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RETAIL SUPPLY CHAIN

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PHOTOS: ISTOCKPHOTO, GETTY/GALLO IMAGES ILLUSTRATION: HYLTON WARBURTON
Above left: At its Prestige Clothing factories in the Western Cape, TFG can take garments from concept to production in just two to four weeks. Above
right: The Foschini Group, which has @Home as one of its key brands, has been able to halve its shipping costs through improved supply chain strategies

STOCK PICKING us to put thousands of SKUs [stock recruitment consultancy Abrie de
keeping units] into a very small space. Swardt & Associates, noted that a
A challenge common to all retailers is It occupies only 3 000m2 but contains shortage of sufficient talent was
to clear stock from the DC as swiftly a third of our SKUs.” restricting growth.
and accurately as possible. Approaches
to stock picking (the process of ? While hard working, suitably
collecting ordered goods within a These machines have qualified and technically skilled people
warehouse for shipment to a particular doubled productivity were available, what was lacking were
store) vary widely. skills for ‘smart growth’ – such as
Clicks Group’s pharmaceutical maturity and agility. The former
One approach which has a wide distribution arm, UPD, in an effort to requires the ability to operate
adoption internationally is voice-directed achieve greater efficiency in a low-margin effectively at the appropriate level of
picking. “We were the first to introduce sector, has embraced automation. complexity, ambiguity and scale. The
voice-directed picking into South Africa,” UPD has put two German-built Knapp latter is the ability to operate at the
says Curry. “It has enabled us to achieve automated stock picking and retrieval appropriate level of disruption, speed,
significant increases in productivity units into service at its Johannesburg DC and volatility.
and accuracy. Prior to voice-direction, at a 2013 cost of R34-million each.
[human] stock pickers were given orders Strategic Marketing
on slips of paper.” “The machines have doubled Magazine
productivity in the DC and greatly
Spar Group has gone further in improved picking accuracy,” says @strategicmarketing-
eliminating human error through the Vikesh Ramsunder, Chief Operating magazine
introduction of automated picking of Officer of the Clicks stores division.
smaller items at its Boksburg DC. “The Stafford Thomas has
system also identifies what stock is in SKILLS REQUIREMENT worked as an editor of
need of replenishment,” says Curry. In their quest to optimise supply chains, numerous specialist
“It prevents costly stock outs (when a retailers face a challenge common to business publications
product is out of stock).” many South African industries: a lack of in the UK and is a
certain key skills. regular contributor
Pick n Pay has not gone the voice- to the Financial Mail
directed picking route. “I do not believe At the recent regional conferences business magazine
there is a wrong or a right on the issue,” for supply chain professionals run and Business Day newspaper.
observes Barnard. by industry body SAPICS, Abrie de
Swardt, Managing Director of specialist
Where Pick n Pay is breaking ground
in South Africa, however, is in the use
of a picking cage in its 41 000m2 Cape
Town DC. “It is literally a cage six floors
high,” explains Barnard. “It enables

12 strategicmarketing October 2016 – January 2017