Tech Data Corp.

Hytrol Distributor: Hytrol of California (Azusa, CA)

Innovative D.C. Maximizes Conveyors for Top Productivity

Tech Data relies on computer-controlled conveyor system and unique order processing approach to reach new levels of throughput productivity.

Tech Data relies on computer-controlled conveyor system and unique order processing approach to reach new levels of throughput productivity.

In the market arena in which Tech Data competes, you need to be fast and responsive if you want to survive. People need their computer equipment to keep their businesses and personal applications up and running.

Tech Data is one of the world's leading distributors of computer equipment and peripherals--everything from monitors, disks, and cables to the software itself. Its customers include value-added resellers (VARs), wholesalers, and retail stores located across North America.

Tech Data operates six distribution centers in the United States-including a new state-of-the-art facility in Fontana, California. That 415,000 square-foot center is a model of high throughput and efficiency. It combines close to three miles of Hytrol conveyors, high-speed sortation equipment, and advanced controls to effortlessly process up to 5,000 orders a day during peak periods. Designed by Hytrol of California, the new distribution center emphasizes simplicity and compactness, making maximum use of existing space and allowing plenty of room for expansion.

Just as importantly for a company like Tech Data, the Fontana D.C. hit the ground running. Since its opening in April 1998, the facility has operated with an absolute minimum amount of downtime.

Accent on Responsiveness

Tech Data prides itself on fast, efficient customer service. But achieving that goal under the old distribution arrangement in the West Coast had become increasingly difficult. The company operated one warehouse in Northern California that was a mostly manual operation.

Another facility in the southern part of the state was far too small (60,000 square feet) to keep pace with the growing market demand. Tech Data supplemented these company-owned facilities with a public warehouse, also located in California.

The new distribution center has changed everything-for the better. With the 415,000 available square feet and the advanced order-flow system featuring Hytrol's EZ Logic technology and high-speed sortation units, Tech Data can handle just about any level of order demand that comes its way. In addition to serving as the primary distribution center for customers in the western part of the country, Fontana has the capability to ship orders nationwide.

Because customers don't want to wait for their computer parts and components, Tech Data's standard is to ship all orders received by 5 P.M. on that same day. The order-fulfillment process begins when the centralized customer service center at company headquarters in Clearwater, Florida, electronically transmits orders to Fontana. Pick tickets then are produced on site.

The basic order flow goes from a bulk pick area on the ground floor, to two 330 foot-long pick modules (each with three tiers), and then to the packing stations of the high-density pick mezzanine. A high-speed (QS-1) sliding-shoe sorter in the packing area sorts the orders by "trains," which consist of a directible "engine" tote with trailing cartons and totes for repacking. The totes can be directed to pass or bypass all pick areas and SKUs.

Packed cartons ascend to the takeaway lines that feed EZ-Logic accumulation lanes on the mezzanine. Barcoded cartons then are released to the QS-1 shipping sorter that sorts by carrier. The orders descend through the mezzanine and eventually move to the dock doors and into the trailers. High-speed sorters also are used to divert orders in the bulk and mezzanine areas.

Developed for high-speed applications where product diverting needs to be both positive and gentle, the QS-1 sorters are ideally suited for the Fontana installation. The computer products are transported on flight tubes, and at a predetermined location divert blocks move diagonally across the conveyor to push the order onto a takeaway line.

The three-tier pick modules are designed for efficiency and flexibility. Each can have as many as nine pick zones should order volume dictate. In addition, each module has a conveyor outlet that allows the order to go directly to the packing station as soon as it is complete.

The integrated conveyor system incorporates standard accumulation power conveyors as well as Hytrol's EZ Logic accumulating equipment. The EZ Logic feature senses product presence and controls the accumulation and release of product from zone to zone throughout the distribution center.

What really sets the Fontana facility apart from the other Tech Data distribution centers is its use of the directable totes, which have a readable reflector bar on the side. MEK readers at the sorting areas read the reflectors to accurately determine where to send the orders.

Immediate Productivity Boost

Working closely with Azusa-based Hytrol of California, Tech Data carefully designed its distribution center to accommodate both current demand and future requirements. In fact, the new D.C. is engineered to handle up to 45 cartons per minute-providing plenty of capacity for whatever throughput demand may be placed upon it in the months and years to come.

Tech Data reports that the productivity achieved through the new facility far exceeds anything possible under the old set up. "From the very beginning, the productivity gains were astronomically higher than the previous operations," confirms David Dubois, maintenance manager at Fontana. "The start-up was extremely smooth with very few problems."

The bottom line benefits tell the real story: For a high-growth company like Tech Data, the ability to service customers fast and efficiently must be a core competency. The new distribution center is helping Tech Data keep that competency on the cutting edge-and in the process positioning the company for even greater growth in the future.

Tech Data's Fontana D.C.

The order-flow process begins at the ground-floor bulk pick, moves to the two three-tier pick modules, and then on to the packing stations of the high-density pick mezzanine. A high-speed (QS-1) sliding-shoe sorter in the packing area sorts the orders by "trains." These consist of a directible "engine" tote with trailing cartons and totes for repacking. The totes can be directed to pass or bypass all pick areas and SKUs. Packed cartons ascend to the takeaway lines that feed EZLogic accumulation lanes on the mezzanine. The barcoded cartons then are released to the QS-1 shipping sorter that sorts by carrier. Orders descend through the mezzanine, eventually moving to the dock doors and into the trailers. Tech Data's standard is to ship all orders received by 5 P.M. on that same day.

Details on the operation

Company: Tech Data Corp.
Facility: Distribution Center
Location: Fontana, CA
Size: 415,000 square feet
Employees: 150
Key personnel: Joy Perkins, V.P. development & facilities; Brian Sooy, operations manager; David Dubois, maintenance manager.
Product handled: Computers, peripherals, and software
Output: 4,500-5,000 orders a day (peak season)
Total Conveyor Length: Approx. 3 miles
Systems Integrator: Hytrol Conveyor Company, Inc., Jonesboro, AR
Systems Integrator: Hytrol of California, Azusa, CA