Dematic Logistics Review #5

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Dematic Logistics Review #5

  1. 1. Issue 5 SERVICE EFFECTIVENESS L GISTICS Helping you get the best out of your DC AUTOMATING libraries REVIEW First automated library takes off down under Product review News, technology and software update Se t p ww emb w.m er hc 9-12 20 12 , 201 .co m 2WORLD-FIRST robotic LAYER PICKER ROBOTICWITH FREEPICK MAXIMIzER: AUSTRALIA AustraliaLIFTING PRODUCTIVITYAND SAFETY FOR NESTLE´JCPenney: USA Bosch Rexroth: GERMANYVariable speed Space efficient Multishuttleconveyor sorts buffer store lifts orderout crossdocking assembly productivity DEMATIC LOGISTICS REVIEW Creating Logistics Results
  2. 2. Helping you get the of your logistics op Welcome to Issue 5 of our global customer magazine, Dematic Logistics Review. In this issue we bring you logistics systems We know, because you tell us it’s true, case studies from North America, Europe, that Dematic Service is a key benefit that and Asia Pacific, and update you on the latest our company brings to your business. innovations from our very busy R&D teams. Of that, we are very proud. We will show you examples of solutions Our cover story features a world first provided for retailers, manufacturers, and application of Dematic’s FreePick Maximizer food and beverage producers, and illustrate software in a robotic layer picking operation. the benefits of the intelligent application of By pairing compatible orders, our patented technology, controls and software. software makes it possible to process up We also have a very interesting case study to 50% of stock for orders without actually about an automated library solution for handling it. Macquarie University – the first in Australia. Recently, our global management team met in In particular, we will focus on new offerings Shanghai, the commercial capital of the world, from our Customer Service group. As we all to discuss ways in which we can continue know, service and support is essential to growing our business to serve you better. businesses for whom an efficient supply A range of topics were covered and reviewed, chain is a critical competitive strategy. producing the following key outcomes:2 DEMATIC LOGISTICS REVIEW
  3. 3. Contents Cover Story: Nestlé, Australia 4-6 Case Study: Alloga Burgdorf, Switzerland 7-9 Delivering Service Effectiveness 10-12 Case Study: JCPenney, USA 13-15 Case Study: Bosch Rexroth, Germany 16-17 Case Study: Suncoast, USA 18-19 Case Study: Macquarie University, Australia 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.he best out perations 24/7 • We recognize that the only future certainty We investigated these things in great detail is change, so we considered product and because they are essential to meeting our system designs that will provide modular, aggressive global growth targets. We have scalable and flexible solutions, while at the already started the process of developing same time lowering your lifecycle cost of action plans, and expect to see developments ownership in the field that will give you a better result. • We also believe that time and the ability to The reason I am sharing this with you, is accelerate ideas and goods through the because I want you to challenge our system supply chain is an important strategic trend, designers, project managers and service so we investigated new procedures and teams to engage with you and demonstrate the processes to ensure your projects advances that I am confident we will make. are available and performing for you We seek your feedback to confirm we are on in the shortest practical time the right track. I am confident that Dematic Roar Isaksen, • And finally, because your logistics systems will continue to provide outstanding logistics President & CEO, are designed to deliver competitive solutions in all areas of your business. Dematic advantage, we investigated exciting new ways to ensure your future performance Roar Isaksen, in a rapidly changing world through our President & CEO, Dematic customer service division. DEMATIC LOGISTICS REVIEW 3
  4. 4. COVER STORY Nestlé Australia Limited Sydney, Australia eliminating 4 million manual case picks each year for Nestlé An innovative robotic layer picking solution has eliminated the need to manually pick over four million cases and assemble layers manually, significantly improving the quality and productivity of mixed pallet assembly at Nestlé Australia’s national distribution center (DC) at Arndell Park in Sydney.4 DEMATIC LOGISTICS REVIEW
  5. 5. Pallet Layer Picking Automated robotic order assembly Nestlé’s high volume DC stores and distributes A safer, smarter solution to picking layers several hundred stock keeping units (SKUs) from Orders from Nestlé’s SAP warehouse manage- Nestlé’s consumer food and beverage, food ser- ment system are downloaded into Dematic’s vice and pet food businesses. PickDirector warehouse control system to The high demand for Nestlé’s leading household initiate picking, with it ordering the stock re- brands means most of the DC’s orders – around quired for layer picking in the sequence re- 80% – are distributed as full pallets. Picking the quired to fulfill the next wave of orders. This is remaining 20% of orders – which are distributed retrieved from adjacent bays of reserve storage in pallet layer and full case quantities – has in- by RF-directed forklifts and loaded onto the volved the manual handling of around five million induction conveyor spur. cases per year, creating a significant and ongo- As pallets are fed into the layer picker, they areNestlés Operations ing occupational health and safety (OH&S) chal- scanned, and the control system directs the op-Performance Manager lenge. Nestlé’s innovative layer picking solution erator to remove the required amount of stretch-Mark Massoud with DC eliminates the need to manually handle around wrapping from the pallet.Manager David McLellan four million of those cases. The pallet is then conveyed into the layer pickercollecting one of three The layer picking system achieves very high where it will go direct to one of four pick loca-awards the project throughput thanks to Dematic’s FreePick Maxi- tions, or, if it is not immediately required, into onereceived at the 2011 mizer patented software. of eight buffer storage locations serviced by anAustralian Supply Chain By cross-matching orders and pairing those with automated pallet cart.and Logistics Awards. compatible order profiles, FreePick Maximizer While the software requests pallets to arrive at the enables around 20% – in some instances up to layer picker in a particular sequence to suit order 50% – of goods for orders to be distributed with- assembly, the reality is that pallets occasionally out them being physically picked. turn up out of sequence. The buffer storage loca- tions enable such pallets to be temporarily stored online within the layer picker until required. As new pallets of stock are fed into the system, the layer picker selects the required layers and transfers the stock to one of four customer or- der pallets. Any stock remaining on a pallet either forms the basis for another order via the system’s FreePick Maximizer software, or is returned to the adjacent reserve storage for use at a later stage. Building stable rainbow and sandwich pallets With the supply chain running leaner, there is a general trend towards ordering smaller quantities of goods such as layers, rather than full pallets, or cases rather than layers. Many customers also require pallets to be built in a certain way to suit further processing. To maximize pallet building flexibility, the layer picking system has four order picking positions, which enables up to four orders to be picked con- currently. An empty pallet location accommodates the production of multiple layer sandwich pallets. The 4-axis robotic layer picker is equipped with dual bellows and a vacuum-gripping head ca- pable of handling up to 80% of Nestlé’s prod- uct range, covering a broad range of packaging types from cartons to bags and bottled beverages. When the robot is directed to pick up a layer, the bellows inflate and close around the product creating a seal. The vacuum exerts just enough pressure to pick up the layer, minimizing the po- tential for product damage during handling. The vacuum gripper head offers the maximum ver- satility in product handling, making it suitable for picking layers from any pallet stacking pattern, even those that have a hole in the middle. DEMATIC LOGISTICS REVIEW 5
  6. 6. COVER STORY Nestlé Australia Limited Pallet Layer Picking Sydney, Australia Automated robotic order assembly Dematic Robotic Layer Picking system overview Completed orders are conveyed through the integrated layer picking system being check- weighed, stretchwrapped and labeled on the way, until they exit ready for collection and transport to dispatch by forklift. Orders that require further case picks to be added to the layers exit the system, where a bar- code label is attached prior to their retrieval by forklift. After the required case picks have been completed using the DC’s new voice picking system, the pallet is reinducted onto the system, checkweighed, stretchwrapped and labeled for dispatch. Superior pallet build quality improves transport utilization, with less handling damage and fewer returns. Voice picking a sound solution for case picking The introduction of voice-directed computing has also improved the safety of Nestlé’s remain- ing manual case picking requirements. Nestlé’s To maximize pallet building flexibility, the layer picking system forklift operators now wear a small headset and has four order picking positions, enabling up to four orders to be a lightweight, voice computer attached to their picked concurrently. An empty pallet station accommodates the waist. The workers simply listen and respond to production of multiple layer sandwich pallets. Full pallets of stock clear, verbal commands instructing them where are fed direct to one of the pick locations or to an online buffer. to go and what to pick. After picking for an order is complete, the pallet is automatically stretchwrapped and labeled for dispatch. A significant advantage of voice-directed com- puting for order picking is that it leaves the user’s hands and eyes free at all times, making handling How Dematic FreePick Maximizer picks layers for free and picking cartons faster and safer. Project outcomes • Eliminates the need to manually pick and han- dle 4,000,000+ cases/year • Significantly reduces forklift operations and the OH&S risks associated with manual layer pick- 5 0 ing, creating a safer workplace • Integrated IT systems including SAP WMS, De- matic PickDirector WCS, FreePick Maximizer and Vocollect voice picking enable fast, accu- rate and reliable operations • World first FreePick Maximizer enables 20% – Donor Pallet Put Pallet sometimes up to 50% – of case pick orders to Total stock for two orders (5xLayers) be shipped without picking • Superior pallet build quality for improved transport utilization, less product damage and returns • Reduces distribution operating costs 3 2 • Rapid payback: Estimated 3.5 year ROI The ingenuity of the project was recognized by the Supply Chain and Logistics Association of Australia (SCLAA) at the 2011 Australian Supply Chain & Logistics Awards, with Nestlé winning FreePick Maximizer identifies that two orders require a total of five the SCLAA’s Manufacturing Logistics, Storage layers of the same SKU (2+3). Simply picking two layers from the and Handling of Materials, and Supply Chain Management Awards. donor pallet for the first order, leaves behind the three layers of stock required by the second order, creating a FreePick.6 DEMATIC LOGISTICS REVIEW
  7. 7. ALLOGA AG GOODS-TO-PERSONBurgdorf, switzerland ergonomic split case PICKINGMultishuttle An innovative, future- oriented goods-to- person (GTP) orderoptimizes 3PL picking solution has enabled Swiss pharmaceuticaldistribution company and 3PL provider Alloga to improve productivity,for ALLOGA capacity and safety, while reducing errors and operating costs. DEMATIC LOGISTICS REVIEW 7
  8. 8. ALLOGA AG Burgdorf, switzerland A Dematic Multishuttle® is the heart of Alloga’s goods-to-person (GTP) order picking system. Safety and efficiency are assigned the highest A Multishuttle Alloga’s distribution challenge priority at Alloga AG. Founded in 1957, the Swiss system tailored Each year, the Burgdorf DC processes more than company provides 3PL services for many well to suit Alloga’s order processing 420,000 orders, comprising around 60 million known partners, supplying wholesalers, doctors units. and pharmacies. requirements has improved picking “Based on the Multishuttle, we were able to de- “Warehousing has been concentrated at our Burg- productivity, velop and present a concept for Alloga tailored dorf site for the past decade,” explained Alloga’s throughput and precisely to the 3PL provider’s needs,” said De- Logistics Manager, Peter Freiburghaus. accuracy. matic’s Peter Spycher. Over that time, the 3PL’s supply chain has be- “The solution offers the required performance for come much more demanding, with customers the anticipated throughput, numerous cost ad- placing increasing numbers of orders for smaller vantages and also includes modular expansion quantities of items. options capable of doubling the existing contain- “In light of increasing quantities of minimum vol- er management capacity, which leaves Alloga ume orders, we were looking for a future-orient- well placed for further long term growth.” ed solution to automate goods-to-person (GTP) Stocks of 10,000+ different products are stored picking to generate immediate financial benefits, The space-efficient Multishuttle houses in the central warehouse. After incoming goods and that would also offer us the ability to accom- have been checked for put-away, they are en- more than 8,000 modate further growth,” said Mr Freiburghaus. tered into the IT system, and sampling and ap- containers in a two- “Dematic presented an innovative solution based aisle, double-deep proval processes carried out where appropriate. on using Multishuttle® as an automated order configuration, and Multishuttle handles split case orders picking buffer, an attractive price/performance provides scope for ratio and long-term investment security,” he said. further growth. Orders requiring less than full case quantities are now processed by the DC’s Multishuttle system, which houses about 2,500 products across a to- tal of 8,320 container storage spaces in the two- aisle, double deep system. The Captive Multishuttle at Alloga is serviced by 20 Multishuttle cars – one for each of the ten storage levels in each aisle. They ensure fast ac- cess to the containers, with the outward proc- ess of up to 800 containers per hour to the order picking workstations contractually guaranteed,” said Mr Spycher. “Much higher throughput rates can be achieved than were previously possible using conventional picking strategies,” he added.8 DEMATIC LOGISTICS REVIEW
  9. 9. GOODS-TO-PERSON “ ergonomic split case PICKING Dematic presented an innovative solution based on using Multishuttle as an automated order picking buffer, an attractive price/performance ratio and long-term investment security. Peter Freiburghaus, Logistics Manager, Alloga AG “Automated order picking Around 1,800 orders are processed and shipped The Multishuttle using these methods each day in the central Al- delivers 800+All operations are carried out automatically. The loga warehouse, with the trend for orders requir- containers per hourorder picking process is initiated by Alloga’s ing less than case quantities on the rise. to the order pickingwarehouse management system (WMS). workstations,Controlled by Dematic’s material flow system, Future-proof design optimizing productivitythe required containers are accessed in the Dematic has taken future expansion into account and accuracy.Multishuttle. The smart Multishuttle follows op- in the system design for Alloga. For example, thetimized goods outwards strategies, sequencing Multishuttle installation is designed for futurepicking by product group and by product char- system expansion with an additional ten levels.acteristics, such as, “liquid”, “light” or “heavy,” This means that the warehouse volume could bewith no loss in performance. doubled within the same basic area, without sub-For order picking, the employees move the trans- stantial modifications to the warehouse layoutferred article containers onto a set of scales. A and processes. “A logistics system that mastersdisplay shows the order picker the quantity of every challenge and provides cost-effective solu-items that needs to be picked and transferred to tions,” summed up Mr Freiburghaus.the appropriate customer container. “This applies equally to the services we provide toIn this process, up to four different customer our partners and customers, and to the Dematiccontainers can be open for order picking on each solution for small volume order picking.”order picking workstation. After the order pickerhas acknowledged the process, the open con-tainers are transported back into the warehouse.At the same time, further containers are removedfrom the system for order picking. Minimizing errorsCompleted customer containers are transportedto packing stations where orders are checkedand prepared for dispatch. Packages are thenconsolidated on pallets or roller containers andprepared for shipping.“Thanks to this process optimization, we were able to reduce our error rate considerably,” stat- ed Mr Freiburghaus.“The checking and safety measures integrated multiple times over in the order picking system not only support the order picking processes, they also enable consistent monitoring and, where necessary, restrict access to sensitive pharmaceutical items.” DEMATIC LOGISTICS REVIEW 9
  10. 10. DELIVERING SERVICE EFFECTIVENESS DEMATIC SERVICE DEMATIC SERVICE Giving your dc A competitive EDGE Most successful businesses make promises about To meet these lofty business objectives many companies make substantial investments in the availability of their products. The responsibility state-of-the-art DCs with specialized automation of delivering on the promise falls fairly and squarely interfaced with sophisticated controls and soft- ware. in the lap of the supply chain team. It’s not an easy They depend on reliability to achieve their targets job to get the right product to the right place, in good week-in, week-out over the life of the system. condition, just when the customer wants to buy… But as any logistics professional will tell you there but someone has to do it. are traps and pitfalls. Unexpected peaks in de- mand, changes in product profiles, errors in pick- ing or shipping and – despite the fact that most modern systems are highly reliable – mechanical, electrical, controls or software may require sup- port or adjustment. At Dematic, we place great emphasis on find- ing new ways to increase your uptime, optimize system performance and ensure you meet your customer’s highest expectations. Our aim is to help you turn your logistics and dis- tribution into a powerful competitive strategy. Our service organization can tailor a highly re- sponsive service and support strategy to pre- cisely match your performance objectives. Field Service and Support Dematic directly employs field service and sup- port personnel. Available around the clock, 365 days a year, Dematic field service technicians provide emergency support for those unplanned events that disrupt your systems and can main- tain your system through regular servicing to maximize availability and minimize breakdowns. It’s during peak demand times that systems fail- ures are most critical to your business. A regular service program will minimize the risk to your operations. Residential Service Many companies are taking a new approach. Residential maintenance programs provide full- time, on-site service technicians. Fully managed across multiple disciplines includ- ing mechanical, electrical, controls and software, the residential team becomes a seamless part of your operations management strategy.10 DEMATIC LOGISTICS REVIEW
  11. 11. Dematic CustomeR SERVICE & SUPPORT Our trained industry specialists share their knowledge with your staff to help get the best out of your system. As your business changes we also keep an eye on the future, continuing to work in partnership to meet your ongoing system and training needs.Operational Audits Trained operators have the expertise to provideOperational requirements invariably change over immediate advice about the best course of ac-time. Often the original business and product mix tion to respond to any issue or to actively inter-the system was designed for has to be changed vene to correct system faults before operatorsas customer and market forces dictate. are even aware of the problem.Whether it is a full functional audit to assess sys- Early Warning Systemstem and operator effectiveness, or specific safety Monitoring software built on years of experienceand equipment-related details that are needed, has led to the development of predictive tools toDematic can conduct a range of audit activities further improve your system’s performance. De-to assist in the safe and efficient operation of matic can monitor your system using diagnosticyour business. software, looking for potential malfunctions andWe can produce Equipment Condition Assess- analyzing events and issues that could affect up-ments and recommend upgrades and improve- time even before they happen.ments to mechanical, controls and IT systems, in Dematic is dedicated to continuing its leadershipaddition to safety and productivity reports. as the industry’s most comprehensive service or-Remote Monitoring & Diagnostics ganization. Our aim is to turn your DC into a stra- tegic weapon that will speed delivery, improveIn automated logistics systems, time is money. accuracy, ensure reliability and cut costs.The savings gained through automation means Our goals are clear:that total systems operating time is crucial. Com-plex and time-critical order sequencing and the • Ensure safe operations at all timesspeed of throughput means that catching up • Minimize unscheduled stoppagesthrough employing more hands is not possible. • Reduce maintenance costsRemote monitoring and early alert of system er- • Optimize your system’s performancerors can significantly reduce the impact of faults • Maximize the working life of your systemand, importantly, the time taken to rectify them.Remote monitoring can be utilized to take advan- • Increase your system’s uptimetage of a centralized team of skilled engineers. SERVICE DEMATIC LOGISTICS REVIEW 11
  12. 12. DELIVERING SERVICE EFFECTIVENESS Dematic Modernization & upgrades CustomeR SERVICE & SUPPORT Supply chain demands are changing at a faster pace than ever before. Keeping your DC up to date – even if its only a few years old – is vital to responding efficiently to changing customer and market demands, including regulatory requirements. modernization breathing new life into your DC Your system has provided many years of service, Dematic Modernization Services & Support Technologies and Equipment and now it may be that it simply can’t perform at • Storage retrieval machines • Systems assessed and upgrades recommended the level you need it to, or your business model • Software and controls and requirements have changed. • Upgrades performed within tight timescales to meet your operational requirements • Conveyors and electrical systems Older systems can also become expensive to re- • Strappers and printers pair and maintain as parts and software become • Updated controls, software and components • Motors and drives obsolete and manufacturers go out of business. available for older systems • RF & Pick-to-Light systems Alternatively, you may want to implement greater • Ongoing support to ensure maximum benefit • Safety systems automation and new technologies. You don’t necessarily need a new system, but we recognize that as your business grows and develops, so too can your system. As no two logistics operations are the same, De- matic reviews a range of options and creates a modernization plan tailored specifically to suit your business requirements and timescale. We offer proven modernization and upgrade technologies which can transform your system and deliver the increased efficiency, ease of maintenance and reliability you need quick smart. Updated controls, software and mechanical components are available, and they may be all that’s needed to increase operating efficiency to meet your current needs. Modernization presents an excellent Our modernization experts have the experience opportunity to review and improve work and the knowledge to assess your existing sys- SERVICE processes to deliver further improvements. tem and transform it in a way that will meet your requirements today and into the future.12 DEMATIC LOGISTICS REVIEW
  13. 13. JCPenney CROSSDOCKINGCALIFORNIA, USA conveying & sortingCross-docking atVariable Speeds forJCPenney JCPenney’s Retail Logistics Center (RLC) at point of control, permitting the flexibility for allLeading retailer Lathrop, California represents state-of-the-art in sections of the system to run at independent,JCPenney operates package conveying. variable speeds to optimize component through- The RLC, which is essentially a cross-dock facil- put requirements and maximize operational andover 1,000 energy efficiencies. ity for imported goods, is equipped with a hostdepartment stores of smart conveying systems to transport up to From the moment the ASN’s (Advanced Shippingthroughout the US 200,000 cases per day and sort them at 99.9% Notice) are received and containers or trucks ar- accuracy. rive at one of the 17 receiving docks JCPenneyand Puerto Rico, as knows exactly what is coming in. Smart Dematic technologies include high ratewell as one of the merge, single line high rate carton gapper, sliding The high-tech automation, from receiving tolargest apparel and shoe sorter with parallel diverting, linear induction shipping and everywhere in between, means a motors, modular variable-speed functionality, and typical case only spends six minutes in the DChome furnishing single-point system control. and is only touched twice (unloading at receiptsites on the Internet, “JCPenney had two criteria for the Lathrop DC,” and loading at shipping) in the process, beforeand the nation’s said Dematic’s Mike Harding. “One, high through- it is on its way to one of the company’s regional Store Support Centers (SSCs). Once received atlargest general put, capable of handling at least 150,000 – the SSCs, they cross-dock the merchandise and 200,000 cartons per day over two shifts; and two,merchandise automatic speed control to adjust sorter speed ship it out to 1000+ JCPenney retail stores.catalogue business. to actual volume,” he said. Important addition to supply chain networkThey are supported Dematic Integrated Sortation Sub-System® Lathrop’s primary function is to receive and sort imported merchandise for routing to JCPenney’sby one of the The DC is JCPenney’s first to utilize a sortation SSCs. 90% of merchandise received at the RLC is technology called Integrated Sortation Sub-Sys-most integrated tem® (ISS), developed by Dematic. from overseas in containers. The remaining 10%distribution ISS approaches the entire sortation sub-system from local suppliers is merged in with the contain- er merchandise at the RLC’s receiving docks.networks in the US. as a singular unit, fully integrated with a single Prior to Lathrop being built, JCPenney received DEMATIC LOGISTICS REVIEW 13
  14. 14. JCPenney CALIFORNIA, USA The sorter automatically adjusts speed to accommodate actual throughput rates. all West Coast container shipments at its Buena Park RLC in Southern California, through the Port of Long Beach. Increasingly, more merchandise was being received from overseas and through the Buena Park facility, stretching the limits of the DC. JCPenney in Lathrop, CA, now allows routing of inbound goods through the Port of Oakland. The added capacity of the DC, and the port diversifi- cation, has helped reduce transportation time for direct imports and mitigate potential risks. Dematic conveyor system operational features “We have automatic variable speed control on the whole sorting sub-system,” said Tim Wood, Manager of Logistics Facilities Engineering, JCPenney. “It automatically adjusts sorter speed to accom- modate actual rates. Or, we can dial in whatever speed we want. If we know it is a slow day we will run the conveyors at 300 feet per minute. If it is a heavy day we can run them at 550 feet per minute.” “This helps save electricity and it really helps save on the wear and tear of equipment.” • Power loaders – Power loaders unload con- tainers and trucks, with each carton immedi- ately assigned to a specific store and given a UPC code while it is still on the conveyor.14 DEMATIC LOGISTICS REVIEW
  15. 15. CROSSDOCKING conveying & sortingDematic’s FlexGap • Pre-merge accumulation – It is possible that slats of the sorter without mechanical contact –induction system hundreds of cartons from a container could be there is an air gap between the electromagnetscloses the gaps destined for a specific store. A conventional and the slats. The LIM drive-units are mountedbetween cartons, merge handling this volume of cartons to the and centered on cross member supports, aresignificantly same store would have caused throughput is- evenly spaced along the sorter track, and pro-improving conveyor sues on the sorter. To overcome this, Dematic pel the sorter slats without any moving parts.sorting efficiency. designed a zipper merge so that cartons for the The sorter has no belts, drive chains, gears or same store don’t enter the sortation subsystem sprockets, no air lines or compressors requiring in a continuous line. The zipper merge shuffles maintenance, no filters to clean, and no oiling. the deck, so to speak, so the chance of having “One of the big features for us is the linear induc- a high number of cartons going to the same tion motors,” explained Mr Wood. location in a continuous line is reduced. “The sorter utilizes multiple linear induction drive • Precision gapping – The cartons exiting the motors for redundancy It is engineered such that main merge are moving at 45 CPM. But after the the sorter will still operate if a motor is off line. With main merge, everything needs to run at sorter our other sorters, if a motor or gearbox drops, our speed, which is 238-plus CPM. The answer is whole sorter is down until we get it fixed.” Dematic’s FlexGap™ induction system which The sortation subsystem is controlled by the De- closes the gaps between cartons. Because the matic FlexSort PC controller, which handles all packages are closer together, the sorter can run inductions, tracking and diverting, with a web- at a slower speed, yet handle the same volume based graphic monitoring system simplifying op- of packages that another sorter would handle erational control and management. having to run at least 20% faster. Consequently, Lathrop’s sorter can process the same number of cartons at 540 feet per minute (FPM) com- pared to the industry standard of 650 FPM. • Parallel Divert Sortation with Linear Induc- tion Motors – A unique feature of the Dematic FlexSort SL sorter is its use of linear induction motors (LIM). These electro-magnetic drives use a magnetic field to move the aluminum DEMATIC LOGISTICS REVIEW 15
  16. 16. BOSCH REXROTH HANNOVER, GERMANY Multishuttle lifts productivity 50% for Bosch Rexroth “Growth and rising customer requirements meant our DC had hit its limits,” said Joachim Roß, Head of the Bosch Rexroth DC in Laatzen near Han- nover, Germany. “We needed a future-oriented solution that would enable us to increase order picking and goods flow within the warehouse.” “Dematic’s innovative use of a Multishuttle as a high-speed buffer relieves the load on our ex- isting picking routes, improves access to stock and makes the best use of space all at the same time,” he said. Bosch Rexroth Laatzen DC The Laatzen DC covers an area of around 8,500 square meters. A high bay racking system hous- es 3,000 pallets, and a small parts automated storage and retrieval system (ASRS) provides space for 50,000 container locations. About 30,000 pneumatic products comprising around one million individual items are consolidated at the DC for global distribution. Dematic Multishuttle meets need for speed The DC’s existing small parts ASRS, conveyors and picking stations had a peak output of around 500 items/hr. To meet future targets, the DC needed to achieve a pick rate of 750 items/hr. Supply to the 12 picking stations was the bot- tleneck. Dematic’s solution introduced a buffer store prior to the system’s sequencers, which en- sures stock arrives at the picking stations in the correct order for assembly. Integrating the buffer store between the ASRS and the picking stations has reduced traffic on the conveyor system and the ASRS goods inward and outward processes. It significantly improves the handling of contain- ers that will be required multiple times in the com- pilation of a batch, especially fast-turnaround Integrating a space-efficient items. Thanks to the new buffer store, containers Dematic Multishuttle® system as a don’t have to return to the small parts ASRS ev- ery time they are used, but can remain within the high-speed buffer store between an buffer. The same applies to frequently requested existing small parts ASRS and a series items, and pre-picked order containers. of picking stations has cost-effectively The disconnection and duplication of inward, outward and transport processes provides high increased capacity and productivity at performance levels as well as increased order Bosch Rexroth’s Laatzen DC by 50%. picking and inward storage performance.16 DEMATIC LOGISTICS REVIEW
  17. 17. automated storage and retrieval High speed bUFFER STORE “ Right from thestart the system not only met, but exceededthe expectations placed on it. “Joachim Roß, Bosch Rexroth Because it is only for temporary storage, the “An intelligent and space-saving solution that not high-speed Multishuttle buffer didn’t need to only meets the required throughput, but with its be particularly large, enabling the project to be scalable expansion options also accommodates completed without any extensions to the build- further growth,” said Mr Roß. ing. Multishuttle’s improved energy efficiency in Exceeding expectations right from the start comparison to conventional ASRS and its low “Right from the start the system not only met, but maintenance requirements also minimize operat- exceeded the expectations placed on it,” he said. ing costs. “With Multishuttle eliminating the supply bottle- Making the best use of space neck to the picking stations, the required perfor- Unlike most conventional ASRS, Multishuttle mance of 750 container movements per hour is systems do not need to be fitted directly onto not a problem, and we can even process up to the DC floor. The modular system design enables 900 per hour. Multishuttle to be adapted to fit into the space “It was a professional and optimal project imple- that is available in existing buildings. mentation process that was commissioned with- In Laatzen, a second level was integrated in the out negatively impacting our ability to deliver,” DC on a 3.50 meter high platform over the pick- concluded Mr Roß. ing stations. The compact Multishuttle system “For a comparatively moderate investment, thanks with two 40 meter long aisles, five levels per aisle to Multishuttle we have been able to implement and a total of ten shuttles was installed above this. a solution for Bosch Rexroth that delivers perfor- The system provides space for 1,200 containers mance levels that simply would not have been and achieves 1,000 double movements/hr. At possible a few years ago,” said Rainer Alester, this rate, the buffer turns over every hour or so. Sales Manager, Industrial Projects, Dematic. DEMATIC LOGISTICS REVIEW 17
  18. 18. SUNCOAST Beverage Sales, Ltd Florida, USA Voice picking brings cheers to Suncoast Florida-based beer distributor Suncoast Bev- “Five years ago we handled less than 200 SKUs. erage Sales, Ltd distributes more than 17,000 Now we handle about 1,000.” cases of beverages daily – 80% of which is beer Beverage distribution characteristics – and approximately five million cases annually. The company’s decision to switch from paper to Beverage distribution – especially beer and car- voice picking was not taken lightly, and it had to bonated soft drinks – is characterized by the pre- be executed with minimal interference to the DC, dominant lack of a fixed SKU location scheme which operates 16 hours a day, six days a week. within the warehouse. In conjunction with implementing voice technol- There is usually little racking, and most of the ogy, Suncoast also took the opportunity to up- product is floor stacked two or three-pallets high. date its IT systems, implementing the Dematic The flow of product through a beer DC is ex- Warehouse Control System (WCS), PickDirector. tremely dynamic. The SKUs and their pick loca- With the software’s wide-ranging functionality tions are in constant movement. Beer distribu- spanning the entire warehouse environment – in- tors typically handle fewer SKUs compared to cluding picking, inventory control and shipping – retail DCs. A relatively small number of fast mov- it has helped to reduce picking errors, misreads ing SKUs (10 or 15 items) can account for 80% and mistakes, and virtually eliminated expensive of a beer DC’s case volume. and time-consuming quality control procedures. “As our SKU count increased and space became The need to automate critical in the warehouse, we were looking at how to take the thinking process out of our receiving Suncoast is an Anheuser-Busch affiliated distrib- and replenishing functions, and the loading of utor and one of the top ten beer wholesalers in our fleet,” explained Mr Mitchell. Florida. The company distributes to restaurants, bars, grocery stores, warehouse clubs and con- “Our interest to automate picking escalated when venience stores in Fort Myers, Florida. we saw the Dematic voice picking solution in op- eration at a Pepsi DC nearby. “We had been using a paper-based picking sys- tem,” said Tim Mitchell, President of Suncoast. “We could see how this computer-based system did the thinking for the DC, and how it could in- “It was a very slow and frequently difficult pro- crease efficiency and reduce labor hours in our cess with a high potential for mistakes, but was warehouse.” somewhat effective when we didn’t carry so many SKUs.18 DEMATIC LOGISTICS REVIEW
  19. 19. “ Full Case Picking voice-directed computingWe selected Dematic because of theirbroad customer base, experience in voice picking and their responsiveness to customizing the software to make it better for everyone. “ Cliff Hodges, IT Director, Suncoast Switching from paper to voice-directed picking, Suncoast Beverage Sales, Ltd increased case and pallet picking accuracy to 99.8%, improved distribution centre productivity by 20%, reduced labor hours, and cut truck loading times. New picking automation at Suncoast has increased accuracy and efficiency in its warehouse, with reduced order errors, faste   loading and a 20 percent increase in cases-per-labor-hour productivity, all order assembly flexibility productive Suncoast wor Dynamic picking with voice Improved making for happier, more Suncoast selected PickDirector for voice-based Supervisors can also rearrange the order in control of its picking, quality assurance, manifest- which routes are picked. PickDirector also di- ing and truck loading – all operations that previ- rects the loading and reverse stop sequencing ously required paper-based, manual validation. of the orders, and then ‘closes’ and certifies the The voice picking system is fully configurable loads on the trailer. by Suncoast, enabling it to modify the pick se- This process, combined with high picking accu- quence to adjust for volume fluctuations and the racy, eliminates the wasted time associated with spoken description to the selector. These two pre-delivery driver audits. Drivers arrive, pre-trip features allow an unprecedented level of site their vehicles and get on the road. control without requiring support from Dematic. “Our old way of loading would have one worker Voice in action at Suncoast loading one side-load truck at a time, which With no paperwork, operators pick with both would take 90 minutes to load,” said Suncoast’s hands, and tasks such as reading, writing, and President Tim Mitchell. searching for stock locations are eliminated. “Now we can have three to four workers picking Pickers wear a portable, belt-mounted speech and loading one truck, which enables us to load recognition device and a headset. The terminal a truck in 30 minutes or less,” he said. communicates to the host computer via a tradi- Suncoast has increased accuracy and efficiency, tional RF backbone. reduced order errors, boosted overall productiv- “We have found that the scan-to-confirm method ity by 35%, reduced numbers in the warehouse used by PickDirector allows for a first pass ac- and cut truck loading time. curacy of 99.8%, which is exceptional,” said De- “We saw a major decrease in our errors in the matic’s Technology Specialist, Tim Post. warehouse going onto the trucks from night “This meets all ASN (advanced shipping notice) loading,” Mr Mitchell continued, “with our latest targets out there. It raises accuracy to a level figures showing 99.9% accuracy.” that ensures no difficulty meeting the inbound Suncoast is planning to expand PickDirector requirements of big box retailers.” functions even further into its DC, with receiving and replenishment to be added at a later date. DEMATIC LOGISTICS REVIEW 19
  20. 20. Macquarie University Sydney, australia Macquarie University launchES Australia’s first ARC for books Macquarie University Library’s appropriately named ARC (Automated Retrieval Collection) can store up to 1.8 million books in less than a seventh of the floor space required by conventional shelving. The library also provides hands-on access to up to 500,000 items that are in higher demand. The capacity to store up to 2.3 million titles enables the University to house its entire collection – previ- ously split between sites – for the first time. With an initial inventory of 1.3 million books in the ARC, and 400,000 on shelving, the library is well placed to cope with title growth for years to come. Delivering a new standard of service Due to the space-efficiency of the ARC, the new library is about the same size as its predecessor, yet provides three times as much study space and associated facilities. “We are all very proud of our new library, but the most exciting thing is the improved service we can now offer to our students,” said University Librar- ian, Maxine Brodie. “Students can now simply browse our online cata- logue of titles, both electronic and print. If the item is located in the ARC, the student simply places an online request, and it will be waiting for them by the time they make their way to the pick up station. “Based on overseas experience with automated li- brary storage and retrieval systems, we expect the easy, convenient access the ARC provides will ac- “ tually increase book lending rates over time.” Macquarie University Librarian, Maxine Brodie The most advanced library in Australia has As collections continue to grow, we all face opened at Macquarie University in Sydney. the task of finding not only where to put The $97 million project incorporates a host titles, but how to retain immediate access of architectural and technology initiatives, to them. For those with larger collections, including Australia’s first Automated Storage & Retrieval System (ASRS) for handling books. some form of automation is needed. “ Maxine Brodie, Macquarie University Librarian20 DEMATIC LOGISTICS REVIEW
  21. 21. automated storage and retrieval Automated book storage and handling Automating book storage and handling The ARC is housed within an environmentally controlled 1,000 square meter vault about four floors high. Books are stored in quantities of up to 100 in steel bins, providing optimum long-term storage conditions. Four different height bins are used within the system to accommodate small to large publications. Prior to the books being put away in the bins, they were cleaned and their de- tails logged in the ARC’s location control system. Integrated by Dematic, the ARC uses four stack- er cranes to automatically handle the steel bins in and out of their 17,000+ locations at up to 160 per hour. When a book is required, the steel bin containing the book is automatically retrieved by one of the four stacker cranes, and delivered to a library staff member within a couple of minutes. Dematic’s Manager Direct & Wholesale, Darren Rawlinson, said implementing the ASRS had been a pleasant change from working in warehouses. “It was exciting to work on such a ground-break- ing project in Australia. Macquarie University’s new library is world class in every area, and we are proud to have played a part in bringing Aus- tralia’s first automated library storage and retriev- al solution online.” Automated storage the future for libraries The use of automated storage and retrieval sys- tems has become increasingly common in major universities and libraries in the USA and Europe. “Libraries around the world all face similar prob- lems,” explained Brodie. “As collections contin- ue to grow, we all face the task of finding not only• Provides ready access to up to 1.8 million titles where to put titles, but how to retain immediate access to them. For those with larger collections,• One-seventh of the floor space required by shelving some form of automation is needed. “More than 25 automated systems are already• Enables additional space to be used for other purposes in operation in major universities and libraries around the world. In time, they will become com-• Improves security, prevents titles being misplaced monplace just about everywhere,” she said.• Reduces clerical workload, controlled environment “As for Macquarie University, this building is de- signed to last for the next 50 years,” said Ms Brodie. improves cleanliness and longevity of titles “I’m thrilled to be a part of it. It’s a real investment in the future of the University and our students.” DEMATIC LOGISTICS REVIEW 21
  22. 22. NEWS, PRODUCTs, TECHNOLOGY & Software Review SERVICE Helping you get the best out of your DC 24/7 spare parts what you need, when you need it When you invest in an Dematic ensures the remote monitoring integrated materials handling system, you availability of quality spare parts through keeping watch on your DC expect it to perform around the clock, all our local and global sourcing network. year round. Our spare parts Dematic software applications. Dematic has an expert residential maintenance team available programs provide client DCs by to Remote monitoring Parts availability is organization ensures ensure your software is highly trained and/or crucial to this goal, easy ordering and with on-site mechanical software and Dematic can sup- timely delivery to electrical specialists, regular fully supported, 24/7. technicians who perform ply the high-quality customers anywhere Help desk technicians process patches and preventive, corrective and emergency genuine and approved in the world. with remote access are security updates as maintenance, as well as provide third-party spares you operational assistance to tests for on standby to ensure well as cluster ensure the Your local Dematic need, when you need materials high availability systems your Dematic software handling systems function service team is them. at optimum efficiency. Software and IT systems meet set Dematic available to assist support apart. your operational needs. several reasons to Proper performance, you and answer There are Extensive software All services are designed trouble-free operation your technical and support programs to optimize system and system longevity purchasing questions, can include regular performance and give are all enhanced and can also provide database checking, you a competitive edge. when a system is valuable advice on the server architecture and maintained with correct parts holding original parts. for your system.22 DEMATIC LOGISTICS REVIEW
  23. 23. Residential maintenance optimizing your dc’s performance PLC UPGRADES improve control Dematic residential DCs would not have on • Flexible staffing maintenance programs staff, becomes an issue. as operational provide client DCs with Another factor requirements increase on-site mechanical and/ influencing the move to during peak seasons or electrical technicians residential maintenance • Optimized uptime who perform programs is senior – no unscheduled preventive, corrective management’s push for downtime and emergency DCs to become more • Cost reductions maintenance, as well accountable for key through increased as provide operational performance indicatorsThe controls in your Upgrading materials productivity and assistance to ensure (KPIs), and to functionlogistics operation are handling equipment reduced overall the materials handling more cost-efficiently.fundamental to ensuring with the latest PLCs maintenance costs systems function at And, finally, there is theyour operations run (Programmable Logic optimum efficiency. • Dedicated desire to extend thesmoothly and reliably. Controllers) is a maintenance staffing There are several life of the DC’s capital cost-effective way resources focusing onThey provide seamless reasons to consider equipment to reduce its to enhance and materials handlingintegration between residential maintenance lifecycle cost.your host computer safeguard your logistics programs. The most • Improved equipment Each DC has its ownmanagement system operations. critical is the desire to and operational safety unique requirements,and materials handling PLC upgrades deliver increase system uptime, for which Dematic • Reduced parts usagesystems and technologies, significant benefits, which requires a more develops a custom due to maximizingdelivering precise including optimized comprehensive and residential maintenance equipment lifecycleshandling and optimizing equipment performance, systematized approach program, whether it be • Increased system andsystem performance. improved system to maintenance than for Dematic or any other equipment longevity uptime, enhanced what is typically type of equipment.However, as controls • Significantly reduces system management in place in manyapproach end-of-life Residential the potential and extended life. DCs. Additionally, asand become obsolete, maintenance benefits for emergency equipment becomessystems and equipment Dematic’s upgrade or unscheduled more sophisticated, A well structuredcan suffer performance capability is second maintenance the need for more residential maintenanceand reliability issues, to none in the industry, technically-specialized program can yield huge • Lower operating coststhreatening your logistics and covers all major personnel, which most benefits for a DC:operations and business. PLC types and brands. DEMATIC LOGISTICS REVIEW 23

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