Dematic Logistics Review - Issue 3

Issue 3

HK SYSTEMS PROFILE

L GISTICS

REVIEW

We welcome HK Systems to Dematic

New dc director

Take control of warehousing with WCS

Product review

News, technology and software update

TECHNOLOGY FEATURE:

10 STRATEGIES FOR DISTRIBUTION SUCCESS BINA: Switzerland

TESCO LOTUS: Thailand

Integrated order fulfilment Multishuttle速 & Miniload drive logistics for convenience stores

DEMATIC LOGISTICS REVIEW

Creating Logistics Results

welcome to the latest from the world of logistics Welcome to Issue 3 of Dematic Logistics Review – Your Window to World’s Best Practice Logistics.

As I announced in the previous issue of Dematic Logistics Review, Dematic has acquired the North American business of HK Systems. I am excited to report that Dematic has successfully commenced the integration of our two companies that will now be united under the Dematic brand.

The synergies from the combined companies enhances our product offering, technical capabilities and physical infrastructure through global engineering centres. While Dematic is a global leader in the marketplace, HK Systems’ strong presence in North America fits within our regional strategy. The new capabilities extends our manufacturing, distribution and warehousing capacity, and expands our geographic reach with more sales offices and industry-specific sales engineering.

This complementary business partnership provides Dematic with new products, new sector expertise and a significantly expanded talent

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base, making Dematic the leading systems and conveyor solution provider in North America.

In particular, HK Systems adds great strength in Automated Material Handling and Logistics Software Solutions, and comes complete with new ASRS, AGVs and automated handling technology in a wide range of manufacturing, food and beverage, archive and library applications, considerably expanding our range and reach.

A review of some innovative HK Systems projects can be found on pages 20-21.

Dematic continues to go from strength to strength and I am confident that as we continue to grow and develop our business, we will impress you with our quality product range, innovative product and software concepts and solutions design capability.

Roar Isaksen, President & CEO, Dematic

Roar Isaksen, President & CEO, Dematic

Contents Cover Story: BINA, Switzerland 4-6 Case Study: Woolworths, Australia 7-9 10 Strategies for Distribution Logistics Success 10-13 Case Study: Tesco Lotus, Thailand 14-15 Case Study: Southern Wine & Spirits, USA 16-17 Case Study: Chain Reaction Cycles, UK 18-19 HK Systems Profile 20-21 News, Product, Technology & Software 22-23

About Dematic Dematic is one of the world’s leading suppliers of logistics automation 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.

dematic in action at Promat & cemat ProMat March 21-24,2011 Chicago, USA

CeMAT May 2-6,2011 Hannover, Germany

Dematic North America recently completed a very successful ProMat, proudly hosting customers and prospects in two premier booths filled with robust technology, equipment demonstrations and thought leadership presentations.

Dematic featured numerous world firsts at CeMat including a comprehensive, future-proof range of solutions with sustainability being a central theme. A host of impressive innovations were integrated into a complete in-plant material flow system, underlining our position as one of the world’s leading logistics automation providers and demonstrating how modern logistics can be delivered in a cost-effective and environmentally-friendly way. Highlights included:

Two new solutions were launched at ProMat: • RapidPick – a new high capacity goods-toperson (GTP) order fulfillment system that supports pick rates of up to 1,000 per hour • Laser Trucks+ – an innovative combination of Dematic’s leading picking and voice software with Automated Guided Vehicle technology on a rider pallet truck, designed to improve mixed case order fulfilment productivity.

In addition, Dematic sponsored and/or participated in four ProMat presentations, showcasing our significant talent and depth of industry experience and knowledge.

• Dematic Multishuttle MS Flex – a new shuttle capable of handling different size containers • Dematic RapidStoreML – a new Miniload ASRS with advanced load handling devices • Modular Dematic MCS conveyors that enable flexible system reconfiguration • Dematic Ecodrive – new software designed to improve energy efficiency by 10-15%.

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COVER STORY Bischofszell Nahrungsmittel AG Bischofszell, Switzerland

Design objectives • Extension of capacities in high bay warehouse • Construction of ASRS and set up order picking system for convenience food • Refrigerated storage of 120,000 containers with 450 different fresh articles • Order picking of up to 120,000 units per day • Split case order assembly: grouping articles and optimising container packing • High-performance order picking up to individual item level • Consistently sequenced, automated processes • Automation for higher flexibility and efficiency.

Benefits and outcomes for BINA • One stop shop from the plant design via IT and controls to mechanical engineering within short implementation timeframe • Refrigerated order picking buffer for fresh articles • Consistent monitoring via networked plant displays Stock is stored in Miniload ASRS and Multishuttle® storage buffers, which sequence goods in the correct order, optimising order picking productivity and accuracy.

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• Optimised load distribution and utilisation of resources • Higher throughput and extensively automated processes with Multishuttle buffering and sequencing warehouse • Increased split case distribution efficiencies • High flexibility and reliable pick rates with negligible errors • Sell-out oriented and sell-out optimised order containers • Package and branch-optimised positioning on load carriers.

ELIMINATING TRAVEL: SPLIT CASE GOODS-TO-PERSON ORDER PICKING

GTP Split case order picking & Assembly for BINA Dematic has implemented one of the most innovative split case order picking solutions in Europe for the ‘Convenience Gate’ distribution centre operated by Bischofszell Nahrungsmittel AG (BINA) at Bischofszell, Switzerland. The system provides reliable high-performance order picking down to the individual item level, and sequenced, automated processes maximising the efficiency of order assembly and distribution right through to point-of-sale.

“

Special features are the high dynamics in picking our fresh products and branchmatching order assembly right down to individual items.

This guarantees fast processing and opens up new options for our customer orientation.

“

Hugo Thaler, Logistics Manager, BINA

Leading Swiss food manufacturer BINA produces around 1,000 tonnes of frozen, chilled and packaged convenience foods every day, with products including fresh salads, sauces, readymade meals, potato products and drinks.

BINA’s Convenience Gate DC at Bischofszell is the food distributor’s central logistics hub, providing a range of services to support its diverse customer base including retailers, caterers, canteens and industrial companies, with over 750 food outlets alone supplied with fresh products from the facility.

Expanding distribution capabilities Following an expansion of its product range and significant demand growth in the convenience food sector, BINA decided to upgrade the capacity of its existing high bay warehouse and add a new, automated small goods warehouse (ASW) equipped with an integrated Goods to Person (GTP) split case order picking system.

Dematic’s solution for BINA Dematic has helped transform BINA’s Convenience Gate into a highly efficient DC with dynamic, consistently sequenced order picking processes. The result is one of the most innovative split case picking and order assembly solutions in Europe.

BINA’s Logistics Manager Hugo Thaler

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COVER STORY Bischofszell Nahrungsmittel AG Bischofszell, Switzerland

ELIMINATING TRAVEL: SPLIT CASE GOODS-TO-PERSON ORDER PICKING The high-resolution screen displays simple, easily understood symbols for order volumes, photos of the products to be picked, and a 3D description of where to place picked items in the shipping container, facilitating fast, accurate and safe order picking. Check weighing is also integrated to further improve accuracy.

The result: “High flexibility and reliable pick rates with a negligible error rate,” said BINA’s Logistics Manager Hugo Thaler.

“The special features of the solution are primarily the high dynamics in the order picking of our fresh products and branch-matching order assembly right down to the level of individual items.

This guarantees fast processing of high volumes and has opened up new options for our customer orientation,” he said.

Dematic installed a central plant display unit networked with the plant components’ control units to enable consistent monitoring of the flow of goods and orders, which enables BINA to optimise workload balancing across the operation.

For goods outwards, order containers buffered in the Multishuttle are delivered just in time for for despatch. Sequences that focus on package and branch-optimised positioning on the load carriers are created for the container flow.

The new refrigerated, automated small goods warehouse (ASW) provides storage capacity for 104,400 containers. Serviced by three AKL Miniload Cranes, it acts as a production buffer warehouse for incoming goods from production and external suppliers.

The three aisle refrigerated ASW, driven by Dematic AKL Miniload Cranes, acts as a production buffer warehouse for incoming goods from production and external suppliers.

The second part of Dematic’s solution was the construction of a six-aisle Multishuttle® storage engine, which provides buffer storage and order sequencing for order fulfilment and goods outwards.

Split case order picking and assembly Stock for orders is automatically delivered at rates of up to 2,200 containers per hour by the Dematic Multishuttle system at precisely the right moment and in the correct sequence to optimise picking and packing for point-of-sale, to six Dematic ergonomic picking stations.

The innovative configuration of the picking stations are tailored to match operators’ individual requirements, including height adjustable operator platforms and work tables. Height and rake adjustable display screens provide simple stepby-step management of the picking process.

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The containers are automatically labelled during delivery to the despatch preparation area, where they are automatically stacked in sequence and palletised. They are then conveyed to the goods outwards area. Preparation for loading is also sequenced, improving despatch logistics.

WooLworths melbourne, australia

Batching orders & sorting them out batch pick & sort

Australia’s largest DC modernisation is designed to boost throughput by up to 80%, support growth for the next decade, and enable the country’s largest retailer, Woolworths to cost-effectively meet changing market demands.

“

modernising woolworths NDC to support future growth

“

Dematic is to be commended for continually finding ways to complete all of the various mechanical, electrical and IT systems upgrades without adversely impacting the site’s day-to-day operations.

Aaron Ford, Project Manager, Woolworths Mulgrave NDC

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WooLworths melbourne, australia Key features of Dematic’s modernisation solution • A new picking methodology for split case orders • Relocating and extending various storage systems • A new pick module, reconfiguring existing areas • Installing zero-pressure accumulation conveyors prior to the crossbelt sorter inducts

• Introducing pre-sort scanners and conveyors • A 47% increase in despatch staging capacity • Adding new sorter infeed and 28 extra sort lanes • Installing new 5-sided scan arrays in preparation for GTIN (Global Trade Item Number) scanning • Removing redundant ASRS and Pick-to-Light • The development, configuration and integration of a new software suite, including a new WMS and WLAN to support the new IT initiatives.

Over the past decade, Australia’s leading retailer, Woolworths, has implemented extensive end-toend supply chain transformation initiatives as part of its business restructuring program, Project Refresh, delivering savings of more than $8 billion.

A key initiative of Project Refresh was restructuring Woolworths’ state-based Distribution Centre (DC) network from 31 DCs to a national one with two National (NDCs) and nine Regional DCs (RDCs).

Dematic has played a key role in the modernisation of Woolworths’ Mulgrave facility from an RDC supplying 160 stores in Victoria to an NDC servicing more than 800 stores Australia-wide.

Key drivers for the innovative modernisation were maximising employee productivity and ensuring flexibility and redundancy to deal with changing order profiles and/or conveyor downtime.

Like performing open heart and brain surgery Challenged with implementing the upgrade while the NDC continued its round the clock, six days a week operation, Dematic’s Modernisation Team likened the process to performing open heart and brain surgery on a patient who is wide awake.

Major works had to be managed within the constraints of a live environment with the construction area accounting for up to 30% of the DC. Carton flows were redirected on a weekly basis as systems were decomissioned and new conveyor modules installed. While construction continued around the clock, testing and commissioning works had to be confined to less than a single day each week for this complex upgrade.

The process required military precision. During that time it was necessary to switch from a fully operational system to an upgrade environment.

That meant completely backing up the system before installing, commissioning and testing new equipment and software. Once testing was complete, the system was brought back up to full operational mode and tested yet again.

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Batch picked cases from full and split case picking modules are conveyed, pre-sorted and inducted onto the crossbelt sorter.

The Modernisation project has increased the sorter’s throughput capacity from 6,400 to up to 11,500 cases per minute.

Batching orders & sorting them out batch pick & sort Strengthening the NDC’s heart

Reconfiguring existing equipment and systems, adding new where required, and implementing smart IT and software, made Modernisation a much quicker and significantly less costly and disruptive solution for Woolworths, compared to what it would have faced had it chosen to build a new DC.

Improving the NDC’s brain power A key driver was for the NDC’s new IT systems and software to be more robust and locally supported.

One of the highest risk areas concerning day-to-day operations at the NDC was its outdated IT systems and software. Dematic’s new Order Fulfilment Software (OFS) replaced five separate outdated and difficult to support databases and operating systems, with a single user-friendly software suite, improving order accuracy and batch control, and significantly mitigating the risks associated with the ageing IT systems and software.

The upgrade took into account Woolworths’ future plans which, when complete, will enable RF picking and GTIN sortation. Pick labels will be eliminated, as will other nonvalue-adding tasks like label printing and application.

Voice picking will also be introduced, making the NDC Woolworths’ sixteenth site to make the switch to voice.

The heart of the Mulgrave NDC is its automated crossbelt sorting system, which takes batchpicked goods from multiple areas of the DC and automatically sorts them to the relevant shipping lane. The system was previously used to separately sort both full and split case items. However to create additional sorting capacity, a new and more efficient method of pre-picking and packing split case orders into shippers has been introduced, enabling them to be sorted as full case items, boosting capacity.

Four inducts which were previously used for inducting split case items onto the sorter have been reconfigured to handle full cases. Inducting full cases onto the sorter at two locations increases the number of cartons the sorter can process, with every carriage now having the potential to complete two sorts each time it travels around the 240m sorter circuit. Pre-sort scanners direct stock to the most appropriate end of the sorter to maximise this benefit.

Another initiative designed to further increase crossbelt sorting efficiency is the implementation of zero-pressure accumulation conveyors between the warehouse storage systems and the sorter infeeds. The conveyors enable cartons to accumulate on line, minimising gaps between them. This ensures a smooth, even flow of cartons onto the sorter inducts and minimises any instances of conveyor stoppage in the picking areas.

Prior to the upgrade, the sorter was achieving throughput rates of up to 6,400 per hour. Converting the split case infeed to handle full cases, installing additional sortation lanes, accumulation conveyors and pre-sorting goods to each end of the sorter, together with the various IT and software enhancements, has increased capacity to an average of around 11,500 cases per hour.

DEMATIC LOGISTICS REVIEW

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technology feature distribution logistics

10 strategies for distribution logistics success Under pressure from the rising cost of retail shelf space and market demand for shorter lead times, your customers require you to deliver the right product to the right place, in full, on time, more frequently, in a store friendly format and at a competitive price.

Add regulatory and safety issues and it is clear that distribution is a dynamic challenge.

Dematic presents a simple new concept for grouping solutions into ten proven strategies that address these issues and deliver distribution logistics success.

1: Improve order and warehouse management and control

2: Increase efficiency and reduce errors by real-time enabling logistics processes

3: Reduce the time waste the pick face and trave

The first strategy for distribution logistics success utilises information to empower management and provide the information necessary to make informed business decisions. Most businesses, large and small, use some level of software for inventory management, order management, material flow and machine control. Modern WMS and WCS systems are designed to provide a single user interface for all order fulfilment activities with a host computer, typically a WMS or ERP (enterprise resource planning) system.

Many supply chain gains can be made by businesses simply by organising their information using well designed software.

Many manual operations using conventional storage racks and shelving can be improved by adding a smart overlay of data-enabling devices that bring instructions to the shopfloor in real time, boosting thoughput, productivity and accuracy.

Many studies conclude th wasters in order fulfilment

1 10

Improve warehouse & order management

DEMATIC LOGISTICS REVIEW

Wireless RF Terminals, Voice Computers and Mobile Data Terminals create a paperless environment and help enable real-time transfer of information across the supply chain. These devices enhance efficiency, increase accuracy and productivity and provide greater supply chain visibility and traceability. They also allow businesses of all sizes achieve a highly flexible business model that facilitates change. This strategy is often adopted by 3PLs who have short term contracts and need to have a business that can be adapted quickly to future change.

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Real-time enable your logistics processes

Pickers often need to tra tion. In small, relatively m options that address the t that can dramatically enha

Using pallet trucks, forkl or laser trucks lets the pic used in conjunction with can help to boost product to spend more time pickin

The second option to red the pick face. This is sim of either pallet or carton l solutions condense the p stock in lanes behind the distance can be reduced of wasted travel time whe

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Conden face & tr

Today, labour availability, OH&S and flexibility are equally important considerations, with the growing awareness of these issues driving a distribution logistics revolution across all markets from retailers to wholesalers, and manufacturers to 3PL (third-party logistics) providers.

Working on thousands of projects with many of the world’s most successful and enterprising businesses gives Dematic a unique global insight into what it takes to deliver distribution logistics success.

While different industries, markets, countries, cultures and companies of different sizes all require their own solutions, our experience shows there are many different technologies and techniques helpful in improving performance, but it is often difficult to sort out which is the most appropriate and why. That’s why we have developed a system for grouping concepts.

“

Although not strictly a hierarchy, it is often easiest to visualise the ten strategies as a series of steps.

“

The supply chain has undergone dramatic change in the past decade, with cost reductions, productivity improvements and delivery performance no longer the only drivers for logistics system design.

We call this model the ten strategies for distribution success and logically applied, they consistently help companies of all shapes and sizes improve their distribution logistics performance.

Although not strictly a hierarchy, it is often easiest to visualise the ten strategies as a series of steps. The further up the steps you go, the greater the return from leveraging economies of scale with increasing levels of technology.

And while it doesn’t make sense to consider high levels of automation for small companies with basic distribution requirements, clever ideas can help make the distribution task smarter and more economical. Relatively simple, low-cost initiatives can deliver impressive results for smaller companies. It’s also wrong to assume that all big companies should automate all distribution functions. A high level of automation may optimise productivity and lower costs in the short term, but when product profiles, market demand or workforce availability change, the potential lack of flexibility with automated solutions may become a problem longer term. Knowing which strategies to apply where and when to get the best out of your business is the key.

ed travelling by condensing elling faster

4: Boost efficiency by letting the orders travel to pickers via smart conveyor routing

5: Increase productivity by picking multiple orders at the same time

hat one of the biggest time t is travel.

The fourth strategy goes one step further in tackling the travel problem. By utilising smart material flow controls and zone routing conveyor systems, orders do the travelling from zone to zone, and pickers stay within their picking zone. Zone routing solutions are ideal for mid-to-large size companies who supply split case orders and who are trying to introduce a basic level of automation.

Another logical strategy designed to tackle performance issues in picking is to get the picker to pick multiple orders at every pick location. This can be achieved by combining orders for several customers into what we call a batch. When a picker is able to batch pick the stock for multiple orders at each location, it significantly increases productivity and throughput. Full case applications include WalkPick-to-Belt conveyor, with the batch-picked goods transported and automatically sorted back to individual order requirements by smart conveyor sortation systems.

avel from location to locamanual DCs there are two travel issue in a simple way ance productivity.

lifts, order pickers, cranes cker move faster and, when h smart storage systems, tivity by allowing the picker ng and less time travelling.

duce travel is to condense mply done by using bays live storage. These simple pick face by storing reserve e pick face. The pick face by up to 80% saving a lot en picking an order.

nse the pick ravel faster

Many find that this concept can be applied to their entire range using different levels of automation to optimise picking efficiency across the product movement curve. For example, combinations of A-frames, carton live storage zones and conventional binning zones can be arranged with various combinations of pick-to-light and voice-directed picking to enhance productivity and accuracy for fast movers and slow movers alike.

Clever software can enhance overall system performance by taking orders only to the zones where they are needed, eliminating bottlenecks in material flow.

4

Move the orders to picking zones

In split case applications, cluster picking allows multiple orders to be picked in a single pass, with pickers typically using RF or voice-directed trolleys using Pick-to-Light displays to direct the picker as each batch is selected.

5

Batch pick & sort to increase productivity

DEMATIC LOGISTICS REVIEW

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technology feature distribution logistics

10: Automate to increase productivity in heavy or repetitive

Improving performance and reducing costs by eliminating non value-adding tasks

9: Build pallets faster and safer with GTP full case palletising so

Order fulfilment typically accounts for about 90% of distribution centre costs, however analysis of many order fulfilment operations highlights a multitude of non-value adding tasks. You pay pickers to pick, but often to do their job, they must do many non-productive tasks as well.

They need to collect picking instructions and the equipment they need, find the stock location, inspect the stock to ensure it is correct, pick the items required, check and mark the order. But mostly they travel from location to location.

8: Let the goods and orders do the travelling with split case GTP pic

The ten strategies for distribution logistics success reduce and eliminate non value-adding waste throughout distribution operations.

7: Use buffering and sequencing technology to eliminate travel

6: Use smart software to gain free picks by picking only those items you ne 5: Increase productivity by picking multiple orders at the same time

4: Boost efficiency by letting the orders travel to pickers via smart conveyor routin

3: Reduce the time wasted travelling by condensing the pick face and travelling faster

2: Increase productivity, efficiency, and reduce errors by real-time enabling logistics proce 1: Introduce order and warehouse management software and control systems

6: Use smart software to gain free picks by picking only those items you need

7: Use buffering and sequencing technology to eliminate travel and facilitate Goods-to-Person (GTP)

8: Let the goods and the o with split case GTP pick

Many companies are completely unaware that there are opportunities to totally eliminate the need to pick a case from a pallet at all, and that’s where the sixth strategy comes into play.

One of the newest and most impressive strategies for distribution logistics success uses a concept where travel is eliminated altogether.

The eighth strategy is the in high volume split case a

Goods to person picking has been around for many years but the thing that makes it feasible today is the power of the computer combined with new buffering and sequencing systems. Modern storage and retrieval engines and sequencing technologies have created a revolution. Dense and highly efficient ASRS systems can now handle the volumes required to select either totes or pallets and deliver them to picking or putting locations.

Pickers stay put in ergon stations designed to opti workplace safety requirem orders and the stock req travels to the picker’s loc are needed. Pick and put to facilitate discrete or ba order processing needs. P enhanced using various sc to-light or voice-directed c

Smart order fulfilment software can be used to recognise free picks. By analysing and crossmatching customer requirements, it is possible to pair orders so that by picking the stock for one, the stock that is left behind creates a free pick.

The concept can be used manually or by incorporating a robot to do the picking. It can be used in mixed case or layer picking operations. Either way, productivity increases with picking rates of over 1400 cases/hour achievable.

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12

Use smart software to pick one, get one free

DEMATIC LOGISTICS REVIEW

In high volume split and full case picking operations new technology allows stock for orders to be prepicked, buffered, sequenced and delivered to pickers precisely when and in the order they need it, driving new, more cost-effective distribution solutions.

7

Eliminate travel with Goods to Person (GTP)

Travel is eliminated altoget

Either way, split case GT be highly efficient when h picking tasks are required.

8

Let split orders d

Strategy/ solution

Non value-adding activity removed

Type of applications

Customer size

Automated picking, layer picking and palletising solutions

Automating processes improves productivity

Split & full case

Very Large

olutions

Goods-to-Person (GTP) full case order assembly

Travel is eliminated

Full case

Large

cking solutions

Goods-to-Person (GTP) split case order picking

Travel is eliminated

Split case

Large

Multishuttle buffering and sequencing

Wasted replenishment time is eliminated

Split & full case

Large

Free pick order fulfilment software

Recognises that not all goods need to be picked

Full case

Mid-large

Batch pick and sortation

Reduces travel and increases productivity

Split & full case

Mid-large

ng

Smart zone routing conveyors

Almost eliminates travel

Split & full case

Mid-large

r

Live storage and materials handling equipment

Reduces travel time

Split & full case

Mid-large

Wireless real time logistics solutions

Eliminates paper and speeds information flow

All

All

Warehouse management and control systems

Improves management visibility and control

All

All

environments

eed to

esses

10 strategies for distribution logistics success Summary From the first strategy – implementing warehouse management software to get better visibility and control – to the last – fully automating processes and eliminating and many other non-value adding tasks. – our new grouping concept demonstrates the many opportunities for companies of all shapes and sizes to create more effective supply chains now and into the future.

Each step in the hierarchy is a step towards improved efficiency in distribution and supply chain management.

Each strategy is designed to eliminate non valueadding activities and address important business drivers.

Intelligently applied, they bring distribution strategy into alignment with business strategy and provide a competitive edge.

orders do the travelling king solutions

9: Build orders and unit loads faster and safer with GTP full case palletising solutions

10: Enhance productivity with fully automated picking and palletising solutions

application of GTP picking applications.

In the ninth strategy, full case picking is examined.

Much like split case picking, the equivalent full case solution utilises cleverly designed work stations that ergonomically allow the building of mixed case pallets. Travel is completely eliminated by supplying prepicked and sequenced mixed cases in the correct order for load assembly at palletising stations where operators simply slide cases into position, making the task easier, faster and safer.

In the strategies so far, people have been used in the process. The idea has been to make them more productive by eliminating non-value adding tasks. But in some cases where goods are too heavy or there are very high volumes, solutions can be completely automated.

ther.

nomically designed picking imise efficiency and meet ments. In GTP systems, the quired to fulfil the orders cation precisely when they t stations can be designed atch picking depending on Pick stations can be further canning technologies, pickcomputing.

TP solutions can prove to high volumes and repetitive .

case goods & do the travelling

The stations are often built on a mezzanine floor with integrated conveyors delivering a constant flow of mixed cases. As each layer of cases is completed, the pallet automatically lowers, enabling assembly of the next layer to begin, significantly reducing the physical effort required, and improving the safety, speed and quality of order assembly.

As the pallet is being lowered, it may be stretch wrapped for stability.

9

Smarter, faster, safer mixed case palletising

Advances in software, product storage, buffering, sequencing and recognition systems, and high speed articulated robots with versatile product gripping tools, have driven the development of automated picking and palletising systems capable of handling a diverse range of SKUs including boxes of various sizes, trays, open or closed cartons, bagged goods and sacks.

Capable of building higher, more dense and stable pallets, with improvements in speed, accuracy and storefriendly flexibility, these extremely accurate, fast and reliable systems can even handle multiple mixed case SKUs. For split case, A-frames automatically dispense items, but need people to replenish them.

10

High rate automated picking & palletising

DEMATIC LOGISTICS REVIEW

tesco lotus Bangbuathong, thailand

split case picking for tesco lotus Tesco Lotus is increasing the number of its Express convenience stores in Thailand, with Dematic recently assisting the retailer with a new split case picking solution encompassing order fulfilment software, paperless picking technology, and an integrated conveying system.

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Eliminating travel: split case Let the orders do the moving Tesco Lotus’ Express outlets are small format convenience stores offering customers access to a range of grocery products in local residential areas. With the number of Express outlets set to grow, Tesco has implemented a new Central Express Distribution Centre at Bangbuathong to facilitate efficient distribution to these stores.

For Tesco Lotus’ large scale hypermarket outlets, goods are distributed mostly as full cases, layers and full pallets. By contrast, distribution for the Express stores involves a significant amount of split case picking. Recognising that split case order fulfilment is more challenging, complex and labour intensive compared to conventional distribution, Tesco Lotus approached Dematic for assistance in developing a solution that would enable picking across tens of thousands of order lines, and facilitate over one million unit picks every day.

Dematic’s integrated solution Working together with Tesco Lotus in the planning phase to understand all the operational requirements, Dematic studied the product range and analysed the order profile.

The integrated solution included a specially designed pick module, real time Pick-To-Light (PTL) paperless picking technology and an integrated conveying system.

Efficient order picking The multi-level Pick Module comprises carton live storage picking aisles with products located in zones and each location equipped with a PTL device. Store orders picked into totes are passed sequentially through the picking zones.

Nanthapol Kanjanazoon, General Manager, Bangbuathong DC

Operators press buttons on the PTL displays, providing real time confirmation of each pick as it is completed. With the PTL technology, both accuracy and productivity have significantly improved.

Conveying When totes become full during picking, they are transferred to a central takeaway conveyor for transportation to despatch. Order picking continues into a new tote. Totes are transported from the Pick Module and sorted to store in preparation for marshalling and despatch.

Robust, reliable and supportable IT systems With the system managed by Dematic’s bi-lingual PickDIRECTOR software, Tesco Lotus has real-time visibility and tracking of each item that is picked, the tote it is picked into, the operator who performed the task and the time it was done. PickDIRECTOR’s reports and statistics in Thai have proven to be invaluable tools for Tesco Lotus’ supervisors in managing operations.

Additionally, Dematic’s visualisation system provides remote system control, real time equipment monitoring and status information in graphical format, allowing fast and easy diagnostics for management and maintenance staff alike.

Customer benefits • Increased productivity and throughput capacity • Real time visibility and operational flexibility • Modularity and scalability for growth • Improved accuracy, traceability, accountability.

Totes are inducted into zones with a hand scanner and the PTL devices are illuminated to indicate the products and the quantities required.

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Southern Wine and Spirits Lakeland, Florida

biggest dc yet for southern When Southern Wine and Spirits of America, Inc. – the USA’s largest wine and spirits distributor – builds a new DC, they do it in a big way.

Running 18 DCs is a big operation by any measure. After updating two into its “New Generation” format, next up was its biggest DC yet – a 650,000 sq ft state of the art complex in Lakeland, Florida.

“The decision to expand our DCs was driven by volume growth,” said Bobby Burg, Southern’s Senior VP of Supply Chain Strategy.

“Like in many other industries there is consolidation occurring, meaning fewer and fewer wholesalers. Much of our growth is coming through consolidation.”

Southern Wine and Spirits distribution Southern’s distribution facilities provide next day delivery to around 140,000 customers. It exclusively uses its own internally managed fleet. Orders received by 5:00 pm are delivered the following day. The company is constantly refining its automation processes to ensure the most efficient production and consistent level of customer service.

Despite its continual growth. Southern maintains a strong focus on customer service, with decisions driven by customers’ needs and requirements.

The company uses a hub-and-spoke system for distribution – they have one central DC servicing multiple cross-dock facilities, where goods are transferred into route trucks for local deliveries.

Nationally, the company operates a fleet of 1,100 of its own local delivery trucks and 120 semis.

“In the old paper process, when we were reading a sheet of paper to pick and put a case on the line, we would shoot for maybe 180 cases per man hour for a good picker. Now, our minimum on a pick line is 250 cases per man hour, a 40% productivity increase,” said Mr Burg.

Smart handling of split case orders Although the majority of deliveries encompass full cases, there is some full pallet delivery to supermarkets and other chain stores, and a small amount of cross-docking to accommodate.

However, an interesting part of this operation is how Southern handles split case orders. Restaurants and bars often order a single bottle to keep costs down or because they don’t have the storage space to order by the case.

Voice picking is used in a split case pick module for fast, accurate, efficient mixed order assembly.

Pick line productivity has increased from 180 to 250 cases/man hour.

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DEMATIC LOGISTICS REVIEW

Batching orders & sorting them out batch pick & sort

7,000 feet of conveyors move products at a rate of 500 feet/minute – fast considering a lot of the products are high end, and almost all in glass.

The breakage percentage is very low – less than one per cent and half the industry average.

When handling over 11 million cases – at an average value of $100 – it is a substantial improvement over industry norms.

“

“The decision to expand our DCs was driven by volume growth.

Like in many other industries there is consolidation occurring, meaning fewer and fewer wholesalers ... much of our growth is coming through consolidation.”

Bobby Burg, Senior VP of Supply Chain Strategy, Southern Wine and Spirits

“

Reducing product breakage Roller accumulation conveyors minimise gaps and contribute to low product damage. Smooth starts and stops ensure fragile and unstable loads can be safely transported and accumulated. Heavy-duty conveyors handle cases weighing 35-40 pounds, working efficiently under load; transporting, accumulating, reorienting and staging efficiently.

Slug merge streamlines carton handling The slug merge system controls the staging and release of cartons into the sorter, increasing system throughput, eliminating bottlenecks, smoothing out variances from multiple pick areas and optimising batch cycling. Cases scanned upstream are released into the merge as a slug without gaps, increasing the rate of flow through the sorter compared to conventional merges.

“For cartons, the product is picked, put on conveyor, labelled with an ID tag, and sent into an accumulation area,” said Dematic’s Don Passarella.

“They are scanned and released into a merge.

Normally, when product is released into a merge, it creates gaps that limit throughput. We used a unique technology at the merge, where we pre-build slugs of product then pre-set the gapping of the product on the slug belts. As we release the slugs, it gives us very precise handling of fragile products. The cases that come through the merge are now pre-gapped and there is a constant, even flow going to the sorter.”

Sortation increases throughput and accuracy Dematic’s high-rate sliding shoe sorter provides quiet sortation and ultra-high throughput. The highest sort rates Southern had achieved before Lakeland DC was 6,000 cases/hour. The new system is capable of handling 10,000 cases/hour, and an extra 12,000 bottles in split case/hour.

Before, the DC averaged 150 cases/man hour.

Now, it is handling 225 cases/man hour.

In terms of shipping accuracy, Southern was averaging one per cent errors out the door, it now averages 0.2% – an 80% reduction. “A five-sided scan tunnel at the end of the sorter provides for the verification of all the SCC codes (Source Classification Code) to the shipping links,” said Mr Passarella. “This is a customisation we did using point-camera technology to read barcodes on cases, and compare that to shipping labels to ensure the correct label is applied to the right case, and customers get what they ordered.”

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CHAIN REACTION CYCLES BELFAST, NORTHERN IRELAND

Voice picking starts a logistics chain reaction Chain Reaction Cycles sells bicycles, spare parts and accessories online, direct to the customer.

Recently the company also expanded into winter sports goods and now offers an amazing 84,000 different products from its 150,000 sq ft purposebuilt facility in Ballyclare, just outside Belfast in Northern Ireland.

Celebrating 25 years of business in 2010, this family-owned company became an online business 10 years ago, and is currently experiencing a staggering 40% year on year growth.

Sounding out the benefits of voice picking Realising it needed to improve order fulfilment to accommodate its rapid growth and, being aware of the benefits that voice picking could deliver, CRC approached Dematic.

“We subsequently spent three days on site at CRC conducting a study and setting up a live trial of voice picking to demonstrate the concept to those on the CRC board who were not familiar with the technology,” said Stuart Stables, Head of Dematic’s Product Division “During our review of operations, we also identified that CRC’s in-house ERP system lacked the specialist warehouse functionality of Dematic’s own Warehouse Management System (WMS), which we could tailor to suit CRC’s particular requirements.”

Dematic won the contract, but no longer for just voice picking and a packing system. It also included Dematic’s WMS to cover all warehousing aspects for CRC including goods receipt, putaway, replenishment, pick and pack, stock and cycle counting, and kitting, with CRC also making bicycle wheels to customer requests.

During the development of the WMS, Dematic identified significant potential efficiency improvements from feeding orders to the packing area on an automated conveyor system. Cartons are now erected automatically and fed to packers, while conveyors transport picked orders from the picking zones directly to the packers, significantly reducing the amount of time wasted travelling.

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DEMATIC LOGISTICS REVIEW

Dematic is supplying Chain Reaction Cycles, the world’s largest online bike store, with a solution for voice picking, packing and conveying, as well as a tailored warehouse management system in a logistics solution that will drive a 50% improvement in order picking efficiency.

real-time enable logistics wireless data communications Speeding up the supply chain “As we have come to realise the potential of our own supply chain for gaining competitive advantage, I was charged with the responsibility of speeding the flow of goods through the warehouse as efficiently as possible. Maintaining inventories at optimum levels and raising customer service performance have become key priorities,” said Barry Dunn, CRC’s Operations Manager.

“

The first phase comprised implementing the voice picking system, including 35 Vocollect Talkman terminals, and the packing and despatch system, which features 20 packing terminals, with each packing station including a touch screen, barcode scanners and label and document printers.

The second phase involved deployment of the full WMS, including goods in, stock management and replenishment modules and included the supply of hand-held wireless data terminals to improve CRC’s goods receipt and put-away processes, and was completed after the new packing conveyors had been installed. Order picking efficiency has been improved by up to 50%.

Dematic’s integrated logistics solution also gives CRC’s management team real-time information at its fingertips, with full visibility of all order status.

“After lots of research into various technologies, case studies, site visits and sales pitches, and, with a lot of help from Dematic, we decided to deploy voice picking to our warehouse, allowing our picking staff to simply listen and respond to instructions through a headset, leaving their eyes and hands free to pick efficiently.

“Pickers in the warehouse can receive voice instructions, ask questions and report back without having to carry paper with them or keep returning to a picking desk. They don’t have to un-holster and operate a data terminal with a keyboard, or waste time looking at displays; they can just keep their eyes on what they are doing at all times.”

Mr Dunn added: “Dematic’s approach was very refreshing. Having sat through lots of sales pitches from various companies, it was great when Dematic arrived with the voice hardware in a suitcase and a very practical approach to working out what best suited our business needs.”

Barry Dunn, Operations Manager, Chain Reaction Cycles

“

Implementing the solution one step at a time With a tight timeline for its deployment, Dematic split the scheme into two phases.

“With a lot of help from Dematic, we decided to deploy voice picking to our warehouse, allowing our picking staff to listen and respond to instructions through a headset, leaving their eyes and hands free to pick efficiently.”

“Keeping customers satisfied requires a fast and efficient service with the right product being delivered, in perfect condition, on time. Our warehouse can no longer afford to be regarded as a dusty building for holding stock. It has to perform so that goods are received, processed and despatched with the minimum of errors. Mistakes that occur in picking are costly, both in terms of pickup/delivery costs and repackaging, as well as customer dissatisfaction and the loss of business errors cause.”

“The simple, intuitive voice system helps speed operations as it tells pickers where to go and what to pick, and gets them to confirm they have the correct item. This simplicity also makes it easy to get people up to speed, picking quickly,” said Dematic’s Stuart Stables.

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NEWS, PRODUCTs, TECHNOLOGY & Software Review

HK systems joins the dematic family Now fully integrated into Dematic, HK Systems shares its vast and complementary knowledge. This important acquisition enhances Dematic’s breadth and scope of industry specific expertise, as highlighted in the following case studies.

MillerCoors, Trenton, Ohio

Utah State Archives, Salt Lake City, Utah

Leading brewer MillerCoors automated warehouse operations at its Ohio brewery, improving inventory accuracy and availability, increasing truck loading efficiency and volume, and lowering operating costs.

The Utah State Archives, which houses Utah’s oldest and most valuable documents, photos and the original Utah State Constitution, was the first fully automated archive collection in the USA.

Located adjacent to its existing warehouse, a new four-aisle, double-deep rack providing storage for over 10,000 pallets up to 82’’ high is serviced by four 110 ft tall SRMs capable of storing or retrieving two pallets weighing up to 2500 pounds at a time.

A fleet of 32 laser-guided AGVs transport two pallets at a time over 3,000 feet of path to deep lane floor storage locations for fast moving items, with slow movers and single pallet items to the ASRS for storage. The AGVs transport pallets for despatch or directly to the rail or truck shipping docks, with pallets staged in the required rail or truck load sequence.

Finished goods are not handled manually until they are picked up from the shipping area close to the docks.

The AGV system also features an automated battery charging and exchange system, which enables the system to run and operate without human interaction.

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Archivists needed a storage solution that offered this priceless collection a secure and consistently controlled environment, while maximising the use of space, with only archival approved shelving used to ensure that no contaminants were introduced into the collection.

The automated library system (ALS) provides rapid access to the collection, and features a 44 ft high storage system configured with two aisles serviced by two triple deep storage and retrieval machines (SRMs). Comprising 18 bays of triple deep rack, it provides a total of 1080 storage locations, each holding 48 archive boxes, creating a total storage capacity of 51,840 boxes.

In total, the system occupies a footprint of just 7,592 sqft, less than 25% of the floorspace that would have been required for conventional archive storage, saving more than US$2 million in construction costs. The Equipment Management Software that controls the ALS operations interfaces directly with archive application software to create load movements, track location information, and provide collection analysis.

A fleet of 32 AGVs and a 110 ft tall ASRS handle two pallets at a time, keeping the goods flowing efficiently DEMATIC LOGISTICS REVIEW at MillerCoors Ohio brewery.

The space saving ASRS at Utah State Archives, saved more than US$2 million in construction costs alone.

77 SRMs with rotating forks service more than 64,000 pallet locations at Stop & Shop’s DC in Massachusetts.

Stop & Shop, Freetown, Massachusetts

Ford Motor Company, Chicago, Illinois

With its Freetown DC, Stop & Shop built the most advanced automated grocery distribution store in North America. Housing more than 64,000 pallets, the DC comprises two separate warehouses: at 500,000 sq ft, the perishable goods warehouse provides over 25,000 single deep ASRS storage locations serviced by 35 SRMs, while the 620,000 sq ft dry goods warehouse provides over 38,500 storage locations serviced by 42 SRMs.

This innovative four-aisle ASRS receives car bodies on skids from paint operations and delivers them in sequence to final trim.

Inbound pallets are brought to the ASRS by WMSdirected forklifts, where they are automatically retrieved from pick up stations and put-away. The SRMs also replenish floor level pick slots in each aisle and perform empty pallet take-aways.

A special SRM with rotating forks was specififed for this project, with the multi-function unit compatible for use in just about every warehouse layout.

Alternating with each ASRS aisle is a pick aisle where operators pick cases to automated pallet trucks. Pick instructions and acknowledgement are conducted via a voice-activated interface to the WMS. The integrated solution has increased inventory accuracy, cut product and rack damage, improved workplace safety and reduced staffing overheads across all three shifts.

The ASRS at Ford in Chicago handles fully painted car bodies and sequences them for final trim.

The rack supported structure has nine levels and eight bays providing a maximum of 576 storage locations, and is serviced by four double-masted SRMs, designed to handle a car body on a single skid weighing up to 2,200 pounds.

The skids are stored in the ASRS in the single deep position using only the rack locations that are between SRM aisles. If one aisle is taken out of service, all of the loads in that aisle can be accessed from the adjacent aisle using the SRM’s double deep capacity.

The computer control system tracks inventory, selects aisles, manages the integrated conveyor, controls the safety gates, schedules vehicle retrievals based on Ford’s required build sequence and provides all required recovery capabilities.

Ford has been able to introduce the same vehicle build schedule into Final Assembly as was started in the body shop. This enables suppliers to receive, manufacture, assemble, ship and deliver components in sequence.

DEMATIC LOGISTICS REVIEW

NEWS, PRODUCTs, TECHNOLOGY & Software Review

enhancing Multishuttle flexibility

®

Dematic has significantly improved the functionality of the Multishuttle automated storage, buffering and sequencing system.

MS-Flex extends Multishuttle’s handling range, giving it the capability of picking a wider range of unit loads, such as totes, trays and cartons, of varying widths and lengths.

Equipped with a telescoping Load Handling Device (LHD), MS-Flex shuttles feature a split chassis design comprising a fixed side (front) and a moveable side (back).

This provides the LHD with its flexible width adjustment. The system is capable of handling products ranging in width from 200-625mm.

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MS-Flex is suitable for both single and double deep applications, using a set of retractable fingers to put-away and retrieve goods of differing shapes and sizes.

With variable length loads, the actual position of where the fingers engage the unit load is dynamic.

DEMATIC LOGISTICS REVIEW

The shuttle’s onboard controller uses the length data to calculate where the edge of the load is relative to the fingers.

When required, the telescoping LHD moves at a fast speed to a point prior to finger engagement of the unit load, slows down to engage the item, then accelerates for the rest of the handling cycle, optimising throughput.

Dematic RapidPick: 1000+/hour With Dematic’s new RapidPick, order fulfilment is just like an assembly line, with the stock for orders arriving at precisely the right time and in the correct sequence to fulfil orders as efficiently as possible.

Screens provide step-by-step instructions facilitating fast, accurate and safe order picking increasing productivity to over 1000 order lines per hour.

RapidStore UL SRMs are available in a range of sizes and speeds to precisely match your storage and handling requirements.

Suitable for both new and existing storage facilities, RapidStore UL integrates standard

RapidStore UL SRMs feature a unique mast design allowing them to operate at impressive travel speeds up to 240 metres/minute, hoisting speeds up to 85 metres/ minute and fork speeds up to 90 metres/minute.

That equates to a retrieval rate of 63 pallets per hour or 40 double cycles in a single deep system that is 24m high with a 65m long aisle. Such a system would accommodate up to 1600 standard sized pallets in a single aisle and 3200 pallets in a double deep configuration.

It manages the flow of materials and orders, constantly reporting status back to the host, enabling host inventory data to be

DC Director integrates technologies such as RF and voice picking, pick-to-light, and ergonomic picking stations, with automated materials handling systems including ASRS and conveyors, into a single order fulfilment system.

User-friendly web and mobile client interfaces provide real-time visibility to assist decision support and management: • Order detail with zone by zone status • Container contents and location tracking • Workload reports to aid allocation and balancing of resources • Picker and zone productivity reports.

Host

Host Interface/ERP Adapter

Logistics Cockpit

Requiring aisles just 250mm wider than the load and reaching up to 30 metres, RapidStore UL ensures higher storage density and immediate access to each and every pallet.

updated in real time and facilitating other processes including automated invoicing and shipping documentation.

Logistics Manager (LMS) Warehouse Control

Advanced Forklift Management

Material Flow Control

Carton Routing & Sortation

Goods-toPerson Picking

Person-toGoods Picking

Performance Manager

Combining innovative engineering and manufacturing techniques, Dematic RapidStore UL is a new class of SRM delivering an outstanding combination of quality, impressive performance and unbeatable value.

components, optimising reliability and minimising costs.

Controls and Devices Interface SCADA/System Manager

Configured with racks, rails, in-feed and out-feed stations, controls and software, RapidStore Unit Load SRMs (storage and retrieval machines) provide superior unit load handling and performance.

Dematic DC Director provides a single user interface for all order fulfilment activities with the user’s host computer – typically a WMS or ERP system – and enables the seamless integration of technologies and software.

DEMATIC IT SOLUTIONS

In a major update of our Miniload and Unit Load range of SRMs, Dematic has created a new name – RapidStore – for its comprehensive range of ASRS solutions.

Dematic has introduced DC Director V2.0, an integrated warehouse control software product, which provides real-time order management, material flow, and machine control for effective DC operations and logistics management.

DEMATIC TECHNOLOGIES

New name for ASRS RapidStore

take control of your dc with new DC Director

VehicleMounted and Hand Held Wireless Data & Voice Terminals

Multishuttle Miniload ASRS Case & Psllet Conveyors Monorail

Conveyors Merge & Inducts Sorters Scanners Palletising

RapidPick & other GTP workstations Multishuttle Miniload Conveyors

Pick to Paper Pick RF Cart Pick by Voice Pick to Light Put to Light Robot Picking

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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

North America T +1 877 725-7500 F +1 616 913-7701 usinfo@dematic.com

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South America T: +55 11 3627-3100 F: +55 11 3627-3101 info@dematic.com Brazil Dematic Sist. Equip. Mov. Mat. Ltda Av. Embaixador Macedo Soares, 10735 4º Andar - Vila Anastácio - São Paulo 05035-000 – Brasil

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Asia Pacific T: +61 2 9486 5555 F: +61 2 9486 5511 info.anz@dematic.com Italy Dematic S.r.l.

Via Firenze 11 20063 Cernusco sul Naviglio (MI) Italy

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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