1. CASE STUDY
KIRKLAND’S

2. Revolutionary Design Theme
Benefits achieved
Kirkland’s, founded in 1966, is a leading specialty retailer of home decor in the United with new system
States. Headquartered in Jackson, Tennessee, Kirkland’s has seen an incredible growth • Increased outbound throughput
capacity
in annual sales. With a 30 percent annual growth rate, it became apparent that the
previous design of the Kirkland’s distribution center would no longer support the • Real-time allocations at receipt
of product increased
volumes demanded. So Kirkland’s turned to Intelligrated to develop a new distribution throughput
center design that would meet their demand for higher throughput for their diverse
• Cycle turnaround time from
range of product and accommodate their high growth rates. receipt to shipment was
reduced by 75 percent
Kirkland’s has over 300 stores in 37 states. The new distribution center expansion
required the flexibility and throughput capacity to support opening three to five
new stores per week. Many of Kirkland’s existing stores were also undergoing a
transformation from traditional mall stores to “life style centers,” which increased the
square footage of these retail outlets by about 25 percent. Due to the stores’ increased
square footage, it was important that the deliveries from the distribution center be
more frequent. The distribution facility needed to reduce cycle time and increase store
deliveries.
Kirkland’s growth rate and diverse product line put an incredible volume demand
on the new distribution center. “We have unique products,” said Todd Weier, Vice
President of Logistics for Kirkland’s. “Our products are of every size and shape and
many are fragile.”
Merge
The company’s stores sell a broad selection of distinctive merchandise, including
framed art, mirrors, candles, lamps, picture frames, accent rugs, garden accessories
Vertical Industry
and artificial floral products. The company’s stores also offer an extensive assortment
of holiday merchandise, along with items carried throughout the year suitable for Multi-Channel
Retail
gift giving. When a new store opens, the distribution center takes on the burden of Direct To Consumer
readiness because it is responsible for ticketing product for the store. These value-
added services are accomplished while maintaining the flow of the distribution orders
by diverting the product that required ticketing to a value-added line.
The design for Kirkland’s had to accommodate the company’s intricate product
specifications while still increasing throughput and productivity. Intelligrated
partnered with Sedlak, an independent provider of supply chain consulting services,
who evaluated the existing facility to develop the best solution for Kirkland’s new
distribution center design.
“When we thought about the increased throughput needed, we wanted to accomplish
it without increasing our shifts per day.” said Weier. The possibility of a second shift
gives Kirkland’s some cushion for continued growth, if needed in the future.
Kirkland’s is a good example of a company whose supply chain infrastructure had not IntelliSort ® Shoe Sorter
kept up with its tremendous growth rate. Although they were accomplishing their
www.intelligrated.com 2

3. through the central merge to an IntelliSort® shoe
“The partnership attitude of Intelligrated sorter which operates as the “shipping pool” sorter.
was refreshing. We accomplished a successful The product is then diverted to one of the 17 fluid load
project with our ship lane destinations. If the product is not destined
goals achieved for full truck load shipment, it is diverted to a second
while continuing IntelliSort shoe sorter which sorts to one of 22 less
our operation and than truckload (LTL) lanes. Unique store pallets are
implementing a new built for shipping in a LTL method.
WMS system.”
Todd Weier
VP of Logistics
Kirkland’s
goals, it was more difficult and took significantly more
labor than if they had the tools and system design
to match their future growth. Now, with the newly
designed distribution center and new technology,
Kirkland’s is positioned for growth well into the future.
On Time, On Budget
The Intelligrated installation team took great care not
to disrupt service to the stores while installing the new
Kirkland’s system. “The first concern is the customer,”
said Chris Arnold, Intelligrated project manager. “We
know that distribution centers are the heartbeat of
a business so we must keep production going while
enhancing their operation with the new system.”
Components Of The System
Partners In Success
The Kirkland’s distribution center is a “push” process,
and the flow of the warehouse was designed to “Speaking for the entire Sedlak team, we were pleased
eliminate touches. Product is first put in storage, then to be part of leading Kirkland’s in developing their
picked from the full case, full pallet, each picking or state-of-the-art fulfillment center. We’re confident
non-conveyable areas when an allocation is received. that the efficient, economical and flexible system
The product is then sent to one of four pick induction we designed with Intelligrated will allow Kirkland’s
lines which transports the cases to an IntelliQ® to respond to an ever-changing marketplace and
accumulation line that feeds a four to one central continue their growth.”
merge. Four transportation lines feed the central Patrick Sedlak
merge along with a value-added service line. Cartons Vice President
that require ticketing or repacking for new stores are Sedlak
sent to the value-added services area. Cartons flow
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4. About Intelligrated Intelligrated Service & Support
Intelligrated is a leading American-owned, single-point The in-house Customer Service and Support (CSS) program
provider of automated material handling solutions with offered by Intelligrated backs all of our products. Services
operations in the U.S., Canada and Mexico. Headquartered available include:
in Cincinnati, Intelligrated designs, manufactures and • IN-24x7® technical support hotline
installs complete material handling automation solutions,
• Spare parts logistics
including IntelliSort® line sortation systems, Crisplant®
• Field service
tilt-tray and cross-belt sortation systems, conveyor systems,
Alvey® palletizers and robotics, Real Time Solutions® • Equipment and system audits
order fulfillment systems, warehouse control software • Upgrades and modifications
and advanced machine controls—all supported by 24x7 • Full service and maintenance contracts
Customer Service and Support.
• Preventive maintenance
• Customer training
Serving the warehousing, distribution, consumer product
CSS is available 24x7 to provide all of the services needed
manufacturing, postal and parcel markets, Intelligrated
to keep your equipment running at peak efficiency.
collaborates closely with its clients to develop productivity
Whether it’s on-site support or troubleshooting via
solutions and responds to their needs throughout the life
our hotline, Intelligrated has the most comprehensive
of their material handling systems.
customer support program in the industry.
Service and Parts Hotline
Phone + 1 877.315.3400
Intelligrated Products www.ontimeparts.com
and Services
• Systems Integration
• Sortation Systems
• Conveyor Systems
• Palletizing Solutions
• Software & Controls
• Order Fulfillment Systems
• 24x7 Technical Support
• Design & Build Headquarters in Mason, Ohio
For more information, contact:
7901 Innovation Way, Mason, Ohio 45040 + 1 866.936.7300
info@intelligrated.com www.intelligrated.com
CSK01 1.10 © 2010 Intelligrated. All rights reserved.