Conceptual and functional planning on Guangdong Shantou Chuang Mei Medicine DC

Project Background

Shantou Chuang Mei Medicine Trading Co Ltd is a leading medicine retailer in Guangdong and now operating in Shantou, Chaozhou, Jieyang and Shenzhen. With the outstanding business network, talents and reputation, the company has about 20% business growth per year and recorded nearly $ 10 billion of sales in 2006. Chuang Mei Medicine Trading Co Ltd Distribution Center has to cope with the rapid development of the company and identify the constraints and bottlenecks of operation in existing storage facilities.

Project Summary

In order to fulfill the requirements to the distribution center, Chuang Mei Medicine Trading Co Ltd invited HKLTS to bring out a conceptual and functional design of distribution center through on-site investigation and consolidation of historical data analysis. In this project, the design of the distribution center has considered the storage concerns and distribution requirement of medicine. In addition, client’s business development and their expectation on distribution center, utilization ratio of land use and logistics operation as well as warehouse management have all been taken into account at the design stage.

The design considerations are summarized as below:

The layout design has considered characteristics of land and design requirement, so that the utilization ratio can be maximized.
The internal functional division setup has fully considered the storage requirement, turnover rate and handling concerns of medicine.
The design of material flow take into account of the receiving lot size, operation requirement of consolidation and distribution needs, so as to ensure the smoothness of material movement and avoid duplication in operation.
To ensure the storage capacity is able to meet the storage requirement of all products, fully utilize of space and future business development.
Besides conducting operation analysis, the design of distribution center has considered the comments from operators.
The design of distribution center is based on client prospective, so that it can meet the operation requirement while reducing their investment.