Logistics Distribution Solution of Changchun Tobacco Logistics Center

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The Cigarette Commercial Distribution Center purchases cigarettes for cigarette industrial enterprises across the country, and sells cigarettes to retail merchants who hold cigarette sales licenses within the administrative divisions. They are purchased in units of pieces and delivered out of warehouses in units of strips. This is a very typical circulation. Processing distribution center. In the face of the current domestic cigarette distribution trend of multiple specifications, small batches, and a sharp increase in the types and quantities of cigarettes distributed, and the number of operators, the traditional low-efficiency and error-prone manual sorting method can no longer meet the needs of the market. Therefore, cigarette distribution centers in various places have adopted advanced information management systems and logistics equipment to replace traditional logistics operation models with brand-new operating procedures, greatly improving operating efficiency and customer service levels. In this process, there are not only international leading cigarette logistics centers built with foreign first-class systems and equipment, but also a large number of regional cigarette logistics centers built on the principles of practicality, applicability and adequate use. The logistics center of Changchun Branch of Jilin Tobacco Company (hereinafter referred to as “Changchun Tobacco”) is a typical example of the latter.

The basic situation of the logistics center

Changchun Tobacco has 5 district-level tobacco monopoly bureaus (marketing department) under Nanguan, Kuancheng, Chaoyang, Erdao, and Lvyuan, and 5 county-level tobacco monopoly bureaus (marketing department) in Nong’an, Yushu, Jiutai, Dehui and Shuangyang ). The Changchun Tobacco Logistics Center has to meet the needs of 2,000 customers every day on average, and complete the sorting and distribution volume of 1,500 cigarettes. Since Changchun has a rural population of more than 4 million among the 7.24 million people in Changchun, the structure of the cigarette market in Changchun is low. In this case, Changchun Tobacco realizes that the construction of logistics center cannot blindly pursue advanced nature. Only by choosing a logistics system that suits its own reality can it reduce logistics costs while meeting customer needs.

Changchun Tobacco Logistics Center is mainly composed of three parts: automatic cigarette deposit and withdrawal system and equipment, cigarette sorting system and equipment, and management information system. The storage of cigarettes adopts a three-dimensional warehouse system, and the storage capacity of finished cigarettes is 5000 boxes. The daily sorting volume of cigarettes is more than 10,000 boxes. Two sets of A-shaped automatic sorting lines (also known as “A-frames”) are used, and there are about 70 sorting workers in two shifts. Orders from retail customers are accepted every morning, processed by the information system, and the sorting operation starts at 2 o’clock in the afternoon, and then the truck is loaded according to the delivery route, and delivered to the home early the next morning. Relying on the management information system, the information center completes information collection, telephone ordering, order information processing, and sorting list generation at cigarette sales points in Changchun (outside counties).

Overview of Logistics Center

Inventory: The standard inventory is 5,000 boxes (25,000 pieces); it is carried on pallets, 20 pieces per pallet.
Storage: 400 pieces/car, 20 minutes/car.
Types of cigarettes: about 140 kinds, and about 100 kinds of cigarettes are delivered every day.
Order processing volume: 2000 users/day, daily delivery flow 1500 pieces/day.
Delivery: 30 self-owned delivery vehicles, 15 Iveco and Jinbei vehicles each, 3-6 vehicles are shipped at the same time.
Working time: 3 hours for delivery (morning shift, 8:00-11:00), and 6 hours for sorting (night shift, 14:00-20:00).

Planning and design of logistics center

Scientific and professional planning and design is the key to ensuring the efficient operation of the logistics center. The design principles of Changchun Tobacco Logistics Center are as follows:

1. Classify orders according to 30 delivery routes (corresponding to 30 delivery vehicles). A delivery task of 2,000 orders is completed every day, and an average of 67 orders are completed for each route.

2. There are two groups of A-shaped automatic sorting systems in the sorting operation area. Each sorting line handles its own orders on the left and right sides, and the two lines can process 4 orders at the same time. The shipping lines are classified according to 4 sorting lines, and 30 distribution lines are set. On average, each sorting line corresponds to 7.5 shipping direction lines, that is, 502 orders.

3. During the sorting operation, each group sorting system sorts one by one according to the order order of the corresponding line, and at the same time can ensure the order of stacking and delivery of the sorting cigarette boxes, so that 4 sorting lines can be sorted at the same time 4 Orders for shipping lines.

4. Under normal circumstances, from the afternoon to the evening of the first day, make preparations for sorting and stocking for the early shipment of the next day.

In the entire logistics system, the design of the sorting system is particularly critical. The work to be completed in the sorting operation area includes: cigarette replenishment of gravity shelves, cigarette replenishment of A-shaped automatic sorter, automatic cigarette sorting, special cigarette sorting and other processes. The sorting operation area mainly contains two relatively independent A-shaped automatic sorting lines, which can sort 4 orders at the same time.

First, plan the A-shaped automatic sorting line. According to the actual business data of Changchun Tobacco, among all about 140 cigarette varieties, the two varieties with the largest shipment volume (Class A, an average of 7 pieces/single) and the next-largest three varieties (Class B, 1 piece/single) are excluded. Except for orders), the sorting volume corresponding to other varieties is much lower than 1 order/order (including C and D). Therefore, set the number of sorting flues occupied by each category of A/B/C/D cigarettes to 6/2/1/1 respectively. The number of varieties sorted every day is about 100, so the total number of flues for the A-shaped automatic sorting line needs to be 6×2+2×3+1×82=100. The A-shaped automatic sorting line consists of two sorting lines on the left and right. There are 20 flues on both sides of each sorter, and the entire sorting line has a total of 200 flues.

Then consider the planning of gravity shelves. In order to facilitate replenishment and take into account the rational and effective use of gravity shelves, the cigarettes sorted every day are handled in two types. One type is cigarettes that are basically needed every day (including A/B/C types), about 100 varieties, this type of cigarettes are replenished from gravity shelves (upper cigarettes); the other type is sorted within a few days One cigarette (Category D) is about 60 varieties. This type of cigarettes are replenished from the shelf-type shelves on the north and south sides of the wall, and 20 of them are sorted on the same day. Corresponding to the A-shaped automatic sorting line, the gravity rack corresponds to each A/B/C flue and requires 1 replenishment compartment. Gravity racks have 3 layers, each row requires (140-40)/3=33 rows, and the actual number of rows per row is 36 rows.

Continuously optimize the logistics system

When it was first completed, the main operating procedures of the Changchun Tobacco Logistics Center were as follows:

1. Warehousing process
In the warehousing operation area, workers remove the cigarette boxes from the delivery truck and place them on the pallet. The entire pallet of cigarettes is sent to the three-dimensional warehouse by the stacker for storage. The empty pallet group used in the warehousing operation is notified by the information system of the stacker to be transferred from the three-dimensional warehouse to the outbound platform on the first floor, and then the worker’s trolley forks it to the warehousing operation area for warehousing Required for loading.

2. Sorting process
 After the cigarettes are put on the A-shaped sorter, they are automatically distributed to the conveyor belt through the sorting procedure, and then automatically marked by the laser marking machine.

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Cigarettes pass through the counting machine (separated according to customer needs), and the sorter will put them into the turnover box according to the “sorting detailed list” provided by the sorting program control room, and paste the box number on the box, and then load it to each terminal retailer. . When delivering the goods, the delivery personnel must go to the sorting program control room to receive the detailed sorting sheet, and according to the sorting detailed sheet and the corresponding box number, the cigarettes will be distributed to the retailer.

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However, after a period of operation, Changchun Tobacco found that the above-mentioned operation process is prone to the following problems:

——The sorting workload is large: due to the single box packing, in the three-shift work mode, night shift workers often have to work until two or three late at night.

——High error rate of loading cigarettes: Because it is all manual operation, the phenomenon of “smoke stringing” often occurs.

——Low degree of informatization: due to the packing according to the sorting detailed list provided by the sorting program control room, real-time information management for each cigarette retailer cannot be realized. Information cannot be updated in real time, and it is very difficult to check errors.

——Poor image of outer packaging: Because it is a single cigarette directly delivered to the customer, there is no outer packaging, which gives the cigarette retailer a poor image.

——High delivery error rate: As the delivery needs to correspond to the box number, the probability of human error is greatly increased.

In October 2006, in order to solve the problems existing in the cigarette sorting operation and better serve the majority of cigarette retailers, Changchun Tobacco decided to adjust the existing process. After the introduction of a laminated automatic film-sealing heat shrink packaging machine and a high-speed label printer, which are respectively used for automatically sorted cigarette packaging and outer packaging for labeling, the new sorting and distribution operation process is as follows:

 The cigarettes that are automatically sorted and marked by the A-frame are passed through the counting machine (isolated according to customer needs), and then enter the laminated automatic film-sealing heat-shrink packaging machine for packaging.

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 The packaged cigarettes are checked by the sorter and the sorting information displayed by the computer, and the outer packaging label (including the retailer information and the required cigarette information) is pasted after the accuracy is correct, and then put into the turnover box ( Figure 4-5).

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The delivery personnel distribute the cigarettes to the end customers according to the label information on the packaging (Figure 6).

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In this process optimization process, based on the characteristics of on-site applications, Changchun Tobacco Logistics Center’s selection criteria for label printers are mainly: the quality and durability of the equipment, the convenience of printing operation of the equipment, the brand and popularity of the equipment, the cost-effectiveness of the equipment and Upgradeability, environmental requirements of the equipment. In the end, Changchun Tobacco Logistics Center chose the Zebra Z4Mplus industrial and commercial barcode printer, which has a good reputation in the market. The printer’s processing speed is 254 millimeters per second, and the output of labels is fast and efficient. It can increase output and reduce waiting time in high-demand tasks such as variable information applications.

Features of Zebra Z4Mplus printer:

 Excellent price/performance ratio
 4 or 6 inches print width
 203 or 300 dpi
 Aluminum extrusion printing head mechanism
 10 dpi printing speed
 Intuitive operation interface and convenient replacement of consumables
 Zebra Link solution
 Standard LCD control panel

Application effect

After adopting the new workflow, all parties responded well. The economic and social benefits of Changchun Tobacco Logistics Center have also increased significantly.

First, the efficiency of logistics operations has been greatly improved, and the distribution error rate has been greatly reduced. The sorting capacity of the system has been increased from 3,000 cigarettes per hour on each sorting line to the current 5,000 cigarettes. The working time of workers per shift is reduced by about 1.5-2 hours, and overtime is basically eliminated. Sorter’s response: The new work procedure is simple and clear. The “one household, one screen” message on the sorting screen replaces the “sorting detailed list”, which significantly reduces the errors that occurred in the previous comparison process and greatly improves work efficiency. , It reduces the phenomenon of excessive smoke, less smoke, and smoke caused by the mistakes in the packing operation of the manual cigarette lighter. The carrier’s response: The label on the outer packaging replaced the “sorting detailed list” and box number, and delivered to the house according to the label, which simplifies the process and prevents the occurrence of smoking.

Secondly, the management of the cigarette distribution process is more standardized and efficient. Due to the standard labeling, timely information feedback, and real-time updates of the system, it is convenient for the logistics center to monitor all aspects of the distribution.

More importantly, customer satisfaction has skyrocketed. When the retailer received the cigarettes wrapped in heat-shrinkable film, they said: “This kind of film packaging is not only moisture-proof, anti-drop, and light, it allows us to clearly distinguish the brand, quantity and packaging of the cigarettes sent, and the inspection is even better. Convenient and fast; and it is more conducive to the preservation of cigarettes than before. It not only saves space, but also prevents moisture and smells, which brings great convenience to the operation. At the same time, due to the high technical content of heat shrinkable film packaging, it is not easy for illegal cigarette dealers. Imitation can play a positive role in identifying counterfeit cigarettes for cigarette merchants. In addition, the customer name, number, address and other information marked on the outer packaging film are clear and clear, and the phenomenon of delivery personnel sending cigarettes to the wrong customer has been significantly reduced, which has improved the daily operating efficiency of retailers.

The Changchun Tobacco Logistics Center, which has achieved remarkable results, will continue to improve and optimize the logistics system as its future goal. It is reported that in the next step, Changchun Tobacco Logistics Center plans to add barcode printing on the outer packaging labels to further refine management and improve logistics efficiency.

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