Casebook 2011: Leapfrog increases orders and decreases space with new warehouse management system

New WMS allows growing company to increase productivity and cut square footage.
By Josh Bond, Associate Editor
November 18, 2010 - MMH Editorial

LeapFrog Enterprises is a leading designer, developer and marketer of technology-based learning products available in four languages at major retailers in more than 44 countries. As the company grew, a new warehouse management system (WMS) enabled a new business model that would increase productivity and visibility into inventory and order status.

The new system (HighJump, 800-328-3271, http://www.highjump.com) at the 415,000-square-foot Fontana, Calif., facility handles 140 concurrent users at peak and operates up to three shifts. There are 89 dock doors and 50 yard locations capable of shipping in excess of two million cases per month.

The company embraced a total supply chain model redevelopment and has gained efficiencies in labor and storage space. Even as orders increased by 20% from 2008 to 2009, the company’s total U.S. distribution space was reduced from 1.5 million square feet to 415,000 square feet.

“It doesn’t matter where I am in the world, I can log in and find a specific container, know how many pallets were on it, and see when it was received. And, I can follow each pallet all the way to our customers,” says Laila Anderson, senior director of LeapFrog. “Never before have I had the visibility to see this level of detail in real time.”

LeapFrog reduced chargebacks from retailers by 98% between 2005 and 2009, thanks to the inventory accuracy and excellent traceability the software provides. The number of full-time staff dedicated to inspecting paper work and claims was reduced from eight to one. Following the successes at the Fontana facility, LeapFrog has since rolled out the same software in its other DCs.

The company has directed freed resources to performing much more testing than is required by law, leading to increased product safety. Traceability and product rotation are so good that even if a product were to fail a test, the company would be able to act before the product reached the customer.



About the Author

image
Josh Bond
Associate Editor

Josh Bond is an associate editor to Modern. Josh was formerly Modern’s lift truck columnist and contributing editor, has a degree in Journalism from Keene State College and has studied business management at Franklin Pierce.


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Last week, the United States Department of Transportation took further steps to address various issues identified in recent train accidents involving crude oil and ethanol shipped by rail. The announcement was made by DOT with other DOT agencies, including the Federal Railroad Administration (FRA) and the Pipeline and Hazardous Materials Safety Administration (PHMSA).

Logistics Management Group News Editor Jeff Berman had an opportunity to interview Derek Leathers, President and Chief Operating Officer of Werner Enterprises, at this month's NASSTRAC Shippers Conference and Transportation Expo in Orlando. They discussed various aspects of the truckload market, including prices, fuel, and regulations.

During this webcast our presenters will apply the findings of the 23rd Annual Trends & Issues in Transportation and Logistics Study to the world of shipper-carrier decision making. They'll examine the primary aspects that will influence the future direction for shipper-carrier decision-making.

For February, the month for which most recent data is available, the SCI dropped to -1.0 from January’s 2.6, with FTR explaining that the short term positive impact from one-time adjustments for rapidly dropping diesel prices and the suspension of the 2013 motor carriers hours-of-service expires later this year.

Seasonally-adjusted (SA) for-hire truck tonnage in March was up 1.1 percent on the heels of a revised 2.8 percent (from 3.1 percent) February decline, with the SA index at 133.5 (2000=100). This is off 0.3 percent from the all-time high for the SA of 135.8 from January 2015 and is up 5 percent annually.

Comments

Post a comment
Commenting is not available in this channel entry.