World Class Logistics Report

Issue 1 The Perfect Warehouse

The Shinwa operation is unusual in every way. First, the logistics department manager, Mr. M. Dokai, who developed the warehouse concept, is a graphic designer who joined the company as a sales person. (The company's chairman is also a closet logistician.) Second, the company funds, designs and utilizes its own material handling systems and currently has more than 15 patents. The patents include:

1. collapsible roll cages for retail store delivery;
2. mobile automated receiving stations with on-board pallet height checking;
3. in-aisle cranes for automated flow rack restocking;
4. modular, interconnecting pallets-on-wheels;
5. intelligent picking carts equipped with on-board IBM mini-ThinkPads, price and shipping label printers, housekeeping devices, and scanners;
6. narrow-aisle order pickers with on-board IBM Thinkpads; and
7. automated case opening for flow rack picking.

In addition, the ancient Japanese interior design philosophy, fenshue, the integration of coordinated color and light, is used throughout the facility to make a pleasing work environment. All lifting is at or near waist level to minimize the risk of injury.

The performance of the warehouse reflects the clever design techniques used throughout. Shipping accuracy is the highest we have ever seen reported: 99.999%. Since the facility's opening in April 1996, only 3 errors occurred in over 2,000,000 lines shipped. The overall operating productivity of the facility is 53 lines per person-hour, excellent for a facility with less than $3,000,000 invested in material handling systems. The overall inventory turnover is 17.7.

For a copy of the full case study report on Shinwa's logistics center please request Publication #97012901 from Logistics Resources International.