The document discusses Dematic modernizing Woolworths' largest distribution center in Melbourne, Australia. Key aspects of the modernization included implementing a new picking methodology for split case orders, expanding and reconfiguring storage systems, installing new conveyor and sorting equipment, and developing new warehouse management and IT systems. The project was challenging as it had to be completed while the distribution center remained operational, but was designed to boost throughput by up to 80% and support Woolworths' growth for the next decade.

1. Issue 3
HK SYSTEMS PROFILE
We welcome HK Systems to Dematic
L GISTICS NEw dc dIREcTOR
Take control of warehousing with WCS
REVIEW PROducT REvIEw
News, technology and software update
TEcHNOLOGY FEATuRE:
10 STRATEGIES FOR
DISTRIBUTION SUCCESS
BINA: Switzerland TEScO LOTuS: Thailand
Multishuttle® & Integrated order fulfilment
Miniload drive logistics for convenience stores
DEMATIC LOGISTICS REVIEW
Creating Logistics Results

2. WElcomE to thE
latEst fRom thE
WoRld of logIstIcs
Welcome to Issue 3 of Dematic Logistics Review –
Your Window to World’s Best Practice Logistics.
As I announced in the previous issue of Dematic base, making Dematic the leading systems and
Logistics Review, Dematic has acquired the conveyor solution provider in North America.
North American business of HK Systems. I am
In particular, HK Systems adds great strength
excited to report that Dematic has successfully
in Automated Material Handling and Logistics
commenced the integration of our two
Software Solutions, and comes complete with
companies that will now be united under the
new ASRS, AGVs and automated handling
Dematic brand.
technology in a wide range of manufacturing,
The synergies from the combined companies food and beverage, archive and library
enhances our product offering, technical applications, considerably expanding our range
capabilities and physical infrastructure through and reach.
global engineering centres. While Dematic is a
A review of some innovative HK Systems projects
global leader in the marketplace, HK Systems’
can be found on pages 20-21.
strong presence in North America fits within our
Roar Isaksen,
regional strategy. The new capabilities extends Dematic continues to go from strength to
President & CEO,
our manufacturing, distribution and warehousing strength and I am confident that as we continue
Dematic
capacity, and expands our geographic reach to grow and develop our business, we will
with more sales offices and industry-specific impress you with our quality product range,
sales engineering. innovative product and software concepts and
solutions design capability.
This complementary business partnership
provides Dematic with new products, new sector
expertise and a significantly expanded talent Roar Isaksen,
President & CEO, Dematic
2 DEMATIC LOGISTICS REVIEW

3. contents
Cover Story: BINA, Switzerland 4-6
Case Study: Woolworths, Australia 7-9
10 Strategies for Distribution Logistics Success 10-13
Case Study: Tesco Lotus, Thailand 14-15
Case Study: Southern Wine & Spirits, USA 16-17
Case Study: Chain Reaction Cycles, UK 18-19
HK Systems Profile 20-21
News, Product, Technology & Software 22-23
About Dematic
Dematic is one of the world’s leading suppliers of logistics automation sys-
tems and solutions. As a systems integrator, Dematic delivers a full range
of technologies and services, from individual products and systems to
complete turnkey solutions as a general contractor, as well as complete
after-sales support and service. Dematic provides automated material
handling products, systems and solutions for retail and wholesale distri-
bution, consumer direct, grocery, food and beverage, and manufacturing
industries. Dematic’s products and services are based on a tradition of
industry expertise that the company has acquired over decades of com-
mitment worldwide. Globally the company employs around 4,000 people.
dEmatIc In actIon
at PRomat & cEmat
ProMat March 21-24,2011 Chicago, USA CeMAT May 2-6,2011 Hannover, Germany
Dematic North America recently completed Dematic featured numerous world firsts at CeMat
a very successful ProMat, proudly hosting including a comprehensive, future-proof range
customers and prospects in two premier booths of solutions with sustainability being a central
filled with robust technology, equipment demon- theme. A host of impressive innovations were
strations and thought leadership presentations. integrated into a complete in-plant material flow
Two new solutions were launched at ProMat: system, underlining our position as one of the
world’s leading logistics automation providers
• RapidPick – a new high capacity goods-to-
and demonstrating how modern logistics can be
person (GTP) order fulfillment system that
delivered in a cost-effective and environmentally-
supports pick rates of up to 1,000 per hour
friendly way. Highlights included:
• Laser Trucks+ – an innovative combination of
• Dematic Multishuttle MS Flex – a new shuttle
Dematic’s leading picking and voice software
capable of handling different size containers
with Automated Guided Vehicle technology on
a rider pallet truck, designed to improve mixed • Dematic RapidStoreML – a new Miniload
case order fulfilment productivity. ASRS with advanced load handling devices
In addition, Dematic sponsored and/or • Modular Dematic MCS conveyors that enable
participated in four ProMat presentations, flexible system reconfiguration
showcasing our significant talent and depth of • Dematic Ecodrive – new software designed to
industry experience and knowledge. improve energy efficiency by 10-15%.
DEMATIC LOGISTICS REVIEW 3

4. COVER STORY BiSChOfSzEll NahRuNgSmiTTEl ag
Bischofszell, switzerland
Design objectives
• Extension of capacities in high bay warehouse
• Construction of ASRS and set up order picking system for convenience food
• Refrigerated storage of 120,000 containers with 450 different fresh articles
• Order picking of up to 120,000 units per day
• Split case order assembly: grouping articles and optimizing container packing
• High-performance order picking up to individual item level
• Consistently sequenced, automated processes
• Automation for higher flexibility and efficiency.
Benefits and outcomes for BINA
• One stop shop from the plant design via IT and controls to
mechanical engineering within short implementation timeframe
• Refrigerated order picking buffer for fresh articles
• Consistent monitoring via networked plant displays
Stock is stored in • Optimized load distribution and utilisation of resources
Miniload ASRS and • Higher throughput and extensively automated processes
Multishuttle® storage with Multishuttle buffering and sequencing warehouse
buffers, which • Increased split case distribution efficiencies
sequence goods in
the correct order, • High flexibility and reliable pick rates with negligible errors
optimising order • Sell-out oriented and sell-out optimized order containers
picking productivity • Package and branch-optimized positioning on load carriers.
and accuracy.
4 DEMATIC LOGISTICS REVIEW

5. ElimiNaTiNg TRaVEl: SPliT CaSE
Goods-to-Person order PicKinG
gtP sPlIt casE
oRdER PIckIng
& assEmbly
foR bIna
Dematic has implemented one of the most innovative split case
order picking solutions in Europe for the ‘Convenience Gate’
distribution centre operated by Bischofszell Nahrungsmittel AG
(BINA) at Bischofszell, Switzerland. The system provides reliable
high-performance order picking down to the individual item level,
and sequenced, automated processes maximising the efficiency of
order assembly and distribution right through to point-of-sale.
“
Leading Swiss food manufacturer BINA
produces around 1,000 tonnes of frozen, chilled
and packaged convenience foods every day,
with products including fresh salads, sauces,
ready-made meals, potato products and drinks.
BINA’s Convenience Gate DC at Bischofszell
Special features are is the food distributor’s central logistics hub,
providing a range of services to support its
the high dynamics diverse customer base including retailers,
in picking our fresh caterers, canteens and industrial companies,
products and branch- with over 750 food outlets alone supplied with
fresh products from the facility.
matching order
Expanding distribution capabilities
assembly right down
Following an expansion of its product range and
to individual items.
significant demand growth in the convenience
This guarantees fast food sector, BINA decided to upgrade the
processing and opens capacity of its existing high bay warehouse and
add a new, automated small goods warehouse
up new options for our
(ASW) equipped with an integrated Goods to
customer orientation.
“ Hugo Thaler,
Logistics Manager, BINA
Person (GTP) split case order picking system.
Dematic’s solution for BINA
Dematic has helped transform BINA’s
Convenience Gate into a highly efficient DC
with dynamic, consistently sequenced order
BINA’s Logistics Manager Hugo Thaler
picking processes. The result is one of the most
innovative split case picking and order assembly
solutions in Europe.
DEMATIC LOGISTICS REVIEW 5

6. COVER STORY BiSChOfSzEll NahRuNgSmiTTEl ag ElimiNaTiNg TRaVEl: SPliT CaSE
Bischofszell, switzerland Goods-to-Person order PicKinG
The high-resolution screen displays simple, easily
understood symbols for order volumes, photos of
the products to be picked, and a 3D description
of where to place picked items in the shipping
container, facilitating fast, accurate and safe order
picking. Check weighing is also integrated to further
improve accuracy.
The result: “High flexibility and reliable pick rates
with a negligible error rate,” said BINA’s Logistics
Manager Hugo Thaler.
“The special features of the solution are primarily
the high dynamics in the order picking of our fresh
products and branch-matching order assembly
right down to the level of individual items. This
guarantees fast processing of high volumes and
has opened up new options for our customer
orientation,” he said.
Dematic installed a central plant display unit
networked with the plant components’ control
units to enable consistent monitoring of the flow of
goods and orders, which enables BINA to optimize
workload balancing across the operation.
For goods outwards, order containers buffered
in the Multishuttle are delivered just in time for
dispatch. Sequences that focus on package and
branch-optimized positioning on the load carriers
are created for the container flow.
The containers are automatically labelled during
delivery to the dispatch preparation area, where
The new refrigerated, automated small goods warehouse (ASW) they are automatically stacked in sequence and
provides storage capacity for 104,400 containers. Serviced by three palletized. They are then conveyed to the goods
AKL Miniload Cranes, it acts as a production buffer warehouse for outwards area. Preparation for loading is also
incoming goods from production and external suppliers. sequenced, improving dispatch logistics.
The three aisle refrigerated ASW, driven by
Dematic AKL Miniload Cranes, acts as a
production buffer warehouse for incoming goods
from production and external suppliers.
The second part of Dematic’s solution was the
construction of a six-aisle Multishuttle® storage
engine, which provides buffer storage and
order sequencing for order fulfilment and goods
outwards.
Split case order picking and assembly
Stock for orders is automatically delivered at
rates of up to 2,200 containers per hour by the
Dematic Multishuttle system at precisely the right
moment and in the correct sequence to optimize
picking and packing for point-of-sale, to six
Dematic ergonomic picking stations.
The innovative configuration of the picking
stations are tailored to match operators’ individual
requirements, including height adjustable
operator platforms and work tables. Height and
rake adjustable display screens provide simple
step-by-step management of the picking process.
6 DEMATIC LOGISTICS REVIEW

7. WOOlWORThS BaTChiNg ORdERS & SORTiNg ThEm OuT
melBourne, australia Batch PicK & sort
Australia’s
largest DC
modernisation
is designed
to boost
throughput by up
to 80%, support
growth for the
next decade,
and enable
the country’s
largest retailer,
Woolworths to
cost-effectively
meet changing
market demands.
modERnIsIng
“
dematic is to be
commended for
continually finding
WoolWoRths
ways to complete
all of the various
mechanical,
ndc to suPPoRt
electrical and It
systems upgrades
without adversely
futuRE gRoWth
impacting the
site’s day-to-day
operations.
“ Aaron Ford,
Project Manager,
Woolworths Mulgrave NDC
DEMATIC LOGISTICS REVIEW 7

8. WOOlWORThS
melBourne, australia
Key features of Dematic’s modernisation solution
• A new picking methodology for split case orders
• Relocating and extending various storage systems
• A new pick module, reconfiguring existing areas
• Installing zero-pressure accumulation conveyors
prior to the crossbelt sorter inducts
• Introducing pre-sort scanners and conveyors
• A 47% increase in dispatch staging capacity
• Adding new sorter infeed and 28 extra sort lanes
• Installing new 5-sided scan arrays in preparation
for GTIN (Global Trade Item Number) scanning
• Removing redundant ASRS and Pick-to-Light
• The development, configuration and integration
of a new software suite, including a new WMS
and WLAN to support the new IT initiatives.
Over the past decade, Australia’s leading retailer,
Woolworths, has implemented extensive end-
to-end supply chain transformation initiatives as
part of its business restructuring program, Project
Refresh, delivering savings of more than $8 billion.
A key initiative of Project Refresh was restructuring
Woolworths’ state-based Distribution Centre (DC)
network from 31 DCs to a national one with two
National (NDCs) and nine Regional DCs (RDCs).
Dematic has played a key role in the modernisation
of Woolworths’ Mulgrave facility from an RDC
supplying 160 stores in Victoria to an NDC servicing
more than 800 stores Australia-wide. Key drivers
for the innovative modernisation were maximising
employee productivity and ensuring flexibility and
redundancy to deal with changing order profiles
and/or conveyor downtime.
Like performing open heart and brain surgery
Challenged with implementing the upgrade while
the NDC continued its round the clock, six days
a week operation, Dematic’s Modernisation Team
likened the process to performing open heart and
brain surgery on a patient who is wide awake. Major
works had to be managed within the constraints
of a live environment with the construction area
accounting for up to 30% of the DC.
Carton flows were redirected on a weekly basis as
systems were decomissioned and new conveyor
modules installed. While construction continued
around the clock, testing and commissioning
works had to be confined to less than a single day
each week for this complex upgrade.
The process required military precision. During
that time it was necessary to switch from a fully
operational system to an upgrade environment. Batch picked cases from full and split case
picking modules are conveyed, pre-sorted
That meant completely backing up the system
and inducted onto the crossbelt sorter.
before installing, commissioning and testing
The Modernisation project has increased
new equipment and software. Once testing was
the sorter’s throughput capacity from
complete, the system was brought back up to full
6,400 to up to 11,500 cases per minute.
operational mode and tested yet again.
8 DEMATIC LOGISTICS REVIEW

9. BaTChiNg ORdERS & SORTiNg ThEm OuT
Batch PicK & sort
Strengthening the NDC’s heart
The heart of the Mulgrave NDC is its automated
crossbelt sorting system, which takes batch-
Reconfiguring picked goods from multiple areas of the DC
existing equipment and automatically sorts them to the relevant
and systems, shipping lane. The system was previously used
adding new where to separately sort both full and split case items.
required, and However to create additional sorting capacity, a
implementing smart new and more efficient method of pre-picking and
IT and software, packing split case orders into shippers has been
made Modernisation introduced, enabling them to be sorted as full
a much quicker case items, boosting capacity.
and significantly
less costly and Four inducts which were previously used for
disruptive solution inducting split case items onto the sorter have
for Woolworths, been reconfigured to handle full cases. Inducting
compared to what full cases onto the sorter at two locations increases
it would have faced the number of cartons the sorter can process, with
had it chosen to every carriage now having the potential to complete
build a new DC. two sorts each time it travels around the 240m
sorter circuit. Pre-sort scanners direct stock to the
most appropriate end of the sorter to maximise this
Improving the NDC’s brain power benefit.
A key driver was for the NDC’s new IT systems and Another initiative designed to further increase
software to be more robust and locally supported. crossbelt sorting efficiency is the implementation of
zero-pressure accumulation conveyors between the
One of the highest risk areas concerning day-to-day
warehouse storage systems and the sorter infeeds.
operations at the NDC was its outdated IT systems and
The conveyors enable cartons to accumulate on
software. Dematic’s new Order Fulfilment Software
line, minimising gaps between them. This ensures a
(OFS) replaced five separate outdated and difficult to
smooth, even flow of cartons onto the sorter inducts
support databases and operating systems, with a single
and minimises any instances of conveyor stoppage
user-friendly software suite, improving order accuracy
in the picking areas.
and batch control, and significantly mitigating the risks
associated with the ageing IT systems and software. Prior to the upgrade, the sorter was achieving
The upgrade took into account Woolworths’ future plans throughput rates of up to 6,400 per hour.
which, when complete, will enable RF picking and GTIN Converting the split case infeed to handle full cases,
sortation. Pick labels will be eliminated, as will other non- installing additional sortation lanes, accumulation
value-adding tasks like label printing and application. conveyors and pre-sorting goods to each end
Voice picking will also be introduced, making the NDC of the sorter, together with the various IT and
Woolworths’ sixteenth site to make the switch to voice. software enhancements, has increased capacity
to an average of around 11,500 cases per hour.
DEMATIC LOGISTICS REVIEW 9

10. TEChNOlOgY fEaTuRE
distriBution loGistics
10 stRatEgIEs
foR dIstRIbutIon
logIstIcs succEss
Under pressure from the rising cost of retail shelf space and market demand for shorter
lead times, your customers require you to deliver the right product to the right place,
in full, on time, more frequently, in a store friendly format and at a competitive price.
Add regulatory and safety issues and it is clear that distribution is a dynamic challenge.
Dematic presents a simple new concept for grouping solutions into ten proven
strategies that address these issues and deliver distribution logistics success.
1: Improve order and warehouse management 2: Increase efficiency and reduce errors by 3: Reduce the time waste
and control real-time enabling logistics processes the pick face and trave
The first strategy for distribution logistics success Many manual operations using conventional storage Many studies conclude th
utilises information to empower management and racks and shelving can be improved by adding a wasters in order fulfilment
provide the information necessary to make informed smart overlay of data-enabling devices that bring Pickers often need to trave
business decisions. Most businesses, large and instructions to the shopfloor in real time, boosting In small, relatively manual
small, use some level of software for inventory thoughput, productivity and accuracy. that address the travel iss
management, order management, material flow and Wireless RF Terminals, Voice Computers and Mobile dramatically enhance pro
machine control. Modern WMS and WCS systems Data Terminals create a paperless environment and Using pallet trucks, forkl
are designed to provide a single user interface for help enable real-time transfer of information across or laser trucks lets the pic
all order fulfilment activities with a host computer, the supply chain. These devices enhance efficiency, used in conjunction with
typically a WMS or ERP (enterprise resource planning) increase accuracy and productivity and provide can help to boost product
system. Many supply chain gains can be made by greater supply chain visibility and traceability. They to spend more time pickin
businesses simply by organising their information also allow businesses of all sizes achieve a highly
using well designed software. flexible business model that facilitates change. This The second option to red
strategy is often adopted by 3PLs who have short the pick face. This is sim
term contracts and need to have a business that can of either pallet or carton l
be adapted quickly to future change. solutions condense the p
stock in lanes behind the
distance can be reduced
of wasted travel time whe
1 Improve warehouse
& order management 2 Real-time enable your
logistics processes 3 Conden
face & tr
10 DEMATIC LOGISTICS REVIEW

11. “
The supply chain has undergone dramatic We call this model the ten strategies for distribution
change in the past decade, with cost reductions, success and logically applied, they consistently
productivity improvements and delivery help companies of all shapes and sizes improve
performance no longer the only drivers for logistics their distribution logistics performance.
system design. Although not strictly a hierarchy, it is often easiest
Today, labour availability, OH&S and flexibility to visualise the ten strategies as a series of steps.
are equally important considerations, with the The further up the steps you go, the greater the
growing awareness of these issues driving a although return from leveraging economies of scale with
distribution logistics revolution across all markets increasing levels of technology.
from retailers to wholesalers, and manufacturers
not strictly a
And while it doesn’t make sense to consider high
to 3PL (third-party logistics) providers. hierarchy, it is
levels of automation for small companies with
Working on thousands of projects with many of often easiest basic distribution requirements, clever ideas can
the world’s most successful and enterprising to visualise help make the distribution task smarter and
businesses gives Dematic a unique global insight more economical. Relatively simple, low-cost
the ten
into what it takes to deliver distribution logistics initiatives can deliver impressive results for smaller
success. strategies as companies. It’s also wrong to assume that all
While different industries, markets, countries,
cultures and companies of different sizes all require
their own solutions, our experience shows there
are many different technologies and techniques
helpful in improving performance, but it is often
“ a series
of steps.
big companies should automate all distribution
functions. A high level of automation may optimize
productivity and lower costs in the short term,
but when product profiles, market demand or
workforce availability change, the potential lack of
flexibility with automated solutions may become a
difficult to sort out which is the most appropriate
problem longer term. Knowing which strategies to
and why. That’s why we have developed a system
apply where and when to get the best out of your
for grouping concepts.
business is the key.
ed travelling by condensing 4: Boost efficiency by letting the orders travel 5: Increase productivity by picking multiple
elling faster to pickers via smart conveyor routing orders at the same time
hat one of the biggest time The fourth strategy goes one step further in tackling Another logical strategy designed to tackle
t is travel. the travel problem. By utilising smart material flow performance issues in picking is to get the picker
controls and zone routing conveyor systems, orders to pick multiple orders at every pick location. This
el from location to location.
do the travelling from zone to zone, and pickers stay can be achieved by combining orders for several
l DCs there are two options
within their picking zone. Zone routing solutions are customers into what we call a batch. When a picker
sue in a simple way that can
ideal for mid-to-large size companies who supply split is able to batch pick the stock for multiple orders at
oductivity.
case orders and who are trying to introduce a basic each location, it significantly increases productivity
lifts, order pickers, cranes level of automation. and throughput. Full case applications include
cker move faster and, when Walk-Pick-to-Belt conveyor, with the batch-picked
h smart storage systems, Many find that this concept can be applied to their
goods transported and automatically sorted back
tivity by allowing the picker entire range using different levels of automation
to individual order requirements by smart conveyor
ng and less time travelling. to optimize picking efficiency across the product
sortation systems.
movement curve. For example, combinations of
duce travel is to condense A-frames, carton live storage zones and conventional In split case applications, cluster picking allows
mply done by using bays binning zones can be arranged with various multiple orders to be picked in a single pass, with
live storage. These simple combinations of pick-to-light and voice-directed pickers typically using RF or voice-directed trolleys
pick face by storing reserve picking to enhance productivity and accuracy for fast using Pick-to-Light displays to direct the picker as
e pick face. The pick face movers and slow movers alike. Clever software can each batch is selected.
by up to 80% saving a lot enhance overall system performance by taking orders
en picking an order. only to the zones where they are needed, eliminating
bottlenecks in material flow.
nse the pick
ravel faster 4 Move the orders to
picking zones 5 Batch pick & sort to
increase productivity
DEMATIC LOGISTICS REVIEW 11

12. TEChNOlOgY fEaTuRE
distriBution loGistics
Improving performance and reducing costs by
eliminating non value-adding tasks
Order fulfilment typically accounts for about
90% of distribution centre costs, however
analysis of many order fulfilment operations
highlights a multitude of non-value adding tasks.
You pay pickers to pick, but often to do their job,
they must do many non-productive tasks as well.
They need to collect picking instructions and the
equipment they need, find the stock location,
inspect the stock to ensure it is correct, pick the
items required, check and mark the order. But
mostly they travel from location to location.
The ten strategies for distribution logistics
success reduce and eliminate non value-adding
waste throughout distribution operations.
6: Use smart software to gain free picks by 7: Use buffering and sequencing technology to 8: Let the goods and the o
picking only those items you need eliminate travel and facilitate Goods-to-Person (GTP) with split case GTP pick
Many companies are completely unaware that there One of the newest and most impressive strategies for The eighth strategy is the
are opportunities to totally eliminate the need to pick distribution logistics success uses a concept where in high volume split case a
a case from a pallet at all, and that’s where the sixth travel is eliminated altogether. Travel is eliminated altoget
strategy comes into play. Goods to person picking has been around for many Pickers stay put in ergon
years but the thing that makes it feasible today stations designed to opti
Smart order fulfilment software can be used to
is the power of the computer combined with new workplace safety requirem
recognise free picks. By analysing and cross-
buffering and sequencing systems. Modern storage orders and the stock req
matching customer requirements, it is possible to
and retrieval engines and sequencing technologies travels to the picker’s loc
pair orders so that by picking the stock for one, the
have created a revolution. Dense and highly efficient are needed. Pick and put
stock that is left behind creates a free pick.
ASRS systems can now handle the volumes required to facilitate discrete or ba
The concept can be used manually or by incorporating to select either totes or pallets and deliver them to order processing needs. P
a robot to do the picking. It can be used in mixed case picking or putting locations. enhanced using various sc
or layer picking operations. Either way, productivity In high volume split and full case picking operations to-light or voice-directed c
increases with picking rates of over 1400 cases/hour new technology allows stock for orders to be pre- Either way, split case GT
achievable. picked, buffered, sequenced and delivered to pickers be highly efficient when h
precisely when and in the order they need it, driving picking tasks are required.
new, more cost-effective distribution solutions.
6 Use smart software to
pick one, get one free 7 Eliminate travel with
Goods to Person (GTP) 8 Let split
orders d
DEMATIC LOGISTICS REVIEW

13. 10 STRaTEgiES fOR
distriBution loGistics success
Summary
From the first strategy – implementing warehouse
management software to get better visibility and
control – to the last – fully automating processes
and eliminating and many other non-value adding
tasks. – our new grouping concept demonstrates
the many opportunities for companies of all shapes
and sizes to create more effective supply chains
now and into the future.
Each step in the hierarchy is a step towards im-
proved efficiency in distribution and supply chain
management.
Each strategy is designed to eliminate non value-
adding activities and address important business
drivers.
Intelligently applied, they bring distribution strat-
egy into alignment with business strategy and pro-
vide a competitive edge.
orders do the travelling 9: Build orders and unit loads faster and safer 10: Enhance productivity with fully automated
king solutions with GTP full case palletizing solutions picking and palletizing solutions
application of GTP picking In the ninth strategy, full case picking is examined. In the strategies so far, people have been used in
applications. Much like split case picking, the equivalent full case the process. The idea has been to make them more
solution utilises cleverly designed work stations productive by eliminating non-value adding tasks. But
ther.
that ergonomically allow the building of mixed case in some cases where goods are too heavy or there
nomically designed picking pallets. Travel is completely eliminated by supplying are very high volumes, solutions can be completely
imize efficiency and meet pre-picked and sequenced mixed cases in the correct automated.
ments. In GTP systems, the order for load assembly at palletizing stations where Advances in software, product storage, buffering,
quired to fulfil the orders operators simply slide cases into position, making the sequencing and recognition systems, and high speed
cation precisely when they task easier, faster and safer. articulated robots with versatile product gripping
t stations can be designed
The stations are often built on a mezzanine floor with tools, have driven the development of automated
atch picking depending on
integrated conveyors delivering a constant flow of picking and palletizing systems capable of handling
Pick stations can be further
mixed cases. As each layer of cases is completed, the a diverse range of SKUs including boxes of various
canning technologies, pick-
pallet automatically lowers, enabling assembly of the sizes, trays,open or closed cartons, bagged goods
computing.
next layer to begin, significantly reducing the physical and sacks.
TP solutions can prove to effort required, and improving the safety, speed and Capable of building higher, more dense and stable
high volumes and repetitive quality of order assembly. pallets, with improvements in speed, accuracy and
.
As the pallet is being lowered, it may be stretch store-friendly flexibility, these extremely accurate, fast
wrapped for stability. and reliable systems can even handle multiple mixed
case SKUs. For split case, A-frames automatically
dispense items, but need people to replenish them.
case goods &
do the travelling 9 Smarter, faster, safer
mixed case palletizing 10 High rate automated
picking & palletizing
DEMATIC LOGISTICS REVIEW

14. TESCO lOTuS
BanGBuathonG, thailand
sPlIt casE
PIckIng foR
tEsco lotus
Tesco Lotus is increasing the number of its Express convenience stores
in Thailand, with Dematic recently assisting the retailer with a new split
case picking solution encompassing order fulfilment software, paperless
picking technology, and an integrated conveying system.
14 DEMATIC LOGISTICS REVIEW

15. ElimiNaTiNg TRaVEl: SPliT CaSE
let the orders do the movinG
Tesco Lotus’ Express outlets are small format Operators press buttons on the PTL displays,
convenience stores offering customers access to providing real time confirmation of each pick as
a range of grocery products in local residential it is completed. With the PTL technology, both
areas. With the number of Express outlets set accuracy and productivity have significantly
to grow, Tesco has implemented a new Central improved.
Express Distribution Centre at Bangbuathong to Conveying
facilitate efficient distribution to these stores.
When totes become full during picking, they
For Tesco Lotus’ large scale hypermarket outlets, are transferred to a central takeaway conveyor
goods are distributed mostly as full cases, layers for transportation to dispatch. Order picking
and full pallets. By contrast, distribution for the continues into a new tote. Totes are transported
Express stores involves a significant amount of from the Pick Module and sorted to store in
split case picking. Recognising that split case preparation for marshalling and dispatch.
order fulfilment is more challenging, complex
and labour intensive compared to conventional Robust, reliable and supportable IT systems
distribution, Tesco Lotus approached Dematic With the system managed by Dematic’s bi-
for assistance in developing a solution that would lingual PickDirector software, Tesco Lotus has
enable picking across tens of thousands of order real-time visibility and tracking of each item that
lines, and facilitate over one million unit picks is picked, the tote it is picked into, the operator
every day. who performed the task and the time it was
done. PickDirctor’s reports and statistics in Thai
Dematic’s integrated solution
have proven to be invaluable tools for Tesco
Working together with Tesco Lotus in the Lotus’ supervisors in managing operations.
planning phase to understand all the operational
Additionally, Dematic’s visualisation system
requirements, Dematic studied the product
provides remote system control, real time
range and analysed the order profile.
equipment monitoring and status information
The integrated solution included a specially in graphical format, allowing fast and easy
designed pick module, real time Pick-To-Light diagnostics for management and maintenance
(PTL) paperless picking technology and an staff alike.
integrated conveying system.
Customer benefits
Efficient order picking • Increased productivity and throughput capacity
The multi-level Pick Module comprises carton • Real time visibility and operational flexibility
live storage picking aisles with products located • Modularity and scalability for growth
in zones and each location equipped with a PTL • Improved accuracy, traceability, accountability.
device. Store orders picked into totes are passed
sequentially through the picking zones.
nanthapol
Totes are inducted into zones with a hand scanner
kanjanazoon,
and the PTL devices are illuminated to indicate
general manager,
the products and the quantities required.
bangbuathong dc
DEMATIC LOGISTICS REVIEW 15

16. SOuThERN WiNE aNd SPiRiTS
laKeland, florida
bIggEst dc yEt
foR southERn
When Southern Wine and Spirits of America, Inc. – the USA’s largest
wine and spirits distributor – builds a new DC, they do it in a big way.
Running 18 DCs is a big operation by any measure. After updating
two into its “New Generation” format, next up was its biggest DC yet
– a 650,000 sq ft state of the art complex in Lakeland, Florida.
“The decision to expand our DCs was driven by Nationally, the company operates a fleet of 1,100
volume growth,” said Bobby Burg, Southern’s of its own local delivery trucks and 120 semis.
Senior VP of Supply Chain Strategy.
“In the old paper process, when we were reading
“Like in many other industries there is a sheet of paper to pick and put a case on the
consolidation occurring, meaning fewer and line, we would shoot for maybe 180 cases per
fewer wholesalers. Much of our growth is coming man hour for a good picker. Now, our minimum
through consolidation.” on a pick line is 250 cases per man hour, a 40%
productivity increase,” said Mr. Burg.
Southern Wine and Spirits distribution
Smart handling of split case orders
Southern’s distribution facilities provide next
day delivery to around 140,000 customers. It Although the majority of deliveries encompass
exclusively uses its own internally managed full cases, there is some full pallet delivery to
fleet. Orders received by 5:00 pm are delivered supermarkets and other chain stores, and a small
the following day. The company is constantly amount of cross-docking to accommodate.
refining its automation processes to ensure the
However, an interesting part of this operation
most efficient production and consistent level of
is how Southern handles split case orders.
customer service.
Restaurants and bars often order a single bottle
Despite its continual growth. Southern maintains a to keep costs down or because they don’t have
strong focus on customer service, with decisions the storage space to order by the case.
driven by customers’ needs and requirements.
Voice picking is used in a split case pick module
The company uses a hub-and-spoke system for for fast, accurate, efficient mixed order assembly.
distribution – they have one central DC servicing
multiple cross-dock facilities, where goods are
transferred into route trucks for local deliveries.
Pick line productivity has
increased from 180 to 250
cases/man hour.
16 DEMATIC LOGISTICS REVIEW

17. BaTChiNg ORdERS & SORTiNg ThEm OuT
Batch PicK & sort
Reducing product breakage Slug merge streamlines carton handling
“
Roller accumulation conveyors minimise gaps and The slug merge system controls the staging and
contribute to low product damage. Smooth starts release of cartons into the sorter, increasing system
and stops ensure fragile and unstable loads can be throughput, eliminating bottlenecks, smoothing
safely transported and accumulated. Heavy-duty out variances from multiple pick areas and
conveyors handle cases weighing 35-40 pounds, optimizing batch cycling. Cases scanned upstream
working efficiently under load; transporting, are released into the merge as a slug without
accumulating, reorienting and staging efficiently. gaps, increasing the rate of flow through the
“The decision to sorter compared to conventional merges.
7,000 feet of conveyors move products at a
rate of 500 feet/minute – fast considering a lot expand our DCs “For cartons, the product is picked, put on
of the products are high end, and almost all was driven by conveyor, labelled with an ID tag, and sent into
in glass. The breakage percentage is very low an accumulation area,” said Dematic’s Don
– less than one per cent and half the industry
volume growth. Passarella.
average. When handling over 11 million cases – Like in many other “They are scanned and released into a merge.
at an average value of $100 – it is a substantial industries there Normally, when product is released into a
improvement over industry norms. merge, it creates gaps that limit throughput. We
is consolidation
used a unique technology at the merge, where
occurring, we pre-build slugs of product then pre-set the
meaning fewer gapping of the product on the slug belts. As
we release the slugs, it gives us very precise
and fewer
handling of fragile products. The cases that come
wholesalers through the merge are now pre-gapped and there
... much of is a constant, even flow going to the sorter.”
our growth is Sortation increases throughput and accuracy
coming through Dematic’s high-rate sliding shoe sorter provides
quiet sortation and ultra-high throughput. The
consolidation.” highest sort rates Southern had achieved before
Lakeland DC was 6,000 cases/hour. The new
Bobby Burg, Senior
system is capable of handling 10,000 cases/hour,
“
VP of Supply Chain
Strategy, Southern
Wine and Spirits
and an extra 12,000 bottles in split case/hour.
Before, the DC averaged 150 cases/man hour.
Now, it is handling 225 cases/man hour.
In terms of shipping accuracy, Southern was
averaging one per cent errors out the door, it now
averages 0.2% – an 80% reduction. “A five-sided
scan tunnel at the end of the sorter provides for
the verification of all the SCC codes (Source
Classification Code) to the shipping links,” said
Mr. Passarella. “This is a customization we did
using point-camera technology to read barcodes
on cases, and compare that to shipping labels to
ensure the correct label is applied to the right
case, and customers get what they ordered.”
DEMATIC LOGISTICS REVIEW 17

18. ChaiN REaCTiON CYClES
Belfast, northern ireland
VoIcE PIckIng
staRts a logIstIcs
chaIn REactIon
Chain Reaction Cycles sells bicycles, spare parts
and accessories online, direct to the customer. Dematic is supplying Chain Reaction Cycles,
Recently the company also expanded into winter
sports goods and now offers an amazing 84,000
the world’s largest online bike store, with a
different products from its 150,000 sq ft purpose- solution for voice picking, packing and conveying,
built facility in Ballyclare, just outside Belfast in
Northern Ireland.
as well as a tailored warehouse management
Celebrating 25 years of business in 2010, this
system in a logistics solution that will drive a
family-owned company became an online 50% improvement in order picking efficiency.
business 10 years ago, and is currently
experiencing a staggering 40% year on year
growth.
Sounding out the benefits of voice picking
Realising it needed to improve order fulfilment to
accommodate its rapid growth and, being aware
of the benefits that voice picking could deliver,
CRC approached Dematic.
“We subsequently spent three days on site at CRC
conducting a study and setting up a live trial of
voice picking to demonstrate the concept to
those on the CRC board who were not familiar
with the technology,” said Stuart Stables, Head of
Dematic’s Product Division
“During our review of operations, we also identified
that CRC’s in-house ERP system lacked the
specialist warehouse functionality of Dematic’s
own Warehouse Management System (WMS),
which we could tailor to suit CRC’s particular
requirements.”
Dematic won the contract, but no longer for
just voice picking and a packing system. It also
included Dematic’s WMS to cover all warehousing
aspects for CRC including goods receipt, put-
away, replenishment, pick and pack, stock and
cycle counting, and kitting, with CRC also making
bicycle wheels to customer requests.
During the development of the WMS, Dematic
identified significant potential efficiency
improvements from feeding orders to the packing
area on an automated conveyor system. Cartons
are now erected automatically and fed to packers,
while conveyors transport picked orders from the
picking zones directly to the packers, significantly
reducing the amount of time wasted travelling.
18 DEMATIC LOGISTICS REVIEW

19. REal-TimE ENaBlE lOgiSTiCS
wireless data communications
Speeding up the supply chain
“As we have come to realize the potential of
our own supply chain for gaining competitive
advantage, I was charged with the responsibility of
speeding the flow of goods through the warehouse
as efficiently as possible. Maintaining inventories
at optimum levels and raising customer service
performance have become key priorities,” said
Barry Dunn, CRC’s Operations Manager.
“Keeping customers satisfied requires a fast and
efficient service with the right product being
delivered, in perfect condition, on time. Our
warehouse can no longer afford to be regarded as
a dusty building for holding stock. It has to perform
so that goods are received, processed and
dispatched with the minimum of errors. Mistakes
that occur in picking are costly, both in terms of
“
pickup/delivery costs and repackaging, as well as
customer dissatisfaction and the loss of business
errors cause.”
“After lots of research into various technologies,
case studies, site visits and sales pitches, and,
with a lot of help from Dematic, we decided to
deploy voice picking to our warehouse, allowing
our picking staff to simply listen and respond
“With a lot of help to instructions through a headset, leaving their
from Dematic, we eyes and hands free to pick efficiently.
decided to deploy “Pickers in the warehouse can receive voice
voice picking to instructions, ask questions and report back without
having to carry paper with them or keep returning
our warehouse, to a picking desk. They don’t have to un-holster
allowing our and operate a data terminal with a keyboard, or
waste time looking at displays; they can just keep
Implementing the solution one step at a time picking staff to their eyes on what they are doing at all times.”
With a tight timeline for its deployment, Dematic listen and respond
split the scheme into two phases. Mr. Dunn added: “Dematic’s approach was
to instructions very refreshing. Having sat through lots of sales
The first phase comprised implementing the pitches from various companies, it was great
voice picking system, including 35 Vocollect through a headset,
when Dematic arrived with the voice hardware in a
Talkman terminals, and the packing and leaving their eyes suitcase and a very practical approach to working
dispatch system, which features 20 packing
terminals, with each packing station including a
and hands free out what best suited our business needs.”
touch screen, barcode scanners and label and to pick efficiently.”
document printers. Barry Dunn,
The second phase involved deployment of the full
WMS, including goods in, stock management and
replenishment modules and included the supply
of hand-held wireless data terminals to improve
CRC’s goods receipt and put-away processes,
“
Operations Manager,
Chain Reaction Cycles
and was completed after the new packing
conveyors had been installed. Order picking
efficiency has been improved by up to 50%.
Dematic’s integrated logistics solution also gives
CRC’s management team real-time information at
its fingertips, with full visibility of all order status.
“The simple, intuitive voice system helps speed
operations as it tells pickers where to go and
what to pick, and gets them to confirm they have
the correct item. This simplicity also makes it
easy to get people up to speed, picking quickly,”
said Dematic’s Stuart Stables.
DEMATIC LOGISTICS REVIEW 19

20. NEWS, PROduCTS, TEChNOlOgY
& software review
hk systEms joIns
thE dEmatIc famIly
Now fully integrated into Dematic, HK Systems shares its vast
and complementary knowledge. This important acquisition the space saving asRs at
utah state archives, saved
enhances Dematic’s breadth and scope of industry specific
more than us$2 million
expertise, as highlighted in the following case studies. in construction costs alone.
MillerCoors, Trenton, Ohio Utah State Archives, Salt Lake City, Utah
Leading brewer MillerCoors automated The Utah State Archives, which houses Utah’s
warehouse operations at its Ohio brewery, oldest and most valuable documents, photos and
improving inventory accuracy and availability, the original Utah State Constitution, was the first
increasing truck loading efficiency and volume, fully automated archive collection in the USA.
and lowering operating costs. Archivists needed a storage solution that offered
Located adjacent to its existing warehouse, a this priceless collection a secure and consistently
new four-aisle, double-deep rack providing controlled environment, while maximizing the use
storage for over 10,000 pallets up to 82’’ high of space, with only archival approved shelving
is serviced by four 110 ft tall SRMs capable of used to ensure that no contaminants were
storing or retrieving two pallets weighing up to introduced into the collection.
2500 pounds at a time. The automated library system (ALS) provides
A fleet of 32 laser-guided AGVs transport two rapid access to the collection, and features a
pallets at a time over 3,000 feet of path to deep 44 ft high storage system configured with two
lane floor storage locations for fast moving aisles serviced by two triple deep storage and
items, with slow movers and single pallet items retrieval machines (SRMs). Comprising 18 bays
to the ASRS for storage. The AGVs transport of triple deep rack, it provides a total of 1080
pallets for dispatch or directly to the rail or storage locations, each holding 48 archive boxes,
truck shipping docks, with pallets staged in the creating a total storage capacity of 51,840 boxes.
required rail or truck load sequence. In total, the system occupies a footprint of just
Finished goods are not handled manually until 7,592 sq ft, less than 25% of the floor space
they are picked up from the shipping area close that would have been required for conventional
to the docks. archive storage, saving more than US$2 million in
construction costs. The Equipment Management
The AGV system also features an automated
Software that controls the ALS operations
battery charging and exchange system, which
interfaces directly with archive application
enables the system to run and operate without
software to create load movements, track location
human interaction.
information, and provide collection analysis.
a fleet of 32 agVs and a 110 ft tall
asRs handle two pallets at a time,
keeping the goods flowing efficiently
20 DEMATIC LOGISTICS REVIEW
at millercoors ohio brewery.

21. 77 sRms with rotating forks
service more than 64,000
pallet locations at stop &
shop’s dc in massachusetts.
Stop & Shop, Freetown, Massachusetts Ford Motor Company, Chicago, Illinois
With its Freetown DC, Stop & Shop built the most This innovative four-aisle ASRS receives car
advanced automated grocery distribution store in bodies on skids from paint operations and
North America. Housing more than 64,000 pallets, delivers them in sequence to final trim.
the DC comprises two separate warehouses: at The rack supported structure has nine levels and
500,000 sq ft, the perishable goods warehouse eight bays providing a maximum of 576 storage
provides over 25,000 single deep ASRS storage locations, and is serviced by four double-masted
locations serviced by 35 SRMs, while the 620,000 SRMs, designed to handle a car body on a single
sq ft dry goods warehouse provides over 38,500 skid weighing up to 2,200 pounds.
storage locations serviced by 42 SRMs.
The skids are stored in the ASRS in the single
Inbound pallets are brought to the ASRS by WMS- deep position using only the rack locations that
directed forklifts, where they are automatically are between SRM aisles. If one aisle is taken
retrieved from pick up stations and put-away. out of service, all of the loads in that aisle can
The SRMs also replenish floor level pick slots in be accessed from the adjacent aisle using the
each aisle and perform empty pallet take-aways. SRM’s double deep capacity.
A special SRM with rotating forks was specified The computer control system tracks inventory,
for this project, with the multi-function unit selects aisles, manages the integrated conveyor,
compatible for use in just about every warehouse controls the safety gates, schedules vehicle
layout. retrievals based on Ford’s required build
Alternating with each ASRS aisle is a pick aisle sequence and provides all required recovery
where operators pick cases to automated pallet capabilities.
trucks. Pick instructions and acknowledgement Ford has been able to introduce the same vehicle
are conducted via a voice-activated interface to build schedule into Final Assembly as was
the WMS. started in the body shop. This enables suppliers
The integrated solution has increased inventory to receive, manufacture, assemble, ship and
accuracy, cut product and rack damage, deliver components in sequence.
improved workplace safety and reduced staffing
overheads across all three shifts.
the asRs at ford in chicago
handles fully painted car bodies
and sequences them for final trim.
DEMATIC LOGISTICS REVIEW

22. NEWS, PROduCTS, TEChNOlOgY
& software review
EnhancIng
multIshuttlE
®
flExIbIlIty
Dematic has significantly improved the
functionality of the Multishuttle automated
storage, buffering and sequencing system.
MS-Flex extends Multishuttle’s handling range,
giving it the capability of picking a
wider range of unit loads, such as totes, trays
and cartons, of varying widths and lengths.
dEmatIc
Equipped with a MS-Flex is suitable The shuttle’s on-
telescoping Load for both single board controller uses
Handling Device (LHD), and double deep the length data to
RaPIdPIck:
MS-Flex shuttles applications, using calculate where the
feature a split chassis a set of retractable edge of the load is
design comprising a fingers to put-away relative to the fingers.
1000+/houR
fixed side (front) and a and retrieve goods of
moveable side (back). differing shapes and When required, the
This provides the sizes. telescoping LHD
LHD with its flexible moves at a fast speed
width adjustment. The With variable length to a point prior to
With Dematic’s new RapidPick, order fulfilment is just
system is capable of loads, the actual finger engagement of
like an assembly line, with the stock for orders arriving
handling products position of where the the unit load, slows
at precisely the right time and in the correct sequence
ranging in width from fingers engage the down to engage the
to fulfil orders as efficiently as possible.
200-625mm. unit load is dynamic. item, then accelerates
for the rest of the Screens provide step-by-step instructions facilitating
handling cycle, fast, accurate and safe order picking increasing
optimising throughput. productivity to over 1000 order lines per hour.
22 DEMATIC LOGISTICS REVIEW

23. takE contRol
of youR dc
WIth nEW
dc dIREctoR
nEW namE Dematic has introduced DC Director V2.0,
foR asRs an integrated warehouse control software product,
which provides real-time order management,
RaPIdstoRE material flow, and machine control for effective
DC operations and logistics management.
Dematic DC Director updated in real time User-friendly web
In a major update of our Miniload provides a single and facilitating other and mobile client
user interface for processes including interfaces provide
and Unit Load range of SRMs, all order fulfilment automated invoicing real-time visibility
Dematic has created a new name – activities with the and shipping to assist decision
user’s host computer documentation. support and
RapidStore – for its comprehensive
– typically a WMS management:
DC Director
range of ASRS solutions. or ERP system –
integrates • Order detail with
and enables the zone by zone status
technologies such
seamless integration
Configured with components, optimizing as RF and voice • Container contents
of technologies and
racks, rails, in-feed reliability and minimising picking, pick-to-light, and location
software.
and out-feed stations, costs. and ergonomic tracking
controls and software, It manages the flow picking stations,
Requiring aisles just • Workload reports
RapidStore Unit Load of materials and with automated
250mm wider than the to aid allocation
SRMs (storage and orders, constantly materials handling
load and reaching up to and balancing of
retrieval machines) reporting status systems including
30 metres, RapidStore resources
provide superior unit back to the host, ASRS and conveyors,
UL ensures higher
load handling and enabling host into a single order • Picker and zone
storage density and
performance. inventory data to be fulfilment system. productivity reports.
immediate access to
Combining innovative each and every pallet.
Host
engineering and
RapidStore UL SRMs
manufacturing
feature a unique mast
techniques, Host Interface/ERP Adapter
design allowing them to
Dematic RapidStore
operate at impressive
UL is a new class
travel speeds up to 240
Performance Manager
Logistics Manager (LMS)
of SRM delivering
Logistics Cockpit
IT SOLUTIONS
metres/minute, hoisting Warehouse Control
DEMATIC
an outstanding
speeds up to 85 metres/
combination of
minute and fork speeds
quality, impressive Advanced Material Carton Goods-to- Person-to-
up to 90 metres/minute. Forklift Flow Routing & Person Goods
performance and
Management Control Sortation Picking Picking
unbeatable value. That equates to a
retrieval rate of 63
RapidStore UL SRMs
pallets per hour or 40 Controls and Devices Interface
are available in a range
double cycles in a single
of sizes and speeds to
SCADA/System Manager
deep system that is 24m
precisely match your
TECHNOLOGIES
high with a 65m long Vehicle- Multishuttle Conveyors RapidPick & Pick to Paper
storage and handling
DEMATIC
Mounted Miniload Merge & other GTP Pick RF Cart
aisle. Such a system and ASRS Inducts workstations Pick by Voice
requirements.
would accommodate Hand Held Case & Psllet Sorters Multishuttle Pick to Light
Wireless Data & Conveyors Scanners Miniload Put to Light
Suitable for both up to 1600 standard Voice Terminals Monorail Palletizing Conveyors Robot Picking
new and existing sized pallets in a single
storage facilities, aisle and 3200 pallets
RapidStore UL in a double deep
integrates standard configuration. DEMATIC LOGISTICS REVIEW 23

24. www.dematic.com
Dematic Headquarters
Dematic Group S.à r.l.
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L-1653 Luxembourg
T +352 27 48 59
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DEMATIC LOGISTICS REVIEW