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Nuance-Watson (HK) Managing Director Alessandra Piovesana (front row, fourth from left), her team and IDS Logistics at the opening of the new warehouse |
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| With 4.8 metres maximum headroom, the new warehouse has enabled the use of mezzanines for palletised storage which has increased available buffer storage space by an additional 15,500sq ft and helped to cut operating costs |
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Two-tier storage connected with a belt has maximised space and work efficiency |
HONG KONG. Nuance-Watson (HK), the largest duty free retailer at Hong Kong International Airport, has opened a tailor-made warehouse described as “another multi-million dollar initiative to satisfy growing demand and underline its commitment at HKIA in the run-up to the next concessionary tender in 2008”.
Opened earlier this month, the 58,930sq ft warehouse offers some +20% more floor space than its predecessor. It provides a bulk storage space and acts as a backroom for its 42 HKIA stores to ensure the ready availability of a high number of skus.
The ultra-modern facility offers suppliers the advantage of truck rather than fork-lift access to its common deck when making deliveries, the company said.
Nuance-Watson (HK) aims to increase the productivity of its labour force by 10% with the new warehouse and handle an extra 3 million units of throughput annually.
Nuance-Watson (HK) Managing Director Alessandra Piovesana said: “Our new warehouse design and location provide not only a solution to the pure logistics issues but place Nuance-Watson (HK) in a position of strength to support future growth and contribute a solid logistics platform to operate in the fast-changing and competitive Hong Kong International Airport environment. Our Nuance-Watson (HK) and logistic provider teams made this move possible through their tied co-operation and determination to achieve.”
Nuance-Watson (HK) commissioned renowned logistics consultant Robert Paterson to review its distribution facilities in early 2005. The goal is the development of a free-flowing logistical system which provides greater efficiency and productivity and satisfies customers’ needs, said Nuance-Watson.
Following an assessment of space requirements using the latest stock profiles to determine optimum packing dimensions in each category, Nuance-Watson (HK) selected ATL as the home of its ultra-modern facility.
A major enhancement is a state-of-the-art racking system by Schaefer, a world leader in warehouse racking and inventory handling.
With 4.8 metres maximum headroom, the new warehouse has enabled the use of mezzanines for palletised storage which has increased available buffer storage space by an additional 15,500sq ft and help to cut operating costs.
Stock for each category is kept in the same location in a logical directional flow through the facility. This allows increased specialisation among staff and ensures added efficiency during formerly complex activities such as cycle counts by type. It also minimises potential handling, travel and traffic congestion problems.
In addition to spacious aisles, the new warehouse incorporates separate dedicated areas for major functions such as reserve and pick. The resultant enhancement of discipline has helped to significantly reduce potential errors and greatly increased the speed and efficiency with which individual stores’ stock replenishment requests are fulfilled.
By maintaining the original stock start-up percentage level of 55%, Nuance Watson aims to ensure there is plenty of room for growth within its slots, bins and in the number of skus, it added.
IDS Logistics Hong Kong, Nuance-Watson’s logistics partner, helped develop the warehouse.
Managing Director of IDS Logistics David Sneddon said: “The facility design and infrastructure will maximise operational efficiency and effectiveness, and will be instrumental in supporting the business growth of Nuance-Watson in Hong Kong. I would like to recognise and thank the efforts of the IDS Logistics and Nuance-Watson project team. Through their commitment to the project, and close collaboration, we have achieved a seamless implementation and commencement of the new operation.”
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