Issue 3                                              HK SYSTEMS PROFILE                                              We we...
WElcomE to thE    latEst fRom thE    WoRld of logIstIcs    Welcome to Issue 3 of Dematic Logistics Review –    Your Window...
contents                                                    Cover Story: BINA, Switzerland                     4-6        ...
COVER STORY BiSChOfSzEll NahRuNgSmiTTEl ag    Bischofszell, switzerland                                        Design obje...
ElimiNaTiNg TRaVEl: SPliT CaSE                                                                                   Goods-to-...
COVER STORY BiSChOfSzEll NahRuNgSmiTTEl ag                                        ElimiNaTiNg TRaVEl: SPliT CaSE     Bisch...
WOOlWORThS             BaTChiNg ORdERS & SORTiNg ThEm OuTmelBourne, australia                      Batch PicK & sort      ...
WOOlWORThS    melBourne, australia    Key features of Dematic’s modernisation solution    • A new picking methodology for ...
BaTChiNg ORdERS & SORTiNg ThEm OuT                                                                                        ...
TEChNOlOgY fEaTuRE      distriBution loGistics      10 stRatEgIEs      foR dIstRIbutIon      logIstIcs succEss      Under ...
“             The supply chain has undergone dramatic                                          We call this model the ten ...
TEChNOlOgY fEaTuRE distriBution loGistics Improving performance and reducing costs by eliminating non value-adding tasks O...
10 STRaTEgiES fOR                                                                                                  distriB...
TESCO lOTuS     BanGBuathonG, thailand     sPlIt casE     PIckIng foR     tEsco lotus     Tesco Lotus is increasing the nu...
ElimiNaTiNg TRaVEl: SPliT CaSE                                                                                 let the ord...
SOuThERN WiNE aNd SPiRiTS      laKeland, florida     bIggEst dc yEt     foR southERn     When Southern Wine and Spirits of...
BaTChiNg ORdERS & SORTiNg ThEm OuT                                                                                        ...
ChaiN REaCTiON CYClES     Belfast, northern ireland     VoIcE PIckIng     staRts a logIstIcs     chaIn REactIon Chain Reac...
REal-TimE ENaBlE lOgiSTiCS                                                                                         wireles...
NEWS, PROduCTS, TEChNOlOgY     & software review     hk systEms joIns     thE dEmatIc famIly     Now fully integrated into...
77 sRms with rotating forks service more than 64,000 pallet locations at stop & shop’s dc in massachusetts.               ...
NEWS, PROduCTS, TEChNOlOgY     & software review EnhancIng multIshuttlE                                                   ...
takE contRol                                                        of youR dc                                            ...
Dematic Logistics Review #3 R 2
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Dematic Logistics Review #3 R 2

  1. 1. Issue 3 HK SYSTEMS PROFILE We welcome HK Systems to Dematic L GISTICS NEw dc dIREcTOR Take control of warehousing with WCS REVIEW PROducT REvIEw News, technology and software updateTEcHNOLOGY FEATuRE:10 STRATEGIES FORDISTRIBUTION SUCCESSBINA: Switzerland TEScO LOTuS: ThailandMultishuttle® & Integrated order fulfilmentMiniload drive logistics for convenience stores DEMATIC LOGISTICS REVIEW Creating Logistics Results
  2. 2. WElcomE to thE latEst fRom thE WoRld of logIstIcs Welcome to Issue 3 of Dematic Logistics Review – Your Window to World’s Best Practice Logistics. As I announced in the previous issue of Dematic base, making Dematic the leading systems and Logistics Review, Dematic has acquired the conveyor solution provider in North America. North American business of HK Systems. I am In particular, HK Systems adds great strength excited to report that Dematic has successfully in Automated Material Handling and Logistics commenced the integration of our two Software Solutions, and comes complete with companies that will now be united under the new ASRS, AGVs and automated handling Dematic brand. technology in a wide range of manufacturing, The synergies from the combined companies food and beverage, archive and library enhances our product offering, technical applications, considerably expanding our range capabilities and physical infrastructure through and reach. global engineering centres. While Dematic is a A review of some innovative HK Systems projects global leader in the marketplace, HK Systems’ can be found on pages 20-21. strong presence in North America fits within our Roar Isaksen, regional strategy. The new capabilities extends Dematic continues to go from strength to President & CEO, our manufacturing, distribution and warehousing strength and I am confident that as we continue Dematic capacity, and expands our geographic reach to grow and develop our business, we will with more sales offices and industry-specific impress you with our quality product range, sales engineering. innovative product and software concepts and solutions design capability. This complementary business partnership provides Dematic with new products, new sector expertise and a significantly expanded talent Roar Isaksen, President & CEO, Dematic2 DEMATIC LOGISTICS REVIEW
  3. 3. contents Cover Story: BINA, Switzerland 4-6 Case Study: Woolworths, Australia 7-9 10 Strategies for Distribution Logistics Success 10-13 Case Study: Tesco Lotus, Thailand 14-15 Case Study: Southern Wine & Spirits, USA 16-17 Case Study: Chain Reaction Cycles, UK 18-19 HK Systems Profile 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.dEmatIc In actIonat PRomat & cEmatProMat March 21-24,2011 Chicago, USA CeMAT May 2-6,2011 Hannover, GermanyDematic North America recently completed Dematic featured numerous world firsts at CeMata very successful ProMat, proudly hosting including a comprehensive, future-proof rangecustomers and prospects in two premier booths of solutions with sustainability being a centralfilled with robust technology, equipment demon- theme. A host of impressive innovations werestrations and thought leadership presentations. integrated into a complete in-plant material flowTwo new solutions were launched at ProMat: system, underlining our position as one of the world’s leading logistics automation providers• RapidPick – a new high capacity goods-to- and demonstrating how modern logistics can be person (GTP) order fulfillment system that delivered in a cost-effective and environmentally- supports pick rates of up to 1,000 per hour friendly way. Highlights included:• Laser Trucks+ – an innovative combination of • Dematic Multishuttle MS Flex – a new shuttle Dematic’s leading picking and voice software capable of handling different size containers with Automated Guided Vehicle technology on a rider pallet truck, designed to improve mixed • Dematic RapidStoreML – a new Miniload case order fulfilment productivity. ASRS with advanced load handling devicesIn addition, Dematic sponsored and/or • Modular Dematic MCS conveyors that enableparticipated in four ProMat presentations, flexible system reconfigurationshowcasing our significant talent and depth of • Dematic Ecodrive – new software designed toindustry experience and knowledge. improve energy efficiency by 10-15%. DEMATIC LOGISTICS REVIEW 3
  4. 4. COVER STORY BiSChOfSzEll NahRuNgSmiTTEl ag Bischofszell, switzerland Design objectives • Extension of capacities in high bay warehouse • Construction of ASRS and set up order picking system for convenience food • Refrigerated storage of 120,000 containers with 450 different fresh articles • Order picking of up to 120,000 units per day • Split case order assembly: grouping articles and optimizing container packing • High-performance order picking up to individual item level • Consistently sequenced, automated processes • Automation for higher flexibility and efficiency. Benefits and outcomes for BINA • One stop shop from the plant design via IT and controls to mechanical engineering within short implementation timeframe • Refrigerated order picking buffer for fresh articles • Consistent monitoring via networked plant displays Stock is stored in • Optimized load distribution and utilisation of resources Miniload ASRS and • Higher throughput and extensively automated processes Multishuttle® storage with Multishuttle buffering and sequencing warehouse buffers, which • Increased split case distribution efficiencies sequence goods in the correct order, • High flexibility and reliable pick rates with negligible errors optimising order • Sell-out oriented and sell-out optimized order containers picking productivity • Package and branch-optimized positioning on load carriers. and accuracy.4 DEMATIC LOGISTICS REVIEW
  5. 5. ElimiNaTiNg TRaVEl: SPliT CaSE Goods-to-Person order PicKinG gtP sPlIt casE oRdER PIckIng & assEmbly foR bIna Dematic has implemented one of the most innovative split case order picking solutions in Europe for the ‘Convenience Gate’ distribution centre operated by Bischofszell Nahrungsmittel AG (BINA) at Bischofszell, Switzerland. The system provides reliable high-performance order picking down to the individual item level, and sequenced, automated processes maximising the efficiency of order assembly and distribution right through to point-of-sale. “ Leading Swiss food manufacturer BINA produces around 1,000 tonnes of frozen, chilled and packaged convenience foods every day, with products including fresh salads, sauces, ready-made meals, potato products and drinks. BINA’s Convenience Gate DC at Bischofszell Special features are is the food distributor’s central logistics hub, providing a range of services to support its the high dynamics diverse customer base including retailers, in picking our fresh caterers, canteens and industrial companies,products and branch- with over 750 food outlets alone supplied with fresh products from the facility. matching order Expanding distribution capabilities assembly right down Following an expansion of its product range and to individual items. significant demand growth in the convenience This guarantees fast food sector, BINA decided to upgrade theprocessing and opens capacity of its existing high bay warehouse and add a new, automated small goods warehouseup new options for our (ASW) equipped with an integrated Goods tocustomer orientation. “ Hugo Thaler, Logistics Manager, BINA Person (GTP) split case order picking system. Dematic’s solution for BINA Dematic has helped transform BINA’s Convenience Gate into a highly efficient DC with dynamic, consistently sequenced order BINA’s Logistics Manager Hugo Thaler picking processes. The result is one of the most innovative split case picking and order assembly solutions in Europe. DEMATIC LOGISTICS REVIEW 5
  6. 6. COVER STORY BiSChOfSzEll NahRuNgSmiTTEl ag ElimiNaTiNg TRaVEl: SPliT CaSE Bischofszell, switzerland Goods-to-Person order PicKinG The high-resolution screen displays simple, easily understood symbols for order volumes, photos of the products to be picked, and a 3D description of where to place picked items in the shipping container, facilitating fast, accurate and safe order picking. Check weighing is also integrated to further improve accuracy. The result: “High flexibility and reliable pick rates with a negligible error rate,” said BINA’s Logistics Manager Hugo Thaler. “The special features of the solution are primarily the high dynamics in the order picking of our fresh products and branch-matching order assembly right down to the level of individual items. This guarantees fast processing of high volumes and has opened up new options for our customer orientation,” he said. Dematic installed a central plant display unit networked with the plant components’ control units to enable consistent monitoring of the flow of goods and orders, which enables BINA to optimize workload balancing across the operation. For goods outwards, order containers buffered in the Multishuttle are delivered just in time for dispatch. Sequences that focus on package and branch-optimized positioning on the load carriers are created for the container flow. The containers are automatically labelled during delivery to the dispatch preparation area, where The new refrigerated, automated small goods warehouse (ASW) they are automatically stacked in sequence and provides storage capacity for 104,400 containers. Serviced by three palletized. They are then conveyed to the goods AKL Miniload Cranes, it acts as a production buffer warehouse for outwards area. Preparation for loading is also incoming goods from production and external suppliers. sequenced, improving dispatch logistics. The three aisle refrigerated ASW, driven by Dematic AKL Miniload Cranes, acts as a production buffer warehouse for incoming goods from production and external suppliers. The second part of Dematic’s solution was the construction of a six-aisle Multishuttle® storage engine, which provides buffer storage and order sequencing for order fulfilment and goods outwards. Split case order picking and assembly Stock for orders is automatically delivered at rates of up to 2,200 containers per hour by the Dematic Multishuttle system at precisely the right moment and in the correct sequence to optimize picking and packing for point-of-sale, to six Dematic ergonomic picking stations. The innovative configuration of the picking stations are tailored to match operators’ individual requirements, including height adjustable operator platforms and work tables. Height and rake adjustable display screens provide simple step-by-step management of the picking process.6 DEMATIC LOGISTICS REVIEW
  7. 7. WOOlWORThS BaTChiNg ORdERS & SORTiNg ThEm OuTmelBourne, australia Batch PicK & sort Australia’s largest DC modernisation is designed to boost throughput by up to 80%, support growth for the next decade, and enable the country’s largest retailer, Woolworths to cost-effectively meet changing market demands.modERnIsIng “ dematic is to be commended for continually findingWoolWoRths ways to complete all of the various mechanical,ndc to suPPoRt electrical and It systems upgrades without adverselyfutuRE gRoWth impacting the site’s day-to-day operations. “ Aaron Ford, Project Manager, Woolworths Mulgrave NDC DEMATIC LOGISTICS REVIEW 7
  8. 8. WOOlWORThS melBourne, australia Key features of Dematic’s modernisation solution • A new picking methodology for split case orders • Relocating and extending various storage systems • A new pick module, reconfiguring existing areas • Installing zero-pressure accumulation conveyors prior to the crossbelt sorter inducts • Introducing pre-sort scanners and conveyors • A 47% increase in dispatch staging capacity • Adding new sorter infeed and 28 extra sort lanes • Installing new 5-sided scan arrays in preparation for GTIN (Global Trade Item Number) scanning • Removing redundant ASRS and Pick-to-Light • The development, configuration and integration of a new software suite, including a new WMS and WLAN to support the new IT initiatives. Over the past decade, Australia’s leading retailer, Woolworths, has implemented extensive end- to-end supply chain transformation initiatives as part of its business restructuring program, Project Refresh, delivering savings of more than $8 billion. A key initiative of Project Refresh was restructuring Woolworths’ state-based Distribution Centre (DC) network from 31 DCs to a national one with two National (NDCs) and nine Regional DCs (RDCs). Dematic has played a key role in the modernisation of Woolworths’ Mulgrave facility from an RDC supplying 160 stores in Victoria to an NDC servicing more than 800 stores Australia-wide. Key drivers for the innovative modernisation were maximising employee productivity and ensuring flexibility and redundancy to deal with changing order profiles and/or conveyor downtime. Like performing open heart and brain surgery Challenged with implementing the upgrade while the NDC continued its round the clock, six days a week operation, Dematic’s Modernisation Team likened the process to performing open heart and brain surgery on a patient who is wide awake. Major works had to be managed within the constraints of a live environment with the construction area accounting for up to 30% of the DC. Carton flows were redirected on a weekly basis as systems were decomissioned and new conveyor modules installed. While construction continued around the clock, testing and commissioning works had to be confined to less than a single day each week for this complex upgrade. The process required military precision. During that time it was necessary to switch from a fully operational system to an upgrade environment. Batch picked cases from full and split case picking modules are conveyed, pre-sorted That meant completely backing up the system and inducted onto the crossbelt sorter. before installing, commissioning and testing The Modernisation project has increased new equipment and software. Once testing was the sorter’s throughput capacity from complete, the system was brought back up to full 6,400 to up to 11,500 cases per minute. operational mode and tested yet again.8 DEMATIC LOGISTICS REVIEW
  9. 9. BaTChiNg ORdERS & SORTiNg ThEm OuT Batch PicK & sort Strengthening the NDC’s heart The heart of the Mulgrave NDC is its automated crossbelt sorting system, which takes batch- Reconfiguring picked goods from multiple areas of the DC existing equipment and automatically sorts them to the relevant and systems, shipping lane. The system was previously used adding new where to separately sort both full and split case items. required, and However to create additional sorting capacity, a implementing smart new and more efficient method of pre-picking and IT and software, packing split case orders into shippers has been made Modernisation introduced, enabling them to be sorted as full a much quicker case items, boosting capacity. and significantly less costly and Four inducts which were previously used for disruptive solution inducting split case items onto the sorter have for Woolworths, been reconfigured to handle full cases. Inducting compared to what full cases onto the sorter at two locations increases it would have faced the number of cartons the sorter can process, with had it chosen to every carriage now having the potential to complete build a new DC. two sorts each time it travels around the 240m sorter circuit. Pre-sort scanners direct stock to the most appropriate end of the sorter to maximise thisImproving the NDC’s brain power benefit.A key driver was for the NDC’s new IT systems and Another initiative designed to further increasesoftware to be more robust and locally supported. crossbelt sorting efficiency is the implementation of zero-pressure accumulation conveyors between theOne of the highest risk areas concerning day-to-day warehouse storage systems and the sorter infeeds.operations at the NDC was its outdated IT systems and The conveyors enable cartons to accumulate onsoftware. Dematic’s new Order Fulfilment Software line, minimising gaps between them. This ensures a(OFS) replaced five separate outdated and difficult to smooth, even flow of cartons onto the sorter inductssupport databases and operating systems, with a single and minimises any instances of conveyor stoppageuser-friendly software suite, improving order accuracy in the picking areas.and batch control, and significantly mitigating the risksassociated with the ageing IT systems and software. Prior to the upgrade, the sorter was achievingThe upgrade took into account Woolworths’ future plans throughput rates of up to 6,400 per hour.which, when complete, will enable RF picking and GTIN Converting the split case infeed to handle full cases,sortation. Pick labels will be eliminated, as will other non- installing additional sortation lanes, accumulationvalue-adding tasks like label printing and application. conveyors and pre-sorting goods to each endVoice picking will also be introduced, making the NDC of the sorter, together with the various IT andWoolworths’ sixteenth site to make the switch to voice. software enhancements, has increased capacity to an average of around 11,500 cases per hour. DEMATIC LOGISTICS REVIEW 9
  10. 10. TEChNOlOgY fEaTuRE distriBution loGistics 10 stRatEgIEs foR dIstRIbutIon logIstIcs succEss Under pressure from the rising cost of retail shelf space and market demand for shorter lead times, your customers require you to deliver the right product to the right place, in full, on time, more frequently, in a store friendly format and at a competitive price. Add regulatory and safety issues and it is clear that distribution is a dynamic challenge. Dematic presents a simple new concept for grouping solutions into ten proven strategies that address these issues and deliver distribution logistics success. 1: Improve order and warehouse management 2: Increase efficiency and reduce errors by 3: Reduce the time waste and control real-time enabling logistics processes the pick face and trave The first strategy for distribution logistics success Many manual operations using conventional storage Many studies conclude th utilises information to empower management and racks and shelving can be improved by adding a wasters in order fulfilment provide the information necessary to make informed smart overlay of data-enabling devices that bring Pickers often need to trave business decisions. Most businesses, large and instructions to the shopfloor in real time, boosting In small, relatively manual small, use some level of software for inventory thoughput, productivity and accuracy. that address the travel iss management, order management, material flow and Wireless RF Terminals, Voice Computers and Mobile dramatically enhance pro machine control. Modern WMS and WCS systems Data Terminals create a paperless environment and Using pallet trucks, forkl are designed to provide a single user interface for help enable real-time transfer of information across or laser trucks lets the pic all order fulfilment activities with a host computer, the supply chain. These devices enhance efficiency, used in conjunction with typically a WMS or ERP (enterprise resource planning) increase accuracy and productivity and provide can help to boost product system. Many supply chain gains can be made by greater supply chain visibility and traceability. They to spend more time pickin businesses simply by organising their information also allow businesses of all sizes achieve a highly using well designed software. flexible business model that facilitates change. This The second option to red strategy is often adopted by 3PLs who have short the pick face. This is sim term contracts and need to have a business that can of either pallet or carton l be adapted quickly to future change. solutions condense the p stock in lanes behind the distance can be reduced of wasted travel time whe 1 Improve warehouse & order management 2 Real-time enable your logistics processes 3 Conden face & tr10 DEMATIC LOGISTICS REVIEW
  11. 11. “ The supply chain has undergone dramatic We call this model the ten strategies for distribution change in the past decade, with cost reductions, success and logically applied, they consistently productivity improvements and delivery help companies of all shapes and sizes improve performance no longer the only drivers for logistics their distribution logistics performance. system design. Although not strictly a hierarchy, it is often easiest Today, labour availability, OH&S and flexibility to visualise the ten strategies as a series of steps. are equally important considerations, with the The further up the steps you go, the greater the growing awareness of these issues driving a although return from leveraging economies of scale with distribution logistics revolution across all markets increasing levels of technology. from retailers to wholesalers, and manufacturers not strictly a And while it doesn’t make sense to consider high to 3PL (third-party logistics) providers. hierarchy, it is levels of automation for small companies with Working on thousands of projects with many of often easiest basic distribution requirements, clever ideas can the world’s most successful and enterprising to visualise help make the distribution task smarter and businesses gives Dematic a unique global insight more economical. Relatively simple, low-cost the ten into what it takes to deliver distribution logistics initiatives can deliver impressive results for smaller success. strategies as companies. It’s also wrong to assume that all While different industries, markets, countries, cultures and companies of different sizes all require their own solutions, our experience shows there are many different technologies and techniques helpful in improving performance, but it is often “ a series of steps. big companies should automate all distribution functions. A high level of automation may optimize productivity and lower costs in the short term, but when product profiles, market demand or workforce availability change, the potential lack of flexibility with automated solutions may become a difficult to sort out which is the most appropriate problem longer term. Knowing which strategies to and why. That’s why we have developed a system apply where and when to get the best out of your for grouping concepts. business is the key.ed travelling by condensing 4: Boost efficiency by letting the orders travel 5: Increase productivity by picking multipleelling faster to pickers via smart conveyor routing orders at the same timehat one of the biggest time The fourth strategy goes one step further in tackling Another logical strategy designed to tacklet is travel. the travel problem. By utilising smart material flow performance issues in picking is to get the picker controls and zone routing conveyor systems, orders to pick multiple orders at every pick location. This el from location to location. do the travelling from zone to zone, and pickers stay can be achieved by combining orders for several l DCs there are two options within their picking zone. Zone routing solutions are customers into what we call a batch. When a pickersue in a simple way that can ideal for mid-to-large size companies who supply split is able to batch pick the stock for multiple orders atoductivity. case orders and who are trying to introduce a basic each location, it significantly increases productivitylifts, order pickers, cranes level of automation. and throughput. Full case applications includecker move faster and, when Walk-Pick-to-Belt conveyor, with the batch-pickedh smart storage systems, Many find that this concept can be applied to their goods transported and automatically sorted backtivity by allowing the picker entire range using different levels of automation to individual order requirements by smart conveyorng and less time travelling. to optimize picking efficiency across the product sortation systems. movement curve. For example, combinations of duce travel is to condense A-frames, carton live storage zones and conventional In split case applications, cluster picking allows mply done by using bays binning zones can be arranged with various multiple orders to be picked in a single pass, with live storage. These simple combinations of pick-to-light and voice-directed pickers typically using RF or voice-directed trolleyspick face by storing reserve picking to enhance productivity and accuracy for fast using Pick-to-Light displays to direct the picker as e pick face. The pick face movers and slow movers alike. Clever software can each batch is selected. by up to 80% saving a lot enhance overall system performance by taking ordersen picking an order. only to the zones where they are needed, eliminating bottlenecks in material flow.nse the pick ravel faster 4 Move the orders to picking zones 5 Batch pick & sort to increase productivity DEMATIC LOGISTICS REVIEW 11
  12. 12. TEChNOlOgY fEaTuRE distriBution loGistics Improving performance and reducing costs by eliminating non value-adding tasks Order fulfilment typically accounts for about 90% of distribution centre costs, however analysis of many order fulfilment operations highlights a multitude of non-value adding tasks. You pay pickers to pick, but often to do their job, they must do many non-productive tasks as well. They need to collect picking instructions and the equipment they need, find the stock location, inspect the stock to ensure it is correct, pick the items required, check and mark the order. But mostly they travel from location to location. The ten strategies for distribution logistics success reduce and eliminate non value-adding waste throughout distribution operations.6: Use smart software to gain free picks by 7: Use buffering and sequencing technology to 8: Let the goods and the o picking only those items you need eliminate travel and facilitate Goods-to-Person (GTP) with split case GTP pickMany companies are completely unaware that there One of the newest and most impressive strategies for The eighth strategy is theare opportunities to totally eliminate the need to pick distribution logistics success uses a concept where in high volume split case aa case from a pallet at all, and that’s where the sixth travel is eliminated altogether. Travel is eliminated altogetstrategy comes into play. Goods to person picking has been around for many Pickers stay put in ergon years but the thing that makes it feasible today stations designed to optiSmart order fulfilment software can be used to is the power of the computer combined with new workplace safety requiremrecognise free picks. By analysing and cross- buffering and sequencing systems. Modern storage orders and the stock reqmatching customer requirements, it is possible to and retrieval engines and sequencing technologies travels to the picker’s locpair orders so that by picking the stock for one, the have created a revolution. Dense and highly efficient are needed. Pick and putstock that is left behind creates a free pick. ASRS systems can now handle the volumes required to facilitate discrete or baThe concept can be used manually or by incorporating to select either totes or pallets and deliver them to order processing needs. Pa robot to do the picking. It can be used in mixed case picking or putting locations. enhanced using various scor layer picking operations. Either way, productivity In high volume split and full case picking operations to-light or voice-directed cincreases with picking rates of over 1400 cases/hour new technology allows stock for orders to be pre- Either way, split case GTachievable. picked, buffered, sequenced and delivered to pickers be highly efficient when h precisely when and in the order they need it, driving picking tasks are required. new, more cost-effective distribution solutions.6 Use smart software to pick one, get one free 7 Eliminate travel with Goods to Person (GTP) 8 Let split orders d DEMATIC LOGISTICS REVIEW
  13. 13. 10 STRaTEgiES fOR distriBution loGistics success Summary From the first strategy – implementing warehouse management software to get better visibility and control – to the last – fully automating processes and eliminating and many other non-value adding tasks. – our new grouping concept demonstrates the many opportunities for companies of all shapes and sizes to create more effective supply chains now and into the future. Each step in the hierarchy is a step towards im- proved efficiency in distribution and supply chain management. Each strategy is designed to eliminate non value- adding activities and address important business drivers. Intelligently applied, they bring distribution strat- egy into alignment with business strategy and pro- vide a competitive edge.orders do the travelling 9: Build orders and unit loads faster and safer 10: Enhance productivity with fully automatedking solutions with GTP full case palletizing solutions picking and palletizing solutions application of GTP picking In the ninth strategy, full case picking is examined. In the strategies so far, people have been used inapplications. Much like split case picking, the equivalent full case the process. The idea has been to make them more solution utilises cleverly designed work stations productive by eliminating non-value adding tasks. Butther. that ergonomically allow the building of mixed case in some cases where goods are too heavy or therenomically designed picking pallets. Travel is completely eliminated by supplying are very high volumes, solutions can be completely imize efficiency and meet pre-picked and sequenced mixed cases in the correct automated.ments. In GTP systems, the order for load assembly at palletizing stations where Advances in software, product storage, buffering, quired to fulfil the orders operators simply slide cases into position, making the sequencing and recognition systems, and high speedcation precisely when they task easier, faster and safer. articulated robots with versatile product grippingt stations can be designed The stations are often built on a mezzanine floor with tools, have driven the development of automatedatch picking depending on integrated conveyors delivering a constant flow of picking and palletizing systems capable of handlingPick stations can be further mixed cases. As each layer of cases is completed, the a diverse range of SKUs including boxes of variouscanning technologies, pick- pallet automatically lowers, enabling assembly of the sizes, trays,open or closed cartons, bagged goodscomputing. next layer to begin, significantly reducing the physical and sacks.TP solutions can prove to effort required, and improving the safety, speed and Capable of building higher, more dense and stablehigh volumes and repetitive quality of order assembly. pallets, with improvements in speed, accuracy and . As the pallet is being lowered, it may be stretch store-friendly flexibility, these extremely accurate, fast wrapped for stability. and reliable systems can even handle multiple mixed case SKUs. For split case, A-frames automatically dispense items, but need people to replenish them. case goods &do the travelling 9 Smarter, faster, safer mixed case palletizing 10 High rate automated picking & palletizing DEMATIC LOGISTICS REVIEW
  14. 14. TESCO lOTuS BanGBuathonG, thailand sPlIt casE PIckIng foR tEsco lotus Tesco Lotus is increasing the number of its Express convenience stores in Thailand, with Dematic recently assisting the retailer with a new split case picking solution encompassing order fulfilment software, paperless picking technology, and an integrated conveying system.14 DEMATIC LOGISTICS REVIEW
  15. 15. ElimiNaTiNg TRaVEl: SPliT CaSE let the orders do the movinG Tesco Lotus’ Express outlets are small format Operators press buttons on the PTL displays, convenience stores offering customers access to providing real time confirmation of each pick as a range of grocery products in local residential it is completed. With the PTL technology, both areas. With the number of Express outlets set accuracy and productivity have significantly to grow, Tesco has implemented a new Central improved. Express Distribution Centre at Bangbuathong to Conveying facilitate efficient distribution to these stores. When totes become full during picking, they For Tesco Lotus’ large scale hypermarket outlets, are transferred to a central takeaway conveyor goods are distributed mostly as full cases, layers for transportation to dispatch. Order picking and full pallets. By contrast, distribution for the continues into a new tote. Totes are transported Express stores involves a significant amount of from the Pick Module and sorted to store in split case picking. Recognising that split case preparation for marshalling and dispatch. order fulfilment is more challenging, complex and labour intensive compared to conventional Robust, reliable and supportable IT systems distribution, Tesco Lotus approached Dematic With the system managed by Dematic’s bi- for assistance in developing a solution that would lingual PickDirector software, Tesco Lotus has enable picking across tens of thousands of order real-time visibility and tracking of each item that lines, and facilitate over one million unit picks is picked, the tote it is picked into, the operator every day. who performed the task and the time it was done. PickDirctor’s reports and statistics in Thai Dematic’s integrated solution have proven to be invaluable tools for Tesco Working together with Tesco Lotus in the Lotus’ supervisors in managing operations. planning phase to understand all the operational Additionally, Dematic’s visualisation system requirements, Dematic studied the product provides remote system control, real time range and analysed the order profile. equipment monitoring and status information The integrated solution included a specially in graphical format, allowing fast and easy designed pick module, real time Pick-To-Light diagnostics for management and maintenance (PTL) paperless picking technology and an staff alike. integrated conveying system. Customer benefits Efficient order picking • Increased productivity and throughput capacity The multi-level Pick Module comprises carton • Real time visibility and operational flexibility live storage picking aisles with products located • Modularity and scalability for growth in zones and each location equipped with a PTL • Improved accuracy, traceability, accountability. device. Store orders picked into totes are passed sequentially through the picking zones.nanthapol Totes are inducted into zones with a hand scannerkanjanazoon, and the PTL devices are illuminated to indicategeneral manager, the products and the quantities required.bangbuathong dc DEMATIC LOGISTICS REVIEW 15
  16. 16. SOuThERN WiNE aNd SPiRiTS laKeland, florida bIggEst dc yEt foR southERn When Southern Wine and Spirits of America, Inc. – the USA’s largest wine and spirits distributor – builds a new DC, they do it in a big way. Running 18 DCs is a big operation by any measure. After updating two into its “New Generation” format, next up was its biggest DC yet – a 650,000 sq ft state of the art complex in Lakeland, Florida. “The decision to expand our DCs was driven by Nationally, the company operates a fleet of 1,100 volume growth,” said Bobby Burg, Southern’s of its own local delivery trucks and 120 semis. Senior VP of Supply Chain Strategy. “In the old paper process, when we were reading “Like in many other industries there is a sheet of paper to pick and put a case on the consolidation occurring, meaning fewer and line, we would shoot for maybe 180 cases per fewer wholesalers. Much of our growth is coming man hour for a good picker. Now, our minimum through consolidation.” on a pick line is 250 cases per man hour, a 40% productivity increase,” said Mr. Burg. Southern Wine and Spirits distribution Smart handling of split case orders Southern’s distribution facilities provide next day delivery to around 140,000 customers. It Although the majority of deliveries encompass exclusively uses its own internally managed full cases, there is some full pallet delivery to fleet. Orders received by 5:00 pm are delivered supermarkets and other chain stores, and a small the following day. The company is constantly amount of cross-docking to accommodate. refining its automation processes to ensure the However, an interesting part of this operation most efficient production and consistent level of is how Southern handles split case orders. customer service. Restaurants and bars often order a single bottle Despite its continual growth. Southern maintains a to keep costs down or because they don’t have strong focus on customer service, with decisions the storage space to order by the case. driven by customers’ needs and requirements. Voice picking is used in a split case pick module The company uses a hub-and-spoke system for for fast, accurate, efficient mixed order assembly. distribution – they have one central DC servicing multiple cross-dock facilities, where goods are transferred into route trucks for local deliveries. Pick line productivity has increased from 180 to 250 cases/man hour.16 DEMATIC LOGISTICS REVIEW
  17. 17. BaTChiNg ORdERS & SORTiNg ThEm OuT Batch PicK & sortReducing product breakage Slug merge streamlines carton handling “Roller accumulation conveyors minimise gaps and The slug merge system controls the staging andcontribute to low product damage. Smooth starts release of cartons into the sorter, increasing systemand stops ensure fragile and unstable loads can be throughput, eliminating bottlenecks, smoothingsafely transported and accumulated. Heavy-duty out variances from multiple pick areas andconveyors handle cases weighing 35-40 pounds, optimizing batch cycling. Cases scanned upstreamworking efficiently under load; transporting, are released into the merge as a slug withoutaccumulating, reorienting and staging efficiently. gaps, increasing the rate of flow through the “The decision to sorter compared to conventional merges. 7,000 feet of conveyors move products at a rate of 500 feet/minute – fast considering a lot expand our DCs “For cartons, the product is picked, put on of the products are high end, and almost all was driven by conveyor, labelled with an ID tag, and sent into in glass. The breakage percentage is very low an accumulation area,” said Dematic’s Don– less than one per cent and half the industry volume growth. Passarella. average. When handling over 11 million cases – Like in many other “They are scanned and released into a merge. at an average value of $100 – it is a substantial industries there Normally, when product is released into a improvement over industry norms. merge, it creates gaps that limit throughput. We is consolidation used a unique technology at the merge, where occurring, we pre-build slugs of product then pre-set the meaning fewer gapping of the product on the slug belts. As we release the slugs, it gives us very precise and fewer handling of fragile products. The cases that come wholesalers through the merge are now pre-gapped and there ... much of is a constant, even flow going to the sorter.” our growth is Sortation increases throughput and accuracy coming through Dematic’s high-rate sliding shoe sorter provides quiet sortation and ultra-high throughput. The consolidation.” highest sort rates Southern had achieved before Lakeland DC was 6,000 cases/hour. The new Bobby Burg, Senior system is capable of handling 10,000 cases/hour, “ VP of Supply Chain Strategy, Southern Wine and Spirits and an extra 12,000 bottles in split case/hour. Before, the DC averaged 150 cases/man hour. Now, it is handling 225 cases/man hour. In terms of shipping accuracy, Southern was averaging one per cent errors out the door, it now averages 0.2% – an 80% reduction. “A five-sided scan tunnel at the end of the sorter provides for the verification of all the SCC codes (Source Classification Code) to the shipping links,” said Mr. Passarella. “This is a customization we did using point-camera technology to read barcodes on cases, and compare that to shipping labels to ensure the correct label is applied to the right case, and customers get what they ordered.” DEMATIC LOGISTICS REVIEW 17
  18. 18. ChaiN REaCTiON CYClES Belfast, northern ireland VoIcE PIckIng staRts a logIstIcs chaIn REactIon Chain Reaction Cycles sells bicycles, spare parts and accessories online, direct to the customer. Dematic is supplying Chain Reaction Cycles, Recently the company also expanded into winter sports goods and now offers an amazing 84,000 the world’s largest online bike store, with a different products from its 150,000 sq ft purpose- solution for voice picking, packing and conveying, built facility in Ballyclare, just outside Belfast in Northern Ireland. as well as a tailored warehouse management Celebrating 25 years of business in 2010, this system in a logistics solution that will drive a family-owned company became an online 50% improvement in order picking efficiency. business 10 years ago, and is currently experiencing a staggering 40% year on year growth. Sounding out the benefits of voice picking Realising it needed to improve order fulfilment to accommodate its rapid growth and, being aware of the benefits that voice picking could deliver, CRC approached Dematic. “We subsequently spent three days on site at CRC conducting a study and setting up a live trial of voice picking to demonstrate the concept to those on the CRC board who were not familiar with the technology,” said Stuart Stables, Head of Dematic’s Product Division “During our review of operations, we also identified that CRC’s in-house ERP system lacked the specialist warehouse functionality of Dematic’s own Warehouse Management System (WMS), which we could tailor to suit CRC’s particular requirements.” Dematic won the contract, but no longer for just voice picking and a packing system. It also included Dematic’s WMS to cover all warehousing aspects for CRC including goods receipt, put- away, replenishment, pick and pack, stock and cycle counting, and kitting, with CRC also making bicycle wheels to customer requests. During the development of the WMS, Dematic identified significant potential efficiency improvements from feeding orders to the packing area on an automated conveyor system. Cartons are now erected automatically and fed to packers, while conveyors transport picked orders from the picking zones directly to the packers, significantly reducing the amount of time wasted travelling.18 DEMATIC LOGISTICS REVIEW
  19. 19. REal-TimE ENaBlE lOgiSTiCS wireless data communications Speeding up the supply chain “As we have come to realize the potential of our own supply chain for gaining competitive advantage, I was charged with the responsibility of speeding the flow of goods through the warehouse as efficiently as possible. Maintaining inventories at optimum levels and raising customer service performance have become key priorities,” said Barry Dunn, CRC’s Operations Manager. “Keeping customers satisfied requires a fast and efficient service with the right product being delivered, in perfect condition, on time. Our warehouse can no longer afford to be regarded as a dusty building for holding stock. It has to perform so that goods are received, processed and dispatched with the minimum of errors. Mistakes that occur in picking are costly, both in terms of “ pickup/delivery costs and repackaging, as well as customer dissatisfaction and the loss of business errors cause.” “After lots of research into various technologies, case studies, site visits and sales pitches, and, with a lot of help from Dematic, we decided to deploy voice picking to our warehouse, allowing our picking staff to simply listen and respond “With a lot of help to instructions through a headset, leaving their from Dematic, we eyes and hands free to pick efficiently. decided to deploy “Pickers in the warehouse can receive voice voice picking to instructions, ask questions and report back without having to carry paper with them or keep returning our warehouse, to a picking desk. They don’t have to un-holster allowing our and operate a data terminal with a keyboard, or waste time looking at displays; they can just keepImplementing the solution one step at a time picking staff to their eyes on what they are doing at all times.”With a tight timeline for its deployment, Dematic listen and respondsplit the scheme into two phases. Mr. Dunn added: “Dematic’s approach was to instructions very refreshing. Having sat through lots of salesThe first phase comprised implementing the pitches from various companies, it was greatvoice picking system, including 35 Vocollect through a headset, when Dematic arrived with the voice hardware in aTalkman terminals, and the packing and leaving their eyes suitcase and a very practical approach to workingdispatch system, which features 20 packingterminals, with each packing station including a and hands free out what best suited our business needs.”touch screen, barcode scanners and label and to pick efficiently.”document printers. Barry Dunn,The second phase involved deployment of the fullWMS, including goods in, stock management andreplenishment modules and included the supplyof hand-held wireless data terminals to improveCRC’s goods receipt and put-away processes, “ Operations Manager, Chain Reaction Cyclesand was completed after the new packingconveyors had been installed. Order pickingefficiency has been improved by up to 50%.Dematic’s integrated logistics solution also givesCRC’s management team real-time information atits fingertips, with full visibility of all order status.“The simple, intuitive voice system helps speed operations as it tells pickers where to go and what to pick, and gets them to confirm they have the correct item. This simplicity also makes it easy to get people up to speed, picking quickly,” said Dematic’s Stuart Stables. DEMATIC LOGISTICS REVIEW 19
  20. 20. NEWS, PROduCTS, TEChNOlOgY & software review hk systEms joIns thE dEmatIc famIly Now fully integrated into Dematic, HK Systems shares its vast and complementary knowledge. This important acquisition the space saving asRs at utah state archives, saved enhances Dematic’s breadth and scope of industry specific more than us$2 million expertise, as highlighted in the following case studies. in construction costs alone. MillerCoors, Trenton, Ohio Utah State Archives, Salt Lake City, Utah Leading brewer MillerCoors automated The Utah State Archives, which houses Utah’s warehouse operations at its Ohio brewery, oldest and most valuable documents, photos and improving inventory accuracy and availability, the original Utah State Constitution, was the first increasing truck loading efficiency and volume, fully automated archive collection in the USA. and lowering operating costs. Archivists needed a storage solution that offered Located adjacent to its existing warehouse, a this priceless collection a secure and consistently new four-aisle, double-deep rack providing controlled environment, while maximizing the use storage for over 10,000 pallets up to 82’’ high of space, with only archival approved shelving is serviced by four 110 ft tall SRMs capable of used to ensure that no contaminants were storing or retrieving two pallets weighing up to introduced into the collection. 2500 pounds at a time. The automated library system (ALS) provides A fleet of 32 laser-guided AGVs transport two rapid access to the collection, and features a pallets at a time over 3,000 feet of path to deep 44 ft high storage system configured with two lane floor storage locations for fast moving aisles serviced by two triple deep storage and items, with slow movers and single pallet items retrieval machines (SRMs). Comprising 18 bays to the ASRS for storage. The AGVs transport of triple deep rack, it provides a total of 1080 pallets for dispatch or directly to the rail or storage locations, each holding 48 archive boxes, truck shipping docks, with pallets staged in the creating a total storage capacity of 51,840 boxes. required rail or truck load sequence. In total, the system occupies a footprint of just Finished goods are not handled manually until 7,592 sq ft, less than 25% of the floor space they are picked up from the shipping area close that would have been required for conventional to the docks. archive storage, saving more than US$2 million in construction costs. The Equipment Management The AGV system also features an automated Software that controls the ALS operations battery charging and exchange system, which interfaces directly with archive application enables the system to run and operate without software to create load movements, track location human interaction. information, and provide collection analysis. a fleet of 32 agVs and a 110 ft tall asRs handle two pallets at a time, keeping the goods flowing efficiently20 DEMATIC LOGISTICS REVIEW at millercoors ohio brewery.
  21. 21. 77 sRms with rotating forks service more than 64,000 pallet locations at stop & shop’s dc in massachusetts. Stop & Shop, Freetown, Massachusetts Ford Motor Company, Chicago, Illinois With its Freetown DC, Stop & Shop built the most This innovative four-aisle ASRS receives car advanced automated grocery distribution store in bodies on skids from paint operations and North America. Housing more than 64,000 pallets, delivers them in sequence to final trim. the DC comprises two separate warehouses: at The rack supported structure has nine levels and 500,000 sq ft, the perishable goods warehouse eight bays providing a maximum of 576 storage provides over 25,000 single deep ASRS storage locations, and is serviced by four double-masted locations serviced by 35 SRMs, while the 620,000 SRMs, designed to handle a car body on a single sq ft dry goods warehouse provides over 38,500 skid weighing up to 2,200 pounds. storage locations serviced by 42 SRMs. The skids are stored in the ASRS in the single Inbound pallets are brought to the ASRS by WMS- deep position using only the rack locations that directed forklifts, where they are automatically are between SRM aisles. If one aisle is taken retrieved from pick up stations and put-away. out of service, all of the loads in that aisle can The SRMs also replenish floor level pick slots in be accessed from the adjacent aisle using the each aisle and perform empty pallet take-aways. SRM’s double deep capacity. A special SRM with rotating forks was specified The computer control system tracks inventory, for this project, with the multi-function unit selects aisles, manages the integrated conveyor, compatible for use in just about every warehouse controls the safety gates, schedules vehicle layout. retrievals based on Ford’s required build Alternating with each ASRS aisle is a pick aisle sequence and provides all required recovery where operators pick cases to automated pallet capabilities. trucks. Pick instructions and acknowledgement Ford has been able to introduce the same vehicle are conducted via a voice-activated interface to build schedule into Final Assembly as was the WMS. started in the body shop. This enables suppliers The integrated solution has increased inventory to receive, manufacture, assemble, ship and accuracy, cut product and rack damage, deliver components in sequence. improved workplace safety and reduced staffing overheads across all three shifts.the asRs at ford in chicagohandles fully painted car bodiesand sequences them for final trim. DEMATIC LOGISTICS REVIEW
  22. 22. NEWS, PROduCTS, TEChNOlOgY & software review EnhancIng multIshuttlE ® flExIbIlIty Dematic has significantly improved the functionality of the Multishuttle automated storage, buffering and sequencing system. MS-Flex extends Multishuttle’s handling range, giving it the capability of picking a wider range of unit loads, such as totes, trays and cartons, of varying widths and lengths. dEmatIc Equipped with a MS-Flex is suitable The shuttle’s on- telescoping Load for both single board controller uses Handling Device (LHD), and double deep the length data to RaPIdPIck: MS-Flex shuttles applications, using calculate where the feature a split chassis a set of retractable edge of the load is design comprising a fingers to put-away relative to the fingers. 1000+/houR fixed side (front) and a and retrieve goods of moveable side (back). differing shapes and When required, the This provides the sizes. telescoping LHD LHD with its flexible moves at a fast speed width adjustment. The With variable length to a point prior to With Dematic’s new RapidPick, order fulfilment is just system is capable of loads, the actual finger engagement of like an assembly line, with the stock for orders arriving handling products position of where the the unit load, slows at precisely the right time and in the correct sequence ranging in width from fingers engage the down to engage the to fulfil orders as efficiently as possible. 200-625mm. unit load is dynamic. item, then accelerates for the rest of the Screens provide step-by-step instructions facilitating handling cycle, fast, accurate and safe order picking increasing optimising throughput. productivity to over 1000 order lines per hour.22 DEMATIC LOGISTICS REVIEW
  23. 23. takE contRol of youR dc WIth nEW dc dIREctoR nEW namE Dematic has introduced DC Director V2.0, foR asRs an integrated warehouse control software product, which provides real-time order management,RaPIdstoRE material flow, and machine control for effective DC operations and logistics management. Dematic DC Director updated in real time User-friendly webIn a major update of our Miniload provides a single and facilitating other and mobile client user interface for processes including interfaces provideand Unit Load range of SRMs, all order fulfilment automated invoicing real-time visibilityDematic has created a new name – activities with the and shipping to assist decision user’s host computer documentation. support andRapidStore – for its comprehensive – typically a WMS management: DC Directorrange of ASRS solutions. or ERP system – integrates • Order detail with and enables the zone by zone status technologies such seamless integrationConfigured with components, optimizing as RF and voice • Container contents of technologies andracks, rails, in-feed reliability and minimising picking, pick-to-light, and location software.and out-feed stations, costs. and ergonomic trackingcontrols and software, It manages the flow picking stations, Requiring aisles just • Workload reportsRapidStore Unit Load of materials and with automated 250mm wider than the to aid allocationSRMs (storage and orders, constantly materials handling load and reaching up to and balancing ofretrieval machines) reporting status systems including 30 metres, RapidStore resourcesprovide superior unit back to the host, ASRS and conveyors, UL ensures higherload handling and enabling host into a single order • Picker and zone storage density andperformance. inventory data to be fulfilment system. productivity reports. immediate access toCombining innovative each and every pallet. Hostengineering and RapidStore UL SRMsmanufacturing feature a unique masttechniques, Host Interface/ERP Adapter design allowing them toDematic RapidStore operate at impressiveUL is a new class travel speeds up to 240 Performance Manager Logistics Manager (LMS)of SRM delivering Logistics Cockpit IT SOLUTIONS metres/minute, hoisting Warehouse Control DEMATICan outstanding speeds up to 85 metres/combination of minute and fork speedsquality, impressive Advanced Material Carton Goods-to- Person-to- up to 90 metres/minute. Forklift Flow Routing & Person Goodsperformance and Management Control Sortation Picking Pickingunbeatable value. That equates to a retrieval rate of 63RapidStore UL SRMs pallets per hour or 40 Controls and Devices Interfaceare available in a range double cycles in a singleof sizes and speeds to SCADA/System Manager deep system that is 24mprecisely match your TECHNOLOGIES high with a 65m long Vehicle- Multishuttle Conveyors RapidPick & Pick to Paperstorage and handling DEMATIC Mounted Miniload Merge & other GTP Pick RF Cart aisle. Such a system and ASRS Inducts workstations Pick by Voicerequirements. would accommodate Hand Held Case & Psllet Sorters Multishuttle Pick to Light Wireless Data & Conveyors Scanners Miniload Put to LightSuitable for both up to 1600 standard Voice Terminals Monorail Palletizing Conveyors Robot Pickingnew and existing sized pallets in a singlestorage facilities, aisle and 3200 palletsRapidStore UL in a double deepintegrates standard configuration. DEMATIC LOGISTICS REVIEW 23