DLR #10

DEMATIC LOGISTICS REVIEW
Issue 10
L GISTICS
REVIEW
DEMATIC INSIGHT
How ASRS can transform F&B logistics
NEW MODULAR GTP
Flexible, scalable goods-to-person picking
GLOBAL CASE STUDIES
Smart ideas from around the world
HEILAN HOME: CHINA
Efficient flat pack & hanging
garment apparel distribution
FIRST WISE MEDIA, GERMANY
ADVANCED GTP SMALL PARTS
PICK, PACK & SHIP SOLUTION
FIRST WISE MEDIA, GERMANY
ADVANCED GTP SMALL PARTS
PICK, PACK & SHIP SOLUTION
HEILAN HOME: CHINA
Efficient flat pack & hanging
garment apparel distribution
COOP: SWITZERLAND
Precisely sequenced order
assembly & dispatch loading
COOP: SWITZERLAND
Precisely sequenced order
assembly & dispatch loading

Contents
Cover Story: First Wise Media, Germany
Case Study: Polaris, USA
Insight: Food & Beverage Supply Chain Logistics
Case Study: Coop, Switzerland
Case Study: Blackwoods, Australia
Case Study: Heilan Home, China
Technology: Modular Goods-to-Person (GTP)

4-6
7-8
9-12
13-15
16-18
19-21
22-23
Welcome to the 10th edition of Dematic Logistics Review,
our customer magazine designed to give you an insight
into the rapidly progressing world of Dematic and the
success of our customers around the globe.
DEMATIC LOGISTICS REVIEW2
WE OPTIMIZE YOUR SUP
WITH SMART, COST-EFF
INTEGRATED LOGISTICS

Ulf Henriksson,
President & CEO
Dematic
Over the past few years, the pace of change
in the supply chain has been remarkable. New
technologies, supply chain strategies and ever
evolving IT infrastructures are proving if you are
not continually updating and improving your
supply chain, you will quickly be left behind by
competitors who do.
To better reflect what you, our customers, are
asking for and help us provide the best service,
support, information and advice for your indus-
try, we have aligned our business with a clear
focus on key vertical markets:
• eCommerce
• Grocery
• General Merchandise
• Apparel
• Food & Beverage
• Parcel
• Wholesale/B2B
• Third Party Logistics
• Durable Manufacturing
• Non-Durable Manufacturing
• Pharma/Healthcare
• Document Management.
This market focus is designed to enable us to
better react to the ever changing global trends
and challenges you are facing today and can be
reviewed in greater detail at www.dematic.com.
A key theme in this issue of DLR is Goods-to-
Person (GTP) solutions for a variety of industries.
With benefits including high productivity, re-
duced labor costs, increased inventory and or-
der accuracy, plus lower land, building and op-
erational costs, businesses throughout the world
are increasingly adopting GTP order fulfillment
strategies in place of the traditional person-to-
goods approach.
Dematic is at the forefront of developing new,
high performance GTP solutions across a wide
range of business sectors. In this issue, we fea-
ture two international case studies showcasing
Dematic flexible, scalable and modular GTP so-
lutions, highlighting how the introduction of GTP
has helped transform our customers’ order ful-
fillment processes.
I hope you enjoy the case studies and technolo-
gy reviews in this issue of DLR, all of which serve
to illustrate that at Dematic, We Optimize Your
Supply Chain!
About Dematic
Dematic is an engineering company that designs, builds, implements, and
supports automated intra-logistics system solutions for the distribution
center, warehouse and factory. Process improvements, material flow auto-
mation, along with performance optimizing software make up the modular
components of each solution. To develop the ideal system configuration,
Dematic uses an industrial engineering approach focused on operational
excellence to maximize logistics results.
Implementation of a Dematic system allows users to reduce processing
time and operating costs, increase inventory/order accuracy, maximize
the use of facility space, improve labor productivity and ergonomics, while
offering real time control, visibility and operational insight.
A typical Dematic system solution has a modular software platform to direct
processes starting at inbound receiving and extending to outbound ship-
ping. However, stand-alone point solutions focused on specific functional
areas of the operation, such as order fulfillment, are common. Dematic en-
gineers each system as a modular, flexible, scalable solution to accommo-
date changing activity profiles, average to peak capacity and future growth.
3
PPLY CHAIN
FICIENT
S SOLUTIONS

The telecom and consumer electronics markets
continue to grow, with a constantly expanding range
of electronic devices and gadgets, computers, smart
phones and game consoles now commonplace in
many households.
First Wise Media distributes around 5,000 products
from small SD memory cards up to large speaker
systems for PCs. It distributes goods from a range of
leading IT and associated product suppliers including
Belkin, Samsung, Samsonite, Dell, Edding and Creative
to most major electronics retailers in Germany
including Media Markt, Saturn, MediMax and Euronics.
The business also supports eCommerce retailers such
as Amazon and Otto, as well as supermarkets like
Real, Rewe and Famila.
FIRST WISE MEDIA
WEERTZEN, GERMANY
4
IT SPECIALIST MAKES
WISE CHOICE WITH
DEMATIC GTP PICKING
First Wise Media operates as a full-service pro-
vider including re-stocking in store, re-orders, re-
turns and complaints processing. Rapid growth
in recent years forced the business to increas-
ingly utilize costly offsite storage, with it having
stock spread across eight separate logistics cen-
ters, and picking taking place at three of them.
Consolidation became a necessity, with the busi-
ness investing in a new purpose-designed logis-
tics center at Weertzen. A key feature is one of the
first Dematic Multishuttle Goods-to-Person (GTP)
picking systems of its type in the world.
Facilitating efficient and accurate sequencing of
stock for small parts picking, the system proved
so successful that two additional extensions of
the Multishuttle and GTP systems were complet-
ed within the first six months of operation.
Dematic’s integrated logistics solution
After researching its distribution options, First
Wise Media engaged Dematic to implement its
new Multishuttle and GTP systems, along with
Dematic’s DC Director Warehouse Management
System (WMS) and Material Flow Control (MFC)
suite of integrated software.
A key goal was to identify any problems in pro-
cess, in order to fix them right away. The aim
was to reduce the error rate to less than one per
thousand by using automated checkweighing at
several steps during the order fulfillment process.
To fully exploit the high performance of the Mul-
tishuttle system, Dematic’s software performs
continuous order processing. This principle ap-
plies to all processes starting with order handling,
stock reservation and internal transport, right
through to picking and shipping, guaranteeing
a high level of consistently high utilization of all
system components, enhancing the timeliness
and cost-effectiveness of the new system.
Integrated logistics systems implementation
After receipt of incoming goods, the WMS de-
cides in which area goods are to be stored. Larg-
er quantities and goods for manual picking are
transferred to euro pallets and transported by

DEMATIC LOGISTICS REVIEW 5
First Wise Media’s
picking system
displays a photo
of the item to
be picked and
the quantity
required, with
each step verified
by automated
checkweighing.
reach truck to the weighscales and then to pallet
storage.
Forklift drivers are directed via radio data termi-
nals by the WMS, which forwards data directly
to the system and allocates put-aways and pick-
ing. Due to the checkweighing process in goods
receiving, subsequent errors are consistently
avoided. However, a very high quality of master
data is extremely important for the accuracy of
the checkweighing process.
To address this, a dimension-measuring device is
located next to the pallet weighscale. Here new
products can be measured, weighed and photo-
graphed for the master data file. In today’s fast-
paced computer and mobile phone industry, the
lifecycle of products is often short and about 80
to 100 SKUs are continually removed from inven-
tory, while around 120 new items are added.
Products which the WMS determines are for stor-
age in the Multishuttle are initially repacked into
containers at five incoming goods workstations.
After the picker scans the pallet, a display shows
how many items must be repacked in total from
the pallet into the containers. The picker takes
an empty container from the lower conveyor line
and scans it. After picking the displayed amount
of items, the container is checkweighed for ac-
curacy. If correct, the picker moves the container
onto the conveyor system and continues with the
next empty container.
The automated conveyor system transports the
filled container to the upper floor where it is
stored in the three-aisle Multishuttle system. Af-
ter a few months, the system’s eight picking sta-
tions were extended to 12, and 26 shuttles were
added to the existing 34 in the Multishuttle sys-
tem, further enhancing throughput and efficiency
by enabling the use of one shuttle per level.
GTP order picking process
First Wise Media gathers each order of a market
and then generates several orders from the avail-
able positions - a pick-job – which is then trans-
mitted to DC Director. The WMS then checks
whether the order contains full pallets or cases,
which can be picked directly from the pallet ware-
house, or whether split case picking is triggered
from the pallet warehouse or Multishuttle.
If there is sufficient stock available in the target-
ed areas, the system reserves the quantities re-
quired from the appropriate containers, and as-
signs the order to a picker or workstation where
it is fulfilled. This assignment is made according
to configurable priorities and parameters and fol-
lows the basic principle of continuous order plan-
ning and release.
APPAREL
GOODS-TO-PERSON PICKING
WHOLESALE/B2B SMALL PARTS DISTRIBUTION

6 DEMATIC LOGISTICS REVIEW
FIRST WISE MEDIA
WEERTZEN, GERMANY
““
The sequencing of items in the
precise order in which they must
be put on the shelves later by our
staff is a great advantage for us.
Tim Jöllenbeck, Executive Director, FWM
Each of the 12 picking stations has a buffer for
up to 12 containers, which are delivered by the
Multishuttle in a precisely defined sequence.
When starting a customer order, the system sug-
gests one of three different sized shipping cartons
to the picker, to which a barcode label is attached
for identification. The system screen displays a
photo of the article that is to be put into the ship-
ping carton along with the quantity required. Each
step is verified by the automated checkweighing
system. If the required quantity and total weight
match the order, the picker confirms the order by
updating the screen and pushing the container
back onto the conveyor system.
If the checkweighing system recognizes a devia-
tion, the picker must check immediately if they
have picked correctly, or if there is another rea-
son for the discrepancy. If the shipper is full, the
picker can create a delivery note for the remain-
der of the order, print a shipping label and contin-
ue picking the order with a new shipping carton.
When a customer order is completed, the sys-
tem triggers printing of shipping documents and
asks the picker to place these together with any
required fill material in the box and close it. The
final shipping cartons are pushed onto the con-
veyor system, which transports them to the ship-
ping area on the ground floor.
While it is still on the conveyor, the carton is
strapped and photographed to prove the integ-
rity and correct labelling of the carton.
Shipping staff remove the cartons from the con-
veyor, scan them one last time and stack them on
pallets according to the order or parcel service.
After final checkweighing, each pallet is wrapped
before it is handed over to the appropriate parcel
service or forwarding agent.
Smart solution delivers outstanding results
Currently items from around 20,000 pick posi-
tions are picked per day in the new logistics cen-
ter. A position can include any amount – single
items as well as an entire pallet. A visualization
of the entire system in the DC’s control center
allows staff to monitor the reliability of all compo-
nents at any time. The checkweighing validation
has reduced the error rate to less than one per
thousand and increased customer satisfaction.
“We had very specific ideas about how the pro-
cesses should be organized in our warehouse
and how IT should support distribution. Dematic
has done outstanding work during the design and
creation of our logistics center,” said Tim Jöllen-
beck, Executive Director, First Wise Media GmbH.
“The sequencing of items in the precise order in
which they must be put on the shelves later by
our staff is a great advantage for us,” added Mr
Jöllenbeck. “Plus the ratio between travel time to
picking time has improved tremendously through
the use of the Multishuttle system. We are now
well placed to handle further growth,” he said.
First Wise Media System Benefits
• More efficient labor utilization through goods-to-person (GTP) picking
• Shorter walking paths and picking times, plus capacity for further growth
• Less picking errors due to checkweighing directly at the pick stations
• Error rate below one per 1,000, with significantly increased customer satisfaction
• Sequencing of the products when picking takes place in a sales-oriented order
• DC’s control center allows continuous system monitoring, enhancing reliability
APPAREL
WHOLESALE/B2B SMALL PARTS DISTRIBUTION

POLARIS
OHIO, USA
To accommodate the high expectations of its
dealers and ensure that orders are processed
with speed, accuracy and efficiency, Polaris
needed a solution that could optimize the pick,
pack and ship process. According to Paul Eick-
hoff, Director of Operations for Polaris: “Our win-
ning advantage is our innovative culture, opera-
tional speed and flexibility, and passion to keep
improving the parts distribution supply chain.”
The Eastern US DC, located in Wilmington, Ohio,
supports 1,100 dealers, accommodates over
7,000 SKUs, with capacity for up to 20,000 SKUs,
maintains order accuracy of over 99.9%, and
fills 99%+ of orders on a same-day basis. “We
embrace the spirit of the perfect order, delivered
on time, with the right part number, the correct
quantity, and the relevant documentation,” ex-
plained Mr Eickhoff.
Previously, Polaris provided parts, garments and
accessories to its dealers in the eastern region of
the United States from its DC in Vermillion, South
Dakota. To optimize service and response time
for these dealers and support future company
growth, a new distribution facility was required.
NEW DC DRIVES
POLARIS LOGISTICS
From a network efficiency standpoint, Ohio was
determined to be the ideal geographic location.
An existing building was acquired and the new
Polaris DC was created.
Split case pick module
The DC design uses a strategic inventory location
plan to optimize operational performance. Polaris
parts that are picked in cases are centralized in
the full case pick module. Parts that are picked
as “pieces” are centralized into the split case pick
module. Low-velocity, large and non-conveyable
items are located together on pallets in racks, with
the SKUs slotted within these areas by velocity.
The zone-routing split case pick module brings
the order container to the picker. Pickers remain
in an assigned zone; efficiency is gained since
they do not roam the warehouse searching for
items, but instead are focused on picking a seg-
ment of the inventory located in a compact area.
The split case pick module is configured with four
zones, with SKUs staged on flow racks or shelv-
ing. The zones are slotted based on attributes
such as part family, velocity or cube utilization.
Polaris Industries,
a manufacturer of
motorized off-road
and on-road vehicles,
snowmobiles and
motorcycles, has
designed, built and
implemented a new
distribution center to
service its network
of dealers in North
Eastern United States.
“
“
We embrace the spirit of
the perfect order, delivered
on time, with the right
part number, the correct
quantity, and the
relevant documentation.
Paul Eickhoff,
Director of Operations,
Polaris Industries
APPAREL
ZONE-ROUTING SPLIT & FULL CASE PICKING
DURABLE MANUFACTURING SPARE PARTS DISTRIBUTION

POLARIS
OHIO, USA
APPAREL
ZONE-ROUTING SPLIT & FULL CASE PICKING
DURABLE MANUFACTURING SPARE PARTS DISTRIBUTION
8
The operational method is to route the order con-
tainer only to zones where picks are required.To
support the zone-routing system pick method,
a conveyor network controls the flow of order
cartons into and out of the zones. One picker is
stationed in each zone; however additional pick-
ers can be added during peak periods. Or, during
periods of lower order volumes, one picker may
operate across multiple zones.
The conveyor layout features an accumulation
conveyor spine which travels through the entire
split case pick module with an exit and a siding
for each zone. Each exit point consists of a bar-
code scanner and a right angle transfer to divert
the order container into the pick zone.
When the picks are completed, the operator
pushes the order carton back onto the central
conveyor spine. If more picks are required, the
order travels to another zone(s). If no other picks
are required, it travels directly to packing on the
conveyor spine.
An order start workstation is located upstream of
the conveyor spine in the split case pick module.
A worker applies a unique barcode label to each
carton, forms the carton and enters it onto the
in-line tape applicator. The carton proceeds on
the conveyor spine to the zone where inventory
for the order is located.
Pickers stationed in the zones use portable RF
hand-held devices to obtain picking instructions.
When an order container arrives at the pick zone,
the picker scans the barcode on the order con-
tainer using the RF device. Next, pick instructions
appear on the screen. At the pick location, the
picker scans the SKU barcode on the product
to confirm it is the correct SKU. The items are
picked and placed into the order container, which
is then pushed back onto the conveyor spine.
Each split case order container is conveyed to
the pack and ship sub-system, where the order
is checked for accuracy, weighed for shipping
cost calculation, a shipping label applied and
the carton sealed. These finished split case order
cartons are conveyed to the shipping area where
a sorter automatically diverts the cartons to the
appropriate shipping dock for loading onto truck
trailers. The cartons for LTL shipments are auto-
matically sorted to a manual palletizing station.
Full case pick module
The full case pick module consists of pallets of
stock located on racking. Via instructions from a
hand-held RF device, a worker travels to a pal-
let location and picks the case(s) onto the trans-
portation conveyor that operates in the center of
the full case pick module. A pre-printed label is
attached to each case. Cases from the full case
pick module are conveyed to shipping and auto-
matically diverted to the appropriate truck trailer
for loading or to LTL palletizing and shipping.
Warehouse Control System (WCS)
The WCS manages the automated operation of
the conveying and sorting network, directing the
flow of the split case order containers into the
appropriate pick zones. Using data from the bar-
code scanners, the software activates the right
angle transfer devices allowing cartons to auto-
matically divert into the pick zones.
The WCS also directs the operation of the full
case pick module conveyor sub-system, packing
workstations, and shipping sorter sub-system.
Real-time information is available regarding car-
ton location on the system, divert/sort statistics,
barcode read rates, and carton re-circulation. A
graphic of the system layout displays real-time
information about the status and performance
attributes of each sub-system: picking, packing,
packing merge, trash line and shipping.
Delivering fast, accurate order fulfillment
The modular system design facilitates opera-
tional efficiency, order processing speed, and
order accuracy while providing the flexibility to
accommodate changes in daily requirements.
Order processing capacity can be scaled up
by increasing the number of workers in the split
case and full case pick modules during peak pe-
riods. During periods of slow activity, fewer work-
ers can be assigned to support the order volume.
Furthermore, work stations and shipping door
diverts can be placed into or taken out of service
depending on daily activity. Current activity is ap-
proximately 500-700 orders per day (6,000 lines)
with about 150 re-stocking orders. The overall
system capacity is 25,000 lines.
Picking staff are not required to travel through
the warehouse to locate inventory for picking. In-
stead, the smart system design positions work-
ers in pick zones where the inventory is arranged
in a high density, compact configuration. This al-
lows workers to walk less and accomplish more
picks per hour. In addition, the zone-routing sys-
tem directs order containers only to zones with
picks, thereby reducing order processing time.
The systemized approach, combined with auto-
mated conveying and sorting brings discipline,
process improvement and labor productivity to
the pick, pack and ship process. The system is
designed to accommodate growth; for example,
diverters are pre-installed into the shipping layout.
Whenever additional capacity is required, modu-
lar down-line conveyors will be connected and
the pre-configured software activated.
Right (from top):
Case forming
Overview of zone-routing pick module
SKU scanning to confirm pick accuracy
Pick-to-belt full case pick module
Pop-up wheel sorting system

ASRS AND ITS ROLE IN
ADDRESSING SEVEN KEY
CHALLENGES IMPACTING
F&B SUPPLY CHAIN LOGISTICS
David Rubie, Manager
Industry Logistics at
Dematic Australia,
discusses why increasing
numbers of Australian
food and beverage (F&B)
manufacturers and
distributors are taking
advantage of ASRS’
compelling performance-
to-cost ratio compared
to conventional manual
warehousing for fast,
reliable, cost-efficient
automated pallet
handling, storage and
order fulfillment.
Introduction
The Food and Beverage (F&B) sectors are chang-
ing rapidly in most countries, with new trends
and drivers creating new challenges for manu-
facturers. Grocery retailers are putting pressure
on suppliers’ margins, consumers are becoming
more price conscious while at the same time ask-
ing for a greater range of products, input costs
including labor, raw materials and energy are in-
creasing, and safety and product tracking regu-
lations are becoming more onerous. All these
trends pose significant challenges to F&B manu-
facturers’ supply chain and logistics operations.
Leading Australian F&B manufacturers are in-
vesting in warehouse automation to address
these challenges and deliver significant and
lasting competitive advantages to their supply
chains and businesses. They are taking advan-
tage of lower costs and the latest developments
in automated storage and retrieval systems
(ASRS) – driven by modular design and reduced
subcomponent costs – to increase productiv-
ity and reduce costs, improve storage capacity
and consolidate manufacturing and distribution
operations, as well as maximizing service levels,
system flexibility and operational resilience.
1. Cost pressures: the need to
reduce costs and maximize productivity
The imperative to optimize productivity and re-
duce costs in supply chains has never been
greater for F&B manufacturers. While labor costs
continue to rise and drive the need to increase
productivity, these cost pressures are being
compounded like never before by the increasing
concentration of the grocery retail market, and in-
creasingly price conscious consumers. Let’s look
at each factor in turn.
Highly concentrated grocery retail market
putting pressure on manufacturer margins
In most countries, the big guys on the block
just keep on getting bigger. This means retail-
ers are in a unique position of strength and this
has major implications for F&B manufacturers.
In Australia, the market share of the two top gro-
cers stood at 73% in 2013, and the Australian
Food and Grocery Council (AFGC) forecast it
to consolidate to 80% by 2020. Major grocers
worldwide are also consolidating market share in
the liquor retail sector. Australia’s two major gro-
cers – with the introduction of big box liquor out-
lets and aggressive pricing – now control 57% of
the local alcohol retail market.
The grocers have leveraged this market position
to drive strong agreements with suppliers, erod-
ing suppliers’ margins and enabling them to offer
low store prices that smaller outlets find very dif-
ficult to compete with. They are also using their
position to drive their own private label ranges at
the expense of branded products.
Grocery retailers pushing inventory back to
manufacturers
Major grocery retailers are also pushing inven-
tory back towards suppliers, increasing logistics
costs for manufacturers, especially those that
have outsourced their distribution to third party
logistics (3PL) providers. With grocers pushing
inventory back on suppliers, the 3PLs are hold-
ing higher levels of inventory with consequently
higher costs for many of their customers.
As a result, manufacturers are increasingly look-
ing to insource their logistics operations and
build supply chain competence back into their
own business. For many, the timing of this pres-
ents an ideal opportunity to optimize their distri-
bution activities.
Price conscious consumers
The Global Financial Crisis and concerns about
jobs and unemployment mean consumers re-
main highly price conscious, and are favoring
low-cost supermarkets over convenience stores.
Consumers are also increasingly open to pur-
chasing an expanding array of private labels. In
a survey of Australian consumers in 2010, 46%
of consumers considered private labels as good
alternatives to brands, with 42% believing they
were of equivalent quality.
INSIGHT
FOOD & BEVERAGE LOGISTICS
FOOD & BEVERAGE ASRS SOLUTIONS
SUPPLY CHAIN APPLICATIONS

The AFGC forecasts that the penetration of pri-
vate labels will increase from around 15% of dol-
lar share to potentially reach 40 to 50% of total
supermarket sales by 2020, in line with other de-
veloped markets like the UK.
These two trends place further pressure on F&B
manufacturers’ margins. Volumes are shifting to-
wards lower-margin grocery retailers at the ex-
pense of higher-margin convenience and small
food retailers, with manufacturers also facing
increased competition from private labels.
Labor: rising costs, decreasing availability
The rising cost of labor and decreasing labor
availability – the latter primarily driven by an age-
ing population and a workforce increasingly reluc-
tant to work in warehouses, especially cold stores
– has major implications for distribution costs.
While manufacturers have automated their pro-
cessing lines, for many their distribution and
warehousing operations remain highly labor-
intensive.
In recent years, many companies across differ-
ent sectors have increased labor productivity
through human resources measures.
Many now recognize that having implemented
these measures to their full extent, the next step-
change in improving productivity will be through
investment in productivity-enhancing technology.
ASRS: increasing productivity, reducing costs
ASRS fully automate the process of product
storage and handling, eliminating ‘touches’ by
operators, greatly reducing warehouse labor and
operating costs.
Although highly dependent on the specific inven-
tory profile of a manufacturer, productivity gains
of up to 20% - 30% can typically be realized with
ASRS.
ASRS also reduce waste, product and rack dam-
age associated with forklift trucks, and typically
have lower maintenance requirements in com-
parison to forklift leasing and maintenance costs.
2. Consolidation of production and distribution:
land availability implications
There is a growing trend for manufacturers to
consolidate their production facilities in response
to cost pressures, reducing the number of nodes
in their networks to lower warehousing and
transport costs.
As part of this consolidation, F&B companies are
building their distribution operations adjacent to
their manufacturing lines, eliminating the costly
and labor-intensive process of shipping finished
goods from a processing facility to a warehouse.
However, the limited availability of land next to
manufacturing facilities and the increasing cost
of land – at least in high-density population cen-
ters – can make this prohibitive with conventional
manual storage and handling solutions.
Increasing storage density and reducing land
requirements with ASRS
By maximizing storage density and allowing
heights up to 35 m, pallet ASRS systems require
up to 60% less space compared to conventional
pallet storage.
With a reduced building footprint, ASRS can
make it feasible for manufacturers to build fin-
ished goods distribution facilities adjacent to
their manufacturing plants, even where land is
limited. And, by consolidating distribution into
an ASRS warehouse, manufacturers can reduce
safety stock holding requirements and total in-
ventory costs.
ASRS is also a very cost-effective solution for
conventional warehouses that are running out
of space. Replacing conventional pallet racking
with ASRS significantly increases pallet storage
capacity extending the life of the existing build-
ing, reducing costs and eliminating the costs and
disruption associated with constructing a new
facility or relocating.
3. Ensuring superior customer service levels
In such a competitive, consumer-driven market
it is imperative for F&B manufacturers to get the
right product in the right quantity at the right time
to customers, more so than in any other industry.
Grocery distributors are less tolerant of missed
delivery windows or incorrect products that lead
to out of stock store shelves, imposing penalties
for late or incomplete deliveries. Manufacturers’
distribution operations need to ensure they have
the correct product in the required stock quantity,
and that orders are complete and accurately dis-
patched in a timely manner. They also need suf-
ficient redundancy and tolerance to operational
disruptions. Just as importantly, distribution func-
tions need to ensure they are not causing bottle-
necks for operations, which can lead to produc-
tion lines being stopped. And all this needs to be
achieved in the most cost-effective manner.
Optimizing service levels with ASRS
By completely automating the processes of
put-away, storage and retrieval, ASRS eliminate
potential operator errors and ensure optimal in-
ventory availability and maximum order accuracy.
Operations know exactly what is in stock and
customers’ orders are correct.
ASRS also deliver significant benefits for staging
and dispatch applications and for consolidated
production and distribution facilities’ processing
lines – all critical elements in ensuring customer
orders are fulfilled on time and in full.
Efficient staging and dispatch with ASRS
In a manual staging and dispatch area, pallets
need to be staged in trailer-load quantities to en-
sure trucks can be quickly loaded. Having a large
enough dispatch area is critical for dealing with
daily operational fluctuations; however many
INSIGHT

dock areas have limited floor space and the
headroom is usually underutilized (as opposed
to an ASRS). In the event of a disruption, such
as a truck breakdown on the way to the facility,
stock for orders is often left in dispatch until the
problem is rectified. This can lead to potential
bottlenecks for other orders which can cascade
into disruptions to upstream operations, with sig-
nificant impact on customer delivery.
A very effective alternative is extending the use of
ASRS to staging and dispatch. With ASRS deliv-
ering faster cycle times than manually operated
forklift trucks, pallets of stock can be retrieved
from the system so they are ready for loading
when the transport vehicle arrives in the yard. The
use of ‘golden zones’ within ASRS for pre-stag-
ing orders, further facilitates quick and efficient
shipments by providing the quickest access to
storage locations. This ensures customer orders
consistently meet ever tighter delivery windows.
Automated Guided Vehicles: Integrating pro-
cessing lines and ASRS for increased reliability
For consolidated production and distribution fa-
cilities, automating the complete process from
end-of-processing line palletizing through to an
ASRS increases the system’s redundancy and
resilience, eliminating potential bottlenecks to
critical operations.
This can occur in manual systems, for example, if
an operator leaves accumulated pallets at a pro-
cessing line outfeed.
While pallet conveyors and monorails provide ro-
bust and reliable links between production and
automated storage, the ideal solution for opera-
tions that are looking for maximum redundancy
and flexibility are Automated Guided Vehicles
(AGVs). Apart from providing reliable and cost-
effective pallet transport, the inherent flexibility
of AGVs means that as throughput requirements
and pickup and delivery destinations change,
pathways can be easily adjusted and additional
AGVs readily added to the fleet.
4. Dealing with increased SKU proliferation and
order complexity
Consumers are demanding a wider range of
products, driven by tastes and food fashion
trends, fitness and health concerns.
Just one example of this is the shift away from
mainstream beers, milk and soft drinks, and the
associated increase in the consumption of craft
beers, cider, soy milk and health drinks.
Manufacturers are responding by introducing
many new products. The impact on F&B manu-
facturers’ supply chains is continuing SKU prolif-
eration and the need to stock an ever-increasing
variety of product. For manufacturers who are
also producing private labels for retailers, this only
adds to the SKU complexity they manage.
In a manual warehouse system, the implications
of handling additional SKUs means that every-
thing has to get larger – more pallet storage and
picking locations and more travel, which leads
to slower and less efficient operations, in bigger,
more expensive warehouses.
ASRS deliver greater storage capacity for han-
dling higher numbers of SKUs.
By offering greater storage density and the op-
portunity to go higher, ASRS provide operations
with significantly more storage locations for han-
dling additional SKUs without increased travel.
And with order profiles changing, including varia-
tions in throughputs of individual SKUs as they
shift from slow to fast movers and vice-versa,
ASRS can readily reslot product to ensure fast
movers are located closer to outfeed zones, in-
creasing system responsiveness.
5. Managing occupational health & safety (OH&S)
OH&S is regularly cited as the number one prior-
ity for many F&B manufacturers. The movement
and storage of heavy pallet loads, and potential
breakages and spills, all pose dangers to op-
erators. Many DCs require complete operational
separation of MHE and personnel to ensure
operator safety and compliance with new work
safety requirements.
Apart from the human factor, Lost Time Injuries
(LTIs) are becoming increasingly costly to opera-
tions. And an ageing workforce only increases
the imperative to address OH&S challenges. A
further safety factor, Chain of Responsibility,
takes into account axle loading, and it is up to
warehousing operations to ensure compliance.
ASRS minimize OH&S risks
By eliminating the need for operators and forklift
trucks in storage and staging applications, ASRS
significantly reduce the OH&S risks associated
with manual handling.
ASRS deliver precise put-away and retrieval from
storage locations, removing the risk of product,
pallet, or rack damage. With regards to Chain of
Responsibility, ASRS can deliver pallet loads to
a trailer in the precise sequence specified by a
host system according to axle load requirements.
6. Rising energy costs driving the need to
improve efficiency
Rising energy costs are also impacting on F&B
manufacturers’ margins; this has particular sig-
nificance for manufacturers with energy-inten-
sive cold store operations.
Reducing total energy consumption with ASRS
By maximizing storage density and reducing the
footprint, ASRS reduce energy requirements for
cooling or warming the storage cube.
This is particularly significant in temperature-
controlled facilities where reducing the volume
required to cool translates to significant reduc-
tions in energy use. ASRS systems also require
“
“
While manufacturers
have automated their
processing lines, for
many their distribution
and warehousing
operations remain highly
labor-intensive.

significantly less lighting, further reducing energy
consumption. Equipped with energy recovery
technology, Dematic ASRS also conserve en-
ergy during operation. For example braking en-
ergy is regenerated and used by the lifting motor,
enabling Dematic ASRS to consume up to 29%
less energy than conventional non-regen ASRS.
7. Tracking requirements
Food standards authorities in many countries
require food to be tracked through all stages
of production, processing and distribution (also
known as farm to fork). The aim is to enable
quick and effective corrective action in the event
of something going wrong, resulting in a product
recall, and prevent contaminated product from
reaching consumers.
Supply chain management systems need to cap-
ture sources of raw materials, additives and oth-
er ingredients and all other inputs, and provide
product batch or lot identification, production
and expiry dates.
In addition to meeting Food Standards Code re-
quirements, F&B companies recognize that prod-
uct traceability systems help protect their brands
by enabling a rapid and effective response to
any incident. Apart from batch and lot tracking,
Warehouse Management Systems need to effec-
tively manage inventory and FIFO (First In First
Out) rules; in many cases, major grocers will only
accept consecutively numbered batches and ex-
piry dates.
ASRS and WCS provide comprehensive
tracking and responsiveness capabilities
ASRS can be fully integrated into an operation’s
Enterprise or Manufacturing Resource Planning,
or Warehouse Management System via a Ware-
house Control System (WCS). The Dematic WCS
provides precise tracking of product movement
and storage locations in real time.
As part of its comprehensive inventory tracking
capabilities, the WCS manages batch and lot
tracking of products and, in conjunction with the
host, manages FIFO and FILO rules.
The WCS also seamlessly integrates other sys-
tems in the warehouse, including palletizing,
conveyors, monorail and AGV pallet transport,
and picking technologies including robotics and
voice-directed systems, providing complete sys-
tems management and visibility.
In the event of an incident, such as a product
recall, management can immediately identify the
specific batches or lots in question and task the
system to take appropriate action, such as bring-
ing out the product to a specific location.
Conclusion
The latest developments in ASRS and associated
materials handling and software solutions pro-
vide significant benefits for F&B manufacturers
looking to address the latest challenges facing
their distribution operations.
ASRS provides distinct and lasting competitive
advantage by reducing labor touches and im-
proving productivity by up to 30%, increasing
service levels, minimizing OH&S risks, enhancing
operational flexibility and resilience, while deliv-
ering comprehensive tracking, visibility and op-
erational management capabilities – and ASRS
achieves this using up to 60% less space com-
pared to conventional storage solutions. ASRS
allow F&B companies to review their complete
manufacturing and supply chain networks and
look at where they can consolidate storage and
distribution to reduce total costs and deliver su-
perior operational capabilities.
And with the cost of automation falling signifi-
cantly in recent years, the business case and
return on investment for ASRS has never been
greater.
“
“
ASRS allow F&B
companies to review
their complete
manufacturing
and supply chain
networks and look
at where they can
consolidate storage
and distribution
to reduce total
costs and deliver
superior operational
capabilities.
INSIGHT

MULTISHUTTLE
DRIVING ORDER
ASSEMBLY AT COOPPreviously in Coop’s Bern distribution center,
goods from the ultra-fresh section – products
with a use-by date of less than three days – were
manually picked and loaded into the rolling
containers in the evenings from 6 pm to around
midnight, and the meat section from midnight to
10 am in the morning. Personnel levels for this
labor-intensive task were high and, with order
assembly taking place within a cold storage en-
vironment, unpleasant for the staff.
The challenge was to come up with an automat-
ed solution that would fit within the 30 year old
DC, which had a low ceiling height of just 16 ft.
The variety of different pack types and sizes and
the need to continue deliveries to the sales out-
lets during the testing and commissioning phase,
was another significant challenge to the imple-
mentation partners.
Space-efficient integrated system solution
Dematic’s integrated system solution comprises
an automatic depalletizer, a six-aisle Multishuttle
warehouse with 54 shuttles for the storage and
sequential removal of trays, as well as a station
for the automated stacking and loading of the
rolling containers, with individual sections of the
system connected by conveyors.
Leading Swiss retailer
Coop has implemented a
compact, six-aisle
Dematic Multishuttle
system in Bern for the
precisely sequenced
picking and dispatch of
meat, dairy and ultra-fresh
products to its network of
135 sales outlets.
From afternoon till early
morning, the Multishuttle
is continually retrieving
trays of yoghurt, meat,
pasta and sandwiches,
which are then loaded for
delivery to stores by an
automated rolling
container loading system.
Initially the system for the 18,300 sq ft area was
set up for processing Coop’s ultra-fresh and
meat products.
The ability to also process its milk products via
the Multishuttle system has further improved
system utilization and efficiency.
The product ranges are complementary, as the
dairy products do not need to be picked until the
afternoon.
This means the system’s return on investment
will be significantly shorter, even though the Mul-
tishuttle system needed to be larger.
To make optimal use of space and to be able to
equip all six aisles of the Multishuttle with nine
levels, Coop installed low profile ventilation ducts
in-house. This provided sufficient headroom for a
108 ft long by 15 ft high Multishuttle system with
6,500 storage spaces for double-deep storage of
24 x 16 inch size trays.
Order picking and assembly
Coop works with various pack types that are pro-
cessed automatically and need to be transported
by the system. In addition to the three different in-
ternal Coop pack types, other packs include meat
boxes and different packs for the dairy products.
COOP
BERN, SWITZERLAND
GROCERY RETAIL DISTRIBUTION
AUTOMATED ORDER FULFILLMENT

In the incoming goods section are two feed
points – one for automatic unloading of pallets
and one for rolling containers. Installed in direct
proximity to this is a manual infeed for products
which cannot be palletized, placed into storage
or identified.
The rolling containers reach the depalletizing sta-
tion via a chain conveyor, with a buffer station for
a maximum of three further trolleys. Here, a gan-
try robot receives the goods, initially in stacked
form, before a transfer forklift deposits the indi-
vidual layers onto the conveyor, where the packs
are separated.
Whether the articles are depalletized in one or
two layers depends on their weight as well as
the pack type, and the resulting height of the
two-layer pack.
To fill the Dematic Multishuttle warehouse opti-
mally, the system strives, where appropriate, to
place the articles into storage stacked up to six
deep. In this process, every storage compart-
ment is assigned only the articles or goods that
are intended for the same outlet.
Dispatch order processing
From 3 pm, outward storage movements are ini-
tiated for the dairy products, with the Multishuttle
system simultaneously feeding three outgoing
goods levels, each equipped with a packing fork-
lift and a rolling container loading station. Rolling
containers are loaded complete and in sequence
for each level.
The high performance of the Multishuttle system
permits the loading sequence in which the arti-
cles are to be packed onto the rolling containers
to be created directly on the transfer runs.
This means that no downstream technology is
required for sequencing. This simplifies the pro-
cess, saves space, and any errors can be more
easily rectified so that only packs for the same
rolling container are transported on a line.
The final rolling container loading is then pro-
cessed via a vertical storage pack forklift for
each outgoing goods section and a pusher that
slides the stack onto the rolling container. An em-
ployee then secures the rolling container with a
lashing strap and pulls it off the conveyor.
The system, refrigerated continuously to between
37 and 41°F, has been in full operation since May
2012. Its operation is controlled by Dematic’s
Warehouse Management System (WMS), which
is interfaced to Coop’s ERP system.
During the construction phase, Coop tempo-
rarily transferred the crossdocking process for
meat goods into a nearby building. The high
turnover, ultra-fresh product range was the first
to be loaded into the system, followed by Coop’s
meat products. In the third and final phase of the
commissioning process, dairy products were in-
ducted into the system.
14
Above: Multishuttle precisely sequen
Left: Automated depalletizing of inco
Right: Automated stacking and loadi
COOP
BERN, SWITZERLAND

Flexibility and high throughput rates
The system offers considerable flexibility – this
means that changes can be made quickly and
easily.
This was of benefit to Coop during the commis-
sioning phase. Each of the three outgoing goods
areas can carry out 800 movements an hour.
With a stacking factor of 1.5, the system has an
output of 3,600 trays per hour.
The Multishuttle system achieves the best output
levels when things are really buzzing in the DC.
In daily operation, it has been shown that when
the volume increases, the stacking factor and
throughput rates also increase without additional
personnel being required.
This means that on quiet days, Coop has a stack-
ing factor of 1.1 or 1.2 and, on busy days, such
as Fridays, a stacking factor of 1.5 or even 1.7.
The experience that Coop was able to gain from
this automation project has been very important
for further restructuring processes and commis-
sioning projects in its other distribution facilities
in Switzerland.
Commenting on the project, Domenico Repetto,
Head of the Bern Logistics Region at Coop, said:
“After checking the proposals we compared the
solutions from the various logistics automation
suppliers and, in Dematic, we ultimately found a
partner who was able to handle the project de-
spite its limitations.”
Domenico Repetto, Coop’s Head of
Logistics, Bern Region
15
nces SKUs for order assembly.
oming goods.
ing of rolling containers for delivery.
“
“
After checking
the proposals
we compared
the solutions
from the
various logistics
automation
suppliers and,
in Dematic,
we ultimately
found a partner
who was able
to handle the
project despite
the DCs ceiling
height limitation.
Domenico Repetto,
Head of Logistics
Bern Region,
Coop
GROCERY RETAIL DISTRIBUTION
AUTOMATED ORDER FULFILLMENT

Blackwoods, the largest business in Wesfarmers
Industrial and Safety Division, plays a vital role in
Australia’s industry, servicing sectors as diverse
as mining and manufacturing through to retailing,
health and education. It distributes one of the
widest product ranges in Australia, dispatching
up to 300,000 different SKUs each year.
A key feature of its distribution center at
Greystanes in Sydney’s western suburbs, is the
first Multishuttle 2 Goods-to-Person (GTP) order
fulfillment system of its type in Australia.
“With customer expectations that are just as var-
ied as our product range, our on-going goal is to
fulfill all customers’ workplace needs by deliver-
ing exceptional customer service and satisfac-
tion through dynamic and innovative sales and
service solutions, backed by efficient and timely
distribution,” said Blackwoods General Manager
NSW/ACT, Tony Pantilas.
Above: The Multishuttle system’s 27,200 totes house 35,000+ SKUs.
Centre: The GTP system enables up to six orders to be picked at a time.
Right: A GTP workstation is also used for replenishing stock.
BLACKWOODS GTP
LIFTS PRODUCTIVITY,
ACCURACY & SAFETY
“We’ve been working hard and investing in our
people, technology and resources to make it eas-
ier for customers to deal with us, and by changing
with and anticipating the needs of the industries
we serve,” explained Mr Pantilas.
“A key facilitator in achieving our delivery promise
is our constantly evolving supply chain network, a
key feature of which is our new DC at Greystanes
in Sydney, featuring the first automated GTP
picking system of its type in ANZ,” he said.
Dematic Multishuttle
Dematic’s Multishuttle has revolutionized the
storage and sequencing of totes in split case or-
der fulfillment. Blackwoods’ Multishuttle 2 system
– the first of its type in Australia – operates at up
to twice the speed of the first generation model,
further increasing productivity and throughput.
The system includes two aisles, with totes stored
double deep over 25 levels high.
Blackwood’s
was a winner in
the recent 2014
Supply Chain
and Logistics
Association
of Australia
Awards.
BLACKWOODS
SYDNEY, AUSTRALIA

The Multishuttle is capable of supplying around
1000 totes/hour to the GTP workstations.
Stock is retrieved from the Multishuttle and deliv-
ered to the GTP workstations in the precise se-
quence required for order assembly – heavy items
first, fragile items last, by family group or in what-
ever sequence needs dictate – ensuring very high
productivity and throughput rates.
Dual-purpose Goods-to-Person workstations
Each GTP workstation is dual-purpose, enabling
Blackwoods to run some for picking and others
for replenishment depending on the workload, op-
timizing flexibility. The workstations are designed
to process up to 500 picks/hour. Value-adding ac-
tivities during picking can reduce this to around
200 picks/hour.
Each aisle is serviced by two elevators, one feed-
ing totes into the aisle and one retrieving them,
with each elevator capable of handling two totes
at a time, doubling the throughput for every cycle.
To accommodate Blackwoods’ wide range of
SKUs – from small nuts to large industrial fittings
– dividers in the totes enables two, four or eight
SKUs to be stored in each tote, with the system’s
27,200 totes housing 35,000+ SKUs.
The Multishuttle system software is self-learning,
and stock locations are controlled on a dynamic
basis. Each time a SKU is retrieved, the system
examines how often the SKU is required, and
puts the tote away accordingly, with fast-moving
SKUs stored towards the front of the system and
slower-moving SKUs stored towards the rear.
“
“
The GTP has been
in place for over
four months, and
we’re very pleased
with the output.
It’s delivering to
what Dematic
said it would
from a pick rate
and productivity
perspective, and
the system has also
been very reliable.
Tony Pantilas,
General Manager
NSW/ACT,
Blackwoods
Blackwoods’ GTP workstation configurations – in
which a single stock tote and multiple order totes
are presented to the operator – eliminate time wast-
ed travelling, locating and identifying stock, and
enables multiple orders to be fulfilled concurrently.
With clear, easy-to-follow visual guides and pick-
to-light displays, picking errors are virtually elimi-
nated. An integrated weighscale checks expected
weights, enhancing accuracy and ensuring any
errors are identified and corrected on the spot.
Staff work in parallel at multiple picking stations,
unaffected by each other’s pace, and pick sta-
tions can be opened and closed according to vol-
umes on a shift. The system provides full redun-
dancy as orders can be processed at any location,
with all stations operating independently.
Blackwoods GTP workstations enable up to six
orders to be picked concurrently. The worksta-
tions also include an additional order location for
urgent orders, such as customer pick-ups. This
location can also be used to replenish urgently
required stock to the Multishuttle storage buffer.
Orders are typically launched at the GTP work-
station. After the GTP portion of the order is com-
plete, the operator pushes the order tote onto a
conveyor, which transports it through Pallet Live
Storage (PLS), longspan shelving and Carton
Live Storage (CLS) areas to complete the order.
SKUs not suitable for GTP
Slower-moving SKUs and goods not suitable for
storage within the Multishuttle are stored within
PLS, longspan shelving, CLS and selective rack.
APPAREL
WHOLESALE/B2B INDUSTRIAL SUPPLIES

Above: Tony Pantilas, General Manager NSW/ACT, Blackwoods
Below: Voice-directed case and pallet picking modules
After all the required SKUs from the GTP system
have been picked into the order totes, the sys-
tem’s integrated conveyor system transports the
order totes to the raised storage level PLS and
longspan shelving picking module, where any
additional SKUs from this area are picked and
added to the order.
To ensure accuracy, the order totes are scanned
and all picking in the PLS and longspan shelv-
ing picking module is voice-directed. When all of
the items for an order have been picked in the
PLS and longspan shelving areas, the order tote
is pushed onto a central conveyor, which trans-
ports it to the ground level CLS picking module,
where any final items required for an order are
picked. After items required from the CLS pick-
ing module have been placed into the order tote,
it is pushed onto the central take-away conveyor,
which transports the order tote to the DC’s con-
veyor sorting system, where the orders are auto-
matically sorted to the appropriate shipping lane
for checking, packing and dispatch.
Integrated system software
Dematic’s PickDirector Warehouse Control Soft-
ware (WCS) controls the real-time flow of the GTP
workstations, as well as voice-directed picking in
the PLS, shelving and CLS areas, and the flow of
orders through the system to dispatch.
Dematic’s Manager Direct & Wholesale Distribu-
tion, Darren Rawlinson, said: “Our PickDirector
Warehouse Control Software integrates with
Blackwoods’ WMS to provide total visibility of
all picking operations within the warehouse, and
provides Blackwoods with real-time system per-
formance and order status data.”
Blackwoods GTP system performance
“The GTP system has now been in place for over
four months, and we’ve been very pleased with
the output,” said Tony Pantilas.
“It’s delivering to what Dematic said it would from
both a pick rate and productivity perspective,
and the system has also been very reliable.
Mr Pantilas added: “When we first started, we
Blackwoods System Benefits
• Consolidation of two DCs totalling 250,000 sq ft into a new 150,000 sq ft DC
• Multishuttle provides very high productivity and throughput rates: 1000 totes/hour
• Delivers SKUs to GTP workstations in exact sequence to optimize order assembly
• Lighter weight, low voltage Multishuttles use less energy, provide quieter operation
• Self-learning software for tote put-away constantly improves tote retrieval efficiency
• Improved inventory management, with ongoing checkweighing and cycle counting
• Error-free put-away process ensures inventory accuracy, reducing stock-outs
• Space reserved for extra aisle provides future flexibility, reduced initial investment
• Dual-purpose GTP workstations suitable for both picking and replenishment
• GTP system enables fast picking of urgent/customer pick-up orders in 15 minutes
• Intuitive, easy-to-learn, with just one hour of training required by new operators
• Aiming for 75% of SKUs to be handled by GTP, with a 95% reduction in errors
• GTP system provides full redundancy as orders can be processed at any location
• Enhanced workplace safety with increased separation of staff and forklifts
• PickDirector WCS seamlessly integrates with Blackwoods’ WMS for total
visibility of picking, and real-time system performance and order status data.
didn’t have all our products in the Multishuttle sys-
tem and around 25% of our throughput was com-
ing from the GTP system. That’s now increased to
around 50% and we expect it to increase to 75%
as we move more products into the GTP system.
“One of the benefits of the GTP system is that it is
easy to operate,” said Mr Pantilas.
“We have had multiple people using the GTP from
forklift drivers to packers. In fact all of our staff are
very keen to work on the GTP. It’s easy, it’s clean,
it’s safe, and it also gives them another skillset.
“Obviously there’s got to be some sort of training
prior to going onto the GTP, and we have pre-
pared a training package which explains how the
system works. A team leader typically spends an
hour or so training a new team member. It’s a
very simple process and, within an hour or so,
most people are comfortable and proficient with
the requirements,” explained Mr Pantilas.
Flexibility for responsiveness and future growth
Mr Rawlinson said the major challenge Dematic
faced in coming up with the most appropriate in-
tegrated order fulfillment solution for Blackwoods
was the incredibly diverse range of SKUs and the
very high service level it provides to customers.
“Our system design had to be very flexible in re-
gards to Blackwoods’ product range, provide
very high levels of accuracy and also be respon-
sive to its customers’ changing needs,” said Mr
Rawlinson. He added: “Accordingly, our layout
was designed with expansion in mind.
“Space has been reserved for a future aisle, which
would provide 50% more storage capacity, to-
gether with additional GTP workstations to en-
able Blackwoods to further increase throughput.”
BLACKWOODS
SYDNEY, AUSTRALIA
APPAREL
WHOLESALE/B2B INDUSTRIAL SUPPLIES

SMART LOGISTICS A
GOOD FIT FOR HEILAN
Heilan Home is located in Xinqiao, Jiangyin, Ji-
angsu Province in China.
As a major clothing company, it focuses on man-
aging brands, producing and distributing high-
end woolens, suits and business clothes under
four key brands – Heilan Home, Eichitoo, Bett-
sale and Sancanal – creating its distinctive brand
“Heilan Home - Men’s Closet”.
Driving business transformation
Operating under a “brand and platform model”,
Heilan Home retains responsibility for product
development, brand management, supply chain
activities and sales network management, while
outsourcing clothing manufacture and shipping.
Significant investment
in smart logistics and
IT systems has helped
leading Chinese
clothing distributor
Heilan Home expand
rapidly in recent
years, with its turnover
increasing by 50%
to 12.7 billion RMB
in 2013.
During the logistics
transformation project,
Heilan Home has
been continually
building its supply
chain competencies to
support growth, with its
Intelligent Warehouse
System (IWS) featuring
high levels of logistics
and IT automation.
Heilan Home operates a growing network of
chain stores. This enables the business to unify
and manage store presentation, supply chain
and service standards, with franchisees sharing
sales income with Heilan Home.
Importance of logistics
Heilan Home Chairman, Zhou Jianping, places a
high priority on supply chain efficiency.
In Huashi, Jiangyin, Heilan Home’s Logistics Park
is located opposite its R&D facilities and compris-
es 24 warehouses, picking and sortation centers
and delivery halls.
The buildings cover 8,500,000 sq ft and repre-
sent an investment of 1.6 billion RMB, including
Dematic’s Intelligent Warehouse System (IWS),
which went live in November 2013.
The IWS comprises two ASRS, three delivery halls,
and one distribution center. Heilan Home’s Logis-
tics Park has a design inventory of 14,640,000
cartons and the storage capacity is 80 million
products.
Infeed and outfeed capacity can both reach up to
320,000 pieces per day. Zhang Judi, Director of
Heilan Home Storage & Delivery Center, said the
IWS is the largest and most advanced automated
logistics system in the Chinese apparel industry.
Above: Overhead carton conveyor and
packing station.
Left: Pallet profile checking prior to ASRS.
HEILAN HOME
JIANGSU PROVINCE, CHINA
APPAREL RETAIL DISTRIBUTION
INTEGRATED LOGISTICS SYSTEM

Initially Heilan Home’s Logistics Center consist-
ed of single storey warehouses, which were run
manually. As the business grew, the single storey
warehouses were modified into two-storey facili-
ties, while newly-built warehouses were designed
with three or four levels.
Integrated logistics systems
Two ASRS are located in Buildings 9 and 10, a
picking zone in Building 16, hanging garment sys-
tems in Building 17, returns processing in Build-
ings 18, 19 and 20 and delivery halls in Buildings
21, 22 and 23.
Dematic’s 89 foot high ASRS contains 73,200
pallet locations serviced by 30 SRMs, 274 pallet
conveyors, 8 shuttle cars and high-rate sorting
systems.
The IWS covers automated storage, batch pick-
ing, automated sorting, delivery and returns
processing and comprises ASRS, voice picking,
case conveyors, spiral conveyor systems, cross-
belt and pop-up wheel sortation systems.
With each item identified by a unique barcode,
the company can accurately manage storage,
distribution and sales. The IWS also supports
Helian Home’s growing online business activi-
ties, with automated checkweighing in its eCom-
merce warehouse eliminating costly delivery
errors, enabling the business to achieve online
order delivery accuracy of close to 100%.
Logistics operations
Being the only DC for Heilan Home, the Logistics
Park never really has peaks or low seasons. As
Heilan Home is responsible for suppliers’ inven-
tory management, products constantly flow into
warehouses.
At the same time, Heilan Home needs to replen-
ish goods to stores in a timely manner to main-
tain required stock levels, which means process-
es like infeed and outfeed basically never stop.
Garments in Heilan Home are largely picked from
cartons, which accounts for about 70% of sales,
with the remainder picked as hanging garments.
Infeed storage
After delivered goods have passed QA checks on
receipt, they are inducted into the ASRS in Build-
ings 9 and 10.
Staff take goods out of cartons, scan the product
barcodes one by one, and put the stock into Heilan
Home standard cartons. To optimize space, over-
head conveyors are used in the Receiving Zone for
carton replenishment and recycling.
Three scanning and repacking lines contain 36
workstations and can handle up to 160,000 prod-
ucts per day. Operators then palletize cartons,
scanning the carton code and pallet barcode. Pal-
lets are then transported to the conveyor lines in
front of the ASRS by forklift for put-away.
Picking and outfeed
Packaged garments pallets from Warehouse 9
and 10 are retrieved by SRMs and fed out onto
the fourth floor. When pallets arrive at conveyor
lines in front of the ASRS, operators retrieve car-
tons from the pallets and put them onto case con-
veyors, which transports them to a picking zone.
After fast-moving SKUs are outfed, they are trans-
ferred by inclined case conveyors to the third floor
of Warehouse 9 and 10, where items are picked
using voice-directed picking.
Medium-slow moving goods are outfed on the
fourth floor for replenishment of floors 4-6 of Ware-
house 16.
Two crossbelt sorter lines across three levels can
process orders for up to 500 stores simultaneously,
handling up to 40,000 items per hour.
Sorted orders are sealed, labelled and wrapped.
Orders and goods from the repacking zone are
merged onto case conveyors and transferred to
three delivery halls covering an area of 375,000 sq ft.
HEILAN HOME
JIANGSU PROVINCE, CHINA

Products are then sorted by pop-up wheel sorters
to the appropriate dispatch lanes and loaded onto
trucks for shipping.
Two shipping waves occur every day – one in the
morning, and one in the afternoon. Heilan Home
achieves an on-time delivery rate of over 98%,
with stores in Yangtze River Delta receiving goods
same day, and deliveries to its most remote stores
in towns like Wulumuqi taking up to five days.
Hanging garments
Hanging garments are stored and picked in two
seven-floor automated hanging garment ware-
houses, with each level linked by conveyors.
The warehouses use an overhead rail conveyor
system with a total capacity of 1.2 million products.
Taking Warehouse 23 as an example, the first floor
is the delivery hall, the second floor is a sortation
zone, and the third to seventh floors are utilized
for receiving and storage.
A total of 183 rail tracks were installed in the hang-
ing garment warehouses, enabling batch picking
for up to 183 stores.
Before outfeed, hanging garments are taken off
hangers and put into cartons, which are merged
with flat-packed goods in the delivery hall.
They are then consolidated for shipping.
The automated hanging garment warehouses are
also equipped with empty-carton conveyors and
automated wrapping machines.
All outwards products flow into delivery halls
where they are loaded onto trucks for shipping to
different regions.
This means that goods from different warehouses
have to arrive at the same time in the delivery hall.
Processing returns
Unlike other clothing companies which typically
wholesale their goods, Heilan Home owns the op-
erating and managing rights of its stores.
When product sales cycles end, last season’s
SKUs are returned to the Logistics Park where
they are processed into sizes and styles, enabling
the stock to be consolidated for sale. Because of
this, Heilan Home handles a lot more returns pro-
cessing than many other clothing companies.
All incoming returns are scanned at Warehouse 18
to update inventory levels and are then put into
totes. When the stock enters Warehouse 19, a QA
inspection checks for any damage that may make
the goods unsuitable for sale.
After product pre-sortation, where clothes are
sorted into different types like trousers, shirts and
T-shirts, the stock is buffered before being auto-
matically sorted into batches in Warehouse 20.
IWS benefits
Dematic’s IWS has supported the rapid growth
of Heilan Home, and delivered multiple benefits:
• A range of integrated logistics systems which
deliver Goods-to-Person, have significantly in-
creased operating speed and accuracy with or-
der fulfillment taking eight hours instead of 24.
• With seven times the capacity of a conventional
warehouse, the introduction of ASRS has opti-
mized space efficiency and reduced land costs.
• Batch picking has enabled the business to
significantly decrease manual picking, reduc-
ing labor costs by more than 60%. The good
working environment also attracts higher qual-
ity workers, with students and college gradu-
ates making up a large percentage of staff.
Above: 89 ft high
ASRS with 73,200
pallets.
Left: Hanging
garment rail
system.
Right: Orders are
automatically
sorted for
truck loading.

TECHNOLOGY
GOODS-TO-PERSON (GTP)
22
MODULAR GOODS-TO-P
ORDER FULFILLMENT
A new pre-engineered and pre-configured Goods-to-Person (GTP)
order picking solution with fast implementation, high productivity
and rapid ROI for a wide variety of small to mid-sized businesses
distributing from 200 to 1,000+ order lines per hour.
Issues including the lack of a reliable, willing and
available workforce, increasing employment costs,
workplace safety and the need for greater flexibil-
ity to cope with ongoing business uncertainty are
driving the development of new, highly efficient
and cost-effective logistics automation solutions.
Key among these is automated Goods-to-Person
(GTP) picking solutions, but traditionally the ROI
has not been compelling for small to medium-
sized operations. Enter Dematic’s new, Modular
GTP System – a flexible, off-the-shelf picking so-
lution, which can be scaled up or down as your
business changes or as seasonality dictates.
Ultra-high productivity
A single Dematic Modular GTP System pick sta-
tion operator can achieve very high rates of up to
1000+ items per hour, with minimal errors.
Stock is delivered to picking stations in the precise
sequence required for order assembly – heavy
items first, fragile items last, by family group or in
whatever sequence needs dictate – ensuring high
productivity and throughput.
Ultra-high accuracy
Light-directed, one-to-two pick station con-
figurations – in which a single stock tote
and two order totes are presented to the opera-
tor – eliminate time wasted waiting for stock, and
enable multiple orders to be fulfilled concurrently.
An integrated weighscale at the pick location
checks expected weights, further enhancing ac-
curacy and ensuring that any errors are identified
and corrected on the spot.
Flexible operations
Staff work in parallel at multiple picking stations,
unaffected by each other’s pace, and pick sta-
tions can be opened and closed according to vol-
umes on a particular shift.
The system provides full redundancy as orders
can be processed at any location with all stations
operating independently. The system throughput
can be doubled or tripled by adding extra aisles
and picking stations.
Pre-configured, off-the-shelf picking solution
A key advantage of the new Modular GTP System
is that it requires minimal customization, reducing
costs and enabling rapid installation and start-up.
This makes it a flexible picking solution for a wide
variety of small to medium-throughput order fulfill-
ment applications. All of the hardware including
storage systems, Multishuttle, GTP picking sta-
tions, and software is pre-configured.
The only systems integration requirements are
connecting the high density Multishuttle inventory
buffer store to a conveyor network, to transport
orders out of the system, and to interface the sys-
tem’s software and controls with the user’s ware-
house management system (WMS).
Modular GTP system applications
• eCommerce
• Electronic goods
• Mechanical and electrical components
• Hardware, tools
• Spare parts
• Pharmacy, cosmetics
• Niche retailers, convenience stores
• Third party logistics

DEMATIC MODULAR
GTP SYSTEM BENEFITS
MODULAR GOODS-TO-PERSON (GTP)
MULTISHUTTLE INVENTORY BUFFER WITH GTP PICK STATIONS
One aisle –
One pick station
Two aisles –
One pick station
Two aisles –
Two pick stations
Three aisles –
One pick station
Three aisles –
Three pick stations
Rapid installation and start-up
Modular, pre-engineered design reduces risks,
cuts lead times, speeds installation and ROI
Ultra-high productivity and accuracy
Very high pick rates of more than 1000+ items/hour
with minimal errors at a single pick station
Scalability improves flexibility, lowers initial cost
Scalable from 4,000-40,000 totes, provides future
flexibility, reduces investment, building/rental costs
Fast ROI – from as little as three years
Productivity savings, reduced errors, lower building/
leasing and operating costs add up to a quick ROI
Dematic 24/7 service and support
One of the world’s largest integrated logistics and IT
systems service and support networks
PERSON

www.dematic.com
Dematic Headquarters
2727 Paces Ferry Road SE
Building One, Suite 1500
Atlanta, Georgia 30339
U.S.A.
© Copyright February 2015
North America
United States
Dematic Corp.
507, Plymouth Avenue NE
Grand Rapids, Michigan 49505
T +1 877 725-7500
usinfo@dematic.com
Dematic New Berlin
2855 S. James Drive
New Berlin, WI 53151
T +1 262 860-7000
usinfo@dematic.com
Canada
Dematic Limited
6750 Century Avenue, Suite 302
Mississauga, Ontario L5N 2V8
T +1 (877) 567-7300
usinfo@dematic.com
South America
Brazil
Dematic
Sist. Equip. Mov. Mat. Ltda
Av. Embaixador Macedo
Soares, 10735
4º Andar - Vila Anastácio
São Paulo 05035-000
T: +55 11 3627-3100
info.br@dematic.com
Europe
Austria
Dematic Services GmbH
Hirschstettnerstr. 19-21 / Z 201
1220 Vienna
T +43 1 205522-0
info.at@dematic.com
Baltic States
Dematic Kaunas
Raudondvario Pl. 107
47186 Kaunas
Lithuania
T +370 37 328410
info.lt@dematic.com
Benelux
Dematic Services GmbH
Europalaan 4c
5232 BC Den Bosch
Netherlands
T +31 736 460-460
info.nl@dematic.com
Denmark & Scandinavia
Dematic Scandinavia
Skottenborg 12-14
8800 Viborg
Denmark
T +45 8669 9796
info.dk@dematic.com
France
Dematic S.A.S.
ZAC Léonard de Vinci
22, avenue Graham Bell
Bussy-Saint-Georges
77607 Marne-la-Vallée Cedex 03
T +33 1 64 76 45-00
Info.fr@dematic.com
Germany
Dematic GmbH
Martinseestr. 1
63150 Heusenstamm
T +49 69 8903-0
anfrage@dematic.com
Italy
Dematic S.r.l.
Via Firenze 11
20063 Cernusco sul Naviglio (MI)
T +39 02 92 90 541
info.it@dematic.com
Spain & Portugal
Dematic Logistic Systems S.A.
Alemania, 2-4
28820 Coslada, Madrid
T +34 91 205 7700
info.es@dematic.com
Switzerland
Dematic GmbH Switzerland
Zentrum Spitzacker
Birmensdorferstr. 87
8902 Urdorf
T +41 43 455 60 60
info.ch@dematic.com
United Kingdom
Dematic Ltd
Beaumont Road,
Banbury, OXON
OX16 1QZ
T +44 1295 274 600
info.uk@dematic.com
ANZ/ASEAN
Australia
Dematic Pty Ltd
24 Narabang Way
Belrose NSW 2085
T: +61 2 9486 5555
info.anz@dematic.com
Korea
Dematic Korea
S05, 9th Floor, Garden5 TOOL
292 Moonjung-Dong, Songpa-Gu
Seoul, Korea 138-962
T +82 2 6925 4763
info.asia@dematic.com
Malaysia
Dematic Malaysia Sdn. Bhd.
03-09, Level 9, Plaza Masalam
Jalan Tengku Ampuan Zabedah E
9/E Section 9, 40100 Shah Alam
Selangor, Malaysia
T +60 2 5512 2688
New Zealand
Dematic Pty Ltd
67C Allens Road,
East Tamaki, Auckland
T +61 9 273 0052
info.anz@dematic.com
Singapore
Dematic S.E.A. Pte. Ltd.
10 Eunos Road 8
#13-04 Singapore Post Centre
Singapore 408600
T +65 6398 3980
China
Dematic Shanghai
Floor 18, No. 763 Meng Zi Road
Xinfugang Center
200023 Shanghai
T +86 21 6086 2999
infochina@dematic.com
Additional Contacts
For more local offices, service locations and partners in Finland, Israel,
Poland and South Africa please refer to www.dematic.com/contact

DLR #10

Recommended

Recommended

More Related Content

Similar to DLR #10

Similar to DLR #10 (20)

DLR #10