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Boots

BOOTS the chemists

 CaseStudy-Boots.pdf

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THE CLIENT

The Boots Company PLC with its headquarters in Nottingham, UK, is one of Britain’s most traditional retail chains. The company, which was founded back in 1849, offers products and advice in all matters of health and beauty. Services include beauty treatments, fitting of eye glasses and hearing aids as well as the sale of pharmaceutical goods. The company employs 80,000 people worldwide, with around 55,000 working at branches in Britain. The annual turnover of the chain including internet sales, amounts to over £ 5,330 million.

The sale of pharmaceuticals and cosmetics is a central area of growth, covered by Boots the Chemist. With around 1,400 branches and more than 63,000 employees, BTC is Britain’s leading supplier in this sector. Every shop has its own dispensing chemist offering pharmaceutical products. Providing each of the branches with some 4,000 different prescription medicines both quickly and reliably is a particularly challenging task. In order to cement their position as market leader and to expand even further, Boots took the decision to install a new picking and distribution centre in Nottingham – a central facility based on the very latest technology. The investment costs for the project amounted to approximately 14 millions Euro.

THE ASSIGNMENT

As it is the case for many enterprises, Boots also considers the satisfaction of its consumers its highest priority. For this reason the various branches must be in a position to supply all the required medicines, and these in the highest quality. The stores therefore rely on the prompt delivery of orders, and expect the goods to arrive in the correct quantities as well as being in perfect condition. If a Boots branch submits its order by 6pm, the products are guaranteed to be delivered before the start of business the next day. A decisive aspect in establishing a smooth distribution service is the precise coordination and processing at the central warehouse.

In constructing the new “D80 warehouse” in Nottingham, the assignment aimed to establish a single centre, consolidating a supply system which previously involved 2 central warehouses and 16 further regional distribution points. The warehouse should have the capacity to pick and prepare for shipping more than 2 million products per week.

The demands posed by this project were considerable as it involves a wide assortment of sensitive products with a particularly high turnover rate. Reliable picking (99.97% accuracy) and delivery are of utmost importance.

THE SOLUTION

For Boots both quality and reliability were important considerations in the implementation of the project as well as the need for an innovative, all-in-one solution. A convincing concept evolved from KNAPP’s superior know-how, and from this a complete solution was developed. Over an area of 7,000 m2 an effective and reliable logistics system was installed, incorporating all the required functionalities and fulfilling perfectly the demands presented by this line of business. Using cutting-edge control and conveying systems along with KNAPP hardware and software a tailor-made, functional distribution centre was brought to life, equipped to make light work of all future tasks.

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