Dematic Logistics Review - Issue 4 by Dematic Pty Ltd

Issue 4

CeMAT 2011 OVERVIEW

L GISTICS

REVIEW

Exciting new products launched at CeMAT

AUTOMATING SIEMENS

Multishuttle in production line support role

Product review

News, technology and software update

TECHNOLOGY FEATURE:

RAPIDPICK SYSTEM FASTER, SMARTER, SAFER HALFORDS: UK

Sorting out small parts order picking

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BARE ESCENTUALS: USA Integrated order fulfilment for cosmetics supply chain

DEMATIC LOGISTICS REVIEW

Creating Logistics Results

FLEXIBLE, scalable, Welcome to Issue 4 of Dematic Logistics Review – Your Window to World’s Best Practice Logistics. In the last issue of DLR, we presented a new white paper “10 Strategies for Distribution Logistics Success.” This hierarchical approach to eliminating non-value adding activities evaluated concepts designed to reduce picking cost and increase customer service. At recent major tradeshows in Europe and North America, Dematic’s senior management and I had the opportunity to meet customers from around the world. You told us the “10 Strategies” made very good sense, because it showed how Dematic offered solutions for businesses with differing levels of distribution logistics requirements. You also shared your experiences in dealing with real world operational issues.

DEMATIC LOGISTICS REVIEW

One consistent theme began to emerge and it pleased me a great deal. Lowering costs and increasing service is a given. But logistics professionals need more. In particular you need the ability to respond rapidly to change. We know that the only future certainty is change so, in my opinion, there is a strong need to address this challenge. Smart solutions need to be designed to meet today’s needs but with tomorrow’s requirements firmly in mind, and that means taking into account issues like growth, change in product range or new market or channel requirements. At Dematic, we address the issue of “futureproofing” solutions, technologies and information platforms by ensuring our systems are flexible, scalable and modular:

Contents Cover Story: NCPC, China Technology Feature: RapidPick System® Case Study: Siemens, Germany Case Study: Bare Escentuals, USA Case Study: Blackmores, Australia Case Study: Halfords, UK Case Study: D&H Distributing, USA CeMAT 2011 Review News, Product, Technology & Software

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About Dematic Dematic is one of the world’s leading suppliers of logistics automation systems and solutions. As a systems integrator, Dematic delivers a full range of technologies and services, from individual products and systems to complete turnkey solutions as a general contractor, as well as complete after-sales support and service. Dematic provides automated material handling products, systems and solutions for retail and wholesale distribution, consumer direct, grocery, food and beverage, and manufacturing industries. Dematic’s products and services are based on a tradition of industry expertise that the company has acquired over decades of commitment worldwide. Globally the company employs around 4,000 people.

MODULAR logistics • Flexible designs give you the ability to respond efficiently to changing demands by employing proven technology solutions for multiple applications, and ensuring systems incorporate sufficient redundancy to cope with expansion • Scalable means designing our systems so they can be upgraded easily to meet your changing requirements – you don’t need to start again. Plus, a scalable system can grow as your business needs grow, avoiding the cost and need to re-engineer a system or retrain staff • Modular means that the components of our systems can be easily combined to drive multiple functionalities. At the same time, all components are designed to interface seamlessly, providing end-to-end material flow and information management.

Dematic has been addressing these issues for years. Our newly released RapidPick Goods-toPerson system, Multishuttle Flex, RapidStore ML & UL range, our range of Modular Conveyors and Sorters and our DC Director software are all designed to meet your changing needs. In this issue we present a range of integrated logistics system solutions delivered to well-known customers around the world. We also update you on new Dematic innovations, with an overview of the latest Dematic products launched at the recent CeMAT Exhibition in Germany. Most importantly, we present a detailed discussion about our innovative RapidPick System®. Our new Goods-to-Person split-case picking solution highlights the way in which Dematic is embracing the principles of flexible, scalable and modular in all the work we do.

Roar Isaksen, President & CEO, Dematic

DEMATIC LOGISTICS REVIEW

COVER STORY North China Pharmaceutical Corporation (NCPC) Hebei Province, CHINA

NEW DC the prescription for NCPC Founded in 1953, North China Pharmaceutical Corporation (NCPC) has achieved constant growth to the point where it is now a leader in the pharmaceutical industry in China. Dematic has recently assisted NCPC with the construction of a new DC at Shijiazhuang in Hebei Province.

DEMATIC LOGISTICS REVIEW

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Automating Production Raw Materials & Finished Goods STORAGE

Dematic works professionally, efficiently and in a customerfriendly manner ... and have helped lead us into great achievements on the project. Yang Baiyue, Distribution Centre Manager, NCPC

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Yang Baiyue, Distribution Centre Manager, NCPC DC

North China Pharmaceutical Corporation (NCPC), a leading pharmaceutical manufacturer in China, produces over 430 kinds of antibiotics, semisynthetic antibiotics, pharmaceutical intermediates, vitamins, biotechnology products, veterinary and neutraceuticals, both in bulk and in finished products. When NCPC decided to invest in a new plant to produce and handle cephalosporin-based antibiotics, it turned to Dematic. The new plant is expected to generate annual sales revenue of up to RMB 12 billion, which will help NCPC form a complete industrial chain and a rich line-up of cephalosporin antibiotics. Auto checking, tracking and QC for risk free DC At the heart of the NCPC’s system is a 10,000 pallet ASRS for storage of raw materials and finished goods. The ASRS is located adjacent to a two-level building where production of a wide range of cephalosporin antibiotics occurs. The ASRS is integrated with the production lines at both ends of the system, feeding raw materials in at one end and receiving finished goods after they have been palletised. When developing the new facility, NCPC wanted a risk-free system that would increase utilisation and reliability. They also required automatic checking, tracking and quality control throughout the process. Dematic completed systems installation and commissioning in just 14 weeks meeting NCPC’s high expectations. “Dematic works professionally, efficiently and in a customer-friendly manner.

They are a reliable, stable and safe partner. We are lucky to have Dematic working with us and Dematic helped lead us into great achievements on the project,” said Distribution Centre Manager Mr Yang Baiyue. Optimising space utilisation with mezzanine With space at a premium, Dematic utilised a mezzanine to house a low-noise MCS (modular conveyor system), which connects the production line to high speed pop-up belt sorters. As goods are produced, they are merged onto a single accumulation MCS before being presented to the high speed sorter. The sorter organises products in SKUs and batches prior to palletising. A walking robotic palletising system is then fed by a 26 lane high speed sorter capable of achieving rates of 700 cartons per hour. Integrated finished goods handling and storage The fully integrated system uses two robots, shuttle cars and pallet conveyors to send the completed pallets to the ASRS system for storage. The mezzanine frees up sufficient space on the first floor for pallet and carton despatch, as well as infeed and outfeed of raw materials and consumer materials. Batch management has been strictly implemented in NCPC in line with Chinese legislation. All products are double scanned, first at sorting and again at palletising. If scanning fails, the goods will be sent to an end-of-line chute for manual scanning. The double scanning methodology ensures batch integrity from storage through to distribution to individuals.

DEMATIC LOGISTICS REVIEW

technology feature Rapidpick system® Dematic RapidPick System® Ergonomic 1:1 picking station

dematic ® rapidpick system smarter, faster, SAFER

In today’s modern world an old fashioned idea has been reborn due to technology advances and changing business needs. Goods-to-Person (GTP) picking has been around in lots of forms for years. But there has been a paradigm shift in thinking. No longer is it sufficient to lower costs, increase productivity or deliver a short ROI. These traditional drivers are taken as given. The difference today is new global attitudes to safe and ergonomic work practices, the exploding e-tailing sector, and staying ahead of rapid economic and regulatory change.

DEMATIC LOGISTICS REVIEW

GOODS-TO-PERSON ergonomic split case PICKING

In recognition of these dynamics Dematic has developed an end-to-end solution for split case picking that, until recently, was simply not possible. Today, greater computing power, advanced software and dramatic innovations in materials handling technology have combined to make GTP the new standard in order fulfilment. Dematic RapidPick System

Modular buffer and sequencing systems such as the Dematic Multishuttle (above) and RapidStore Mini-Load (below) arrange stock in the precise order required to enable high speed Goods-to-Person picking.

Dematic RapidPick System is a high performance order fulfilment solution, which takes full advantage of the benefits of GTP making split case picking smarter, faster, safer and less fatiguing. Engineered with modular components, the RapidPick System can be scaled up and expanded as business requirements change. The RapidPick System seamlessly integrates hardware and software to efficiently stage and transfer stock and orders quickly and accurately. This enables the order picker to work highly productively in a comfortable work environment Smarter The time wasted travelling between picks in normal distribution is eliminated with the operator staying in one place, while items are delivered to them in the precise sequence required for assembly. Heavy items first, fragile items last, by family group or in whatever sequence needs dictate. The RapidPick System allows ultra high pick accuracy as only one SKU is presented to the operator at a time. Modular pick station configurations include one-to-one stations where a single order tote and stock tote are presented to a sole operator. One-to-multiple stations can also be used depending on throughput requirements. In these cases a single stock tote is used to fulfil multiple orders at the same time. Configurations may include any arrangement from 1:1 up to 1:24 or more, depending on order volumes and the type of products being handled.

Faster With the stock for orders delivered directly to the operator, who only has to place the required quantity of goods to the relevant orders, very high productivity rates can be achieved. It is engineered to pick at rates of more than 1000 items/hour, with minimal errors. Also, with a one second tote exchange time, the operator does not have to wait for the next item to be picked. Product flows into the workstation smoothly and consistently ensuring high staff utilisation. The high rate of inventory flow into the pick station is made possible by automated inventory staging buffers like the Dematic Multishuttle® or our RapidStore Mini-Load systems. These “storage engines” are integrated using sophisticated sequencing algorithms to ensure that stock and orders arrive at the pick stations in the correct sequence, exactly when they are needed. More Ergonomic RapidPick workstations are designed for sustained productivity and employee comfort. The operator picks only in the “golden zone” and does not need to move hands above the shoulder or extend arms beyond a comfortable reach. The work platform is adjustable in order to accommodate different height operators, or even operators with a disability. Operator screens adjust for height and angle to minimise neck strain. Loads are automatically delivered to and removed from the workstation eliminating the need for operators to lift or push cartons and totes. The ergonomic design and simple, icon-driven operator touch screen allows the pick station to meet Universal Access guidelines.

Bulk Stock

Empty Order Cartons/Totes

Supply Delayered/ Decanted Stock

Supply Empty Cartons/Totes

BUFFER STORE Multishuttle/RapidStore ML

Supply Sequenced Stock

Return Unused Stock

Ergonomic Pick Stations RapidPick

Completed Orders Despatch

Dematic RapidPick System

DEMATIC LOGISTICS REVIEW

technology feature Rapidpick system®

GOODS-TO-PERSON ergonomic split case PICKING

Productivity and throughput can be further optimised with RapidPick System one-to-many workstations. This example shows 24 orders being picked concurrently.

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Dematic has developed an endto-end solution for split case picking that, until recently, was simply not possible. Today, greater computing power, advanced software and dramatic innovations in materials handling technology have combined to make GTP the new standard in order fulfilment.

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More Compact

Suitable for Changing Order Profiles

The RapidPick System fits into a compact footprint, typically 30 to 50 percent smaller than conventional solutions. Both Multishuttle and Mini Load enable high cube utilisation in a high density storage configuration.

As new products are introduced and market demands change, so too do order profiles. The RapidPick system easily accommodates changes. Single item and multi item orders are accommodated with equal efficiency. This means developing trends like smaller, more frequent orders do not compromise the productivity of the RapidPick System.

Dematic buffering and sequencing technology is made up of modular components with the rack, the shuttles, load handling devices and software fully integrated to ensure optimum performance. Shuttles and Mini Load cranes can access loads on both sides of an aisle, single or double deep. High Uptime and Redundancy Dematic shuttle technology has many advantages. Their simple design is engineered for high uptime with built-in redundancy. Each Multishuttle operates using a low voltage electrical system, so it’s also more energy efficient. There are no batteries, chargers, or onboard computers. It’s simple to use and control. Easy Replenishment There are a variety of options for replenishing the buffer engine. Depending on throughput, bulk stock can be automatically delayered and decanted into totes and supplied to different buffer zones using one of our wide range of sorting options. Replenishment is optimised and put away is automated. Operational Flexibility Staff can work in parallel, unaffected by each other’s pace. Pick stations can be opened and closed according to business volume on a particular shift. There is redundancy in this configuration since items can be processed at any location as the workstations are completely decoupled.

DEMATIC LOGISTICS REVIEW

Flexibility, Even at the Pick Face With the RapidPick System, there is no dedicated pick face. Therefore, the labour intensive tasks associated with put-away, slotting and reslotting the warehouse, and pick face replenishment are all gone, along with the complex and ongoing churn of SKU velocity analysis. Space efficiency in the warehouse is also improved with the elimination of dedicated pick faces. Accommodates SKU Proliferation If more SKUs are added or order volume increases, the RapidPick System can be easily scaled to absorb the new requirements by adding modular, space efficient Multishuttle zones and pick stations. The need to invest in completely new systems is eliminated, as is the high cost of training and change management.

Dematic RapidPick System Engineered for the highest pick rate and highest accuracy in an ergonomic environment, the RapidPick System is compact and energy efficient, offers daily operational flexibility and can change or expand to accommodate your future order fulfilment needs.

SIEMENs AMBERG, GERMANY

AUTOMATING PRODUCTION BUFFERING & SEQUENCING SYSTEMS

multishuttle automates production line for siemens 速

The flexibility of using Dematic Multishuttle速 as a storage buffer and sequencing system in manufacturing applications is clearly demonstrated by its role in automating production line supply at Siemens switchgear manufacturing plant in Amberg, Germany. The restructured material flow solution has increased productivity, provides almost 100% product availability, and its space efficiency is such that Siemens has been able to utilise 25% more floorspace for production.

DEMATIC DEMATICLOGISTICS LOGISTICSREVIEW REVIEW

SIEMENs AMBERG, GERMANY

More than 50,000 switchgear devices are manufactured each day on the fully automated production lines in the Siemens plant, which is equipped with precision assembly robots. “Under the project name ‘ARRIBA’, we developed a rough concept for fully automated material flows in addition to automation of production facilities,” said Martin Schönthaler, Project Manager for Siemens AG. “The aim was complete process automation from incoming goods through to production. We also wanted to make better use of the space we had by restructuring internal logistics. “We needed an integrated, space-efficient solution that could be adapted to fit existing conditions, and this is exactly what Dematic provided with the Multishuttle. Dematic’s product range and planning expertise were also factors in our decision,” he said. Multifunction Multishuttle® Dematic’s modular Multishuttle offers the ultimate in design flexibility, with the system at Siemens being built to suit the space available over multiple building levels. Thanks to the disconnection and parallel design of goods in/out, storage and transport processes, the system offers a scalable and redundant performance level in comparison to standard automated small parts storage systems. Also, Multishuttle is not restricted to conventionally-shaped areas. Thanks to its modular design Multishuttle can be modified to fit virtually any space, and, unlike traditional storage systems, Multishuttle does not have to be installed on the ground level.

By taking advantage of Multishuttle’s flexible design and configuration options, Siemens has been able to free up about 25% extra floorspace for production.

Multishuttle carts transfer between levels using integrated lifts.

Multishuttle Production Line Buffers This meant it was possible to easily add a spacesaving second level to the four metre high production lines in the Siemens plant. Two Multishuttle line buffers with three system vehicles and 540 container spaces keep components flowing for the automated production of coil winding systems, drives and contacts. “This was an initial expansion stage as we had to implement the conversion during on-going operations,” said Mr Schönthaler. “By May 2011, two additional line buffers up to 80 metres in length, with almost 1,000 storage spaces and six Multishuttle vehicles will be installed above the final assembly lines.” Multishuttle Production Buffer Warehouse The central component of the material flow design is a further Multishuttle warehouse with 3,400 container spaces, which is sufficient to support three hours of standalone production. Supply for the production line buffers is provided by this system. The two-aisle compact Multishuttle, with a total of four vehicles servicing eight shelving levels, was designed to suit the space available in the basement of the original factory. From there, the line buffers are supplied with the materials required for the current production via an integrated, elevated conveyor system. “Overall, there is a twice-daily complete turnover of the buffer warehouse at optimum production volume”, explained Mr Schönthaler. “Thanks to the Multishuttles, we have a 98% availability level.” The entire system logic, from warehouse management through to kanban, is controlled by Dematic DC Director software, which interfaces with the site’s SAP ERP system.

DEMATIC LOGISTICS REVIEW

AUTOMATING PRODUCTION BUFFERING & SEQUENCING SYSTEMS

The system at Siemens is set up with an inward and outward goods movement volume of up to 100 containers per hour, with the system performing up to 200 dual movements. The Multishuttle vehicles remove the containers from storage and transfer them to the conveyor system via Multishuttle lifts. In total, seven lifting devices are set up; three of them ending on the production level, with the other four lifting devices primarily supporting the Multishuttle line buffers. “All the interconnecting conveyors run under the building roof, which enabled us to achieve even better space utilisation,” added Mr Schönthaler. Multishuttle system operation The conveyor moves the ordered material containers to transfer points for the line buffer Multishuttles. Here the containers are lowered onto the same level as the line buffer and placed into storage by the shuttle vehicles.

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We needed an integrated, spaceefficient solution that could be adapted to fit our existing conditions, and this is exactly what Dematic provided with the Multishuttle. Dematic’s product range and planning expertise were also factors in our decision. Martin Schönthaler, Project Manager, Siemens AG

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Managing material flow Via a connection to the central incoming goods warehouse in Amberg, which was also implemented by Dematic, materials required for production are placed into the Multishuttle warehouse. The components for all products are stored there. When the production lines receive an order, outward goods movement of the containers is initiated in the buffer warehouse.

When required, containers are moved to transfer points that are also connected to the line buffers. Here the individual container and tray stacks are transferred to supply the production lines. For optimum production robot access, the articles are precisely positioned within the trays so that automated handling is possible on the production line. In parallel to the processes on the production lines, the buffer warehouse is refilled in the basement level. Finished goods are also removed from the production lines via the line palletisers and line buffers. Thanks to the flexible and efficient Multishuttle system, the Siemens plant is continually achieving high throughput and rapid, error-free order picking for production supply. “A flawless kanban system with fully automated processes,” said Mr Schönthaler. “The holistic solution will provide us with around 25% more production area in the final expansion stage, minimise manual transport and provide us with the transparency for modern material tracking from component delivery to the end of the production cycle. “The modular system design also opens up a wide range of options for our future growth,” he said.

DEMATIC LOGISTICS REVIEW

BaRE ESCENTUALs OHIO, USA

changing the of distribution Bare escentu

Bare Escentuals once filled orders using paper lists and carts around the warehouse picking one discrete order at a time – a hour, not including packing. During peak seasons, order fulfilm extended and more costly, expedited shipping was needed to Today, using a Voice and Pick-to-Light-enabled, integrated zone Bare Escentuals has increased productivity to more than 500 pie

Dematic split-case and e-tail order fulfilment To improve service to its customer base of retail store boutiques and spas, Bare Escentuals implemented an all new split-case picking system including Pick-to-Light (PTL) and a smart zonerouting conveyor network. Today, Dematic PickDirector warehouse control software (WCS) manages and directs the entire picking process with efficiency and operational flexibility. Paper pick lists are no longer required. PTL and zone skipping lift productivity 500% Operators pick orders using Pick-to-Light technology. A conveyor system transports shipping containers (one carton size for all orders) only to zones where picks are required. Operators stay in one zone and do not travel the entire warehouse. As a result, productivity has significantly increased with each operator capable of picking 500 pieces per hour on average.

Smart packing and shipping system cuts costs Additional automation was implemented to support the order finishing and pack-out function. Label print and apply technology, a carton sealer, and weighscale are built into the conveyor network. To obtain the best parcel shipping rates, the system utilises rate shopping software.

DEMATIC LOGISTICS REVIEW

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500+ pieces per picker per hour 70,000 items per day Productivity up by over 500% Accuracy up by 50% Packing done by picker Real-time management Reduced shipping costs

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The system fills and ships approximately 600 customer orders – about 70,000 pieces per day. Order accuracy has also improved by 50%. Furthermore, packing is now done by the picker, enabling separate pack stations to be eliminated from the distribution process.

Split Case Picking Voice & PTL Supported Zone Routing

face ion at uals

s, which were pushed about 85 pieces per ment time became meet delivery dates. e-routing solution, eces per hour.

Voice Picking has helped Bare Escentuals keep up with growing e-tail orders.

The Dematic WCS has an interface to the parcel shipping software to provide integrated system performance from order induction to shipping. Picked orders are weighed, rate-shopped for best cost shipping, and have the carrier’s shipping label applied. The entire process is automated. A flexible, scalable, modular solution The order fulfilment system is modular and ex pandable, and its ability to flex and expand was soon utilised. After launching the order fulfilment system for spas/boutiques, the e-tail channel experienced dramatic growth. Typical order volume grew to 2,500-3,000 orders per day. During special promotions and holiday peak periods, order volume can be three to four times normal. Voice answers the call for low volume orders Using the existing Dematic PickDirector software, an order fulfilment configuration was added for the e-tail channel utilising voice-directed picking. The voice technology is ideal for e-tail channel fulfilment as high accuracy and productivity can be achieved in a moderate order volume environment. More operators can be easily added during peak periods. Both e-tail and spas/boutiques order fulfilment use the same inventory from reserve storage, about 1,000 to 1,200 SKUs. Pick-to-Light has increased accuracy, productivity and throughput.

of three standard carton sizes; small cube size orders are shipped in a bag. When the picking process is complete, the cartons are delivered to pack stations where each order is audited. Improved resource and labour management PickDirector provides real time systems and operations control. Using the browser-based interface, supervisors can monitor % orders complete, as well as verify order contents and make adjustments to ensure orders are shipped complete. PickDirector maintains comprehensive statistics so supervisors know how many orders, lines and pieces each operator handles. Orders can be put on hold and then released to an “active” from a “pending” order pool. SKUs can be slotted in multiple locations to facilitate workload balancing. The software also tracks SKU velocity and recommends appropriate slotting locations. More efficient resource and labour management

Adding e-tail fulfilment to the order

The number of operators per shift is allocated depending on order volume. If volume is up, more operators can be assigned to the PTL zones, and more can be assigned to the voicedirected pick carts, thereby making it scalable and flexible. In addition, the system is portable so it is easy to move if the operation is relocated in the future.

The e-tail order fulfilment system is centred around batch pick carts. Pick instructions are communicated from PickDirector to each operator via wearable voice devices. Each batch pick cart accommodates approximately 20 customer orders for each trip through the picking aisles. Each order is picked into and shipped using one

The results are compelling: no more costly expedited shipping, a five-fold increase in picking productivity, process improvements, real-time management and control, increased order accuracy, operational flexibility, annual physical stocktake eliminated (using cycle count), and reduced order processing time.

DEMATIC LOGISTICS REVIEW

Left: Dematic Key Account Manager Soeren Schauki with Blackmores Director of Operations Liz Burrows.

BLACKMORES SYDNEY, AUSTRALIA

new hq a TONIC for BLACKMORES Over the past 70 years, Blackmores has become one of the most trusted brands in Australia. The company supports a customer base of more than 5000 health food stores, pharmacies, supermarkets and health practitioners throughout the country. It has also established strong export markets in the Australasian and SE Asian regions. Fundamental to this growth has been its commitment to good manufacturing practice and supply chain innovation. The Blackmores Campus brings the company’s operations under one roof for the first time in over 15 years. Strong growth had made it necessary for Blackmores to split its manufacturing and distribution operations across a number of separate facilities. Bringing these services together at the Warriewood site, together with the technology enhancements, will bring new efficiencies and cost savings to the business. “Bringing our operations back under one roof will not only provide direct supply chain savings in excess of $1 million per annum, it will also enable us to significantly streamline our supply chain and enhance productivity across the board,” said Blackmores Director of Operations, Liz Burrows. Flow-through manufacturing and distribution “We have taken the opportunity to install an additional production line in the new manufacturing facility, giving the business 20% increased production capacity to support future growth, and

DEMATIC LOGISTICS REVIEW

Dematic has designed our new distribution centre (DC) as a flow-through facility,” said Ms Burrows. “Raw materials feed through to production, and finished goods back through to storage and distribution. Materials handling is optimised at all stages, and the DC has been equipped with the latest generation of order picking technologies including smart conveyors, Voice Picking, RF and Pick-to-Light (PTL) systems.” “We have also been able to rationalise our distribution IT systems with Dematic’s new PickDirector software,” she said. Real-time DC management with PickDirector In a world-first, Dematic integrated Blackmores put-away and replenishment functions within PickDirector, which seamlessly interfaces with Blackmores host computer system, JD Edwards’ Enterprise One. Blackmores Chief Technology Officer, Lee Richards, said: “A key driver when we planned our IT strategy, was to identify and eliminate potential points of failure within our IT systems. “The broad-ranging functionality of Dematic’s PickDirector order management and control software has enabled us to do so in the DC,” he said. “With PickDirector providing the interface for all of our DC technologies we were able to decommission a number of servers, systems and interfaces, which has allowed us to simplify the DC’s

Voice-directed picking keeps both hands and eyes free at all times improving productivity and safety.

Split and Full Case Picking Integrated Software and Systems

Australia’s leading natural health supplements supplier, Blackmores, has consolidated head office, manufacturing and distribution at its new Blackmores Campus in Sydney.

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Bringing our operations back under one roof will not only provide direct supply chain savings in excess of $1 million per annum, it will also enable us to significantly streamline our supply chain and enhance productivity across the board. Liz Burrows, Director of Operations, Blackmores

Voice Picking is used in the full case and Pick-to-Light in the split-case pick modules to improve accuracy, productivity and order management.

IT systems architecture, enhancing reliability and reducing IT systems management.” Dematic’s Key Account Manager Soeren Schauki said: “Our integrated logistics solution gives Blackmores the tools with which it can handle, store, pick and despatch goods faster and more accurately now, and for many years to come.” Flexibility for the future “Our DC systems incorporate a lot of flexibility to ensure efficient materials handling, storage and order fulfillment, even if Blackmores distribution requirements were to change over time,” he said. “We believed this was necessary because the company’s SKU (stock keeping unit) profile has changed considerably in recent years as a result of market growth and maturity. “The trend towards larger pack sizes in high volume products such as fish oil capsules, together with strong growth in supermarket sales and export markets, means Blackmores now processes a much higher volume of full case orders than it did just a few years ago,” explained Mr Schauki. “That’s why our DC design provides a range of efficient strategies and technologies for handling increasing quantities of full case goods, including the introduction of Voice Picking,” he said.

Integrated SKU, case and pallet order fulfilment Blackmores processes up to 500 orders per day. All split-case products are picked from a Pick Module. Conveyors transport orders through the module, with all locations equipped with Pickto-Light (PTL) for fast, accurate paperless picking. Fast moving full case SKUs are picked from a combination of Pallet Live Storage (PLS) and selective racking within the full case Pick Module. A combination of RF and Voice Picking may be used for picking full case SKUs, which are labelled and placed directly onto a central powered take-away conveyor. Full pallets for larger customer and export orders are also picked from bulk storage by RF or Voice Picking and transported to despatch by forklift. Voice Picking doubles case picking productivity “The hands-free, eyes-free feature of Voice Picking is providing both productivity and OH&S benefits over RF picking,” said Blackmores Supply Chain Manager, Stephen Vile. “We are now able to pick full cases twice as quickly as before, and with only half the people! However, we will be running our existing RF system in conjunction with Voice Picking, until all of our people are familiar with the new technology.”

DEMATIC LOGISTICS REVIEW

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HALFORDS COVENTRY, engLAND

Dematic sorts out small parts PICKING at Halfords Halfords’ 320,000 sq ft Coventry DC operates an innovative small parts picking system, designed and installed by Dematic, which combines conveyors, a combination of picking technologies and an automated buffer that consolidates picked totes into store orders. The system is helping the UK’s leading retailer of automotive, leisure and cycling products to send out up to 200,000 items a day in a highly efficient order fulfilment operation.

Pick-to-Light and Voice picking have improved productivity and accuracy for Halfords.

To achieve highly efficient store order fulfilment Halfords’ recently consolidated two distribution centres into a single new DC in Coventry, which now holds all of the retailer’s range other than bicycles and serves Halfords’ entire network of 470 stores across the UK and the Republic of Ireland. This means ultra high throughputs are required from the new DC. The key to achieving this would be creating a small parts store for picking 10,000 Stock Keeping Units (SKUs) of small products quickly and accurately into order totes, and consolidating them for delivery to the stores. Space saving, integrated solution for Halfords Working together with Halfords, Dematic designed a solution that located a small parts picking centre on a double deck mezzanine. Running along the entire 165 metre length of the DC over the loading bay doors, the structure facilitates marshalling below, yet provides 70,000 sq ft of picking area in what would normally be unused space, allowing Halfords to truly optimise the warehouse cube.

DEMATIC LOGISTICS REVIEW

INTEGRATED ORDER FULFILMENT SMALL PARTS PICKING SYSTEM

Dematic’s cost efficient and highly productive small parts picking solution comprises a conveyor-based system with pick-to-light and pick-by-voice technology. On the mezzanine’s first level, 3,600 SKUs of faster moving small parts are picked from live storage lanes using fast and accurate pick-to-light (PTL) technology. The simplicity of this system allows 300 lines per hour to be picked. The upper level of the small parts store houses Halfords 6,000 slower moving SKUs, which are located in bins on inclined shelves for ergonomic picking. Keeping small parts picking on the move Dematic’s small parts picking system helps achieve the high throughputs required at the DC, while improved tote filling has halved the number of totes each store receives in a delivery to 30. The simplicity of PTL not only ensures fast and accurate picking, but means new pickers can achieve good pick speeds after just an hour’s training. Voice picking gives accuracy and speed benefits for slower moving products at a lower cost.

The entire small parts picking scheme is futureproofed with room for another double deck mezzanine along the side of the DC, which could be linked into the current system thanks to the Multishuttle’s modular design, which allows more lanes to be added, without any change to the flow of Halfords’ operation. Voice picking technology allows 200 lines per hour of these products to be picked at a much lower capital cost than PTL.

Steve Mole, Operations Manager Site Services Halfords, with Dematic‘s Business Development Manager Dave Bull.

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The design, planning and implementation of the small parts picking system went very well and we developed a good working relationship with Dematic. We asked them to take our numbers and come back with a design that would give the results we were looking for.

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Multishuttle® maintains higher throughput and gives greater flexibility for order consolidation than can be achieved with sortation systems that require lanes of conveyors, which places constraints on operations.

Mark Shirley, Logistics Controller, Halfords

Smart zone picking This high rate is helped by concentrating picks into smaller areas so that each tote only travels to one or two zones for it to be filled. Travel distances for staff, who have their hands free, are also significantly reduced, improving pick efficiency. Dematic supplied 60 voice terminals for the Coventry DC. 20 of these are used in the pick-to-voice system, with the remaining units used for other operations within the facility, such as bulk picking, bulk put-away and decanting. These are all controlled by Manhattan Associates’ WMS, which also feeds orders to Dematic’s DC Director WCS. The WCS looks after stock profiling and integrates the PTL and voice technologies seamlessly to achieve the most efficient fulfilment possible. Completed order totes are sent to the Dematic Multishuttle® Captive Buffer, which is designed to increase speed, accuracy and throughput. The system’s intelligent controls enable complex sequencing, which contributes to the solution’s flexibility and allows Halfords to build storefriendly orders, calling out whole or part store orders as required. The Multishuttle can even ensure that the heaviest tote is at the bottom of the stack when they get to a Halfords store. Customer benefits • Improved carton fill halves case deliveries to stores • PTL offers high throughput and accuracy • Minimal training required for PTL and voice • Accuracy and speed benefits with voice • Flexibility to consolidate whole or part orders • Optimum use of dead space over loading docks.

DEMATIC LOGISTICS REVIEW

D&H Distributing atlanta, USA

HIGH SPEED, Energy saving conveyors FOR D&H distributing With an annual turnover of $2 billion plus, D&H Distributing is one of the USA’s leading technology specialists, distributing an extensive range of IT, electronics, entertainment and gaming products. Founded in 1918, D&H has grown with technology it sells, distributing the first colour TV, the first home PC and the first gaming system in the USA. D&H’s broad reach and breadth of products enable it to service businesses of all sizes from small independent retailers, dealers, integrators and installers to big box chains. D&H also provides fulfilment for e-commerce retailers. Supply chain consolidation Several years ago, D&H brought in logistics consultants to help with distribution network planning for the next 10-15 years. They determined that D&H needed four strategically located large DCs to support its growing customer base. The report showed D&H could gain significant transport savings if it were to consolidate its Dallas and Jacksonville DCs into a big-box DC somewhere in the southeast, with Atlanta selected as the site for the new DC.

DEMATIC LOGISTICS REVIEW

D&H has three other DCs in Fresno, California; Chicago, Illinois; and Harrisburg, Pennsylvania. All of the DCs are what D&H calls full-assortment centres. They all carry D&H’s 50,000-plus SKU inventory and support their respective geographic areas, with the new distribution network helping drive down transportation costs, particularly in cross-regional shipping. Keeping distribution a step ahead of demand “Our business has been growing double digits year over year for the past decade,” said D&H Director of Logistics Dennis Pardon.

Split and Full Case Picking Integrated Sorting and Zone Routing

“Every couple of years we found ourselves outgrowing our facilities. We needed to be making an investment that was a lot more forward looking, and that’s when we decided to build a big box DC and put in the type of automation that would support growth for the next 10-15 years.” The new DC’s 476,000 sqft floorplan includes over 13,000 linear feet of smart zone-routing conveyors for streamlined picking, and allows for expansion of up to 250,000 sqft. Smart pick zone-routing improves efficiency With 90% of what D&H ships comprising orders for split-case items, efficient piece picking is essential. Its WMS batches orders with others for the same or similar products to improve pick rate efficiencies. Orders are picked in one of two Pick Modules, with RF scanning used to ensure accuracy. Barcode-labelled cartons are automatically routed through the integrated conveyor system and diverted only into zones where picks are required. When picking in a zone is complete, the carton is pushed back onto the conveyor, which transports it to the next zone where a pick is required, or direct to despatch if the order has been completed. Above: D&H Director of Logistics Dennis Pardon with Tim Fleenor, DC Manager.

Pick accuracy is further enhanced with the zonerouting system re-routing a carton back into a zone if it detects that a pick has been missed. The system also has the ability to do on-the-fly

processing – if an order has a short pick, it gets automatically processed to an exception location for checking. Integrated conveying with real-time systems monitoring and control Dematic’s SortDirector® integrates with the WMS and coordinates all product movement inside the DC. It provides real-time control and, via the DC’s WCS, state-of-the-art graphic system monitoring for all operations. A Dematic RS200 sliding shoe sorter diverts orders to fill-and-tape and QA stations. A second RS200 sorts completed orders to 22 shipping lanes at rates of up to 150 per minute. Intelligent conveyor control system reduces energy consumption and delivers rapid ROI “Our company is big on green,” explained Mr Pardon, “and we implemented a lot of green initiatives in the DC.” A successful example is SortDirector’s energy management module. The conveyors monitor how long it has been since they last saw a carton. If a section hasn’t seen one for a specified period, the conveyor shuts itself down. When it senses a carton approaching, it will turn itself on, as will subsequent conveyors. “The payback is enormous. Less than a year,” said Mr Pardon. “Less energy consumption than traditional conveyors. It is a very cool system.”

“

The payback is enormous. Less than a year. Less energy consumption than traditional conveyors. It is a very cool system. Dennis Pardon, Director of Logistics, D&H Distributing

Dematic installed 13,000 linear feet of energy-efficient conveyors in D&H’s new DC.

DEMATIC LOGISTICS REVIEW

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NEWS, PRODUCTs, TECHNOLOGY & Software Review

Dematic celebrates 111 years at CeMAT Dematic reaffirmed its position as one of the world’s leading suppliers of innovative logistics technologies with an impressive display at the recent CeMAT exhibition in Hannover, Germany. Attended by more than 58,000 visitors, the triennial CeMAT is the world’s largest logistics technology trade fair, with over 1000 exhibitors from around 40 countries taking part this year. In keeping with CeMAT’s theme of Sustainability in Logistics, Dematic integrated future-proof logistics solutions into a complete material flow system on its stand, demonstrating how modern logistics can be delivered in a cost-effective and environmentally-friendly way. Amongst the innovations on display were: • Dematic RapidStoreML – a new high speed Mini-Load ASRS system complete with advanced load handling devices • Dematic Multishuttle® Flex– a new flexible high speed shuttle with the capability to handle totes and containers of different sizes • Typhoon Flex load handling device for improved product handling • New RapidPick System® 1:1 Goods-to-Person (GTP) high-performance integrated order picking stations incorporating the latest ergonomic advances to further improve productivity and workplace safety • Modular Dematic MCS conveyors, which enable flexible system reconfiguration • Dematic Ecodrive control software, which is designed to improve energy efficiency by 10-15%. Dematic used the event to celebrate our anniversary under the motto of ‘111 years of innovation,’ showcasing our extensive history in pioneering materials handling and logistics technologies, since our launch in Offenbach, Germany in 1900. As well as our stand at CeMAT, Dematic ran a well-attended supporting program including a press conference, customer stand party and site visits to Dematic’s new Technology Centre in Offenbach and to local customer Ferdinand Gross, which was one of the first companies in the world to implement Dematic’s Multishuttle storage and sequencing system. The next CeMAT trade fair will be held in Hannover, Germany from May 19-May 23, 2014.

DEMATIC LOGISTICS REVIEW

Dematic’s Modular Conveyor System (MCS) attracted a lot of interest with its quiet performance frequently commented on by visitors.

Above: More than 58,000 visitors attended CeMAT trade fair from May 19-23, 2011.

Right: RapidPick ergonomic workstations with elevating platforms were one of most closely inspected exhibits at CeMAT.

Right: Multishuttle Move is an exciting new concept developed in conjunction with the Fraunhofer Institute. As well as operating inside racks, Multishuttle Move has the capability of functioning as a free-path AGV creating many new material flow possibilities.

DEMATIC LOGISTICS REVIEW

NEWS, PRODUCTs, TECHNOLOGY & Software Review

freePick MaximiseR: pick one – get one free FreePick Maximiser, patented software developed by Dematic, makes it possible to pick goods for full case orders without ‘physically’ touching them.

With Dematic FreePick Maximiser software, simply transferring stock from a donor pallet to a put pallet can complete two picks, with the stock that remains on both pallets being the required quantity to satisfy two orders.

By analysing and cross matching customer orders, it is possible to match multiple full case orders to full pallet quantities.

PickDIRECTOR: Boosts picking productivity & accuracy

Picking the stock for one or more orders leaves behind a ‘free pick’ quantity for another order. The productivity gains to be made by matching like orders and picking them in a high rate pick module are very substantial. Dematic’s Free Pick Maximiser uses a number of complex algorithms to quickly re-sequence orders and generate the highest quantity of ‘free pick’ opportunities and the optimum order fulfilment sequence for any batch of orders. The ‘free pick maximiser’ concept can be used manually or by incorporating a robot to do the picking, and can be deployed in mixed case pallet, or mixed layer pallet picking operations. Either way, significant productivity increases of up to 400% are achievable. How Dematic FreePick Maximiser works

Donor Pallet:

Put Pallet:

Stock for Order A (10xCases) & Order B (5xCases)

Empty Pallet for Order B (5xCases)

By simply transferring five cases from the Donor Pallet to the Put Pallet Order A (10 Cases) and Order B (5 Cases) are completed. This means the 10 Cases for Order A have been picked for free.

DEMATIC LOGISTICS REVIEW

Success in business today relies on prompt, effective customer service. In most operations, order fulfilment is a significant component of customer service, and is of primary importance to customers. Companies who can assemble orders quickly, accurately, and cost-effectively gain a competitive advantage. The key to achieving this advantage is through an order fulfilment system based on paperless picking technologies. Dematic’s PickDIRECTOR technology is a costeffective hardware and software solution that can provide substantial improvements in productivity and picking accuracy. PickDIRECTOR takes order information

directly from your company’s computer system and delivers it right to where it’s needed - to the picker. With no paperwork to carry, operators pick with both hands instead of just one. Tasks such as reading, writing, and searching for stock locations are eliminated - dramatically improving productivity. • Productivity is typically increased by 50%, and in some cases by up to 200% • Picking errors are typically reduced by 70 to 90% • Real-time feedback is available on order progress, zone productivity, etc. • Total order turnaround time can be significantly reduced • Overall system management and customer service is vastly improved.

Dematic RapidStore ML10 The RapidStore MiniLoad is the latest in a new series of high performance storage and retrieval machines (SRMs) for handling totes, cartons and cases in facilities ranging in height from 4m to 20m. Offered in three standard heights (10m, 14m and 20m), RapidStore ML10 efficiently handles a host of container types in a multi-deep and flexible width environment. The RapidStore Mini-Load operates at a travel speed of 6.0 m/s, accelerates at 4.0 m/s², has lift speeds of 3.0 m/s, and lift acceleration of 3.0 m/ s², which delivers up to 142 double cycles/hour

(based on an 8m crane operating in 40m aisle). RapidStore MiniLoad cranes can be equipped with the new Dematic Typhoon high performance Load Handling Device (LHD). Typhoon provides the capability of handling one or two containers of fixed and varying sizes in a single, double or tripledeep configuration. RapidStore ML uses include as a storage buffer feeding mixed case order fulfilment, pick/ put/pack operations in retail, apparel and general merchandise, and as an intermediate storage buffer sequencing Goods-toPerson split-case picking.

Dematic Field Service & Support Maximise uptime and minimise downtime with help from Dematic. Modern materials handling systems, software and hardware are highly reliable, but time and again, experience has shown that preventive maintenance and proactive support pay for themselves by maximising productivity, and reducing running costs and system downtime. Keeping your system in peak condition will ensure you get the most out of it, and you can be confident that

it will perform under pressure without compromising safety or efficiency. Dematic’s software specialists and technicians are trained to spot the early signs of wear and tear before they cause damage or failure. They can replenish consumables as part of the inspection, and can perform maintenance on site and replace or repair parts.

Benefits of Field Services & Support • Qualified field specialists with hardware and software knowledge • Maintenance and upgrades scheduled to fit your operational lifecycle • Configuration management of your software and hardware • Comprehensive equipment/system assessments to determine the condition and performance of your system.

DEMATIC LOGISTICS REVIEW

www.dematic.com

Dematic Headquarters Dematic Group S.à r.l. 2-8, avenue Charles de Gaulle L-1653 Luxembourg T +352 27 48 59 F +352 27 48 59-99

Asia Pacific T: +61 2 9486 5555 F: +61 2 9486 5511 info.anz@dematic.com

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Europe T: +49 (69) 58 30 25 102 F: +49 (69) 28 30 25 150 info@dematic.com

United States Dematic Corp. 507, Plymouth Avenue NE Grand Rapids, Michigan 49505 USA

Germany Dematic Europe GmbH Lyoner Str. 9 60528 Frankfurt am Main Germany

Italy Dematic S.r.l. Via Firenze 11 20063 Cernusco sul Naviglio (MI) Italy

Spain Dematic Logistic Systems S.A. C/Alemania, 2-4 28820 Coslada, Madrid Spain

Australia Dematic Pty Ltd 24 Narabang Way Belrose NSW 2085 Australia

Dematic New Berlin 2855 S. James Drive New Berlin, WI 53151 USA

Dematic GmbH Carl-Legien-Str. 15 63073 Offenbach Germany

Lithuania Dematic Kaunas Raudondvario Pl. 107 LT-47186 Kaunas Lithuania

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Canada Dematic Limited 6750 Century Avenue, Suite 302 Mississauga, Ontario L5N 2V8 Canada

Austria Dematic GmbH & Co. KG Graumanngasse 7, Top A5-1 1150 Vienna Austria

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South America T: +55 11 3627-3100 F: +55 11 3627-3101 contato.br@dematic.com

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United Kingdom Dematic Ltd Beumont Rd, Banbury, OXON OX16 1QZ United Kingdom

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Russia / CIS Dematic GmbH Russian Representative Office ul. Bakhrushina 32/1 RU 115054 Moscow Russian Federation

China Dematic Shanghai 18F Tower 1, Kerry Everbright City, No. 218, West Tianmu Road, Shanghai 200070, P.R.China Malaysia Dematic Malaysia Sdn. Bhd. 12-03A, Level 12, Plaza Masalam Jalan Tengku Ampuan Zabedah E 9/E Section 9, 40100 Shah Alam Selangor, Darul Ehsan, Malaysia New Zealand Dematic Pty Ltd Eastside - Building 7, 15 Accent Dr East Tamaki, Auckland New Zealand