Action-packed delivery with Harper Entertainment Distribution Services with IBS Bookmaster software

Customer Story

Australian DVD distributor, Harper Entertainment Distribution Services successfully built a brand new distribution center in a record period of 5 months. This included implementation of a materials handling system and the IBS Bookmaster ERP software and as well as employing new staff and having them trained and ready to pick and dispatch DVDs in time for their peak season!

Company background

HarperCollinsPublishers, part of News Corporation, is one of the largest and most successful publishing groups in the world. HarperCollins Australia was founded in 1989 and in addition to publishing it also owns Harper Entertainment Distribution Services (HEDS), a 3PL distributor for client-publishers and the exclusive distributor of DVDs for a major film company.

In 2005 HarperCollins built a brand new distribution facility at Kings Park, Sydney that would just focus on home entertainment products. Previously distribution of both DVDs and books was done at Moss Vale.

The two distribution centers jointly employ anywhere between 140 permanent staff and up to 250 with casuals at peak times. Sales are around AUD 250 million yearly.

Business issues

In recent times the distribution business in Australia had experienced significant growth and this meant HarperCollins’ distribution center in Moss Vale was running out of capacity. Distribution of DVDs at a separate location would allow for HEDS to more easily handle differing requirements, i.e., new releases for books are monthly, while for DVDs can be weekly. More than this, one of the major challenges in the distribution of DVDs is the ability to provide a low-cost service offering coupled with executing a highly efficient and very lean supply chain process. DVDs have experienced incredible popularity worldwide with consumers continually driving sales albeit at lower prices.

In order to remain competitive the major film studios and their supply chain partners are always looking for opportunities to achieve cost reductions. In addition, the retailer is demanding higher quality with regards to service and order turnaround times. And while there are some similarities to book distribution the expectations to deliver DVDs very quickly to the end user is generally higher. The lead times are very, very short and the complete process from manufacture to delivery can often be measured in days.

Orders received by midday, from retailers for backlist titles, are dispatched by HEDS the same day. New releases are dispatched according to the in-store date supplied for delivery by HEDS’ clients - and new release in-store dates never change!

Book and DVD distribution is a seasonal business. With annual volumes of 30 million units, 55 per cent of all products are distributed from HEDS in the final 4 months of the year – from September to December.

Solution and capabilities

The initial project to build a brand new warehouse came with the challenge of implementing an ERP and materials handling system within 5 months. HEDS chose the IBS Bookmaster ERP software and the Dexion RDS materials handling system. As well as an intelligent conveyoring system, the warehouse utilizes a combination of pick-to-light and RF carton picking. HEDS also had to employ and train new staff on software, systems and procedures within that time period. To add pressure to an already tough assignment, HEDS required the inclusion of certain modifications to IBS Bookmaster’s integrated Warehouse Management System (WMS) to be completed before the go-live date!

One major enhancement was the interface between IBS Bookmaster and RDS which had to be 100% reliable in communicating picking instructions from the ERP to the materials handling solution.

As far as finding ways to increase efficiency, HEDS asked questions such as, ‘how do we limit the number of movements in the warehouse?’ ‘How do we maximize the amount of items that can be packed into a carton?’ These questions were the basis for further enhancements made to IBS Bookmaster’s WMS system.

One such modification assists in managing the number of inventory movements in the warehouse. This is achieved via location control or creating a subset of picking zones to give the warehouse manager increased flexibility to adapt the work flow from day-to-day. IBS Bookmaster was also enhanced with product cubing; with the system suggesting the carton size to use and informing staff which titles are to be picked into each carton. Quality Assurance is also central to efficient DVD delivery with cartons conveyed to the weigh station at the end of the picking line at which point RDS and IBS Bookmaster jointly confirm the carton weight is correct.

The IBS Bookmaster integrated WMS system also drives the warehouse in terms of where stock is located and how it should be replenished, with the ability to split one order between bulk RF carton picking and the pick-to-light system.

Benefits and value

As far as meeting the challenge of providing speedy and cost-effective distribution goals, several IBS Bookmaster features are certainly fulfilling this requirement: zone picking is allowing HEDS’ warehouse managers to optimize picking efficiency on a daily basis while cubing eliminates repacking of orders - all the while pushing orders out of the door faster. While HEDS’ pick-to-light system virtually eliminates errors, the QA enhancement allows for the DC to identify minor inaccuracies in the picking process helping to deliver ever-higher customer service levels.

Another distinct advantage that HEDS received with the implementation of its WMS system is that it is an integrated part of the IBS Bookmaster ERP solution. A tightly integrated system means that the WMS is closely linked to other areas of the system such as sales and debtors providing vital business intelligence that assists in allowing HEDS to see how they can manage their business more proactively. In addition, as there is visibility in real time of what is happening across the supply chain, the customer service team can provide a high level of response to the end customer.

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