| Case Study |
972-934-6755 |
Raleigh rallies to cycle challenge
With growing numbers of foreign competitors in the UK market, many using overnight carriers to meet increasing customer demands, Raleigh recognized the need to respond rapidly and radically. By using Paragon to shift distribution efficiency up a gear, it has been able to reduce the order cycle while capitalizing on the value of its experienced drivers and liveried fleet. But Paragon has contributed to top gear performance in other areas too, with related cost savings yielding a payback period of less than 12 months.
Making the move from manual to computerized planning involved the integration of Paragon with Raleigh's existing order processing and warehouse management systems to streamline the daily planning and loading of 150-200 deliveries from two DCs to over 1,000 retail outlets. With planning time dramatically reduced, orders are processed more quickly and the overall delivery cycle has been cut from three days to two. A significant customer service improvement this might be, but it is also proving to have a number of knock-on benefits. The traditional two-day pre-weekend peak is, for example, now spread across an extra day, which means less warehouse overtime and less use of costly emergency carriers.
"Paragon was the only system that could produce more efficient routes than our manual ones," says Distribution Center Manager Steve Wigley. "As a direct result of its implementation our delivery operation is now more efficient than ever before. Better truck utilization and the shorter order cycle have also led to a whole series of additional improvements. We hold a day's less stock and on average we can invoice a day earlier - both of which give us a cash flow benefit. Our planners are happier too because there is less tedious administration activity - the implementation has been a resounding success!"
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