Fulfillment and Warehousing
Cenveo’s ERP (Enterprise Resource Planning) system includes inventory and warehouse management software, and is able to interface with your customized online ordering tool. All warehousing transactions are real-time.
Order files are converted to sales orders within Cenveo’s ERP system and pick tickets are produced by ZIP code at the appropriate regional Distribution Center. Each Distribution Center has a pick and pack process uniquely designed to handle your volumes within a 24-hour period. Currently, our picking cycle time averages 120 minutes.
All fulfillment transactions are RF and bar code enabled, completely integrating them with materials management functions. Rush orders are processed same day. Inventory and order fulfillment systems are flexible enough to restrict orders of certain items to internal client staff only, as directed.
Each order is accompanied by a packing list and label. The packing list contains information regarding the ordering customer, materials included in the shipment, documentation of any deviations, and the toll-free telephone number of Cenveo’s customer-specific call center to use in the event the customer has a problem with the shipment.
All material movements are managed and tracked through pull methodology driven by actual consumption ensuring an uninterrupted flow of materials to marketing teams and consumers.
Cenveo can manage all matters relating to the receipt and storage of inventory, including:
- Notification of shipments received;
- Notification of receipt to compliance standards;
- Notification of any damaged goods;
- Re-packaging of boxes to meet required box weight limits
- Providing pallet and shipping specifications for vendor shipments;
- Notification of low stock or inventory at mutually-agreed-upon levels;
- Procurement /production of boxes/envelopes based on the forecast provided by customer;
- Distribution of bulk shipments, if required; and
- Notification of Returns, Reships, Destructions
Cenveo utilizes a hub and spoke distribution architecture. Distribution Centers (DCs) are located in Minneapolis, MN, Santa Fe Springs, CA, Hurlock, MD, Dallas, TX, and if needed, Mississauga, Ontario, Canada (see specs below). The replenishment hub is located in Minneapolis. Our DCs are currently sized to accommodate existing business; however, all DCs’ leases are scalable to meet customer demand.
We currently experience one to two day ground delivery to 98% of the US population with 50% of the orders arriving on the first day utilizing standard delivery.
Fulfillment Locations (DCs)
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Minneapolis, MN (HUB)
7 dock bays, 120,000 square feet of warehouse space
25,000 square feet of trailer storage space
Santa Fe Springs, CA
3 dock bays, 25,000 square feet of warehouse space
5 dock bays, 200,000 square feet of warehouse space
14,000 square feet of trailer storage
1 dock bay, 11,800 square feet of warehouse space
5000 square feet of trailer storage
Mississauga, ON, Canada (Optional)
1 dock bay, 15,000 square feet of warehouse space
5,000 square feet of trailer storage
All five distribution centers supplement with temporary labor as seasonal/business peaks require.
Third Party Supply
Cenveo will partner with other suppliers regarding receiving requirements, receiving schedules, and fulfillment requirements. This will ensure a smooth induction of material into the supply chain. Receiving procedures and our ERP system will manage all delivery schedules and enable all received materials to be available, on average, in less than one hour upon receipt. Receiving is radio frequency (RF) and bar code enabled to ensure that product is logged accurately and to facilitate timely receipt of incoming materials.
Inventory control (with big emphasis on absolute controls) procedures and employees are in place to exceed our customer’s inventory accuracy requirements. Continuous cycle counting procedures ensure the counting of the entire inventory at least twice per year and more often if requested. As an additional accuracy procedure, Cenveo’s ERP system has a feature called “zero bin check”, requiring the operator to confirm that the bin is empty. These procedures have enabled us to attain an inventory accuracy level of 99.9%. Inventory data is available through Cenveo’s web enabled operational reporting tool.
Material Flow Strategy
Our material flow begins with a request or daily direct data feed. This creates a consumption transaction driving fulfillment activity that lowers our inventory balance in the distribution center (DC). When the inventory level falls to a reorder point, material requirements planning (MRP) schedules a replenishment order from the Minneapolis hub to the DC. For some of our larger customers, we are no longer required to process “POs” due to the integrity of our system.
Cenveo also has the ability and expertise to assemble a mix of SKUs pulled from existing inventories, initial stocks of SKUs entering inventory, as well as one-time-use materials (letters, special envelopes/labels, POP, premiums, etc.). Our Assembly Services Group is a full-service provider of assemble-to-order kitted materials. Currently, our Assembly Services Group handles more than 51 million components which equates to more than 6 million finished assembled units annually.
Cenveo’s ERP system tracks all materials and requests throughout the fulfillment cycle and carries the shippers tracking number to allow tracking of the material from request to delivery. Cenveo’s closed loop technology is all driven by documents in SAP. Requests begin from the order that either assigns inventory to fulfill that request or generates orders for replenishment to fulfill that demand. All intervening documents are built from their predecessors so they can be tracked to the ultimate request.
Should the need arise, a returns processing function handles all returns within 48 hours. Returns to third-party suppliers are based on your product quality assurance guidelines. Cenveo will provide you with manufacturer’s performance reporting. Disposition of the material will be coordinated with the supplier.
Returns from the end-user will be returned to inventory or disposed of according to customer guidelines. There will be a process to expedite any new shipment involved with a return.