Materials Management

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RioTinto Distribution Center
Materials Management Operational Efficiencies
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Journey to Asset Management
2004 -

2002



Essential
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Kennecott Utah Copper Past Logistics Operation
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New Logistics Operations

• Location
• South Jordan, off Old Bingham Hwy.
• Route Distances to Sites
• North 18-20 miles
• South 8-10 miles
• 70m average inventory
• 240k receipts annually
• 70 are cross docked
• Future is job consolidation

Distribution Center
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Building Statistics

• Occupies a 35 acre site
• Designed to achieve silver-level LEED
  certification
• 225,000 sq/ft of warehouse space
• 10.5 million cubic feet of volume
• Walls are concrete tilt up

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Distribution Center Operations
Rotable Spare Storage
Shipping
Receiving
Job Consolidation Area
QA/QC Hold
Office
Vendor Store Dock
Shipping
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Distribution Center Features
High Bay Racking
25 50 Ton Crane
Bulk Storage
15 Dock Doors
3 Level Mezzanine
Automated Storage/Retrieval
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Mobile Equipment
Walk-Ride Electric Pallet Jack (8,000 lbs
Capacity)
High Reach Trucks (5,000 Capacity)
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Off-line Bar-code Hand-helds

• The new Distribution Center is 225,000 sq/ft
  Computer terminals will be few and far between
  and not always accessible.
• Bar-code readers on the hand-helds can speed up
  repetitive transactions with better accuracy
  similar to the bar-code readers you see in
  supermarkets, car rental centers and FedEx
  couriers.

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Cubi-scan
Stretch Wrapping System Secures material for
Transporting

• The Cubi-scan is a device that sits in the
  receiving area.
• It will measure and weigh the incoming boxes
  prior to storage.

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Radio Frequency Identification (RFID)

• RFID technology will be used for the on site
  emergency parts stores.
• Upon exiting the portal, it will create a file
  with the RFID s and the WO that the user
  took.
• http//www.cribmaster.com/videos/accuport.wmv

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The Brains InsideWarehouse Management System
(WMS)

• Multiple Binning of Parts
• FIFO/FEFO
• Warehouse Management intelligence
• RFID self-checkout interface
• Mini-loader interface
• Bar-coding interface
• Cubi-scan interface
• Workforce Optimization
• Serial Number Tracking

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End Results

• Inventory Accuracy
• Inventory Reductions
• Security of Parts
• Moral Boost
• Better Safety
• Improved Reliability
• Positive Return on Investment

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Questions???