DECKERS BRANDS
Project Brief:
This project’s primary goals were centered around expanding and optimizing the distribution capabilities of the company’s operations. The original Distribution Center, spanning 750,000 square feet, doubled in size, reaching 1.5 million square feet. This expansion aimed to consolidate four separate facilities into one centralized location, eliminating operational redundancies and streamlining overall processes. Additionally, the project addressed the challenges of a tight labor market in Southern California by incorporating automation technologies.
Project Deliverables:
This project delivered a newly expanded facility, adding 750,000 square feet of new distribution space to accommodate the growing demands of the business. A shipping prototype was designed and utilized to create a second shipping wing, effectively separating different brands and optimizing order processing. The implementation of a three-level pick module increased storage capacity, capable of holding 42,000 SKUs and processing over 50,000 lines per day. To enhance efficiency, a High-Speed Shoe Sorter was deployed, serving the dual purpose of routing cartons to the picking zone and sorting picked cartons to packing stations. Furthermore, the previously installed Automated Storage and Retrieval System (ASRS) was optimized for greater efficiency.
Benefits
Upon completion, the project was able to yield numerous benefits for the company. The facility’s storage capacity more than doubled, providing ample space to accommodate inventory growth and streamline distribution processes. The number of orders shipped per day were more than doubled, improving order fulfillment rates and customer satisfaction. With all brands held under one roof, the project promoted better collaboration and operational synergies. Additionally, the consolidation of facilities and implementation of automation technologies lead to cost savings, with lease costs reduced by more than 30% compared to prior outside facilities. Overall, the project enhanced the company’s distribution capabilities, positioning it for continued success in a highly competitive market.