Mercadona Logistic Center of Ciempozuelos

Thanks to its well known name or thanks to the logistics classes we all know about the size of Mercadona as one of the biggets companies in Spain.

For the ones that don’t know it yet, Mercadona is a Spanish distribution company borned in Tabernes Blanques (Comunidad Valenciana) in 1977. Mercadona already has 1626 supermarkets distributed between the 50 Spanish provinces, with a total of  79.000 workers. The total net benefit of Mercadona in 2016 was 636 million euros, what meant a new record for the company on that year.

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But let’s stop talking about numbers and interesting general data and let’s start talking about logistics, that’s what this blog page is for. If I write about Mercadona logistic structure it’s impossible for me to not talk about the logistic center of Mercadona in Ciempozuelos, Madrid.

Mercadona calls its big logistic center in Ciempozuelos as “the warehouse of the XXI century”, It is one of the most modern distribution platforms in the world, where they have achieved to automate all the processes thanks to a new software that distributes the pallets from the manufacturers to the different shops.

In our last class we had a session about warehousing where we understood the importance of the measurements as height, depth or weight in order to design a warehouse, that’s why I looked for information about these data in the warehouse of Ciempozuelos, it has four large buildings; one for dry products (45,000 square meters), one for cold products (42,000 square meters), one for packaging products (10,000 square meters) and another for services (with another 2,000 square meters, organized in vertical, in its more than 20 meters of height). The process is automatic in all the sections, except in the one in charge of the fish.

In fact, in order to make the circulation of workers through the facilities of Ciempozuelos easier, the warehouse has two walkways (of 2,000 square meters) that internally communicate all the buildings, this helps to avoid transit through the ways leading to the loading docks and unloading for trucks.

But Mercadona will not stop here, the supermarket chain is already working and investing in its new logistic center in Sangunto (Valencia), it is assumed  that after its construction this warehouse will be the biggest logistic center of Mercadona in Spain. So be prepared logistic center of Campozuelos, because as Mercadona announced you will not be the biggest warehouse of the company for the next summer, when the new center of Sagunto is supposed to be inaugurated.

Sources and more interesting info:

https://www.transporte3.com/noticia/10221/la-cetm-visita-las-instalaciones-de-mercadona-en-ciempozuelos-(madrid)

http://www.eleconomista.es/empresas-finanzas/noticias/4547920/01/13/Asi-funciona-el-corazon-logistico-de-Mercadona.html

https://www.eldiario.es/cv/Mercadona-centro-logistico-Parc-Sagunt_0_693981311.html

 

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Ford Valencia: Just in Time and Just in Sequence

As some of you may know, Ford Valencia is one of the biggest companies of this city, with 8500 workers, and it is the branch that exports more to the U.S in Europe.

It is located in Poligono Industrial Juan Carlos I (Almussafes) and most of the 100 companies located here work, almost exclusively, to Ford.

This industrial park is almost unique in Europe, because it is not just the common policy of Just in Time (JIT) that is a lean manufacturing process that helps companies keep as little inventory on hand as possible. They only order products when a need arises, and they try to get products to customers as quickly as possible without having to store lots of products in warehouses. This saves money, space, and other resources that can be put toward more worthy pursuits.

Here’s a video to explain this JIT system:

But they use a policy called Just in Sequence. This system goes further than JIT, because the resources are delivered in the exact moment that the customer need it but also in the correct order that the customer is going to use them.

Ship-to-Sequence

So, taking into account that almost all the suppliers of Ford are located in the surroundings of the company, that have developed a tunnel system. They are known as “conveyors”. The piece travels automatically from the supplier to Ford, providing them with the material in the exact possition where they need it.

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This system allows the factory to be flexible in their production, with capability to produce four different model of cars.

I think that this system is really usefull, but it also needs a really high degree of planification and it’s a bit risky, because if the suppliers should be very reliable or everything would be a disaster!

Running out of space in warehouse?

Last class was about building warehouse and calculating the space like number and size of aisle, approximate number and size of boxes and pallets, height. But what if we run of space in warehouse?  It is a sign of good business or we store wrong product at wrong place, as a result we are not utilizing maximum space of our warehouse, which is storage mismanagement.  There are high chances of storage mismanagement when a company has to replenish very often because of high inventory volume.

There are number of methods and ways that can be used to maintain space in warehouse. One of them is Cross –docking.

What is cross docking?

When a products from supplier or manufacturing plant are directly distributed to customer without handling or storing cost. It is helpful when customer get their product when they exactly want.

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When is Cross- docking used?

  • The products which need to be transported quickly like perishable goods or sensitive items.
  • There are products which are packed for specific kind of customer.
  • When there are bulky goods. For example, furniture item or kitchen appliances; this would not be good idea to store in warehouse so cross-docking is easiest and fastest way to reach customer.

Companies that implemented Cross-Docking

  • There is a big role of cross-docking in Wal-Mart’s success. The product moves quickly, there is storage space, deliveries are performed rapidly. It helps Wal-Mart to increase inventories and as there is space now, it can be utilized as a shelf for other products.
  • Tesco also implemented Cross-docking system. This help Tesco to directly load same store’s products into the trailer instead of distribution center approach.

Advantages:

  • Reduction in labor cost
  • Customer satisfaction
  • Space in warehouse for another product

Here is a video to understand what exactly cross-docking system is all about.

 

DELIKIA OUR DIALY COFFEE

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During the last lesson of Logistics, we were talking about the warehouse design and store types of equipment for example (floor storage, Conventional Racking, Drive in Drive through, live storage, mobile racking) while designing the warehouse We must take into consideration the size, and height of the warehouses. And, we talked about the Material Handling Equipment’s need it to hold the products like forklift truck, Trilateral Forklift Retractable Forklift. The main objective of design the warehouses is to improve and achieve the level of service that the company expects to deliver to their customer. Also trying to minimize the operating costs.

Yesterday we visited Delikia company in Gandia, we enjoyed our visiting. The employees there were very helpful, and they explained to us how they are doing their work and the secret of their success. Their job is offering an excellent service with the fresh and top-quality of products, they offer Snacks, Coffee, cold drinks, fresh fruits, and sandwiches are the main products they serve. The presence of a highly-qualified technical team helps in solving problems that may arise and prevents possible failure in machines which are the contact interface with clients. Their customers, when facing a problem using these machines, can easily contact them by emails, WhatsApp, website, social networks or calling them by phones.

While visiting their main headquarter in Gandia and passing through the warehouse, we have seen that they use Pallet Racking systems for storing the products such as water bottles, cold drinks, juices… etc.  Each unit loaded has its location. This makes it easy to control, besides that it’s the most widely used in pallet storage systems especially when there are not enough spaces to store the products, there are 2 doors in the warehouse the first one for move in the product and the second for move out. they use the conveyor on the shelves to make it easy for moving the products first in, first out, in addition to cold rooms for foods which need specific conditions of temperature for storage. They use refrigerated Vans to save the food while transferring them to all the machines in the areas. The material handling equipment uses to move the products from the Van to their Machines is Pallet Jack.

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Their food production factory is located in Madrid and they have a big logistics center for distribution through all Spain.Nowadays, they are establishing their new warehouse for food preparation in Gandia to make it easy to distribute for the valencian region and nearby areas.

this video will explain briefly the process of Delikia

IS XIAOMI A TRANSITORY SUCCESS?

Xiaomi Inc. is a Chinese company dedicated to the design, development and sale of smartphones, apps and other electronic products, that sells in its Mi stores in China, India, Russia and Spain, and certain countries in Asia, Europe and Latin America, as well as on its website. Since the launch of its first smartphone in August 2011, Xiaomi has gained significant market share in China and expanded its product line to other electronic devices.

In 2013, the company succeeded in making the Xiaomi Mi2S, China’s most popular mobile phone, ahead of Samsung’s Galaxy S4 and Apple’s iPhone 5, according to data from specialist consultancy Antutu? with a competitive and cheaper product than its competitors. In October of that same year, Xiaomi released its Mi3 model for sale, and its first 100,000 units took 86 seconds to sell over the Internet, according to the company’s findings.

Its competitors believe that Xiaomi’s pace of expansion so far is too fast, and it’s impossible to do business with those prices and it will be devoured by its own success. It was always difficult for European countries to acquire the firm’s devices because they were not officially distributed in most European countries. Will this statement be true?

Xiaomi has experienced rapid growth in terms of total sales throughout 2017, with 92.4 million units shipped, behind OPPO (111.8 million terminals) and Huawei (153.1 million units), Xiaomi ranked as the fifth largest manufacturer worldwide according to IDC data.

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This dynamic growth can be seen in the Spanish smartphone sales market. As we already know, a few weeks ago they opened their third store in Barcelona, and in the next few weeks they will open their fourth store in Madrid. And this would be due to the fact that 63% of Xiaomi’s product sales are produced in Spain.

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In my opinion, the Xiaomi brand has already established itself in the world market, and I only see one way to dethrone the giants Samsung and Apple. And all thanks to its more than competent prices and the quality it offers within these reduced prices.

Granier bakery chain

 

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One of my favorite bakery shop in Valencia is Garnier, when you enter the shop and smell the bread you will see the shelves fresh bread, golden and crunchy. They care about their customers and offer the highest quality and the best prices. They have a large network of franchises with which to reach all people in all places and all the time 

Granier has more than 350 bakeries all around Spain with 4 product families: bakery, pastries, coffee shop, pastry shop. The company with solid experience in the bakery and that differentiate them from the competition by not using precooked bread, their manufacturing processes its long fermentation in the bakery and its elaboration in the store. The brand is committed to constant innovation and international expansion with a presence in countries such as the United States, Portugal, London, and Italy.

They make more than 50 types of pieces of bread with traditional recipes in 3 production factories located in Catalonia, Madrid, and the Canary Islands without manual labor and with the help of large bread machines.  in addition to Euro pastry plant (which manufactures croissants and pastries), with more than 11.000 m2 of facilities and their own logistics that cater to more than 350 stores.

They prepared the bread in the factories and put them on a pallet rack in storage areas and then the Bread is distributed to shops by transport trucks to be baked there, as well as the desserts.

If you walk in the morning you will find all the shops closed except one Granier from 4 o’clock in the morning all the employees start working in this shop. And suddenly you may find a Small Van Stop in front of the shop, they carry all baked bread and dessert to the shop. they start heating and baked the bread inside the shop before they opened. they put the precooked bread in the oven one behind the other, in less than 30 minutes they finish all the baking. When everything is ready they start purchasing the bread to the customers. There are no waiters only the workers behind the counter in addition to customers service alone.

Graniershops

In the store they arrange the bread in a remarkable way on the shelves in front of the customers, to make it easy for them to choose bread they need and to see all the types. and because the desserts And Croissants are smaller in sizes they put them in shop windows, and always have offers.

In this video, you will find something interesting about Granier until minute 3: 00.

Hospital Logistics

I recently booked an appointment with a doctor in Valencia through a great website called Doctoralia. Through this website, anybody can get in touch with a specific doctor and see recommendations, details, etc. I then realized that doctors, as any other service providers, need to use marketing in order to promote themselves. This raises the question: where is the line between a client and a patient?

Hospitals, like any institutions, use marketing, finance, human resources and logistics to deliver a reliable service which helps the patients while making profit.

Through this post, we are going to see how a hospital uses logistics.

The roots of health care logistics:
The population is aging: in 1960, the persons older than 65 represented 4.974% of the world population, whereas in 2016, this number jumped to 8.482%. This means that the need for treatment has increased in the same manner. The need for more expensive treatments (for example: cancer) has increased as well. This calls for an increase in efficiency and a decrease in price in order to keep the service level required.

Solutions:
The goal is to accelerate the patient flow by assuring that they are treated in the best way possible.

  1. “Just-in-Time” logistics: this will enable to reduce the length of the treatments by providing the patients the right doctor at the right time.
  2. Use of computer systems enabled to track any patients, doctors or medicines in a hospital in order to reduce the length of the treatment which increases the life span and allows more patients to be treated. The use of technology is extremely important in this changing environment: use of RFID chips (low-cost solution for tagging equipment), fully automatic laboratory (with robotic arms for examples).

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This will be achieved by:

  • Using RTLS (Real Time Location System): about the location of equipment, personnel and patients
  • Having transparent task management across the hospital

There are 6 sectors that need to be optimized in order to achieve “Just-in-Time”:

  • Task Management
  • General Management
  • Bed Management
  • Trolley Management
  • Transport Management
  • Cleaning Management

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Applying logistics to a health care environment will be the solution to the increasing demand of expensive treatments and aging population. Some hospitals are already implementing it, such as Aalborg University Hospital in Denmark. If you want to learn more about this topic, take a look at this report: http://healthcaredenmark.dk/media/1461454/HCD-Hospital-Logistics-white-paper-v1-single-0217.pdf

Thank you for reading 😉