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Mikasa Inc., a fashion leader in china, stemware and other table accessories, realized in 1993 that its distribution network was ill-suited to a changing retail environment. As the Long Beach, Calif.-based company grew sales, particularly through an expanding network of company stores, its traditional retail customers were pushing inventory-holding requirements back up the supply chain, forcing Mikasa and other suppliers to quickly fill frequent, smaller-lot, highly customized orders.
Under these changing conditions, Mikasa's existing distribution centers in Secaucus, N.J., and Carson, Calif., became increasingly congested, creating serious bottlenecks. To support the company's growth and meet the market's quick-response requirements, a centralized, highly automated distribution center was needed - one with high-tech materials-handling capabilities and an advanced warehouse management system.
Both these elements as well as a high-bay, no-lights bulk storage configuration distinguish Mikasa's new East Coast distribution center in Charleston, S.C.
When planning began on the new facility, Mikasa operated out of six different warehouses, four in Carson and two in Secaucus. "The Carson location was facing the same logistical challenge that was being experienced back home in Secaucus: We were having to shuttle our own trucks between all those facilities to consolidate outbound orders," explained Anthony F. Santarelli, Mikasa's Secaucus-based executive vice president of operations.
"We began to see that the inventory fluctuations with our product were outpacing the available space in existing facilities, and the flow of goods was increasing exponentially with that expansion. So the need to add capacity became obvious," added Harry J. Wamboldt, director of operations.
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"We pretty much knew we wanted to be along the East Coast because most of our customers were still East Coast people and a lot of our product comes from Europe." - Anthony F. Santarelli of Mikasa | |
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"One of the complexities that most people might miss is that we are dealing with a very difficult commodity." - Anthony F. Santarelli of Mikasa | |
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"In a facility that big, it could be a quarter mile just to walk from one shipping door to the other." - Harry J. Wamboldt of Mikasa | |
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"We realized we didn't need to have a light that punches down many, many feet to light up nothing - all you need is task lighting, and we could save a chunk of electricity that is really wasted." - Anthony F. Santarelli of Mikasa | |
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