Dematic Logistics Review #4

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Dematic Logistics Review #4

  1. 1. Issue 4 CEMAT 2011 OVERVIEW L GISTICS Exciting new products launched at CeMAT AUTOMATING SIEMENS REVIEW Multishuttle in production line support role PROdUCT REVIEW News, technology and software updateTECHNOLOGY FEATURE:RAPIDPICK SYSTEM: SYSTEM TMFASTER, SMARTER, SAFERHALFORdS: UK BARE ESCENTUALS: USASorting out small Integrated order fulfillmentparts order picking for cosmetics supply chain DEMATIC LOGISTICS REVIEW Creating Logistics Results
  2. 2. FLEXIBLE, scaLaBLE, Welcome to Issue 4 of Dematic Logistics Review – Your Window to World’s Best Practice Logistics. In the last issue of DLR, we presented a new One consistent theme began to emerge and it white paper “10 Strategies for Distribution Lo- pleased me a great deal. gistics Success.” This hierarchical approach to Lowering costs and increasing service is a given. eliminating non-value adding activities evalu- But logistics professionals need more. ated concepts designed to reduce picking cost and increase customer service. In particular you need the ability to respond rapidly to change. We know that the only future At recent major tradeshows in Europe and North certainty is change so, in my opinion, there is a America, Dematic’s senior management and strong need to address this challenge. I had the opportunity to meet customers from around the world. Smart solutions need to be designed to meet today’s needs but with tomorrow’s require- You told us the “10 Strategies” made very good ments firmly in mind, and that means taking into sense, because it showed how Dematic offered account issues like growth, change in product solutions for businesses with differing levels range or new market or channel requirements. of distribution logistics requirements. You also shared your experiences in dealing with real At Dematic, we address the issue of “future- world operational issues. proofing” solutions, technologies and informa- tion platforms by ensuring our systems are flex- ible, scalable and modular:2 DEMATIC LOGISTICS REVIEW
  3. 3. contents Cover Story: NCPC, China 4-5 Technology Feature: RapidPickTM System 6-8 Case Study: Siemens, Germany 9-11 Case Study: Bare Escentuals, USA 12-13 Case Study: Blackmores, Australia 14-15 Case Study: Halfords, UK 16-17 Case Study: D&H Distributing, USA 18-19 CeMAT 2011 Review 20-21 News, Product, Technology & Software 22-23 About Dematic Dematic is one of the world’s leading suppliers of logistics automation sys- tems and solutions. As a systems integrator, Dematic delivers a full range of technologies and services, from individual products and systems to complete turnkey solutions as a general contractor, as well as complete after-sales support and service. Dematic provides automated material handling products, systems and solutions for retail and wholesale distri- bution, consumer direct, grocery, food and beverage, and manufacturing industries. Dematic’s products and services are based on a tradition of industry expertise that the company has acquired over decades of com- mitment worldwide. Globally the company employs around 4,000 people.MODULaR LOgIstIcs • Flexible designs give you the ability to respond Dematic has been addressing these issues for efficiently to changing demands by employing years. Our newly released RapidPickTM Goods- proven technology solutions for multiple ap- to-Person system, Dematic MultishuttleTM Flex, plications, and ensuring systems incorporate RapidStore ML & UL range, our range of Modu- sufficient redundancy to cope with expansion lar Conveyors and Sorters and our DC Director software are all designed to meet your changing • Scalable means designing our systems so they needs. can be upgraded easily to meet your changing requirements – you don’t need to start again. In this issue we present a range of integrated lo- Plus, a scalable system can grow as your busi- gistics system solutions delivered to well-known ness needs grow, avoiding the cost and need customers around the world. We also update to re-engineer a system or retrain staff you on new Dematic innovations, with an over- view of the latest Dematic products launched at • Modular means that the components of our the recent CeMAT Exhibition in Germany. systems can be easily combined to drive mul- Roar Isaksen, tiple functionalities. At the same time, all com- Most importantly, we present a detailed discus- President & CEO, ponents are designed to interface seamlessly, sion about our innovative RapidPickTM System. Dematic providing end-to-end material flow and infor- Our new Goods-to-Person split-case picking mation management. solution highlights the way in which Dematic is embracing the principles of flexible, scalable and modular in all the work we do. Roar Isaksen, President & CEO, Dematic DEMATIC LOGISTICS REVIEW 3
  4. 4. COVER STORY NORTH CHINA PHARMACEUTICAL CORPORATION (NCPC) Hebei Province, cHinA NEW Dc thE pREscRIptION FOR Ncpc Founded in 1953, North China Pharmaceutical Corporation (NCPC) has achieved constant growth to the point where it is now a leader in the pharmaceutical industry in China. Dematic has recently assisted NCPC with the construction of a new DC at Shijiazhuang in Hebei Province.4 DEMATIC LOGISTICS REVIEW
  5. 5. “ AUTOMATING PROdUCTION rAw MAteriAls & FinisHed Goods storAGe Dematic works professionally, efficiently and in a customer-friendly manner ... and have helped lead us into great achievements on the project. Yang Baiyue, “ Distribution Center Manager, NCPC North China Pharmaceutical Corporation (NCPC), They are a reliable, stable and safe partner. We a leading pharmaceutical manufacturer in China, are lucky to have Dematic working with us and produces over 430 kinds of antibiotics, semi- Dematic helped lead us into great achievements synthetic antibiotics, pharmaceutical interme- on the project,” said Distribution Center Manager diates, vitamins, biotechnology products, vet- Mr Yang Baiyue. erinary and neutraceuticals, both in bulk and in Optimizing Space Utilization with Mezzanine finished products. With space at a premium, Dematic utilized a mez- When NCPC decided to invest in a new plant to zanine to house a low-noise MCS (modular con- produce and handle cephalosporin-based an- veyor system), which connects the production tibiotics, it turned to Dematic. The new plant isYang Baiyue, line to high speed pop-up belt sorters. expected to generate annual sales revenue of upDistribution to RMB 12 billion, which will help NCPC form a As goods are produced, they are merged onto acenter Manager, complete industrial chain and a rich line-up of ce- single accumulation MCS before being present-Ncpc Dc phalosporin antibiotics. ed to the high speed sorter. The sorter organizes products in SKUs and batches prior to palletizing. Auto checking, tracking and QC for Risk Free DC A walking robotic palletizing system is then fed by At the heart of the NCPC’s system is a 10,000 a 26 lane high speed sorter capable of achieving pallet ASRS for storage of raw materials and fin- rates of 700 cartons per hour. ished goods. The ASRS is located adjacent to a Integrated Finished Goods Handling and Stor- two-level building where production of a wide age range of cephalosporin antibiotics occurs. The fully integrated system uses two robots, The ASRS is integrated with the production lines shuttle cars and pallet conveyors to send the at both ends of the system, feeding raw materials completed pallets to the ASRS system for stor- in at one end and receiving finished goods after age. The mezzanine frees up sufficient space on they have been palletized. the first floor for pallet and carton dispatch, as When developing the new facility, NCPC wanted well as infeed and outfeed of raw materials and a risk-free system that would increase utiliza- consumer materials. tion and reliability. They also required automatic Batch management has been strictly imple- checking, tracking and quality control throughout mented in NCPC in line with Chinese legislation. the process. All products are double scanned, first at sort- Dematic completed systems installation and ing and again at palletizing. If scanning fails, the commissioning in just 14 weeks meeting NCPC’s goods will be sent to an end-of-line chute for high expectations. “Dematic works profession- manual scanning. The double scanning meth- ally, efficiently and in a customer-friendly manner. odology ensures batch integrity from storage through to distribution to individuals. DEMATIC LOGISTICS REVIEW 5
  6. 6. TECHNOLOGY FEATURE rAPidPick tM systeM Dematic RapidpicktM system Ergonomic 1:1 picking station DEMatIc RapIDpIck sYstEM tM sMaRtER, FastER, saFER In today’s modern world an old fashioned idea has been reborn due to technology advances and changing business needs. Goods-to-Person (GTP) picking has been around in many forms for years, but there has been a paradigm shift in thinking. It is no longer sufficient to lower costs, increase productivity or deliver a short ROI. These traditional drivers are taken as a given. The difference today is a new global attitude involving safe and ergonomic work practices, the expanding e-tailing sector, is staying ahead of rapid economic and regulatory change.6 DEMATIC LOGISTICS REVIEW
  7. 7. GOOdS-TO-PERSON erGonoMic sPlit cAse PickinG In recognition of these dynamics Dematic has Faster developed an end-to-end solution for split case With the stock for orders delivered directly to picking that, until recently, was simply not possi- the operator, who only has to place the required ble. Today, greater computing power, advanced quantity of goods to the relevant orders, very software and dramatic innovations in materials high productivity rates can be achieved. handling technology have combined to make GTP the new standard in order fulfillment. It is engineered to pick at rates up to 1000 or- der lines per operator per hour. Also, with a one Dematic RapidPickTM System second tote exchange time, the operator does Dematic RapidPick System is a high perfor- not have to wait for the next item to be picked. mance order fulfillment solution, which takes Product flows into the workstation smoothly and full advantage of the benefits of GTP making consistently ensuring high staff utilization. split case picking smarter, faster, and safer. En- The high rate of inventory flow into the pick sta- gineered with modular components, the Rapid- tion is made possible by automated inventoryModular buffer and sequencing Pick System can be scaled up and expanded as staging buffers like the Dematic MultishuttleTM orsystems such as the Dematic business requirements change. The RapidPick Dematic RapidStore Mini-Load system.Multishuttle (above) and System seamlessly integrates hardware and software to efficiently stage and transfer stock These “storage engines” are integrated usingRapidstore Mini-Load (below) sequencing algorithms to ensure that stock andarrange stock in the precise and orders quickly and accurately. This enables the order picker to work highly productively in a orders arrive at the pick stations in the correctorder required to enable high sequence, exactly when they are needed.speed goods-to-person picking. comfortable work environment. Smarter More Ergonomic The time wasted travelling between picks in nor- RapidPick workstations are designed for sus- mal distribution is eliminated with the operator tained productivity and employee comfort. The staying in one place, while items are delivered to operator picks only in the “golden zone” and them in the precise sequence required for assem- does not need to move hands above the shoul- bly. Heavy items first, fragile items last, by family der or extend arms beyond a comfortable reach. group or in whatever sequence needs dictate. The work platform is adjustable in order to ac- commodate different height operators. The RapidPick System allows ultra high pick ac- curacy as only one SKU is presented to the op- Operator screens adjust for height and angle to erator at a time. Modular pick station configura- minimize neck strain. Loads are automatically tions include one-to-one stations where a single delivered to and removed from the workstation order tote and SKU tote are presented to an op- eliminating the need for operators to lift or push erator. One-to-multiple stations can also be used cartons and totes. depending on throughput requirements. In these The ergonomic design and simple, icon-driven applications a single stock tote is used to fulfill operator touch screen allows the pick station to multiple orders at the same time. meet Universal Access guidelines. Configurations may include any arrangement from 1:1 up to 1:24 or more, depending on order volumes and the type of products being handled. Bulk Stock Empty Order Cartons/Totes supply delayered/ supply empty decanted stock cartons/totes supply return completed orders BUFFER STORE sequenced stock Unused stock Ergonomic Pick Stations dispatch Multishuttle/rapidstore Ml rapidPick Dematic Rapidpick system DEMATIC LOGISTICS REVIEW 7
  8. 8. TECHNOLOGY FEATURE GOOdS-TO-PERSON rAPidPick tM systeM erGonoMic sPlit cAse PickinG productivity and throughput can be further optimized with Rapidpick system one-to-many workstations. this example shows 24 orders being picked concurrently. “ More Compact Suitable for Changing Order Profiles The RapidPick System fits into a compact foot- As new products are introduced and market print, typically 30 to 50 percent smaller than demands change, so too do order profiles. The conventional solutions. Both Multishuttle and RapidPick system easily accommodates chang- Mini-Load enable high cube utilization in a high es. Single item and multi item orders are accom- density storage configuration. modated with equal efficiency. This means devel- Dematic has Dematic buffering and sequencing technology is oping trends like smaller, more frequent ordersdeveloped an end- do not compromise the productivity of the Rapid- made up of modular components with the rack, to-end solution the shuttles, load handling devices and software Pick System. for split case fully integrated to ensure optimum performance. Flexibility, Even at the Pick Face picking that, Shuttles and Mini-Load cranes can access loads With the RapidPick System, there is no dedi- on both sides of an aisle, single or double deep. cated pick face. Therefore, the labor intensive until recently, High Uptime and Redundancy tasks associated with put-away, slotting and re- was simply slotting the warehouse, and pick face replenish- Dematic Multishuttle technology has many advan- not possible. tages. The simple design is engineered for high ment are all gone, along with the complex and ongoing churn of SKU velocity analysis. Space Today, greater uptime with built-in redundancy. Each Multishuttle operates using a low voltage electrical system, so efficiency in the warehouse is also improved with computing the elimination of dedicated pick faces. it’s also more energy efficient. There are no batter- power, advanced ies, chargers, or onboard computers. It’s simple to Accommodates SKU Proliferation software and use and control. If more SKUs are added or order volume increas- dramatic Easy Replenishment es, the RapidPick System can be easily scaled to absorb the new requirements by adding modular, innovations in There are a variety of options for replenishing the buffer engine. Depending on throughput, bulk space efficient Multishuttle zones and pick sta-materials handling tions. The need to invest in completely new sys- stock can be automatically delayered and de- technology have canted into totes and supplied to different buffer tems is eliminated, as is the high cost of training and change management. combined to zones using one of our wide range of sorting op- tions. Replenishment is optimized and put away make GTP the “ new standard in order fulfillment. is automated. Operational Flexibility Staff can work in parallel, unaffected by each other’s pace. Pick stations can be opened and closed according to business volume on a partic- ular shift. There is redundancy in this configura- Dematic Rapidpick system Engineered for the highest pick rate and highest accuracy in an ergonomic environment, the Rapidpick system is tion since items can be processed at any location compact and energy efficient, offers as the workstations are completely decoupled. daily operational flexibility and can change or expand to accommodate your future order fulfillment needs.8 DEMATIC LOGISTICS REVIEW
  9. 9. SIEMENS AUTOMATING PROdUCTIONAMberG, GerMAny bUFFerinG & seQUencinG systeMsMULtIshUttLE tMaUtOMatEspRODUctION LINEFOR sIEMENs The flexibility of using Dematic MultishuttleTM as a storage buffer and sequencing system in manufacturing applications is clearly demonstrated by its role in automating production line supply at Siemens switchgear manufacturing plant in Amberg, Germany. The restructured material flow solution has increased productivity, provides almost 100% product availability, and its space efficiency is such that Siemens has been able to utilize 25% more floorspace for production. DEMATIC LOGISTICS REVIEW DEMATIC LOGISTICS REVIEW 9
  10. 10. SIEMENS AMberG, GerMAny More than 50,000 switchgear devices are manufactured each day on the fully automated production lines in the Siemens plant, which is equipped with precision assembly robots. “Un- der the project name ‘ARRIBA’, we developed a rough concept for fully automated material flows in addition to automation of production facilities,” said Martin Schönthaler, Project Manager for Siemens AG. “The aim was complete process automation from incoming goods through to production. We also wanted to make better use of the space we had by restructuring internal logistics.” “We needed an integrated, space-efficient solu- tion that could be adapted to fit existing condi- tions, and this is exactly what Dematic provided with the Multishuttle. Dematic’s product range and planning expertise were also factors in our decision,” he said. Multifunction MultishuttleTM By taking Multishuttle Production Line Buffers Dematic’s modular Multishuttle offers the ulti- advantage of This meant it was possible to easily add a space- mate in design flexibility, with the system at Sie- Multishuttle’s saving second level to the 13 feet high production mens being built to suit the space available over flexible design lines in the Siemens plant. multiple building levels. and configuration options, Siemens Two Multishuttle line buffers with three system Thanks to the disconnection and parallel design has been able to vehicles and 540 container spaces keep com- of goods in/out, storage and transport processes, free up about 25% ponents flowing for the automated production of the system offers a scalable and redundant per- extra floorspace coil winding systems, drives and contacts. formance level in comparison to standard auto- for production. “This was an initial expansion stage as we had to mated small parts storage systems. implement the conversion during on-going op- Also, Multishuttle is not restricted to convention- erations,” said Mr Schönthaler. ally-shaped areas. Thanks to its modular design “By May 2011, two additional line buffers up to 260 Multishuttle can be modified to fit virtually any Multishuttle carts feet in length, with almost 1,000 storage spaces space, and, unlike traditional storage systems, transfer between and six Multishuttle vehicles will be installed Multishuttle does not have to be installed on the levels using above the final assembly lines.” ground level. integrated lifts. Multishuttle Production Buffer Warehouse The central component of the material flow de- sign is a further Multishuttle warehouse with 3,400 container spaces, which is sufficient to support three hours of standalone production. Supply for the production line buffers is provided by this system. The two-aisle compact Multishuttle, with a total of four vehicles servicing eight shelving levels, was designed to suit the space available in the base- ment of the original factory. From there, the line buffers are supplied with the materials required for the current production via an integrated, el- evated conveyor system. “Overall, there is a twice-daily complete turnover of the buffer warehouse at optimum production vol- ume”, explained Mr Schönthaler. “Thanks to the Multishuttles, we have a 98% availability level.” The entire system logic, from warehouse manage- ment through to kanban, is controlled by Dematic DC Director software, which interfaces with the site’s SAP ERP system.10 DEMATIC LOGISTICS REVIEW
  11. 11. AUTOMATING PROdUCTION bUFFerinG & seQUencinG systeMs “Managing Material Flow When required, containers are moved to transferVia a connection to the central incoming goods points that are also connected to the line buff-warehouse in Amberg, which was also imple- ers. Here the individual container and tray stacksmented by Dematic, materials required for pro- are transferred to supply the production lines. Forduction are placed into the Multishuttle ware- optimum production robot access, the articleshouse. The components for all products are are precisely positioned within the trays so that We needed an automated handling is possible on the produc-stored there. When the production lines receivean order, outward goods movement of the con- integrated, space- tion line.tainers is initiated in the buffer warehouse. efficient solution In parallel to the processes on the productionThe system at Siemens is set up with an inward that could be lines, the buffer warehouse is refilled in the base-and outward goods movement volume of up to ment level. Finished goods are also removed adapted to fit our from the production lines via the line palletizers100 containers per hour, with the system per-forming up to 200 dual movements. existing conditions, and line buffers. Thanks to the flexible and effi- cient Multishuttle system, the Siemens plant isThe Multishuttle vehicles remove the containers and this is exactly continually achieving high throughput and rapid,from storage and transfer them to the conveyor what Dematic error-free order picking for production supply.system via Multishuttle lifts. provided with “A flawless kanban system with fully automatedIn total, seven lifting devices are set up; three of the Multishuttle. processes,” said Mr Schönthaler.them ending on the production level, with theother four lifting devices primarily supporting the Dematic’s product “The holistic solution will provide us with around 25% more production area in the final expansionMultishuttle line buffers. range and planning stage, minimize manual transport and provide us“All the interconnecting conveyors run under the expertise were also with the transparency for modern material track- building roof, which enabled us to achieve even better space utilization,” added Mr Schönthaler. factors in ing from component delivery to the end of the production cycle. our decision.Multishuttle System Operation “The modular system design also opens up a wideThe conveyor moves the ordered material con- Martin Schönthaler, range of options for our future growth,” he said.tainers to transfer points for the line buffer Mul-tishuttles. Here the containers are lowered ontothe same level as the line buffer and placed intostorage by the shuttle vehicles. “ Project Manager, Siemens AG DEMATIC LOGISTICS REVIEW 11
  12. 12. BARE ESCENTUALS oHio, UsA chaNgINg thE OF DIstRIBUtIO BaRE EscENtU Bare Escentuals once filled orders using paper lists and carts around the warehouse picking one discrete order at a time – a hour, not including packing. During peak seasons, order fulfillm extended and more costly, expedited shipping was needed to Today, using a Voice and Pick-to-Light-enabled integrated zone- Bare Escentuals has increased productivity to more than 500 pie Split-Case Picking Solution To improve service to its customer base of retail store boutiques and spas, Bare Escentuals im- plemented an all new split-case picking system including Pick-to-Light (PTL) and a smart zone- routing conveyor network. Today, Dematic PickDirector warehouse control software (WCS) manages and directs the entire picking process with efficiency and operational flexibility. Paper pick lists are no longer required. PTL and Zone Skipping Lift Productivity 500% Operators pick orders using Pick-to-Light tech- nology. A conveyor system transports shipping containers (one carton size for all orders) only to zones where picks are required. Operators stay in one zone and do not travel the entire ware- house. As a result, productivity has significantly increased with each operator capable of picking 500 pieces per hour on average. The system fills and ships approximately 600 customer orders – about 70,000 pieces per day. Order accuracy has also improved by 50%. Fur- thermore, packing is now done by the picker, enabling separate pack stations to be eliminat- ed from the distribution process. “ Smart Packing and Shipping System Cuts Costs 500+ pieces per picker per hour Additional automation was implemented to sup- port the order finishing and pack-out function. Label print and apply technology, a carton sealer, and weighscale are built into the conveyor net- work. To obtain the best parcel shipping rates, the system utilizes rate shopping software. 70,000 items per day productivity up by over 500% accuracy up by 50% packing done by picker “ Real-time management Reduced shipping costs12 DEMATIC LOGISTICS REVIEW
  13. 13. SPLIT CASE PICKING voice & Ptl sUPPorted Zone roUtinG FacEON atUaLss, which were pushedabout 85 pieces per ment time became meet delivery dates. -routing solution, Voice picking has helped eces per hour. Bare Escentuals keep up with growing e-tail orders. The Dematic WCS has an interface to the parcel of three standard carton sizes; small cube size shipping software to provide integrated system orders are shipped in a bag. When the picking performance from order induction to shipping. process is complete, the cartons are delivered Picked orders are weighed, rate-shopped for best to pack stations where each order is audited. cost shipping, and have the carrier’s shipping la- Improved Resource and Labor Management bel applied. The entire process is automated. PickDirector provides real-time systems and op- A Flexible, Scalable, Modular Solution erations control. Using the browser-based inter- The order fulfillment system is modular and ex face, supervisors can monitor % orders complete, pandable, and its ability to flex and expand was as well as verify order contents and make adjust- soon utilized. After launching the order fulfillment ments to ensure orders are shipped complete. system for spas/boutiques, the e-tail channel ex- PickDirector maintains comprehensive statis- perienced dramatic growth. Typical order volume tics so supervisors know how many orders, lines grew to 2,500-3,000 orders per day. During spe- and pieces each operator handles. Orders can be cial promotions and holiday peak periods, order put on hold and then released to an “active” from volume can be three to four times normal. a “pending” order pool. SKUs can be slotted in Voice Answers the Call for Low Volume Orders multiple locations to facilitate workload balanc- ing. The software also tracks SKU velocity and Using the existing Dematic PickDirector software, recommends appropriate slotting locations. an order fulfillment configuration was added for the e-tail channel utilizing voice-directed picking. More Efficient Resource and Labor Management The voice technology is ideal for e-tail channel The number of operators per shift is allocated fulfillment as high accuracy and productivity can depending on order volume. If volume is up, be achieved in a moderate order volume environ- more operators can be assigned to the PTL ment. More operators can be easily added dur- zones, and more can be assigned to the voice- ing peak periods. Both e-tail and spas/boutiques directed pick carts, thereby making it scalable order fulfillment use the same inventory from re- and flexible. In addition, the system is portable serve storage, about 1,000 to 1,200 SKUs. so it is easy to move if the operation is relocated pick-to-Light has increased Adding e-Tail Fulfillment to the Order in the future. accuracy, productivity and The e-tail order fulfillment system is centered The results are compelling: no more costly ex- throughput. around batch pick carts. Pick instructions are pedited shipping, a five-fold increase in picking communicated from PickDirector to each oper- productivity, process improvements, real-time ator via wearable voice devices. Each batch pick management and control, increased order ac- cart accommodates approximately 20 customer curacy, operational flexibility, annual physical orders for each trip through the picking aisles. inventory eliminated (using cycle count), and re- Each order is picked into and shipped using one duced order processing time. DEMATIC LOGISTICS REVIEW 13
  14. 14. Left: Dematic key account BLACKMORES Manager soeren sydney, AUstrAliA schauki with Blackmores Director of Operations Liz Burrows. NEW hq a tONIc FOR BLackMOREs Over the past 70 years, Blackmores has become Dematic has designed our new distribution center one of the most trusted brands in Australia. The (DC) as a flow-through facility,” said Ms Burrows. company supports a customer base of more “Raw materials feed through to production, and than 5000 health food stores, pharmacies, su- finished goods back through to storage and dis- permarkets and health practitioners throughout tribution. Materials handling is optimized at all the country. It has also established strong export stages, and the DC has been equipped with the markets in the Australasian and SE Asian regions. latest generation of order picking technologies Fundamental to this growth has been its commit- including smart conveyors, Voice Picking, RF ment to good manufacturing practice and supply and Pick-to-Light (PTL) systems.” chain innovation. “We have also been able to rationalize our distri- The Blackmores Campus brings the company’s bution IT systems with Dematic’s new PickDirec- operations under one roof for the first time in over tor software,” she said. 15 years. Strong growth had made it necessary Real-Time DC Management with PickDirector for Blackmores to split its manufacturing and dis- tribution operations across a number of separate In a world-first, Dematic integrated Blackmores facilities. Bringing these services together at the put-away and replenishment functions within Warriewood site, together with the technology PickDirector, which seamlessly interfaces with enhancements, will bring new efficiencies and Blackmores host computer system, JD Edwards’ cost savings to the business. Enterprise One. “Bringing our operations back under one roof will Blackmores Chief Technology Officer, Lee Rich- not only provide direct supply chain savings in ards, said: “A key driver when we planned our IT Voice-directed picking excess of $1 million per annum, it will also enable strategy, was to identify and eliminate potential keeps both hands and eyes us to significantly streamline our supply chain points of failure within our IT systems. free at all times improving and enhance productivity across the board,” said productivity and safety. “The broad-ranging functionality of Dematic’s Pick- Blackmores Director of Operations, Liz Burrows. Director order management and control software Flow-Through Manufacturing and Distribution has enabled us to do so in the DC,” he said. “We have taken the opportunity to install an ad- “With PickDirector providing the interface for all ditional production line in the new manufacturing of our DC technologies we were able to decom- facility, giving the business 20% increased pro- mission a number of servers, systems and inter- duction capacity to support future growth, and faces, which has allowed us to simplify the DC’s14 DEMATIC LOGISTICS REVIEW
  15. 15. SPLIT ANd FULL CASE PICKING inteGrAted soFtwAre And systeMsAustralia’s leading natural health supplements supplier,Blackmores, has consolidated head office, manufacturingand distribution at its new Blackmores Campus in Sydney. “ Voice picking is used in the full case and pick-to-Light in the split-case pick modules to improve accuracy, productivity and order management. IT systems architecture, enhancing reliability and Integrated SKU, case and pallet order fulfillment Bringing our reducing IT systems management.” Blackmores processes up to 500 orders per day. operations back All split-case products are picked from a Pick Dematic’s Key Account Manager Soeren Schauki under one roof will said: “Our integrated logistics solution gives Module. Conveyors transport orders through the not only provide Blackmores the tools with which it can handle, module, with all locations equipped with Pick-to- store, pick and dispatch goods faster and more Light (PTL) for fast, accurate paperless picking. direct supply chain Fast moving full case SKUs are picked from a accurately now, and for many years to come.” savings in excess combination of Pallet Live Storage (PLS) and se- Flexibility for the Future of $1 million per lective racking within the full case Pick Module. “Our DC systems incorporate a lot of flexibility to A combination of RF and Voice Picking may be annum, it will ensure efficient materials handling, storage and used for picking full case SKUs, which are la- also enable us order fulfillment, even if Blackmores distribution beled and placed directly onto a central powered to significantly requirements were to change over time,” he said. take-away conveyor. streamline our “We believed this was necessary because the Full pallets for larger customer and export orders company’s SKU (stock keeping unit) profile has are also picked from bulk storage by RF or Voice supply chain and changed considerably in recent years as a result Picking and transported to dispatch by forklift. enhance productivity of market growth and maturity. Voice Picking Doubles Case Picking Productivity across the board. “The trend towards larger pack sizes in high vol- “The hands-free, eyes-free feature of Voice Pick- ume products such as fish oil capsules, together Liz Burrows, “ Director of Operations, Blackmores with strong growth in supermarket sales and ex- port markets, means Blackmores now processes a much higher volume of full case orders than it did just a few years ago,” explained Mr Schauki. “That’s why our DC design provides a range of ing is providing both productivity and OH&S ben- efits over RF picking,” said Blackmores Supply Chain Manager, Stephen Vile. “We are now able to pick full cases twice as quickly as before, and with only half the people! However, we will be running our existing RF sys- efficient strategies and technologies for handling tem in conjunction with Voice Picking, until all of increasing quantities of full case goods, includ- our people are familiar with the new technology.” ing the introduction of Voice Picking,” he said. DEMATIC LOGISTICS REVIEW 15
  16. 16. HALFORdS coventry, enGlAnd DEMatIc sORts OUt sMaLL paRts pIckINg at haLFORDs Halfords’ 320,000 sq ft Coventry DC operates an innovative small parts picking system, designed and installed by Dematic, which combines conveyors, a combination of picking technologies and an automated buffer that consolidates picked totes into store orders. The system is helping the UK’s leading retailer of automotive, leisure and cycling products to send out up to 200,000 items a day in a highly efficient order fulfillment operation. pick-to-Light and To achieve highly efficient store order fulfillment Voice picking Halfords’ recently consolidated two distribution have improved centers into a single new DC in Coventry, which productivity and now holds all of the retailer’s range other than bi- accuracy for cycles and serves Halfords’ entire network of 470 halfords. stores across the UK and the Republic of Ireland. This means ultra high throughputs are required from the new DC. The key to achieving this would be creating a small parts store for picking 10,000 Stock Keeping Units (SKUs) of small products quickly and accurately into order totes, and con- solidating them for delivery to the stores. Space Saving, Integrated Solution for Halfords Working together with Halfords, Dematic designed a solution that located a small parts picking center on a double deck mezzanine. Running along the entire 540 feet length of the DC over the loading bay doors, the structure facilitates marshalling be- low, yet provides 70,000 sq ft of picking area in what would normally be unused space, allowing Halfords to truly optimize the warehouse cube.16 DEMATIC LOGISTICS REVIEW
  17. 17. INTEGRATEd ORdER FULFILLMENT sMAll PArts PickinG systeMDematic’s cost efficient and highly productive smallparts picking solution comprises a conveyor-basedsystem with pick-to-light and pick-by-voice tech-nology. On the mezzanine’s first level, 3,600 SKUsof faster moving small parts are picked from livestorage lanes using fast and accurate pick-to-light(PTL) technology. The simplicity of this system al-lows 300 lines per hour to be picked.The upper level of the small parts store houses Hal-fords 6,000 slower moving SKUs, which are locatedin bins on inclined shelves for ergonomic picking.Keeping Small Parts Picking on the MoveDematic’s small parts picking system helpsachieve the high throughputs required at the DC,while improved tote filling has halved the numberof totes each store receives in a delivery to 30. Thesimplicity of PTL not only ensures fast and accu-rate picking, but means new pickers can achievegood pick speeds after just an hour’s training.Voice picking gives accuracy and speed benefitsfor slower moving products at a lower cost.Dematic MultishuttleTM maintains higher through- steve Mole, Operations Manager site services halfords, with Dematic‘s Business Development Manager Dave Bull. “put and gives greater flexibility for order con-solidation than can be achieved with sortationsystems that require lanes of conveyors, which Smart Zone Pickingplaces constraints on operations. This high rate is helped by concentrating picksThe entire small parts picking scheme is future- into smaller areas so that each tote only travels toproofed with room for another double deck mez- one or two zones for it to be filled. Travel distanc-zanine along the side of the DC, which could be es for staff, who have their hands free, are alsolinked into the current system thanks to the Mul- The design, significantly reduced, improving pick efficiency.tishuttle’s modular design, which allows more planning and Dematic supplied 60 voice terminals for the Cov-lanes to be added, without any change to theflow of Halfords’ operation. implementation entry DC. 20 of these are used in the pick-to-voice system, with the remaining units used for otherVoice picking technology allows 200 lines per of the small operations within the facility, such as bulk picking,hour of these products to be picked at a much parts picking bulk put-away and decanting. These are all con-lower capital cost than PTL. system went trolled by Manhattan Associates’ WMS, which also feeds orders to Dematic’s DC Director WCS. very well and The WCS looks after stock profiling and inte- we developed grates the PTL and voice technologies seamless- a good working ly to achieve the most efficient fulfillment possible. relationship with Completed order totes are sent to the Dematic MultishuttleTM Captive Buffer, which is designed Dematic. We to increase speed, accuracy and throughput. asked them to The system’s intelligent controls enable complex sequencing, which contributes to the solution’s take our numbers flexibility and allows Halfords to build store- and come back friendly orders, calling out whole or part store with a design orders as required. The Multishuttle can even en- sure that the heaviest tote is at the bottom of the that would give stack when they get to a Halfords store. the results we Customer Benefits were looking for. • Improved carton fill halves case deliveries to stores “ Mark Shirley, Logistics Controller, Halfords • PTL offers high throughput and accuracy • Minimal training required for PTL and voice • Accuracy and speed benefits with voice • Flexibility to consolidate whole or part orders • Optimum use of dead space over loading docks. DEMATIC LOGISTICS REVIEW 17
  18. 18. d&H dISTRIBUTING AtlAntA, UsA sMaRt zONE ROUtINg sYstEM OpItIMIzEs ORDER FULFILLMENt With an annual turnover of $2 billion plus, D&H Distributing is one of the USA’s leading technology specialists, distributing an extensive range of IT, electronics, entertainment and gaming products. D&H has grown with technology it sells, distributing the first color TV, the first home PC and the first gaming system in the USA. D&H’s broad reach and breadth of products enable it to service businesses of all sizes from small independent retailers, dealers, integrators and installers to big box chains. D&H also provides fulfillment for e-commerce retailers. Keeping Distribution a Step Ahead of Demand The new DC’s 476,000 sq ft floorplan includes “Our business has been growing double digits smart zone-routing conveyors for streamlined year over year for the past decade,” said D&H picking, and allows for expansion of up to Director of Logistics Dennis Pardon. 250,000 sq ft. “Every couple of years we found ourselves out- Smart Pick Zone-Routing Improves Efficiency growing our facilities. We needed to be making With 90% of what D&H ships comprising an investment that was a lot more forward look- orders for split-case items, efficient piece ing, and that’s when we decided to build a big picking is essential. Its WMS batches or- box DC and put in the type of automation that ders with others for the same or similar would support growth for the next 10-15 years.” products to improve pick rate efficiencies.18 DEMATIC LOGISTICS REVIEW
  19. 19. SPLIT ANd FULL CASE PICKING inteGrAted sortinG And Zone roUtinG Orders are picked in one of two Pick Modules, Intelligent Conveyor Control System Reduces with RF scanning used to ensure accuracy. Bar- Energy Consumption and Delivers Rapid ROI code-labeled cartons are automatically routed “Our company is big on green,” explained Mr through the integrated conveyor system and di- Pardon, “and we implemented a lot of green ini- verted only into zones where picks are required. tiatives in the DC.” When picking in a zone is complete, the carton is A successful example is SortDirector’s energy pushed back onto the conveyor, which transports management module. The conveyors monitor it to the next zone where a pick is required, or di- how long it has been since they last saw a carton. rect to dispatch if the order has been completed. If a section hasn’t seen one for a specified period, Pick accuracy is further enhanced with the zone- the conveyor shuts itself down. When it senses routing system re-routing a carton back into a a carton approaching, it will turn itself on, as will zone if it detects that a pick has been missed. subsequent conveyors. The system also has the ability to do on-the-fly “The payback is enormous. Less than a year,” processing – if an order has a short pick, it gets said Mr Pardon. “Less energy consumption than automatically processed to an exception loca- traditional conveyors. It is a very cool system.” tion for checking. Integrated Conveying with Real-Time Systems Monitoring and Control Dematic SortDirector® integrates with the WMS and coordinates all product movement inside the DC. It provides real-time control and, via the DC’s WCS, state-of-the-art graphic system mon- itoring for all operations. A Dematic sliding shoe sorter diverts orders to fill-and-tape and QA stations. A second sorter diverts completed orders to 22 shipping lanes atabove: D&h Director rates of up to 150 per minute.of Logistics Dennispardon with timFleenor, Dc Manager. “ the payback is enormous. Less than a year. Less energy consumption thantraditional conveyors. “ Dennis Pardon, Director of Logistics, D&H Distributing the order fulfillment system processes 6500 orders per day with a peak capacity of 20,000 orders per day. DEMATIC LOGISTICS REVIEW 19
  20. 20. NEWS, PROdUCTS, TECHNOLOGY & soFtwAre review DEMatIc cELEBRatEs 111 YEaRs at cEMat Dematic reaffirmed its position as one of the world’s leading suppliers of innovative logistics technologies with an impressive display at the recent CeMAT exhibition in Hannover, Germany. Attended by more than 58,000 visitors, the trien- nial CeMAT is the world’s largest logistics tech- nology trade fair, with over 1000 exhibitors from around 40 countries taking part this year. In keeping with CeMAT’s theme of Sustainabil- ity in Logistics, Dematic integrated future-proof logistics solutions into a complete material flow system on its stand, demonstrating how modern logistics can be delivered in a cost-effective and environmentally-friendly way. Amongst the innovations on display were: • Dematic RapidStoreML – a new high speed Mini-Load ASRS system complete with ad- vanced load handling devices • Dematic MultishuttleTM Flex– a new flexible high speed shuttle with the capability to handle totes and containers of different sizes • Typhoon Flex load handling device for improved product handling • New RapidPickTM System 1:1 Goods-to-Person (GTP) high-performance integrated order pick- ing stations incorporating the latest ergonomic advances to further improve productivity and workplace safety • Modular Dematic MCS conveyors, which en- able flexible system reconfiguration • Dematic Ecodrive control software, which is de- signed to improve energy efficiency by 10-15%. Dematic used the event to celebrate our anniver- sary under the motto of ‘111 years of innovation,’ showcasing our extensive history in pioneering materials handling and logistics technologies, since our launch in Offenbach, Germany in 1900. As well as our stand at CeMAT, Dematic ran a well-attended supporting program including a press conference, customer stand party and site visits to Dematic’s new Technology Center in Of- fenbach and to local customer Ferdinand Gross, Dematic’s Modular conveyor system (Mcs) attracted a lot of interest which was one of the first companies in the world with its quiet performance frequently commented on by visitors. to implement Dematic’s Multishuttle storage and sequencing system. The next CeMAT trade fair will be held in Han- nover, Germany from May 19-May 23, 2014.20 DEMATIC LOGISTICS REVIEW
  21. 21. above: More than 58,000 visitors attended ceMat trade fair from May 19-23, 2011. Right: Rapidpick ergonomic workstations with elevating platforms were one of most closely inspected exhibits at ceMat.Right: Multishuttle Moveis an exciting new conceptdeveloped in conjunction withthe Fraunhofer Institute. aswell as operating inside racks,Multishuttle Move has thecapability of functioning as afree-path agV creating manynew material flow possibilities. DEMATIC LOGISTICS REVIEW 21
  22. 22. NEWS, PROdUCTS, TECHNOLOGY & soFtwAre review FREEpIck MaXIMIzER: pIck ONE – gEt ONE FREE With Dematic Freepick Maximizer software, FreePick Maximizer, patented software developed simply transferring stock from a donor pallet by Dematic, makes it possible to pick goods for to a put pallet can complete two picks, with the stock that remains on both pallets being full case orders without ‘physically’ touching them. the required quantity to satisfy two orders. By analyzing and cross matching customer orders, it is possible to match multiple full case orders to full pallet quantities. pIckDIREctOR: Picking the stock for one or more orders leaves behind a ‘free pick’ quantity for another order. The productivity gains to be made by matching like orders BOOsts pIckINg pRODUctIVItY and picking them in a high rate pick module are very substantial. Dematic’s Free Pick Maximizer uses a number of complex algorithms to & accURacY quickly re-sequence orders and generate the highest quantity of ‘free pick’ opportunities and the optimum order fulfillment sequence for any batch of orders. The ‘free pick maximizer’ concept can be used manually or by incorporating a robot to do the picking, and can be deployed in mixed case Success in business company’s computer pallet, or mixed layer pallet picking operations. today relies on system and delivers Either way, significant productivity increases of up to 400% are achievable. prompt, effective it right to where it’s customer service. needed - to the picker. How Dematic FreePick Maximizer Works In most operations, With no paperwork to order fulfillment is a carry, operators pick significant component with both hands instead of customer service, of just one. and is of primary Tasks such as reading, importance to 15 0 customers. Companies writing, and searching for stock locations are who can assemble eliminated - dramatically orders quickly, improving productivity. accurately, and cost-effectively gain a • Productivity is typically competitive advantage. increased by 50%, and in some cases by Donor Pallet: Put Pallet: The key to achieving up to 200% Stock for Order A (10xCases) & Order B (5xCases) Empty Pallet for Order B (5xCases) this advantage is through an order • Picking errors are fulfillment system typically reduced by based on paperless 70 to 90% picking technologies. • Real-time feedback Dematic’s PickDirector is available on order technology is a cost- progress, zone 10 5 effective hardware and productivity, etc. software solution that • Total order turnaround can provide substantial time can be improvements in significantly reduced productivity and By simply transferring five cases from the Donor Pallet to the Put picking accuracy. • Overall system Pallet Order A (10 Cases) and Order B (5 Cases) are completed. management and This means the 10 Cases for Order A have been picked for free. PickDirector takes customer service is order information vastly improved22 DEMATIC LOGISTICS REVIEW directly from your
  23. 23. DEMatIc RapIDstORE ML10 The RapidStore Mini- (based on an 26 ft crane Load is the latest in operating in 130 ft aisle). a new series of high RapidStore Mini- performance storage Load cranes can be and retrieval machines equipped with the new (SRMs) for handling totes, Dematic Typhoon high cartons and cases in performance Load facilities ranging in height Handling Device (LHD). from 12 to 65 feet. Typhoon provides the Offered in three standard capability of handling one heights (32, 46 and 65 or two containers of fixed feet), RapidStore ML10 and varying sizes in a efficiently handles a host single, double or triple- of container types in a deep configuration. multi-deep and flexible RapidStore ML uses width environment. include as a storage The RapidStore Mini- buffer feeding mixed case Load operates at a order fulfillment, pick/ travel speed of 20 ft/s, put/pack operations in accelerates at 13 ft/s², retail, apparel and general has lift speeds of 10 ft/s, merchandize, and as an and lift acceleration of 10 intermediate storage buffer ft/s², which delivers up to sequencing Goods-to- 142 double cycles/hour Person split-case picking.DEMatIcFIELD sERVIcE& sUppORtMaximize uptime and minimize Benefits of Fielddowntime with help from Dematic. Services & Support • Qualified fieldModern materials it will perform under specialists withhandling systems, pressure without hardware andsoftware and compromising safety software knowledgehardware are highly or efficiency. • Maintenancereliable, but time and Dematic’s software and upgradesagain, experience has specialists and scheduled to fit yourshown that preventive technicians are trained operational lifecyclemaintenance and to spot the earlyproactive support • Configuration signs of wear and tearpay for themselves management of before performance isby maximizing your software and affected.productivity, and hardwarereducing running costs They can replenish • Comprehensiveand system downtime. consumables as part equipment/system of the inspection,Keeping your system assessments to and can performin peak condition will determine the maintenance on siteensure you get the condition and and replace or repairmost out of it, and you performance of parts.can be confident that your system DEMATIC LOGISTICS REVIEW 23
  24. 24. www.dematic.comDematic Headquarters2-8, avenue Charles de GaulleL-1653 LuxembourgT +352 27 48 59F +352 27 48 59-99North America Europe Asia PacificT +1 877 725-7500 T: +49 (69) 244 333-151 T: +61 2 9486 5555F +1 616 913-7701 F: +49 (69) 244 333-200 F: +61 2 9486 5511usinfo@dematic.com info@dematic.com info.anz@dematic.comUnited States Germany Italy Spain AustraliaDematic Corp. Dematic Europe GmbH Dematic S.r.l. Dematic Logistic Systems S.A. Dematic Pty Ltd507, Plymouth Avenue NE Friedrich-Ebert-Anlage 36 Via Firenze 11 C/Alemania, 2-4 24 Narabang WayGrand Rapids, Michigan 49505 D-60325 Frankfurt am Main 20063 Cernusco sul Naviglio (MI) 28820 Coslada, Madrid Belrose NSW 2085USA Italy Spain Australia Dematic GmbHDematic New Berlin Carl-Legien-Str. 15 Lithuania Switzerland Singapore2855 S. James Drive 63073 Offenbach Dematic Kaunas Dematic Switzerland Dematic S.E.A. Pte. Ltd.New Berlin, WI 53151 Germany Raudondvario Pl. 107 Birmensdorfer ntr. St Eunos Road 8USA LT-47186 Kaunas 8902 Urdorf #09-01A Austria Lithuania Switzerland Singapore Post CenterCanada Dematic GmbH & Co. KG SingaporeDematic Limited Graumanngasse 7, Top A5-1 Netherlands United Kingdom6750 Century Avenue, Suite 302 1150 Vienna Dematic Benelux Dematic Ltd ChinaMississauga, Ontario L5N 2V8 Austria Europalaan 4c Beumont Rd, Dematic ShanghaiCanada 5232 BC Den Bosch Banbury, OXON 18F Tower 1, Kerry Everbright City, Denmark Nederland OX16 1QZ No. 218, West Tianmu Road,South America Dematic Skandinavien United Kingdom Shanghai 200070, P.R.ChinaT: +55 11 3627-3100 Skottenborg 12-14 RussiaF: +55 11 3627-3101 8800 Viborg Dematic GmbH Malaysiainfo@dematic.com Danmark Russian Representative Office Dematic Malaysia Sdn. Bhd. ul. Bakhrushina 32/1 12-03A, Level 12, Plaza MasalamBrazil France RU 115054 Moscow Jalan Tengku Ampuan ZabedahDematic Sist. Equip. Mov. Mat. Dematic S.A.S. E 9/E Section 9, 40100 Shah AlamLtda Av. Embaixador Macedo 6, Avenue Gutenberg Selangor, Darul Ehsan, MalaysiaSoares, 10735 77600 Bussy Saint Georges4º Andar - Vila Anastácio - São France New ZealandPaulo Dematic Pty Ltd05035-000 – Brasil Eastside - Building 7, 15 Accent Dr East Tamaki, Auckland New ZealandDEMATIC LOGISTICS REVIEW

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