Warehouse turns in just 5–7 days, and full-case picking makes up 95%. $BUSYMING(01768.HK) — how lean can its supply chain run?
With 5–7 day warehouse turns and 95% full-case picking, the company's savings come from three levers: short chain, high efficiency, and minimal waste.Every link is engineered to cut costs, pushing savings to the limit.
First, the 'short-chain' model eliminates losses and fees in the middle.In the traditional snacks supply chain, goods move factory → distributor DC → store, adding steps, in-transit/warehouse shrink, and extra fees.The company runs factory → central DC → store, cutting out middlemen, reducing handling losses, and materially lowering transport costs. All stores sit within 300 km of the DC, enabling 24-hour delivery and minimizing dwell time, which further reduces inventory carrying costs.
Second, full-case picking boosts efficiency and cuts waste.Its DCs primarily serve franchised stores with standardized bulk orders; unlike e-comm that breaks cases for consumers, about 95% is full-case picking.
This way, the DC avoids time-consuming break-pack and sorting, reducing labor costs.It also prevents leftover SKUs and near-expiry stock, accelerating turns so goods sell through in 5–7 days.Capital isn't tied up in inventory, effectively lowering carrying costs.
Finally, digitization ensures every dollar is spent where it matters.A dedicated WMS auto-assigns slots by sell-through, positions hot items for easy picks, and optimizes pick paths so workers don't wander—doubling efficiency.
Route planning is also system-driven to maximize truck load factors, pushing per-item delivery costs to among the lowest in the industry.The system monitors each store's inventory in real time to avoid stockouts or overstock; with no waste from sourcing to warehousing to delivery, the company can truly save, underpinning its low-price strategy.
