Georgia Tech January 27 2005 Our Mission is

“Our Mission is to be the Reseller’s Preferred Source of Business Products and Services

S. P. Richards Sales Results u 2004 $1, 543, 943, 000 + 6. 0%

S. P. Richards History u u Established in 1848 Over 150 years of experience

GPC Overview Sales Results 2000 – 2003 u u 2003 2. 3% $8, 449,

GPC Overview u Automotive Parts Group ( NAPA ) u Industrial Parts Group (

GPC Overview u NAPA - Automotive Parts Group u Motion Industries - Industrial Parts

Office Products Supply Chain VENDOR WHOLESALER DEALER END USER

S. P. Richards Competitive Overview u National wholesaler - United Stationers u Regional wholesalers

How Our Customers Compete u u u Mega Dealers ( Office Depot, Corporate Express

How Our Customers Use Us u u u Items Mega Dealers don’t buy direct

How Our Customers Use Us u u u ‘First Call’ business relationships u No

S. P. Richards Strengths u u u 36 full stocking Distribution Centers 2 Furniture

S. P. Richards Logistics Challenges u Rapid Delivery u Orders received today are shipped

S. P. Richards Logistics Challenges u Rapid Delivery - Examples: u Corporate Express -

S. P. Richards Logistics Challenges u Rapid Delivery u No pre-planning of orders “Real-time”

S. P. Richards Philadelphia DC u u u 8, 000 -9, 000 lines per

S. P. Richards Philadelphia DC u B and C Zone Analysis u B intended

S. P. Richards Philadelphia DC u B and C Zone Analysis u Picking in

S. P. Richards Philadelphia DC u B and C Zone Analysis u Increase pick

S. P. Richards Philadelphia DC u B and C Zone Analysis u Boxes vs.

S. P. Richards Philadelphia DC u Challenges/Questions for B and C Zones u Propose

S. P. Richards Philadelphia DC u F and W Analysis u Pallet Racking u

S. P. Richards Philadelphia DC u F and W Analysis u Items exist in

S. P. Richards Philadelphia DC u Challenges/Questions for F and W zones u Determine

S. P. Richards Philadelphia DC u Available Data u Order Data u u Order

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Georgia Tech January 27, 2005

“Our Mission is to be the Reseller’s Preferred Source of Business Products and Services through Leadership in Operational Excellence, Customer Support, and Integrity”

S. P. Richards Sales Results u 2004 $1, 543, 943, 000 + 6. 0% u 2003 $1, 457, 149, 000 + 4. 3% u 2002 $1, 396, 453, 000 + 1. 2% u 2001 $1, 379, 882, 000 + 2. 5% u 2000 $1, 346, 844, 000 +10. 5%

S. P. Richards History u u Established in 1848 Over 150 years of experience in the Office Products Industry Oldest continuously operating business in Atlanta, Georgia Purchased by Genuine Parts Company in 1975

GPC Overview Sales Results 2000 – 2003 u u 2003 2. 3% $8, 449, 300, 000 + 2002 0. 5% $8, 258, 927, 000 + 2001 1. 8% $8, 220, 668, 000 - 2000 $8, 369, 857, 000 + 5. 3%

GPC Overview u Automotive Parts Group ( NAPA ) u Industrial Parts Group ( Motion Industries ) u Office Products Group ( S. P. Richards Co. ) u Electrical/Electronic Materials Group ( EIS ) u Common to all divisions is expertise in warehousing and distribution 2003

GPC Overview u NAPA - Automotive Parts Group u Motion Industries - Industrial Parts Group u S. P. Richards - Office Products Group u EIS - Electrical/Electronic Materials Group 2003 Operating Profit

Office Products Supply Chain VENDOR WHOLESALER DEALER END USER

S. P. Richards Competitive Overview u National wholesaler - United Stationers u Regional wholesalers u Computer supplies wholesalers u Furniture wholesalers

How Our Customers Compete u u u Mega Dealers ( Office Depot, Corporate Express ) u National scope ( National contracts ) u Next day delivery u Purchasing control u Low price Independent Reseller u High service u Next day ( or same day ) delivery Internet Reseller u Ease of ordering u Quick delivery

How Our Customers Use Us u u u Items Mega Dealers don’t buy direct u Retail versus Commercial business Items Independent Resellers don’t stock u The smaller the Reseller the fewer items they stock Total Fulfillment services to Internet Resellers

How Our Customers Use Us u u u ‘First Call’ business relationships u No such thing as a backorder u Missed order is lost business Most orders are for pre-sold merchandise Wrap & Label u Consumer packaging To: End User u From: Office Depot u u Approximately 75% of our orders

- Atlanta - Charlotte

S. P. Richards Strengths u u u 36 full stocking Distribution Centers 2 Furniture DC’s 3 Horizon USA ( Data Supplies ) DC’s 4 Canadian Distribution Centers Broad inventory offering u 24, 000 catalogued items featured at every DC. u Over 30, 000 total items in inventory Best service u Fastest delivery u Highest service levels u Fewest errors

S. P. Richards Logistics Challenges u Rapid Delivery u Orders received today are shipped today u Unattended; key access u All customers have merchandise at the start of the next business day u Requires reduced cycle times for S. P. Richards

S. P. Richards Logistics Challenges u Rapid Delivery - Examples: u Corporate Express - Whippany, NJ Shipped from: Moorestown, NJ u Order cutoff: 6: 30 PM u Truck departs: 7: 00 PM u Delivery: 8: 00 PM u u Staples - Ontario, CA Shipped from: Mira Loma, CA u Order cutoff: 5: 00 PM u Truck departs: 5: 45 PM u Delivery: 6: 00 PM u

S. P. Richards Logistics Challenges u Rapid Delivery u No pre-planning of orders “Real-time” u Constantly adjusting u u Difficult to plan quantity and timing of labor u Statistically based Tuesday, Wednesday, Thursday are heaviest shipping days u Managing overtime a challenge u Adjust and stagger starting times as appropriate u Many facilities use part time labor u

S. P. Richards Philadelphia DC u u u 8, 000 -9, 000 lines per day Three kinds of pick zones u 18 inch shelving – B and C zones u 30 inch shelving – A and B zones u Pallet Racking – F and W zones Active – Each Pick Reserve – Overstock Focus on B, C, F and W zones

Virtual Tour - Philadelphia

S. P. Richards Philadelphia DC u B and C Zone Analysis u B intended to be a quick pick area u B a combination of both 18 and 30 inch shelving u C zone for slower moving items u Re-vamp just before going live on Pk. MS u B zone has top shelf reserve u Overstock for items in C zone is in R zone, another section of shelving

S. P. Richards Philadelphia DC u B and C Zone Analysis u Picking in batches u Batches built by WMS System u Pick Truck volume defined in Pk. MS u User Defined groups B & C zone cartons u B Only u C Only u Pk. MS orders each group by first pick location u Creates pick trucks, assigns pick u

Virtual Tour - Philadelphia

S. P. Richards Philadelphia DC u B and C Zone Analysis u Increase pick truck size u Separate B and C zones u Move high movers from C to B u Some improvement, but not significant

S. P. Richards Philadelphia DC u B and C Zone Analysis u Boxes vs. Totes Currently pick directly into boxes u Option of picking to totes u More picks will fit onto the pick cart u Double Handling u u Separate one line and multi-line cartons? Highly efficient pulling for one liners u Potentially visit the same location twice u

S. P. Richards Philadelphia DC u Challenges/Questions for B and C Zones u Propose new slotting for B and C zones, maintain vendor lines together in C zone u Stockers do putaway by vendor Determine the amount of product to put in the active location for each item u Recommend whether to pick to totes or boxes u Recommend whether or not to u

S. P. Richards Philadelphia DC u F and W Analysis u Pallet Racking u Primarily reserve, some active in F zone u Two types of reserve locations u Case Reserve u u Pallet Reserve u u Cases removed from pallets when stocking and stacked on shelves Entire single sku pallets are stocked Pk. MS directs pickers to pull full cases from either of these reserve

Virtual Tour - Philadelphia

S. P. Richards Philadelphia DC u F and W Analysis u Items exist in B zone with overstock in W u Replenishment would be significantly faster if B overstock was in F zone u Not properly slotted u F and W zones can run out of work before B and C zones

S. P. Richards Philadelphia DC u Challenges/Questions for F and W zones u Determine the best slotting of the items in F and W given current layout Some locations may be forced to be case or pallet locations u How much will it improve picking if the changes are made? u Suggest changes to location sizes/beam height that may change the slotting and improve productivity u Provide a tool that can be used to u

S. P. Richards Philadelphia DC u Available Data u Order Data u u Order lines and quantities Item Data (not complete) Length, Width, Height of each and case u Number of eaches in a case u Pick Truck Sizes u Standard Box Sizes u

Virtual Tour - Philadelphia

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