Our company handles local distribution in-house, but we need assistance distributing to other regions.  Can PBB help?

Yes.  A vast majority of companies that handle their local distribution in-house require distribution in other regions of Canada through a 3PL provider.  For example, Morinda, a current PBB client, handles their distribution in-house for Ontario, however PBB services their Eastern and Western Distribution out of our Montreal and Vancouver Centers.

If we outsource our Warehousing & Distribution with PBB, what assurances will we have that our business won’t suffer due to shortages and inaccuracies?

This is one of the main concerns customers have with outsourcing their business.  Some other companies practice poor receiving and picking procedures, which are the main reason for these concerns.  At PBB, we avoid these problems by creating bar codes that are adhered to every carton when received into our warehouse.  Each carton is also scanned into the location where they are placed. When shipped out they are once again scanned, which helps eliminate shortages and picking inaccuracies.

Can PBB manage inventory by lot numbers?

Yes.  In addition to storing customer items by part number (sku) and descriptions, PBB Distribution has the ability to manage inventory by lot number. 

What is a Chep Pallet? 

Chep is a pallet exchange program that many large retailers (such as Canadian Tire) use.  These pallets are obtained from Chep Canada on a retail basis and once we ship product on these pallets, the rental title is then transferred to the customer.  The Customer would then use the same pallet to ship to other customers of theirs and the rental title would then transfer again.

What does RF mean? 

RF is Radio Frequency.  RF is highly utilized in Warehousing operations to improve order picking accuracy and efficiency. The receiving and picking of items is done through a handheld scanner that scans bar coded items vs. the traditional method of utilizing paper to receive and pick items.

Does PBB Distribute in Europe?

PBB is currently in the process of establishing a Distribution relationship with our agent, Road Air, in Holland.  Cirque Du Soleil will be our first account for European Distribution, with operations scheduled to begin in January.  Should you have any clients requiring Distribution in Europe, PBB can offer a 3PL solution for that region of the world.

Does PBB provide a WMS (Warehouse Management System)?

Yes.  PBB's virtual WMS system offers a cost effective solution to companies that do not have a Warehouse Inventory Management System. PBB's virtual module is an Internet based application, which offers clients a pay-as-you-use fee, no license fees, no installation costs, no hardware or software to update and maintain.

What are the most popular EDI formats used by PBB's retail customers?

There are three primary Supply Chain EDI formats in retail that companies like Sears and Zellers utilize.  They are EDI 850, EDI 856 and EDI 810. 

The 850 is the electronic purchase order that is transmitted from a major retail chain to a supplier or vendor when placing the order. 

The 856 is the electronic advanced shipping notification that is sent to the retailer as an alert of an order that has been completed and is being shipped. 

The 810 is the electronic invoice that is sent to the retailer after the order has been shipped.  PBB has the ability to support all three applications with the major retailers.

What is a bar code?

A bar code is a reference number on a product that a computer uses to look up associated records, which contain descriptive data and other pertinent information.

For example, the bar codes found on items in retail stores don't contain the price or description of the food item; instead the bar code has a 12 digit "product number" in it. When the item is scanned into the register at the time of purchase, the computer finds the file item associated with that item number and then references the price, vendor name, quantity on-hand, description of the item, etc.  

What is a UPC code?

UPC stands for "universal product code" which is seen on almost all retail products in North America. When PBB picks an order at the UPC level, we are actually scanning the UPC bar code on the item itself. This provides an extremely high level of accuracy in the picking process.

What is a UCC-128 Bar Code (MH10 label)?
 
This bar code label is utilized when shipping to major retail chains such as Walmart, Zellers, Sears, etc.  PBB generates this label for each order that we complete and ship to a major retailer. The bar code is placed on each carton and records the purchase order number, the store location the product is being shipped to and the contents within the carton. In general we never ship directly to a retail store but to the retailers Distribution center. When the carton arrives at the DC it is placed on an automated conveyer system, the UCC-128 bar code is scanned and the carton proceeds to the store loading area where it is then transferred to a truck that will deliver it to the store. The UCC-128 bar code is also a trigger for payment to the vendor, confirming that the order has been received.

What is Cross Docking?

Cross docking is the process used to take a finished good from the manufacturing plant and deliver it directly to the customer with little or no handling in between.  Cross docking reduces handling and storage of inventory.

Simply stated, cross-docking, means receiving goods at one door and shipping out through the other door almost immediately without putting them in storage.

Cross docking shifts the focus from "supply chain" to "demand chain".  For example stock coming into cross docking center has already been pre-allocated against a replenishment order generated by a retailer in the supply chain.

What is "just in time" (JIT) warehousing and delivery?

Purchasing used to buy periods worth of product once a period. This would also keep an additional period worth of "back-up inventory" on hand.

Why is there a need for "back up inventory"?

If demand is high, or the order was late in arriving, they might run out of product, which could stop production or miss order ship dates (a very BIG problem).  In conventional warehousing, this is prevented by building large amounts of  "back-up inventory" causing full warehouses, higher holding costs and greater chances of obsolete stock due to engineering changes or customer demand changes.  With JIT, one gets deliveries once a week (or several times a day in some industries). This results in the reduction of "back-up inventory" 

What are some additional reasons why companies should outsource to a 3PL?

Companies can increase shareholder value, reduce costs, business transformation, improve operations, overcome lack of internal capabilities, keep up with competitors, gain competitive advantage, improve capabilities, increase sales, improve service, reduce inventory, increase inventory velocity and turns, mitigate capital investment, improve cash flow, turn fixed costs into variable costs and other benefits, both tangible and intangible.

When you store my product in your warehouse are you responsible for the product if something happens?

PBB has a legal liability insurance coverage for all product stored in our Warehouses. This coverage applies to replacement cost of the product ONLY if PBB is proven negligent in the handling of the product, i.e. a PBB employee drives a forklift into a pallet and damages the contents within.

Therefore, product stored in our warehouse is not insured. PBB offers an all risk insurance policy, which is subject to a monthly insurance fee. This fee is calculated based on the value of the goods stored in the warehouse and is invoiced on a weekly basis. 

How long does PBB retain Distribution transaction records?

We now retain Stock status, shipping details and part history records in our system for a period of 3 years.  Purchase order information for inbound shipments is stored for a period of 1 year.

Does PBB have good accuracy in order picking?

Yes.  For example, in 2004, our order pick accuracy for the Cirque Du Soleil Distribution based out of Buffalo was 99.8%.  We achieved this high accuracy percentage through the use of RF, SOP's and good site Management. 

Which major retailers have EDI relationships with PBB?

PBB has EDI partnerships with the following:

Bon Marche
Carson Pirie
Eaton's
Fred Meyer
Home Depot
Kmart
Marshall's
Meijer
Nordstrom's
Parisian
Proffit's
Rona
Sears
Shopko
Shopper's Drug Mart
True Value
Walgreens's
Younkers
Zellers.

Does PBB have Key Performance Indicators (KPIs) when it comes to Distribution?

PBB currently provides KPIs to certain clients. Although this is currently being handled on a manual basis, plans are underway to automate the process.  KPIs measure our service performance.  Here are some examples of what we measure in Distribution:

Dock to stock - the amount of time between receipt of the product into the warehouse and put away into location, making the stock available for order.
Order accuracy - percentage of orders picked accurately.
On time order picks - measuring orders picked within the agreed upon contractual agreement.
On time delivery - measuring our on time delivery to customers.   
Inventory accuracy - measuring on hand product accuracy, usually through cycle counting

What is your average inventory accuracy?

PBB Distribution in Toronto just completed an annual Physical Inventory for GTI Canada.  The inventory dollar accuracy was 99.7 % accurate, which is within acceptable parameters. With added KPIs and continued improvements to standard operating procedures our goal is to achieve levels between 99.8 and 99.9 % accuracy.