| Tue 21 Jun 2005, 10:29 | | Spar brings radio technology to distribution centr |
|
Spar brings radio technology to distribution centre
By Samantha Enslin
Durban - The Spar Group`s KwaZulu-Natal distribution centre is undergoing a R20 million expansion and is the pilot for the introduction of radio frequency technology to improve efficiency in the handling of goods.
Wayne Hook, the managing director of Spar KwaZulu Natal, said the radio frequency technology `will deliver huge efficiencies and as well as improve accuracy`.
Spar`s 34 000m2 warehouse in Phoenix, north of Durban, generates turnover of R2.8 billion a year, or just over 20 percent of Spar`s total turnover, and services 142 Spar stores, 44 Tops liquor stores and 56 Build It stores in KwaZulu-Natal, southern Swaziland and the northern Eastern Cape.
The expansion, to be completed by the end of October ahead of the Christmas rush, will increase the warehouse`s size to 40 000m2.
The additional floor space will be 14m high and Spar has bought land next to the Durban distribution centre for future expansion.
In the Western Cape, plans to build a new distribution centre have been shelved due to the difficulty in finding a serviced site of 100 000m2 so the existing Western Cape centre will be upgraded as a short-term solution.
Spar stores, which receive about 68 percent of their goods from the group`s distribution centres, rely on the distribution centres` accuracy in fulfilling orders.
Peter Hughes, Spar`s chief executive, said: `It is important to get orders right.
If a member [store owner] does not receive particular goods, it will lose out on sales. We want to build up confidence from members where they will no longer check our deliveries, which wastes the store owners` and our time.`
Glen Robinson, the divisional distribution director at Spar KwaZulu-Natal, said the Durban distribution centre, which handles 70 000 cases of goods a day, was achieving a 96 percent rate of on-time delivery.
The introduction of radio frequency has cost R4 million at the Durban centre but will not cost the equivalent to roll out at Spar`s five other centres.
All Spar stores send their orders electronically to the distribution centre`s system, which automatically generates an order for pickers to complete. Pickers wear headsets through which they receive instructions on which products to pick in which order.
The picker confirms the selection by speaking into a microphone in order to ensure it is the correct item.
Similar technology has been introduced in Spar distribution centres in Austria and will be rolled out in Scotland and Ireland.
There are 117 Spar distribution centres worldwide.
Spar, which listed on the JSE Securities Exchange in October after unbundling from Tiger Brands, released strong maiden interim results last month that showed a 12.3 percent rise in turnover to R6.6 billion for the six months to March. Headline earnings a share were up 21 percent.
Yesterday Spar rose 20c to R23.80, while the general retailers sector gained 0.55 percent.
Published on the web by Business Report on June 21, 2005.
--------------------------------------------------------------------------------
¬ Business Report 2005. All rights reserved
