Mecca Brands Case Study

MECCA Brands brings you the best in global beauty across three unique beauty concepts: Mecca Cosmetica, Mecca Maxima, and MECCA. Together, they offer an exclusive edit of over 100 brands, exceptional service, and beauty expertise, each within a unique store environment tailored to how you choose to shop beauty. Products are distributed across Australia and New Zealand through 60 MECCA Cosmetica, MECCA Maxima and Kit Cosmetics stores, and website orders.

Brief
Due to rapid business expansion and substantial growth in online orders, MECCA Brands existing warehouse facility was literally bursting at the seams. They were challenged to improve stock inaccuracy, throughput constraints, cramped conditions and overall poor performance of the current fulfilment system; all typical logistical issues experienced by growing retailers.

Bowen Storage was charged with the creation of an efficient storage solution for a new warehouse location, which would improve inventory accuracy, order fulfilment and stock rotation.

Solution
Bowen Storage custom designed and installed a modular storage system for MECCA Brands new online warehouse facility, using the Metalsistem Sigma shelving system.

After conducting an extensive on-site review, Bowen Storage installed a trial version of the Sigma system at MECCA Brand’s existing warehouse. Bowen then worked closely with supply chain consultants to design and fit out the new warehouse – utilising the benefits of the Sigma shelving system.

Over 500 bays of shelving, 25 bays of Carton Live Storage, and 100 bays of pallet racking were installed at the new warehouse location to meet the current and predicted short-term fulfilment demands.

To improve inventory accuracy, every product line or SKU was allocated its own individual storage location. Every storage level was then designated by colour and number for faster identification and order fulfilment.

Results
The outcome:

Daily order fulfilment rate increased by 25% as a direct result of the overall inventory storage and despatch solution
Inventory accuracy increased from 80% to 95% due to individual storage locations for each SKU combined with a new RF Warehouse Management System
Inventory rotation improved by up to 100% with the use of carton live storage for fast moving stock
Product security and safety increased as bulk stock is now securely held in pallet racking, allowing forklift access to all pallet locations in an orderly and timely manner
Staff productivity and morale improved through clarity of designated inventory zones and implementation of time efficient picking routes
Despatch capacity increased by 60% with the provision of eight fully equipped workstations

Mecca Brands store expansion program has been able to continue with six new MECCA retail stores opened since implementation, aided by the increased fulfilment capability of the new warehouse.

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