Dematic Logistics Review #5

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

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WORLD-FIRST robotic LAYER PICKER
ROBOTIC
WITH FREEPICK MAXIMIzER: AUSTRALIA
Australia

LIFTING PRODUCTIVITY
AND SAFETY FOR NESTLE´
JCPenney: USA Bosch Rexroth: GERMANY
Variable speed Space efficient Multishuttle
conveyor sorts buffer store lifts order
out crossdocking assembly productivity

DEMATIC LOGISTICS REVIEW
Creating Logistics Results

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

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

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 centre (DC) at Arndell Park in Sydney.


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 are
Nestlé's 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 picker
collecting 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 one
received at the 2011 mizer patented software. of eight buffer storage locations serviced by an
Australian 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.


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.


ALLOGA AG GOODS-TO-PERSON
Burgdorf, switzerland ergonomic split case PICKING

Multishuttle
An innovative, future-
oriented goods-to-
person (GTP) order

optimizes 3PL
picking solution
has enabled Swiss
pharmaceutical

distribution
company and 3PL
provider Alloga to
improve productivity,

for ALLOGA
capacity and safety,
while reducing errors
and operating costs.


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.


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 hour
order picking process is initiated by Alloga’s
ing less than case quantities on the rise. to the order picking
warehouse management system (WMS).
workstations,
Controlled by Dematic’s material flow system, Future-proof design
optimizing productivity
the 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, the
timized goods outwards strategies, sequencing Multishuttle installation is designed for future
picking 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 be
with 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 layout
ferred article containers onto a set of scales. A and processes. “A logistics system that masters
display 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 to
In this process, up to four different customer our partners and customers, and to the Dematic
containers can be open for order picking on each solution for small volume order picking.”
order picking workstation. After the order picker
has acknowledged the process, the open con-
tainers are transported back into the warehouse.
At the same time, further containers are removed
from the system for order picking.
Minimizing errors
Completed customer containers are transported
to packing stations where orders are checked
and prepared for dispatch. Packages are then
consolidated on pallets or roller containers and
prepared 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.”


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 through creative state-of-the-art DCs with specialized automation
marketing programs. The responsibility of delivering interfaced with sophisticated controls and soft-
ware.
on the promise falls fairly and squarely in the lap of
They depend on reliability to achieve their targets
the supply chain team. It’s not an easy week-in, week-out over the life of the system.
job to get the right product to the right place, in good But as any logistics professional will tell you there
condition, just when the customer wants to buy… are traps and pitfalls. Unexpected peaks in de-
mand, changes in product profiles, errors in pick-
but someone has to do it. ing or dispatch and – despite the fact that most
modern systems are highly reliable – mechanical,
electrical, controls or software malfunctions can
affect performance.
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 larger companies are taking a new ap-
proach. Residential maintenance programs pro-
vide 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.


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 provide
Operational 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 operators
as customer and market forces dictate. are even aware of the problem.

Whether it is a full functional audit to assess sys- Early Warning Systems
tem and operator effectiveness, or specific safety Sophisticated software built on years of experi-
and equipment-related details that are needed, ence has led to the development of predictive
Dematic can conduct a range of audit activities tools to further improve your system’s perfor-
to assist in the safe and efficient operation of mance. Dematic can monitor your system using
your business. diagnostic software, looking for potential mal-
We can produce Equipment Condition Assess- functions and analyzing events and issues that
ments and recommend upgrades and improve- could affect uptime even before they happen.
ments to mechanical, controls and IT systems, in Dematic is dedicated to continuing its leadership
addition 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, improve
In 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 times
speed of throughput means that catching up • Minimize unscheduled stoppages
through employing more hands is not possible. • Reduce maintenance costs
Remote monitoring and early alert of system er- • Optimize your system’s performance
rors can significantly reduce the impact of faults
• Maximize the working life of your system
and, importantly, the time taken to rectify them.
Remote monitoring can be utilized to take advan- • Increase your system’s uptime.
tage of a centralized team of skilled engineers.

SERVICE

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.


JCPenney CROSSDOCKING
CALIFORNIA, USA conveying & sorting

High Rate Cross-
docking at Variable
Speeds for JCPenney
JCPenney’s Retail Logistics Center (RLC) at as a singular unit, fully integrated with a single
Leading retailer Lathrop, California represents state-of-the-art in point of control, permitting the flexibility for all
JCPenney operates package conveying. sections of the system to run at independent,
The RLC, which is essentially a cross-dock facil- variable speeds to optimize component through-
over 1,000 put requirements and maximize operational and
ity for imported goods, is equipped with a host
department stores of smart conveying systems to transport up to energy efficiencies.
throughout the US 165,000 cases per day and sort them at 99.9% From the moment the ASN’s (Advanced Shipping
accuracy. Notice) are received and containers or trucks ar-
and Puerto Rico, as rive at one of the 17 receiving docks JCPenney
Smart Dematic technologies include high rate
well as one of the merge, single line high rate carton gapper, sliding knows exactly what is coming in.
largest apparel and shoe sorter with parallel diverting, linear induction The high-tech automation, from receiving to
motors, modular variable-speed functionality, and shipping and everywhere in between, means a
home furnishing
single-point system control. typical case only spends six minutes in the DC
sites on the Internet, “JCPenney had two criteria for the Lathrop DC,” said and is only touched twice (unloading at receipt
and the nation’s Dematic’s Mike Harding. “One, high throughput, and loading at shipping) in the process, before
it is on its way to one of the company’s regional
largest general capable of handling at least 150,000 – 200,000
Store Support Centers (SSCs). Once received at
cartons per day over two shifts; and two, it had
merchandise to be built fast, with the system going live within the SSCs, they cross-dock the merchandise and
catalogue business. just four months from when JCPenney secured ship it out to 1000+ JCPenney retail stores.
the lease on the 436,000 square foot DC,” he said. Important addition to supply chain network
They are supported
Dematic Integrated Sortation Sub-System® Lathrop’s primary function is to receive and sort
by one of the imported merchandise for routing to JCPenney’s
The DC is JCPenney’s first to utilize a sortation
most integrated technology called Integrated Sortation Sub-Sys- SSCs. 90% of merchandise received at the RLC is
distribution tem® (ISS), developed by Dematic. from overseas in containers. The remaining 10%
from local suppliers is merged in with the contain-
networks in the US. ISS approaches the entire sortation sub-system
er merchandise at the RLC’s receiving docks.


JCPenney
CALIFORNIA, USA

The sorter automatically
adjusts speed to
accommodate actual
throughput rates.

“Prior to Lathrop being built, JCPenney received
all West Coast container shipments at its Buena
Park RLC in Southern California, through the
Port of Long Beach,” said Kevin Williams, Facil-
ity Manager at JCPenney’s Lathrop RLC.
“Increasingly, more merchandise was being re-
ceived from overseas and through the Buena
Park facility, stretching the limits of the DC.
“Lathrop now allows us to route inbound goods
through the Port of Oakland. The added capac-
ity of the DC, and the port diversification, has
helped us reduce transportation time for direct
imports and mitigate potential risks.
“This DC is performing exceptionally well,” con-
tinued Mr Williams. “It is also very quiet, much
quieter than any other sortation system I have
used before.”
Dematic conveyor system operational features
“We have variable speed on the whole sorting
sub-system,” said Tim Wood, Manager of Logis-
tics Facilities Engineering, JCPenney.
“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.”


CROSSDOCKING
conveying & sorting

“ This DC is
performing
exceptionally
well. It is also
very quiet,
much quieter
than any other
sortation
system I have
used before.

Kevin Williams,
“
Facility Manager,
JCPenney
Lathrop RLC

Dematic’s FlexGap • Power loaders – Power loaders unload con- • Parallel Divert Sortation with Linear Induc-
induction system tainers and trucks, with each carton immedi- tion Motors – A unique feature of the Dematic
closes the gaps ately assigned to a specific store and given a FlexSort SL sorter is its use of linear induction
between cartons, UPC code while it is still on the conveyor. motors (LIM). These electro-magnetic drives
significantly use a magnetic field to move the aluminum
• Pre-merge accumulation – It is possible that
improving conveyor slats of the sorter without mechanical contact –
hundreds of cartons from a container could be
sorting efficiency. there is an air gap between the electromagnets
destined for a specific store. A conventional
merge handling this volume of cartons to the and the slats. The LIM drive-units are mounted
same store would have caused throughput is- and centered on cross member supports, are
sues on the sorter. To overcome this, Dematic evenly spaced along the sorter track, and pro-
designed a zipper merge so that cartons for the pel the sorter slats without any moving parts.
same store don’t enter the sortation subsystem The sorter has no belts, drive chains, gears or
in a continuous line. The zipper merge shuffles sprockets, no air lines or compressors requiring
the deck, so to speak, so the chance of having maintenance, no filters to clean, and no oiling.
a high number of cartons going to the same “One of the big features for us is the linear induc-
location in a continuous line is reduced. tion motors,” explained Mr Wood.
• Precision gapping – The cartons exiting the “The sorter utilizes multiple linear induction drive
main merge are moving at 45 CPM. But after the motors for redundancy It is engineered such that
main merge, everything needs to run at sorter the sorter will still operate if a motor is off line. With
speed, which is 238-plus CPM. The answer is our other sorters, if a motor or gearbox drops, our
Dematic’s FlexGap™ induction system which whole sorter is down until we get it fixed.”
closes the gaps between cartons. Because the The sortation subsystem is controlled by De-
packages are closer together, the sorter can run matic’s FlexSort PC controller, which handles all
at a slower speed, yet handle the same volume inductions, tracking and diverting, with a web-
of packages that another sorter would handle based graphic monitoring system simplifying op-
having to run at least 20% faster. Consequently, erational control and management.
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.


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.


automated storage and retrieval
High speed bUFFER STORE

“
Right from the
start the system
not only met,
but exceeded
the 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.


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 over 400.”
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 technolo- There is usually little racking, and most of the
gy, Suncoast also took the opportunity to update product is floor stacked two or three-pallets high.
its IT systems, implementing Dematic’s Ware- The flow of product through a beer DC is ex-
house 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.


“
Full Case Picking
voice-directed computing

We selected Dematic
because of their
broad 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 case picking pro-
“We have found that the scan-to-confirm method ductivity by 20%, reduced numbers in the ware-
used by PickDirector allows for a first pass ac- house 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.


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 Librarian


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.”


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 server architecture and
Dematic has an expert residential maintenance
software applications.
team available programs provide client DCs
to Parts availability is organization ensures
ensure your software is Remote monitoring by crucial to this goal, easy ordering and
with on-site mechanical and/or
and Dematic can sup- timely delivery to
electrical highly trained software
fully supported, 24/7. technicians who perform
ply the high-quality customers anywhere
Remote access, preventive,specialists, and emergency
corrective regular
process patches and genuine and approved in the world.
help desks and maintenance, as well as provide
security updates as third-party spares you Your local Dematic
programmers are on
operational assistance to ensure the
need, when you need
standby to ensure your handlingcluster tests for
materials well as systems function service team is
them.
at and high availability systems
Dematic softwareoptimum efficiency. available to assist
set Dematic Software
IT systems meet your several reasons to Proper performance, you and answer
There are
operational needs. support apart. trouble-free operation your technical and
Extensive software All services are designed and system longevity purchasing questions,
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can include regular performance and give when a system is valuable advice on the
database checking, you a competitive edge. maintained with correct parts holding
original parts. for your system.


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 indicators
The controls in your Upgrading materials productivity and
assistance to ensure (KPIs), and to function
logistics 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 the
your operations run (Programmable Logic optimum efficiency. • Dedicated
desire to extend the
smoothly and reliably. Controllers) is a maintenance staffing
There are several life of the DC’s capital
cost-effective way resources focusing on
They provide seamless reasons to consider equipment to reduce its
to enhance and materials handling
integration between residential maintenance lifecycle cost.
your host computer safeguard your logistics programs. The most • Improved equipment
Each DC has its own
management 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 usage
systems and technologies, significant benefits, which requires a more develops a custom due to maximizing
delivering precise including optimized comprehensive and residential maintenance equipment lifecycles
handling and optimizing equipment performance, systematized approach program, whether it be • Increased system and
system 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 many
approach end-of-life Residential the potential
and extended life. DCs. Additionally, as
and become obsolete, maintenance benefits for emergency
equipment becomes
systems and equipment Dematic’s upgrade or unscheduled
more sophisticated, A well structured
can suffer performance capability is second maintenance
the need for more residential maintenance
and reliability issues, to none in the industry, technically-specialized program can yield huge • Lower operating costs.
threatening your logistics and covers all major personnel, which most benefits for a DC:
operations and business. PLC types and brands.


www.dematic.com

Dematic Headquarters
Dematic Group S.à r.l.
Join Us
2-8, avenue Charles de Gaulle
L-1653 Luxembourg
T +352 27 48 59 September 9-12, 2012
F +352 27 48 59-99 www.mhc2012.com

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