Dematic Logistics Review - Issue 11

Issue 11

DEMATIC INSIGHT

L GISTICS

REVIEW

The future of robotic picking

MULTISHUTTLE SYSTEMS Driving Goods-to-Person solutions

GLOBAL CASE STUDIES Smart ideas from around the world

AMWAY: USA

AGV intra-plant delivery system

COOP: DENMARK

High productivity break-bulk integrated picking solution

PIRAQUÊ: BRAZIL

NEW INTEGRATED PRODUCTION & DISTRIBUTION SYSTEM We Optimise Your Supply Chain

DEMATIC LOGISTICS REVIEW

WE OPTIMISE YOUR SUP DEMATIC INTEGRATED L & IT SOLUTIONS IN ACTI Welcome to the 11th 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.

Contents Case Study: Amway, USA Cover Story: Piraquê, Brazil Insight: Robotic Picking Case Study: UNILAB, Philippines Case Study: Shimano, Australia Case Study: Coop, Denmark Case Study: Jiajiayue Group, China

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4-5 6-9 10-11 12-15 16-19 20-21 22-23

About Dematic Dematic is a leading supplier of integrated automated technology, software and services to optimise the supply chain. Dematic employs over 6,000 skilled logistics professionals to serve its customers globally, with engineering centres and manufacturing facilities located across the globe. Dematic has implemented more than 4,500 integrated systems for a customer base that includes small, medium and large companies in a variety of market sectors.

Headquartered in Grand Rapids, MI, Dematic is a member of KION Group, a global leader in industrial trucks, related services, and supply chain solutions.

Across more than 100 countries worldwide, the KION Group designs, builds and supports logistics solutions that optimise material and information flow within factories, warehouses and distribution centres. The company is the largest manufacturer of industrial trucks in Europe, the second-largest producer of forklifts globally, and a leading provider of warehouse automation.

PPLY CHAIN LOGISTICS TION The one constant in business is change. At Dematic, we are in the business of automation and innovation, so anticipating change and accepting its necessity is more or less part of our DNA. It helps us to guide our customers through their inevitable changes and toward their most beneficial solutions.

Recently, Dematic experienced firsthand our own positive change when on November 1st we became part of The KION Group. The transaction brings us together with the world’s premier manufacturer of forklift trucks and warehouse technology — an ideal complement to our automation and software solutions. I have personally reviewed our KION line of fork trucks and am thoroughly impressed with the advanced technology and reliability of a comprehensive portfolio that addresses diversified vertical markets.

This change will position Dematic to assist our customers with the best supply chain performance. Our enhanced solution portfolio will provide our customers the ability to accommodate their ever-changing business requirements to optimise their warehouse and

distribution functions. Our customers’ need for a wide variety of system solutions is only going to grow, and Dematic now has the innovative technology, software expertise and global network to meet the supply chain requirements of the future.

I am pleased to provide examples in this latest issue of Dematic Logistics Review. I hope you will find an individual case study that speaks to the challenges your company is facing. But please also consider the entire collection as a testimony to the breadth and depth of what Dematic can provide. Now more than ever, Dematic is a comprehensive source for materials handling solutions. From individual components to fully automated production and distribution systems, we can deliver what you need for operational efficiency, improved customer experience and ultimately higher profits.

John Baysore, President & CEO Dematic

And help you prepare for the change you know is coming.

Thanks for reading!

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AMWAY MICHIGAN, USA

INTRA-PLANT DELIVERY OPERATIONAL EFFICIEN Many production operations experience inefficient movement of materials. Slow response to requests for material movement, product damage during movement, and inventory inaccuracies are common.

A fleet of Dematic AGVs at Amway’s Nutrilite Production Plant in Michigan has eliminated the need for manuallyoperated forklifts within the production plant.

Amway’s intra-plant delivery system consists of process improvements, software and an automated guided vehicle (AGV) system. It creates operational efficiencies for intra-plant delivery of raw materials, work-in-process and finished goods.

Warehouse Execution System software (WES) manages and directs material flow processes.

In the receiving area, manually-operated forklifts unload pallets of raw materials from truck trailers and deliver them to a four-level pallet rack structure in which the pallets are staged until they are retrieved by AGVs from the opposite side of the rack.

Mechanical pallet guides in the rack position the pallets consistently to ensure accurate pick-up by the AGVs. After AGVs have collected pallets from the rack, they are delivered to a storage or production area. By separating the AGV system from the forklifts, a dedicated and safe operating environment is maintained.

Health and safety regulations specify particular requirements for ingredient storage, including requirements for separation of certain ingredients.

The WES software considers the potential allergens on each pallet to ensure certain products are not stored adjacent to each other.

Above: Empty pallets are retrieved from storage racks. Below: Forklifts drop off inbound pallets of materials on the receiving side of the rack. When required, the pallets are retrieved by AGVs.

Upon completion of a task, the WES system directs each AGV to the next appropriate task in the queue. A “look for work” algorithm despatches the AGVs to tasks based on location, status and availability. The AGV fleet operates in and out of a clean room environment, travelling through autoopen roll-up doors activated by the system.

The AGV fleet efficiently manages material flow to and from production cells, picking up and dropping off pallet loads onto the floor or load stand as required. Manufacturing workers request raw material delivery, material return, or empty pallet pick-up using a fixed mounted call button at the production cell. AGVs return unused materials to the designated storage location, or remove empty pallet stacks and deliver them to a pallet washer.

For outbound flow, AGVs move pallets of finished goods to the warehouse.

AGVs deliver the pallets at floor level in rows, staging a full-truck trailer per row. Forklift drivers pick up and transfer the pallets into the appropriate truck trailer at each shipping door.

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NON-DURABLE MANUFACTURING AUTOMATED MATERIALS HANDLING AUTOMATED GUIDED VEHICLES (AGVS)

Y SYSTEM CREATES NCIES FOR AMWAY Intra-plant delivery system overview Manually-operated forklifts are dedicated to receiving and shipping functions only. This allows the production operation to be free of manuallyoperated forklift traffic, minimising people movements in the clean room environment, improving safety and reducing labour costs. The rack structure in receiving supports a “hand-off” between manual and automated systems, negating potential congestion or flow conflicts.

AGVs support a safe operating environment AGVs travel at appropriate programmable speeds in designated pathways and are equipped with object-detection devices.

Software-directed task management by the WES software optimises material flow, maintains separation of raw material ingredients, and reduces response time.

The entire system features real-time monitoring and control to support efficiency and productivity.

In addition, the AGV system supports high-density storage with the AGVs capable of operating in tight and confined environments, such as the multi-level rack aisles.

Intra-plant delivery system: description of operation Receiving

Pallet staging at shipping is sequenced and grouped for simple and accurate truck loading.

• Manually-operated forklifts unload trailers

Intra-plant delivery system benefits

• Inbound pallets are loaded into staging rack structure

• Process improvement

• Pallet guides ensure accurate positioning in racks

• Controlled access to inventory

• Operator scans barcode on rack and inbound pallet

• Automated intra-plant delivery • Limited forklift operation to shipping and receiving • Less staff in clean room environment • AGV object detection and speed control improve operator and plant safety • Optimised transport request response • Strategic storage separation of raw materials and ingredients • Sorted and staged pallets according to delivery vehicle loading schedule for shipping • Real-time monitoring and control.

Pallet pick-up • System software schedules pallet for pick up • Appropriate AGV selected for task • AGV picks up pallet in staging rack • AGV moves pallet to storage or to point of use Production • AGV delivers pallet to production cell • As required, AGV removes finished goods pallet from cell • AGV transports pallet to storage or shipping Shipping • Pallets of finished product are transported to shipping

Above:

• Pallets retrieved from storage or production

Only AGVs are allowed in the production area.

Manually operated fork trucks remain in the receiving/shipping area.

• Pallets staged in rows on the floor at shipping • Forklift drivers move finished goods pallets to trailers

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PIRAQUÊ RIO DE JANEIRO, BRAZIL

NEW LOGISTICS SYSTEM TRANSFORMS PIRAQUÊ DISTRIBUTION Piraquê, a leading Brazil-based manufacturer of biscuits, pasta and margarine, has implemented one of South America’s most advanced integrated logistics systems in the company’s Rio de Janeiro production and distribution centre.

Piraquê Established more than 65 years ago, Piraquê utilises a variety of advanced materials handling technologies and information systems at its Rio de Janeiro manufacturing and distribution centre (DC) to ensure that its products arrive as fresh as possible to more than 60,000 sales outlets in Rio de Janeiro alone.

From the receipt of raw materials to finished goods despatch, all pasta and cookie production is automated, ensuring a high level of hygiene throughout the manufacturing and distribution process.

End-to-end quality control systems manage all production and supply chain processes, from laboratory testing of raw materials through to batching ingredients, and even to the time products spend in ovens, optimising the quality of finished goods.

Piraquê even has its own printing plant, which

A recirculating crossbelt sorting system sorts cartons and packages for pallet assembly.

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fulfils all of its packaging and promotional material requirements.

Dematic recently helped Piraquê upgrade its production and distribution systems with a range of package and pallet transport conveyor solutions, a robotic palletising system, an automated highbay warehouse, a case picking system with pickto-light (PTL) technology, and both linear and recirculating crossbelt conveyor sorting systems.

Key project drivers Key drivers for Piraquê’s integrated production and logistics solution included: • Centralising palletising for its cookie and pasta production lines • Implementing a robotic palletising system for pasta products in bales and cartons • Introducing an automated high-bay finished goods warehouse with an integrated picking tunnel and despatch conveyor sorting system.

FOOD & BEVERAGE DISTRIBUTION AUTOMATED ORDER FULFILMENT

Walk-pick-to-belt case picking system with pick-to-light technology.

Cookie Factory Key features of the Dematic integrated materials handling solution for Piraquê’s cookie production facility include a multi-level conveyor system, which integrates order assembly lines to the palletising area throughout the building’s different floors.

Products are identified by video cameras and directed to a specific chute for manual palletising.

Completed pallets are then transferred to the new DC. Pasta Factory Several technologies are used to convey, transfer, store, sort and pack products in plastic bags, cartons and pallets. Products are identified by video cameras and assigned to a specific chute for automated palletising by robots.

To ensure load stability, all pallets are automatically stretch-wrapped, before being transferred to the DC.

Piraquê’s high-bay warehouse has the capacity to store more than 15,000 pallets.

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PIRAQUÊ RIO DE JANEIRO, BRAZIL

Distribution systems Piraquê’s DC features a new automated high-bay warehouse.

The high density pallet storage and retrieval system is 150m long and 20m high, and provides Piraquê with the ability to automatically store and retrieve more than 15,000 pallets within a very compact area.

Pallets are conveyed from the ASRS outfeed to a pick-up station where they are collected and taken to despatch by forklifts.

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Four Dematic stacker cranes store and retrieve full pallets, in addition to replenishing picking positions integrated in the high bay warehouse.

Full case picking to belt is supported by a walkpick-to-belt and pick-to-light system.

Cartons coming from the case picking system are conveyed to a high-speed, automated recirculating crossbelt conveyor sorting system.

The high-bay warehouse is 20m high by 150m long.

FOOD & BEVERAGE DISTRIBUTION AUTOMATED ORDER FULFILMENT

Cartons on the sorting system are identified by video cameras and directed to a specific chute for despatch.

System benefits Piraquê’s system met several objectives. It has significantly improved order fulfilment efficiency by eliminating all of the time previously wasted walking, locating, identifying and picking stock.

Order fulfilment has been improved by batching orders, enabling items for multiple orders to be picked at individual product locations concurrently.

Automated materials handling processes have reduced the potential for damage during order processing, reduced order assembly time, increased productivity, and facilitated real-time integrated logistics systems management and control.

Products from the pasta factory are identified by video cameras and sorted to a specific chute for automated palletising by robots.

In the cookie factory, a multilevel conveyor system integrates order assembly lines to the palletising area throughout the building’s different floors. Products are identified by video cameras and directed to a specific chute for manual palletising.

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INSIGHT LOGISTICS AUTOMATION

A GRIPPING STORY: THE FUTURE OF ROBOTIC PICKING IN DISTRIBUTION The following article discusses one of the biggest problems facing distributors in many parts of the world – the fact that it’s becoming increasingly difficult to find people who want to work in a DC.

Finding people who want to work in DCs Even in the best of circumstances, it’s a challenge to find workers for your DC who can do the job properly for wages within your budget.

But when fast-food companies are paying for billboards promoting their tuition reimbursement and the New York Times is publishing stories titled, “Hiring Hurdle: Finding Workers Who Can Pass a Drug Test,” you know staffing your DC just got more difficult.

DC work can be physically demanding and mentally tedious. Some people take DC jobs because they need the work. But as soon as a better option comes along — one that may not require walking many kilometres per shift — they are likely to quit.

Robots don’t quit. Robots don’t get tired, don’t get sick and don’t get injured.

Robots have been used in manufacturing – especially in the automotive industry for decades – but the features that make robots ideal for that environment — the capacity to perform the same task over and over, handling the same kind of item in the same location — often don’t work in distribution where tasks and item types vary greatly.

A good example of this is that, until now, robotic picking systems have struggled to perform the most common task in most DCs and warehouses: piece picking for discrete orders.

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The good news The good news is that new technology solutions to adapt robots for use in distribution are now available. One such technology – vision systems – uses sophisticated software to allow robots to “see” items — for example to differentiate between upright items and those lying on their sides.

By being able to identify item types, robots can be programmed to know what to do with each.

Another technology increasing the versatility of robots in distribution applications is flexible gripping devices that help robots grasp a wide range of items with different levels of dexterity.

Most robot gripping devices (also known as end effectors) can grip only a narrow range of items.

But piece pickers in DCs need to hold and lift a variety of items with the same hand, from the most delicate crystal glass to the heaviest case of beer.

In the recent past, robots required a variety of gripping devices to accommodate different items, and the process to exchange different gripping devices between each pick run was time-consuming.

Today the functionality of robot gripping device technology has advanced, and Dematic is developing it further by creating both goods-to-robot and robot-to-goods picking solutions.

DISTRIBUTION TECHNOLOGY SOLUTIONS ROBOTIC PICKING

Robots have been used for case picking and palletising for many years, with new advances in gripping devices making robotic split-case picking possible.

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Now robotic picking systems can perform the most common task in most DCs and warehouses: piece picking for discrete orders.

Robots suit labour-intensive, repetitive tasks Dematic robotic solutions can automate the most labour-intensive, repetitive tasks to improve efficiency, accuracy and flexibility.

The good news is that goods-to-robot picking solutions are available today, although they are somewhat limited to DCs that handle a fairly narrow range of product types, dimensions, weights, delicacy and sizes.

These solutions include robots that are stationary, which makes them safe, fast and efficient, and able to improve productivity dramatically for a highly-automated operation.

We have solved many of the goods-to-robot picking problems. The next challenge is robotto-goods picking.

Imagine a DC where you have robots working next to your human pickers. The robots are fast, accurate and safe.

In areas where it is hard to find and retain reliable staff, robots can take over the physically demanding task of picking, and will do it reliably every single day, all day long.

At Dematic, we are meeting this challenge by leveraging our deep development experience in materials handling automation.

Dematic is exploring the latest in multi-axis robot arms, end-of-arm tooling designs, and 2D and 3D vision systems, and we are understanding how to combine them with the safe navigation systems we have already developed for our automated guided vehicles (AGVs), to make robotto-goods picking a reality.

Conclusion You can now use robots for the tedious and exhausting tasks in your DC so you can save human labour for work that requires thinking and creativity.

It’s time to consider how robots can make your DC more efficient – now and in the future.

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UNILAB MANILA, PHILIPPINES

An overview of UNILAB’s DC showing (from left to right): the mezzanine floor picking area for slower moving items, the split-case pick-to-light system, zone-skipping conveyor and the QA and packing stations.

UNILAB’S ORDER PICKI A PRESCRIPTION FOR S Few countries are as demanding when it comes to supply chain logistics as the Philippines.

Comprising more than 7,000 islands, over half of which are populated, in a region with limited transport infrastructure and which is prone to earthquakes and extreme weather events, the challenges facing distributors are diverse and unpredictable.

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Orders typically commence on the mezzanine where slower moving SKUs are located.

Pickers use lightweight, hand-held wireless mobile computing terminals for picking.

UNILAB is the leading pharmaceutical and healthcare products manufacturer and distributor in the Philippines.

The business, which recently celebrated its 70th anniversary, manufactures and distributes more than 350 prescription and over-the-counter (OTC) brands.

UNILAB supports more than 6,000 customers in the Philippines including the country’s largest pharmacy chains, and a growing number of distribution partners across over 20 countries in South East Asia and the Asia Pacific region.

The business has expanded significantly over

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the past five years, diversifying its product range into new segments including personal care and dental supplies.

As a result, its product range has grown from around 800 stock keeping units (SKUs) to more than 2000, with UNILAB recently announcing that it had achieved annual sales of more than US$1 billion for the first time.

The key enabler in UNILAB’s distribution supply chain is its impressive Distribution Centre (DC).

The DC is one of the largest single covered structures in the Philippines, providing over 30,000m2 of covered floor area within UNILAB’s 44 ha com-

PHARMA HEALTHCARE SPLIT-CASE ORDER FULFILMENT

A spiral conveyor transfers orders from the mezzanine to the pick-to-light system. Global induction enables orders to start in the first zone where items are required for an order, reducing order assembly time and improving order picking efficiency.

ING SYSTEMS SUPPLY CHAIN SUCCESS

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pound in Brgy. Mamplasan, Biñan City, Laguna.

Working in conjunction with Dematic and its partner in the Philippines, Prime Sales, UNILAB has implemented a new split-case order fulfilment system, enabling around 90% of transactions to be fulfilled using paperless picking technologies including Pick-to-Light (PTL) and wireless mobile terminals.

UNILAB Director, Albert Alcruz, said order fulfilment accuracy and productivity were the key drivers in the design of the DC’s new integrated logistics system.

“Accuracy is important in all distribution operations,

but it is absolutely critical when you are distributing healthcare products,” he said.

“When the time came to upgrade our logistics systems, we wanted to make sure we got the best available.”

Dematic’s integrated logistics solution for UNILAB includes Dematic’s iQ Warehouse Control System (WCS), PTL system with global induction, and wireless computing systems.

An intelligent zone-routing conveyor system interconnects the picking areas and automatically directs and diverts orders to the zones where picking is required.

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The use of collapsible order totes simplifies reverse logistics by minimising the space required when returning totes to the DC.

Despite significantly expanding our operations and daily volumes, the efficiency of our new picking operations has improved productivity to the extent that we have been able to get through much more work in less time, and are better able to deal with the peaks we experience.

Albert Alcruz, Director, UNILAB

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UNILAB MANILA, PHILIPPINES Early exit diverts enable completed orders to exit the system as soon as the last item for an order has been picked, reducing the time to completion. The conveying system connects the picking systems to the checking and packing area.

Global induction, together with the zone-routing conveyor system, allows orders to start in the zone where the first item is required.

This ensures a higher availability of work for pickers, and significantly improves their productivity by avoiding the need to wait for work to arrive.

Picking is initiated when an operator scans the barcoded licence plate attached to the order tote.

In the shelving area, picking is directed and confirmed by operators using hand-held wireless terminals.

In the PTL zones, each product location is identified with its own display.

The lights on the displays indicate which locations to pick from and the required quantity of items to be picked. The operator confirms picks via acknowledgement buttons. Picking in the PTL zones is exceptionally fast and accurate.

Integrated Warehouse Control System The PTL system, wireless mobile terminals and conveying system are controlled by Dematic iQ‘s WCS, which interfaces directly with UNILAB’s SAP enterprise management system. Dematic iQ’s WCS provides comprehensive management information, real-time visibility and logistics systems control including: • Management of real-time paperless picking technologies • Order routing and management of intelligent conveying systems • Wave progress monitoring • Order interrogation/work assignment enquiries • Individual picker productivity statistics • Zone picking productivity statistics • Container contents tracking • Quality assurance checking.

“In developing our integrated logistics solution for UNILAB, we invested a significant amount of time to understand their operation and challenges. A lot of attention was directed to the split-case picking operation as this is the most complicated and labour intensive part of UNILAB’s order fulfilment process,” said Dematic’s ASEAN Director of Integrated Systems Michael Bradshaw.

“Our integrated system design includes a zonerouting conveying system to minimise picker travel, coupled with picking technology to increase productivity and ensure the highest level of accuracy.

“The modular approach we took to system design provides UNILAB with the flexibility to further expand the system in line with business growth.

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“There is the possibility to introduce additional picking zones and to introduce a Put-to-Light sub-system to support order fulfilment for an expanding network of drug stores,” added Mr Bradshaw.

Pharmaceutical industry experience the key “Dematic’s extensive global experience in the pharmaceutical sector gave us the confidence that they would deliver a world-class logistics solution,” said Mr Alcruz.

The introduction of the new order fulfilment system has significantly improved order picking efficiency, productivity and accuracy, while the new Dematic iQ WCS system enhances the quality of UNILAB’s real-time information management.

“Despite significantly expanding our operations and daily volumes, the efficiency of our new picking operations has improved productivity to the extent that we have been able to get through much more work in less time, and are much better able to deal with the peaks we experience,” said Mr Alcruz.

“Another benefit of our improved information management systems is that they provide us with comprehensive track and trace capabilities for every item picked, which is important should there be a need to recall products for any reason,” he said.

“While the new order picking systems provide us with very high accuracy levels, our commitment to ensuring customers receive the perfect order means we still utilise a team of check counters to ensure any errors are identified and rectified before orders leave the DC,” added Mr Alcruz.

Distribution in the Philippines Summing up the supply chain challenge in the Philippines, Mr Alcruz said it was essential to be always thinking beyond what you are doing now.

“The Philippines is very much a special case when it comes to supply chain distribution,” he said.

“In a country which regularly experiences earthquakes and extreme weather events, contingency planning is essential, and we are continually reassessing our distribution capabilities and always asking ourselves the question: how can we best support our customers?”

While there are obvious seasonal peaks for certain types of products, there are always unforeseen circumstances, such as the outbreak of a particular virus, which makes forecasting demand difficult in the healthcare sector.

“That is why one of the key drivers for our new distribution system was flexibility,” said Mr Alcruz.

“The healthcare sector is one in which we really can’t say no. We always try to find the most efficient way to get our products to customers, wherever they are,” he said.

Below: PTL picking, overhead trash removal and replenishing stock from the rear of the system.

PHARMA HEALTHCARE SPLIT-CASE ORDER FULFILMENT PTL displays indicate which locations to pick from and the required quantity of items to be picked, and also provide a range of picking data and statistics.

The supply chain challenge in the Philippines The distribution challenge in the Philippines is unique and the last leg of the supply chain in the Philippines can be very challenging.

Mr Alcruz added: “It’s often not as simple as transporting products from A to B. Sometimes we need to deliver to very remote areas, and there are times when there may be as many as ten steps in the supply chain.

“The fact that some products need to be temperature controlled adds a further layer of complexity to the order fulfilment challenge.

“For urgent deliveries to remote areas, it is not uncommon for the goods to be delivered by the pilot who has flown the items to the location, or for them to be delivered on horseback, or even on foot.”

“We not only have to manage individual products, we also have to track different production batch and lot numbers through the supply chain,” he said.

PTL displays indicate which locations to pick from and the required quantity of items to be picked, and also provide a range of picking data and statistics.

“For many higher volume products we aim to maintain not just one, but two active pick face locations, with different batches to ensure picking stock is always available. All products are picked on a FEFO (first expiry-first out) basis.

“Pick face replenishment is automatically initiated when the volume of stock in a location falls to a certain quantity,” said Mr Alcruz.

“When we were evaluating the configuration of our new distribution system, we considered the option of moving to a fully automated picking solution, but decided this would limit the flexibility that our system provides us with today.

“In terms of accuracy, productivity and flexibility, we decided that Dematic’s integrated order fulfilment solution would provide us with the best performance.”

Summary Few countries in the world face the unique supply chain challenges that distribution in the Philippines presents.

However, distributors like UNILAB demonstrate that when the appropriate investment in world’s best practice logistics distribution systems is made, supply chain excellence is achievable in even the most difficult of circumstances.

From l-r are: Dave Alegado from Dematic Philippines distributor Prime Sales, UNILAB IT Systems Manager Jeff Nuestro, Jun Pascual Prime Sales and UNILAB Director Albert Alcruz.

UNILAB’s new order fulfilment system will ensure the business continues to provide efficient, costeffective health services to people in the Philippines and set new standards for healthcare in the region for many years to come.

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SHIMANO SYDNEY, AUSTRALIA

NEW SHIMANO DC DELIVERS SUPPLY CHAIN EFFICIENCIES

Above: Pick-to-Light displays at each of the six order locations display the number of items required for each order, enhancing accuracy. Right: The monitor displays an image of the SKU to be picked along with the quantity of items required for the order.

Japanese cycling and fishing equipment manufacturer and distributor Shimano has opened a new DC in Sydney, Australia, equipped with a Dematic Multishuttle GTP order fulfilment system.

Shimano, a world-leading manufacturer and distributor of high quality cycling and fishing equipment and accessories, recently opened the first compact Multishuttle Goods-to-Person (GTP) distribution centre (DC) in Australia at Caringbah in Sydney’s Sutherland Shire.

“While the two businesses distribute a completely different range of products and service a completely different customer base, there was obvious synergy in that they both handle a lot of relatively small products, parts and components,” he said.

A key driver for the project was the ability to bring distribution for Shimano’s cycling and fishing businesses under the one roof, enabling both to enhance the quality of their service offering to customers, benefit from economies of scale and reduce distribution costs.

Colin Tannahill, Managing Director, Shimano Australia Fishing, said: “Bringing together not only our distribution requirements, but also the administration, purchasing, finance, human resources and management functions for both businesses made it financially viable for Shimano to invest in a new state-of-the-art DC.

Matthew Bazzano, Managing Director of Shimano Australia Cycling, said: “Historically, both businesses were independently owned and operated. When Shimano acquired both the cycling and fishing businesses in 2008, it took over the existing distribution network. Cycling was operating two smaller DCs in Sydney and Shimano Australia Fishing also had its own DC in Sydney.

“When Shimano decided to review its Australian supply chain, it was clear that both businesses would benefit by combining their distribution requirements,” said Mr Bazzano.

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“It is great that Shimano opted to keep the location of the new DC in Sydney’s Sutherland Shire where both the cycling and fishing businesses have been historically based,” added Mr Tannahill.

“Land costs in the shire are significantly higher than in Sydney’s western suburbs, however, such is the respect that Shimano has for our people – many of whom have been with us for up to 25 years – that it was prepared to pay a premium to establish the new DC in the shire and ensure that it retained its experienced staff,” he said.

WHOLESALE/B2B CONSUMERAPPAREL GOODS GOODS-TO-PERSON PICKING

Shimano’s Warehouse Manager Anthony Cutler and Logistics Manager Maea Sio.

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The system gives us a lot of flexibility. Each of the three GTP workstations is dual purpose, which means we can use some for picking and others for replenishment, depending on what we need at the time.

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Maea Sio, Logistics Manager, Shimano

Goods-to-Person (GTP) order fulfilment system A key feature of the new DC is its Dematic Multishuttle GTP Order Fulfilment System. Occupying just 200m2, with the GTP workstations and conveyor also taking up around 200m2 of floorspace, the space-efficient double deep, single aisle inventory storage buffer houses a total of 5,168 totes over 16 levels, with each level serviced by its own Multishuttle.

Operating at up to twice the speed of the first generation Multishuttle, the new Multishuttle system significantly increases productivity and throughput.

Flexible tote configuration and put-away Through the use of easily removable dividers, each tote can store one, two, four or eight SKUs, with the Multishuttle system housing more than 4,600 SKUs. The Dematic iQ Multishuttle system software is self-learning, and stock locations are controlled on a dynamic basis. Each time a SKU is retrieved, the software examines how often the SKU is required, and puts the tote away accordingly.

Fast-moving SKUs are stored towards the front

of the system making the retrieval time quicker, with slower-moving SKUs stored towards the rear.

Dematic Multishuttle system operation The Multishuttle system typically supplies around 208 totes/hour to the GTP workstations. When stock is retrieved from the Multishuttle system, it is delivered to the GTP workstations as required for order assembly ensuring very high productivity and throughput rates. The Multishuttle system is serviced by two elevators, one feeding 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 of the lift.

Dual-purpose GTP workstations Totes required for orders or for replenishment are automatically conveyed to a series of three dualfunction picking/put-away workstations.

“The system gives us a lot of flexibility. Each of the three GTP workstations is dual purpose, which means we can use some for picking and others for replenishment, depending on what we need at the time,” said Shimano’s Logistics Manager, Maea Sio.

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SHIMANO SYDNEY, AUSTRALIA

An overview of the three GTP workstations and one QA workstation adjacent to the Multishuttle system.

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Space has been reserved adjacent to the Multishuttle system for a future aisle, together with additional GTP workstations.

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Anthony Cutler, Warehouse Manager, Shimano

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“The system was scoped to achieve between 220-350 picks per hour/workstation, but we are often achieving significantly higher throughput rates than that in practice, with some operators achieving more than 600 picks per hour.”

The Multishuttle GTP workstation configuration – in which a single stock tote is presented to the operator together with six order cartons, three on either side of the workstation – eliminates all of the time wasted travelling, locating and identifying stock, and enables multiple orders requiring the same SKU to be fulfilled concurrently.

Accurate order picking When a tote arrives at the workstation, a monitor displays an image of the SKU along with the quantity of items to be picked. Pick-to-light displays at each of the six order locations display the number of items required for each order, virtually eliminating the potential for picking errors.

Staff work in parallel at the three workstations, unaffected by each other’s pace, and the workstations can be opened and closed as required on a particular shift. The system provides full redundancy as orders can be processed at any location, with all workstations operating independently.

Split-case order processing More than 55% of the DC’s orders require items from the Multishuttle GTP system. Orders are typically launched at the GTP workstation and after the GTP portion of the order is complete, the operator simply pushes the carton onto a central take-away conveyor.

Slower-moving split-case SKUs and goods not suitable for storage within the Multishuttle system are stored within a combination of shelving and selective pallet racking.

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After all of the required SKUs from the GTP system have been picked, the system’s integrated conveyor system transports the order to other areas of the DC where any additional SKUs for the order are picked using the DC’s voice-directed picking system, and added to the order.

When all of the split-case items for an order have been picked, the carton is conveyed through an inline packing system where the carton is void filled, sealed and labelled for despatch.

The completed order is then conveyed to an eight-lane sortation system, which sorts the carton to the appropriate shipping lane where it will be palletised for despatch.

Integrated system software Shimano’s Pronto Warehouse Management System (WMS) is responsible for overall inventory management and stock movements, order management and replenishment requests to the GTP system.

The WMS is also responsible for SKU management including the capture of weight, dimensions and photographs of SKUs, which are displayed during the picking process at the GTP workstation to verify the correct product is being picked.

Dematic iQ’s WCS is responsible for all picking in the DC and all activities relating to the GTP system including picking, replenishment, stock control and location management within the Multishuttle system.

Dematic iQ WCS also controls the real-time flow of orders through the GTP workstations, as well as voice-directed picking in the DC’s shelving and racking areas.

It also controls the flow of orders through the conveyor system to despatch.

Orders that require only GTP items – about 55% – are released for picking as required, while those requiring part GTP and part bulk – around 45% of orders – have the GTP portion released first and as picking nears completion, the bulk requirements are released for picking.

WHOLESALE/B2B CONSUMERAPPAREL GOODS GOODS-TO-PERSON PICKING

Through Dematic iQ performance optimising software, the Multishuttle system solution provides full track and trace capabilities for every single carton and optimises operational processes from planning to order fulfilment and shipping within a single flexible, scalable and modular platform.

It also provides visibility and insight into system performance via intuitive dashboards on computers, laptops and mobile devices.

Staff engagement a huge bonus Shimano’s Warehouse Manager, Anthony Cutler, said: “Our people have played a huge role in the successful commissioning and start-up of the new DC and a big thanks to them all for their untiring efforts and patience during a significant period of change, and coming to terms with a whole new way of doing business.

“With on-going input and support from our amazing staff, we look forward to continuing to improve the way we utilise the DC’s new order fulfilment systems to further improve the quality of our customers’ experience when ordering from Shimano.”

Above: Voice-directed picking is used for case and small bulk picking.

Below: A linear sorter diverts orders to the required shipping lane.

Catering for future growth Mr Cutler added: “Our Multishuttle and GTP system layout was designed with expansion in mind.

“Space has been reserved adjacent to the Multishuttle system for a future aisle, which would provide 50% more storage capacity, together with additional GTP workstations to enable us to further increase throughput.”

Dematic Director Integrated Systems, Pas Tomasiello, said: “Shimano’s new DC demonstrates that high performance integrated logistics technologies like Multishuttle GTP order fulfilment systems are not only a cost-effective option for high volume retailers and distributors, but can also play a vital role in delivering reliable, costeffective, timely and accurate order fulfilment for small to mid-sized businesses like Shimano.”

Shimano’s Multishuttle GTP system benefits: • Consolidation of three DCs into one • Dematic Multishuttles provides very high productivity and throughput rates: 208 totes/hour • Delivers SKUs to GTP workstations in the exact sequence to optimise order assembly • Lighter weight, low voltage Multishuttles use less energy and provide quieter operation • Self-learning software controls tote put-away, constantly increasing tote retrieval efficiency • Improved inventory management, with on-going checkweighing and cycle counting • Error-free put-away process ensures inventory accuracy, reducing stock-outs • Space reserved for extra aisle provides future flexibility and reduced the initial investment • Dual-purpose GTP workstations suitable for both picking and replenishment Colin Tannahill, Managing Director, Shimano Australia Fishing & Matthew Bazzano, Managing Director of Shimano Australia Cycling

• Intuitive, easy-to-learn system, with just one hour picking/packing operator training required • GTP system provides full redundancy as orders can be processed at any location • Dematic iQ WCS seamlessly integrates with Shimano’s WMS for total visibility of picking, and real-time system performance and order status data.

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COOP ODENSE, DENMARK

SMART BREAK-BULK PICKING FOR COOP Faced with the challenge of consolidating dry food goods from several warehouses into a non-food distribution centre (DC), Coop Denmark turned to Dematic for an innovative solution that could provide the compact footprint, flexibility and high performance needed to match demand.

Left: Christian Flindt, Technical Manager, Coop Odense Distribution Centre Right: Finn Biller, Scandinavian Sales Manager, Dematic Coop is Denmark’s largest retailer, a cooperative with an annual turnover of DKK 50 billion, 38,000 employees and 1,200 stores. Its retail chains are well recognised with names such as Kvickly, SuperBrugsen, Dagli’Brugsen and coop.dk.

Grocery retail is highly competitive and Denmark is no exception.

So when, in 2010, the global recession gripped the region, Coop reviewed its DC network and opted to consolidate slow-moving dry food goods from a number of DCs into a recently constructed 45,000 m2 facility in Odense.

Redesigning the DC to suit a new purporse Originally built as a non-food DC, the Odense facility had an automated high bay warehouse with a storage capacity of 32,000 pallets.

But a smart, integrated logistics solution was required to considerably upscale the operation.

Coop wanted to expand the floorspace by a further 10,000 m2 and repurpose the DC to efficiently manage the break-bulk distribution of non-food and dry food goods for Coop’s 1,200 retail outlets.

Goods-to-Person (GTP) picking system A key element to this transformation was creating a GTP picking system capable of breakingbulk for slow-moving products, and then assembling store orders in totes for despatch.

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A robust, reliable and highly innovative automated solution was needed – and Dematic had the answer.

Christian Flindt, Coop Denmark’s Technical Manager at the Odense Distribution Centre, explained the challenge: “As the floorspace in our four local warehouses added up to 100,000 m2 in total, we had to find a way to ‘squeeze’ it all into the one facility, and that could only be achieved through automation.”

Space-efficient solution “One of the main reasons we opted for automation was the excellent space efficiency of the Dematic integrated system solution.

The Dematic system occupies only 6,500 m2 of the warehouse, but it accommodates 70% of the volume of the goods, which meant we could then manage all of the goods from the various warehouses in the one place.”

Living up to Christian Flindt’s requirement that the solution must be “fast, reliable and scalable”, The sophisticated GTP picking technology from Dematic has significantly increased productivity from 140 to 450 items picked per hour.

But the benefits of the solution go much further.

Another crucial design parameter was that the solution should “deliver value for the end customer”.

GROCERYF RETAIL DISTRIBUTION MULTISHUTTLE STORAGE BUFFER WITH GTP PICKING

An overview of the new break-bulk picking system including the 45,000 tote capacity Multishuttle storage system and 4,000 tote capacity Multishuttle commissioning buffer.

This it did by improving on-shelf availability in the retail stores and by preparing ‘store ready’ orders in totes, per category and packed in sequence, for faster shelf replenishment at the retail outlet. This saved staff in the retail stores up to half an hour per pallet of totes.

A simple concept with smart technology

Operators at the Dematic RapidPick stations receive picking instructions on a screen and are directed as to which tote to place the items in to.

The system provides Coop Denmark with the capacity to fulfil up to 62,000 order lines per day for between 300-400 stores.

“From there they are called off and sent to one of nine RapidPick stations.

The internal tote arrives in a central position at the RapidPick station and items are picked and placed into customer orders.

Each station has six order tote positions to pick into, but normally there are only up to five orders open at the same time.”

The elegance of the solution lay in the simplicity of the concept and the sophistication of the technology applied. Dematic Multishuttle technology linked to Dematic iQ warehouse management software, was the perfect combination.

The operator at the RapidPick station receives picking instructions on screen and is directed by the system as to the number of items to pick, and into which tote to place the items.

The system was designed for small-sized, slowto-medium moving products that were inefficient to pick in a conventional way, but that fit easily into a tote.

Completed totes are labelled with the relevant shop number and name, along with a barcode.

The order picking capacity is 400 order lines per hour, per station.

In total there are about 45,000 storage locations in the Multishuttle system, housing around 9,000 products, with the system providing Coop Denmark with the capacity to fulfil up to 62,000 order lines per day, for between 300-400 stores.

Dematic Multishuttle commissioning buffer store

Finn Biller, Scandinavian Sales Manager for Dematic, explained the key operational processes.

“Pallets are requested from the pre-existing highbay warehouse and transported to one of eight pallet decant stations, with each of the stations having two pallet positions to pick from.

“Operators pick the required number of cartons or items, as instructed on screen, and place them into ‘internal’ totes.”

“Store order totes [external totes] are taken from the RapidPick stations to a Multishuttle commissioning buffer, where 24 Multishuttles carry totes to the 4,000 tote locations in the system, with this part of the system having a capacity of 1,000 double cycles per hour,” said Mr Biller.

Finally, store orders are requested from the commissioning buffer for palletising.

Two stations with articulated robots handle the store totes in pairs and place them on either half or full EURO pallets. The robots can also insert a pallet between pallets of stock to make high sandwich pallets to optimise transport efficiency.

These totes are then directed by the warehouse control system (WCS) to the 45,000 location Multishuttle buffer store - a dynamic, dense cube of double-deep tote storage space served by 96 Dematic Multishuttles. The system has the capability to achieve up to 4,300 double cycles per hour.

Pallets for despatch are transported via wrapping and label application to one of three despatch lanes for truck loading.

Pre-picking stock for up to a week’s orders

In particular, he praised the team of Dematic service engineers responsible for maintaining the system and said: “The Dematic service team is doing a very good job in optimising the performance of our various systems.”

Mr Biller continued: “The result is that we are picking from pallets into totes and storing the quantity of SKUs required for up to a week’s orders in the Multishuttle buffer.

Coop’s Christian Flindt is pleased with the performance of the system, and has also been impressed by the response from Dematic to fixing any errors.

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JIAJIAYUE GROUP SHANDONG PROVINCE, CHINA

CHINESE SUPERMARKE HIGHLY ABOUT VOICE-D

Jiajiayue Group is the largest supermarket chain in Shandong Province, China.

The supermarket chain combines logistics, food processing and the wholesale distribution of agricultural products.

Its network covers 34 cities and counties in Shandong.

It has over 20,000 employees and more than 500 chain stores.

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With its business growing, Jiajiayue set up distribution centres (DCs) in Weihai, Yantai and Laiwu.

The Weihai DC functions as the central DC, and supports the storage and picking of over 20,000 stock keeping units (SKUs) to 360 stores. Serving a radius of 200 km, its daily throughput is up to 250,000 SKUs. All three DCs can be further developed to support up to 600 stores and generate annual distribution of five billion Yuan.

Logistics comes first The success of the business could not be achieved without the core competitiveness of its distribution operations, and with its commitment that logistics comes first in regional development. With its business growing every year, efficient warehouse management is increasingly important and its workers’ performance is key to providing customers with high-quality service.

To further improve picking efficiency and accuracy, Jiajiayue implemented the first Dematic voice-directed picking system solution in China.

Due to a variety of SKU types in the warehouse, different picking methods are used, with voice picking starting at the floor-level picking zone.

Easy to learn and use Voice-directed computing is intuitive and easy to learn. Because the system records a voice template for every user, it doesn’t matter if the user has a strong accent. Training people to use voice is also easy, with operators up and running quickly, becoming proficient within a couple of hours.

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Hands and eyes-free A significant advantage of voice-directed computing for order picking is that it leaves the user’s hands and eyes free at all times.

This makes handling and picking goods of all shapes and sizes faster and safer, with voice technology also delivering significant productivity, accuracy and throughput benefits.

Because their hands are free, voice picking enables Jiajiayue’s workers to lift and handle boxes naturally, significantly reducing the potential for manual handling injuries.

Jiajiayue’s warehouse workers appreciate the hands and eyes-free benefits that voice-directed picking delivers, particularly when the SKU to be picked is large or heavy, like a truck tyre.

Voice-directed picking also eliminates the repetitive hand movements associated with using RF terminals.

The system is also very flexible, with the one voice terminal capable of being used by different pickers at different times. The pickers only need to record the voice template in advance and then log into the system to commence picking.

Integrating voice-directed picking In addition to individual pick face location numbers, each picking location is labeled with a check digit produced randomly by the voice picking system, virtually eliminating the potential for picking errors.

GROCERYF RETAIL DISTRIBUTION VOICE-DIRECTED PICKING

ET CHAIN SPEAKS DIRECTED PICKING

After receiving the location number of the next item to be picked, the picker travels to the location and says the random check digit to confirm they are at the correct location.

After the check digit is confirmed by the system, it directs the operator to pick the required quantity for the order, with the picker confirming the quantity of SKUs picked.

If the quantity in the location falls short of that required for the order, the WMS is able to direct the picker to a second pick face location for the item, and direct them to pick the remaining quantity required.

Voice adds flexibility for peak periods

System benefits The introduction of voice picking in Jiajiayue’s Weihai DC has delivered three key benefits for the business.

Firstly, picking efficiency is very high, with Jiajiayue reporting productivity improvements of 20% to 30%.

Secondly, voice picking’s intuitive ease of use requires minimal training with most new users achieving high productivity rates within a matter of hours, plus it only requires a few minutes for new operators to record their personal voice template.

Thirdly, the use of check digits at all picking locations means voice picking delivers exceptional accuracy, with Jiajiayue achieving error rates as low as 1 in 10,000 in the ground-level picking zone where the voice picking system is used.

Commenting on the importance of accurate order fulfilment, Wang Zuguo, the Director of the Information Department of Jiajiayue Group, said: “Our company follows the strategy of logistics coming first in our regional development.

Like most retailers, Jiajiayue experiences a high variation in the number of orders to be processed due to seasonality and special promotions, with the number of pickers required in the warehouse varying significantly from quieter to peak periods.

“In logistics, we introduced the advanced voice picking system and eliminated the need for our old paper-based picking methods.”

A problem for Jiajiayue was that temporary workers required for peak periods were always less productive and accurate than regular pickers, and the introduction of voice picking has largely resolved this problem. Voice picking is used in Jiajiayue’s ambient, cold store and freezer operations.

“We were one of the first companies in China to introduce voice-directed picking, and we have received great support from Dematic in many areas, including system configuration and fine tuning. Dematic has helped us a lot to improve our order fulfilment efficiency and accuracy,” added Mr Zuguo.

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We were one of the first companies in China to introduce voice-directed picking ... and Dematic has helped us a lot to improve our order fulfilment efficiency and accuracy.

Wang Zuguo, Director Information Department, Jiajiayue Group

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In Jiajiayue’s Weihai DC, the Warehouse Management System (WMS) issues the order task, with the voice-picking system translating the commands of the WMS into voice, enabling real-time verbal communication to pickers through their lightweight headphones.

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