The Navy Exchange Service Command hosted Vice Adm. Dixon Smith, Deputy Chief of Naval Operations, Fleet Readiness and Logistics, at their Northeast Distribution Center in Suffolk, Va., on Sept. 28.

The discussion throughout the afternoon touched on NEXCOM’s Warehouse Management System and auditing capabilities. WMS, a component of an integrated Enterprise Resources Planning system, is utilized to track and optimize inventory levels by location within a facility, to maintain inventory integrity on a consistent basis and to drive efficiency.

“This has been an extremely informative tour of NEXCOM's NEDC.  I am most impressed with their Warehouse Management System’s efficient and timely approach to improving inventory accuracy that is enabled by the team's employment of a broad range of inventory management tools and processes,” Vice Adm. Smith said.  “It was an invaluable trip to discuss NEXCOM’s inventory control processes that directly align with Navy leadership's recognition that efficient inventory management processes are foundational to improving warfighting readiness and lethality.”

The mission of NEXCOM is to serve sailors and their families around the globe, and their robust supply chain creates a steady flow of merchandise from vendors’ docks to the backrooms of NEX store locations.

“NEXCOM operates 10 distribution centers worldwide, supporting NEX stores, as well as Marine Corps Exchange stores and Ships Stores,” said retired Rear Adm. Robert J. Bianchi, CEO, NEXCOM. “NEXCOM is constantly striving to improve the level of service to its stores and customers while aggressively driving down the costs of transportation and distribution and we welcome the opportunity to share our processes and best practices.”

NEXCOM Distribution Centers carry $139 million in inventory, approximately 130 million units annually in order to support 528 locations and services worldwide, including NEX stores, uniform distribution, ships stores, recruit ditty bag services, home deliveries, international embassies and 40 percent of all Marine Corps Exchange product assortment. In order to maintain this support, NEXCOM’s distribution facilities have over 3 three million square feet of warehouse space, 9.6 miles of conveyer belts and a little over 1,200 employees.

NEXCOM maintains a successful audit program consisting of cycle counts, intensive quality control audits to ensure NEXCOM attains best in class inventory tracking to get the right product in the right place at the right time. Moreover, the ERP system, in large part, has helped the NEX reduce shrink worldwide and drive in stocks around the world. Overall shrink at NEXCOM Distribution Centers has improved by $4.3 million in the last three years due to major shifts in defined procedures resulting in improved accuracy.

The established systems and quality control mechanisms within the distribution centers, as well as internal control procedures have resulted in high inventory integrity. This process and demonstration of controlled processes has allowed the use of cycle counts performed daily to replace the need to shut down the Distribution Center to conduct a full wall to wall physical inventory and interrupting flow of goods to NEX stores and customers.

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