshoppe Group’s DC staff was projected to grow from 300 to 1,000 within a few years to meet growth expectations. Given the significant increase in volume, automation was required to meet the growth strategy and to ensure operational efficiency.
With no experience in designing a solution of this magnitude, The Penshoppe Group engaged https://threesixtyscg.com/wp-content/uploads/2022/08/GABC-Website-Image-1.png to assist.
Solution
Once engaged, https://threesixtyscg.com/wp-content/uploads/2022/08/GABC-Website-Image-1.png conducted a detailed review of the current processes, performed an in-depth analysis of the business profiles and growth strategy and proceeded to develop manual and automated solution options with detailed network, labour, capital and commercial modelling.
Once the business case was approved, https://threesixtyscg.com/wp-content/uploads/2022/08/GABC-Website-Image-1.png completed a detailed design of the chosen solution, conducted RFPs with various automation and WMS suppliers and assisted in contract negotiations with the selected providers.
Post the selection of the automation and WMS partners https://threesixtyscg.com/wp-content/uploads/2022/08/GABC-Website-Image-1.png:
- Developed functional process flows and project managed the implementation of the new distribution centre, which included project governance, procurement and fit-out
- Facilitated functional and integration workshops with the suppliers. Providing solutions for integration, process, reviewing, editing and approving functional and technical specification documents
- Co-ordinated the test case writing, user acceptance testing, and writing of Standard Operating Procedures
- Managed the go-live and ramp-up of all brands
- Optimised the operations by working with the management team on reporting, improvement projects and inventory management
An automated facility was the key to achieving the volume and changing mix of retail/e-commerce, whilst ensuring headcount was maintained at a safe and efficient level.
The https://threesixtyscg.com/wp-content/uploads/2022/08/GABC-Website-Image-1.png team designed and deployed a world-first three-level automation solution. Which included an Autonomous Mobile Robot (AMR) system, a conveyor solution and a Warehouse Management System (WMS). The conveyor solution, which transports order totes from the AMR to processing stations put walls provides very efficient picking and packing for store and e-commerce orders. A fully automated carton finishing line was selected for the completion of store orders including automatic paperwork insertion and lidding. An AMR sorting solution on a platform, sorting orders to the ground level was implemented to sort parcels to over 30 different couriers.
The solution involved integrating the AMR solution, conveyor system, order processing area, an AMR sorter and the new WMS.
https://threesixtyscg.com/wp-content/uploads/2022/08/GABC-Website-Image-1.png facilitated workshops between all the suppliers and The Penshoppe Group’s operational and IT teams in Manila to ensure successful project delivery.
The Result
‘A World-class DC in Manila for The Penshoppe Group’s fashion apparel business. Also, the first automated DC of its kind in the Philippines, making The Penshoppe Group a leader in the region.’
In the middle of the implementation and fit-out phase, Covid-19 was taking hold around the world. Many countries began to close their borders and restrictions were being introduced. The physical conveyor installation could continue with local resources, but the implementation, testing and training of the systems could not.
https://threesixtyscg.com/wp-content/uploads/2022/08/GABC-Website-Image-1.png recommended a mitigation strategy to ensure the project could be delivered, as the automation and system partners based all over the world were unable to travel. https://threesixtyscg.com/wp-content/uploads/2022/08/GABC-Website-Image-1.png’s solution was to implement and deploy CCTV and body cameras throughout the site, allowing https://threesixtyscg.com/wp-content/uploads/2022/08/GABC-Website-Image-1.png and the partners to direct training, commissioning, go live and support remotely. The detailed solution design, planning and issue mitigation ensured the project fit-out, testing, training, commissioning, and optimisation were all successfully carried out.
https://threesixtyscg.com/wp-content/uploads/2022/08/GABC-Website-Image-1.png recommended a ramp-up plan to The Penshoppe Group that led to a successful implementation of each brand. No stores or customers were impacted during the transition.
Benefits
- An automated site to meet their volume for the next 10 years
- A significant drop in required headcount
- Overall commercial benefit and attractive return on investment
- Ability to manage future volumes and meet strategic growth
- Improved service levels and order turnaround – All key SLAs met
- Speed to market for both retail and e-commerce
- Improved inventory accuracy
- Improved inventory rotation
- Reduced time to stocktake
- Ability to successfully meet SLA at peak sales times
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“We’re very happy with the strong business relationship we enjoy with https://threesixtyscg.com/wp-content/uploads/2022/08/GABC-Website-Image-1.png. It’s based on a cohesive partnership anchored in mutual trust and respect, and has allowed us to transform our supply chain.”
Bernie H. Liu, Chairman and CEO, Golden ABC
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