Logistics News

Dematic and Kerrect drive efficiencies for Torpedo7

Working together, Dematic and Kerrect Logistics have developed a distribution solution for online retailer Torpedo7

January 11, 2013

Working together, Dematic and Scott Kerr of Kerrect Logistics developed a storage solution for online retailer Torpedo 7’s new Distribution Centre (DC) at Titanium Park, a commercial/industrial centre being developed around Hamilton Airport, about two hours south of Auckland.

Dematic’s Sales Manager David Penny says the challenge was to consolidate five buildings around Hamilton into the new DC, and develop a flexible, scalable logistics solution for Torpedo7’s rapidly-growing and constantly changing business.

“A key driver included making sure the system was designed in such a way that it can be easily modified and upgraded to meet changing demands,” Penny says.

The three-phase solution includes the installation of a new ColbyRACK storage system providing the capacity for more than 5000 pallets of stock, together with a custom-designed long-span shelving system providing 2000+ high level order picking locations.

A space-efficient 2000 sqm raised storage area will provide close to an additional 2000 shelf locations, with orders from the ground and mezzanine levels to be transported to the DC’s shipping area by an integrated conveyor system.

The second and third phases of the project will follow the introduction of a new warehouse management system (WMS) and will include the introduction of RF and Voice-directed picking, smart conveyor zone routing and Dematic’s PickDirector order fulfilment system.

“The first phase of the solution is due to be installed early in 2013, and will significantly enhance storage and order picking capacity in the DC,” Penny says.

Torpedo7 Co-founder and joint Managing Director, Guy Howard-Willis adds storage systems are not something you change every couple of years.

“We wanted to have a system that is designed to suit our needs and that provides a safe working environment for our people,” he says.

Torpedo7 is a New Zealand-based online retailer specialising in bikes, parts and accessories.

The business, which also runs an Australian version of its popular website has enjoyed phenomenal growth in recent years, with it successfully expanding into other areas including snow, fishing, motocross and adventure gear.

It has broadened its range with several popular one-day only specialty discount sites, and has also recently launched a new online discount store featuring popular shoe and clothing brands – Urbandaddy.co.nz and com.au.

“The careful selection of high-end branded product at believable prices has meant growth just keeps going with each category we introduce,” Howard-Willis says.

Making sure the supply chain can keep up with the growth and diversity of the business is an on-going challenge.

“To be successful in online retailing, the immediacy of the online shopping experience must be backed up by first-class customer service and the ability to deliver goods to customers within as short a timeframe as possible,” he says.

“Our growth has been nothing short of remarkable, and our fast, efficient delivery and easy returns systems have been the key.”

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