Eircom's logistics' operations

In a market of change Central Warehouse Manager, Michael Linnie talks of the tasks on hand at Eircom’s Clondalkin location.

The telecommunications market in Ireland has undergone rapid change in recent years. Market leader, eircom, has been pro-active in streamlining its Logistics operations in order to improve efficiency and at the same time reduce operating costs. Central Warehouse Manager, Michael Linnie revealed to John Loughran some of the recent changes that have taken place.
The Central Warehouse, in Clondalkin, Dublin, is part of the logistics department of eircom. Operating from a 40,000 square foot warehouse with some 10,000 separate storage locations, the 30 strong staff supply to a network of area stock depots throughout the country.

In the last year eircom has ceased operations at 50 of these stock depots as part of a major rationalisation programme. "Our function now is to take in stores for supply to the remaining 20 depots. Products are received at the Central Warehouse from suppliers on foot of contracts placed by our procurement department and are then distributed to the stock depots countrywide. In addition to the area stock depots we also supply to 19 retail outlets (eircom Shops) throughout the country.

The area stock depots also hold stock that is on direct delivery from the suppliers such as cable and man hole covers. Traditionally these items were delivered to the central warehouse. "At one time we held all the heavy stock here and delivered it to the area stock depots. It is more cost effective to have these delivered directly to the depots. Eircom use a mix of "in house" and sub-contracted transport to distribute to the area stock depots. In the old "Telecom days" the warehouse had a fleet of trucks and a pool of 20 drivers to carry out its distribution.

However rationalisation has also affected the fleet. "We did have our own fleet of artic trucks and box body trucks here and a pool of drivers at one time. We still have three trucks here that we mix with the couriers," he added.

Michael continued: "we have a contract with Securispeed. They deliver to the area stock depots each week. Each depot has a dedicated day for delivery and they deliver to four or five depots each day. We use them for delivery to the retail outlets also. Again there is a scheduled delivery."

At present technicians in the field receive their stores requirement from their nearest area stock depot. Michael outlined future plans to change this method of operation. "It would be our plan in partnership to supply direct from Central Warehouse to the technicians, either to his locker, worksite or a pick up point.

The technicians according to Michael would deal directly with the central warehouse. "It is envisaged that the technician will order direct from us here. We would make up the order for delivery overnight. The technician would still carry a stock in his van and replenish it from Central Warehouse. Down the road the technician will probably have a hand held terminal and key in directly to the mainframe computer system. In the meantime we are setting up a service desk here in Clondalkin, where orders can come in by fax or by phone."

Last November, the company introduced a new process for delivering telephones direct to customers. Michael explained "a customer now has the choice of having the phone posted or collected from one of the 130 agent shops around the country."
It is envisaged that the changes resulting from the rationalisation programme will produce significant savings on storage and distribution costs.

Times are certainly changing at the former semi-state company. Competition breeds leaner, meaner and fitter companies. eircom Logistics, it appears, have undergone an intensive training programme and are now fighting fit.