Dematic Logistics Review - Issue 6

Issue 6

BUFFERING & SEQUENCING

L GISTICS

REVIEW

The amazing multipurpose Multishuttle

SUSTAINABLE DC DESIGN Environmental initiatives from Dematic

GLOBAL CASE STUDIES

Smart ideas from the USA, Europe & Asia

COST PLUS WORLD MARKET: USA

ENERGY EFFICIENCY DRIVES DRIVING SUSTAINABLE DC DESIGN WONDERSUN: CHINA BIGLER: SWITZERLAND ASRS improves storage Multishuttle driving GTP and quality control split-case order picking

DEMATIC LOGISTICS REVIEW

Creating Logistics Results

SAFE, SMART, SUSTAIN INTEGRATED LOGISTIC Welcome to the latest issue of our global customer magazine Dematic Logistics Review.

In this issue we are delighted to present exciting order fulfilment innovations specially developed for online and multichannel retailers and wholesalers. We also present developments in our environmental efforts to make planet earth more sustainable.

For this reason I recommend you read our latest Shuttle Technology report. In this discussion, we consider the ways in which Multishuttle has driven advances in materials handling solutions both upstream and downstream in distribution centre operations.

Many Dematic technologies, processes, software, and systems contain new and market-leading ideas. Our engineers pride themselves on challenging boundaries to provide you with new concepts that we then realise through knowledge, commitment and rigorous research and development.

At a time when trends in society such as online shopping and safer work practices have come to the fore, Dematic’s Multishuttle is truly creating a paradigm shift in the materials handing landscape and advancing the science of efficient, ergonomic order fulfilment.

Since our formation as Mannesmann and Demag in the 19th century, we have been at the forefront of Automated Storage and Retrieval Systems (ASRS), and our outstanding Dematic MultishuttleÂŽ concept continues that impressive tradition.

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In this issue you will also find thoughtprovoking case studies from North America, Europe, China and Asia.

Contents Cover Story: Cost Plus World Market, USA Case Study: Malaysian Mosaics, Malaysia Case Study: Bigler AG, Switzerland Technology: Dematic MultishuttleÂŽ Case Study: Wondersun, China Case Study: iHerb.com, USA Case Study: Erhardt & Fischer, Germany Technology: Sustainable logistics technologies

4-5 6-8 9-11 12-15 16-17 18-19 20-21 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.

NABLE CS SOLUTIONS They review a range of handling and picking challenges for industries as diverse as food manufacturing, conventional and online retail, mosaic tile manufacturing, and dairy industry process control and production.

You can see that Dematic supports many of your industries with cost-effective logistics solutions that are not only efficient, but environmentally sustainable as well.

We take great care in this important area.

Not only do we strive to make our own business operations energy and materials efficient, we collaborate with our customers and implement solutions that perform more efficiently and address important supply chain sustainability issues.

We remain committed to advancing our goal of improving sustainability through energy efficiency in raw materials and equipment, and actively pursuing the development of sustainable logistics technology concepts for the future.

I trust you will enjoy this issue of Dematic Logistics Review.

Roar Isaksen, President & CEO, Dematic Roar Isaksen, President & CEO, Dematic

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COVER STORY COST PLUS WORLD MARKET CALIFORNIA, USA

A SHOWPIECE OF EFFICIENT ENGINEERING & SMART ENERGY USE As a result of rapid growth and increased capacity demands, Cost Plus was operating multiple distribution centres in Stockton, California. Many SKUs were picked and then shuttled between buildings, a time constraint and cost that continued to rise over the years. Accordingly, Cost Plus formulated a plan to consolidate its West Coast distribution centres under one roof.

Dematic’s integrated order fulfilment solution Dematic engineered and implemented a high performance order fulfilment system including the integration of warehouse control system (WCS) software with Cost Plus WMS. The system configuration optimises the vertical cube space for picking, conveying, and sorting, minimising travel distances and energy use.

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Dematic’s Dynamic Pallet Build software provides streamlined utilisation of the distribution centre’s 25 shipping lanes, improving throughput and support to 153 retail stores in western USA. Single point system control The WCS features Dematic System Manager® which provides a single point of entry and a common GUI, including Dematic SortDirector® sort control, with capabilities for enhanced pallet building, central visualisation with graphical system monitoring, and a service module with drilldown diagnostics to parts and equipment status.

System Manager also provides real-time reports on information relating to system alarms, events and conditions.

It also provides web-enabled, single-point system control, monitoring and diagnostics.

“

Between the energy efficient lighting and the Integrated Sortation System, we saved 30% on electricity and gas at the new site.

Steve Knight, Senior VP Distribution, Cost Plus World Market

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Cost Plus, Inc. operates the retail store chain called World Market, a leading specialty retailer of casual home living and entertainment products, with more than 250 stores in the USA.

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Integrated Sortation System (ISS) The DC uses an advanced conveyor control system called Integrated Sortation System (ISS).

ISS approaches the entire sortation system as a singular unit – pre-merge, merge, induction, sortation, take-away and recirculation – providing optimised system operation from a single user interface.

SUSTAINABLE DC DESIGN ENERGY-EFFICIENT MATERIALS HANDLING

“The net result is the highest rate of continuous product flow, but at the lowest possible conveyor speeds,” said Dematic’s Paul Condron.

“Rather than running at the same constant speed, the system monitors pick-line volume and shipline congestion and automatically adjusts the conveyor and sorter speeds up or down to meet required throughput. This method of control provides a smooth continuous flow of product to the dock doors, and is a revolutionary departure from constant speed sortation systems,” he said Dynamic Pallet Build Software The Dynamic Pallet Build software module within SortDirector translates wave and carton information received from the Cost Plus WMS, and provides the capability to make sortation decisions on the fly to achieve optimal throughput and enhanced pallet build opportunities at the shipping dock.

Dematic’s Dynamic Pallet Build software has increased the capacity at the Stockton DC by 300%, from 1,800 cartons per hour with the old system to 5,500 cartons per hour.

30% energy saving Steve Knight, Senior Vice President of Distribution at Cost Plus, explained: “The sortation system ended up being a very green component of the facility.”

By adjusting the speed of the sorter and mergefeed based on throughput demand, Dematic’s ISS reduces energy consumption, as well as wear and tear on the mechanical components.

The building was also designed with high-output fluorescent lighting with motion detectors and ambient light sensors. The DC uses lighting only when it is needed. The lights shut down when there is no activity in an area or when ambient light is sufficient.

“Between the energy efficient lighting and the Integrated Sortation System, we saved 30% on electricity and gas at the new site, versus our previous multi-building configuration,” continued Mr Knight.

Improved stock turnover The new DC is much more efficient for Cost Plus.

“Increased performance and agility, and shortened replenishment cycles have been instrumental in allowing our inventory managers to improve warehouse turns,” explained Mr Knight.

“Considering our ever evolving product line, Dematic’s system has become a critical component of our success and helps position us for whatever challenges the future will bring.”

Together at Cost Plus World Market’s Stockton DC are (from l-r): Carl Gelderman, Director of Engineering, Bill Kennedy, General Manager and Steve Knight, Senior Vice-President Distribution.

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MALAYSIAN MOSAICS BERHAD KLUANG, MALAYSIA

ASRS LIFTS PERFORMAN QUALITY & SAFETY FOR Malaysian Mosaics Berhad (MMB) is a manufacturer of homogeneous porcelain and ceramic tiles for commercial and residential use, based in Malaysia.

MMB’s three production facilities are located in Kluang, Johor and its products are marketed in more than 50 countries worldwide.

With pallets of tiles block-stacked around its three production facilities, MMB suffered from inefficient use of space and inventory tracking, lack of area for production expansion, difficulties with product selectivity for order fulfilment, and high rates of product damage due to multiple handling.

MMB has production and storage spread over multiple nearby sites and approached Dematic to assist with expanding, rationalising and modernising its facilities.

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UNIT LOAD HANDLING AUTOMATED STORAGE & RETRIEVAL

NCE, MMB Working with Dematic In order to achieve additional production capacity without investing in new facilities, MMB and Dematic explored options for reducing the space devoted to pallet storage and warehousing, with an automated storage and retrieval system (ASRS) solution proving the best choice.

Dematic’s ASRS solution stores pallets of tiles over 20m high in a double deep configuration to maximise storage capacity within the available footprint. Dematic’s double mast SRM equipped with telescopic forks was specially designed to handle the extra heavy loads. With this solution MMB has increased storage capacity in a fraction of the space. Across two of MMB’s sites, Dematic has installed 11 SRMs and more than 350m of conveyors, providing the manufacturer with the capacity to store over 35,000 pallets.

Improved order fulfilment and distribution management Peculiar to the ceramic industry, from batch to batch of production the colour shade and working size of ceramic tiles produced can vary. At the end of the production process the tiles are graded, sorted, packed and palletised accordingly. When customers place an order, MMB needs to ensure that all tiles supplied are of a common grade, colour shade and working size.

With its previous practice of blockstacking pallets, tracking down multiple pallets of matching grade was an incredibly slow and difficult task.

The ASRS solution tracks the location of every pallet and product in the facility, and provides fast, direct access to each.

With pallets spread over a large area, MMB’s previous use of blockstacking meant a large number of forklift trucks and operators were required to service the storage area, resulting in high operating costs. Blockstacking of pallets, together with forklift transport over large distances, also led to significant product damage, a high value of stock write-offs, and pedestrian and traffic safety hazards. Dematic’s ASRS solution has now automated the handling of pallets, making the storage, retrieval and order assembly process significantly more productive, with greatly reduced product damage in the process.

Seran Govindasamy, Manager Centralised Warehousing, Malaysian Mosaics Berhad

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MALAYSIAN MOSAICS BERHAD KLUANG, MALAYSIA

UNIT LOAD HANDLING AUTOMATED STORAGE & RETRIEVAL SYSTEM

System Benefits • Improvement in storage density • Space to increase production lines • Faster, more accurate order picking • Greater inventory accountability, visibility and reporting • Improved customer service levels • Reduced product damage • Reduced wheeled equipment costs • Improved productivity and reduced operating costs • A safer workplace Smart materials handling strategies Rather than introduce additional handling, Dematic designed a slave pallet for MMB. This allows it the flexibility to palletise tiles onto basic shipping pallets used for export, but still store and handle them using the ASRS without additional palletising or handling.

A pallet dispenser positions an empty pallet in preparation for loading of a pallet of tiles arriving from production. Loaded pallets are transferred to an overhead bridge via a dedicated lifter and transported across the roadway to the ASRS warehouse, adjacent to the production facility.

This warehouse is completely unmanned and the automated interlink between the production area and the ASRS warehouse reduces handling, improves productivity, minimises forklift traffic and enhances safety around the site.

Pallets retrieved from the ASRS in response to downloaded orders are retrieved by the SRMs, transported back across the overhead bridge and delivered to a pick-up station and removed from the slave pallet.

Pallets are retrieved according to requests by the host computer system and delivered in sequence so they arrive at the despatch area at the correct time for order assembly and despatch.

Empty slave pallets generated after pallet picking are automatically stacked and recycled for later use in the system.

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Dematic’s WCS software interfaces seamlessly with MMB’s host and tracks pallets from production to storage, picking and despatch. The WCS manages inventory stored in the ASRS and also manages the picking and order assembly process. MMB has benefited significantly from complete inventory accountability and tracking, improved visibility and reporting capabilities, and from being able to quickly access every pallet in the facility.

All of the automated equipment, controls and software used in the facility were designed and manufactured by Dematic in the Asia Pacific Region.

Pallets are conveyed via an overhead bridge to the ASRS warehouse, reducing handling, improving productivity, minimising forklift traffic and enhancing safety.

BIGLER AG BÜREN AN DER AARE, SWITZERLAND

SPLIT CASE ORDER FULFILMENT BUFFER STORAGE, SEQUENCING & GTP PICKING

SPACE-EFFICIENT MULTISHUTTLE AT HOME IN BIGLER’S BASEMENT

An innovative split-case, goodsto-person (GTP) order picking solution driven by a Dematic Multishuttle® system is delivering big improvements for Swiss meat products manufacturer Bigler AG.

An increasing range of products, growing customer demand for smaller order sizes, shorter delivery times, and the need to optimise personnel and storage costs, were all key drivers in the design of Bigler AG’s new production facility at its existing Büren an der Aare site in Switzerland.

“Half of our customers are small to medium-sized enterprises and food retail outlets who want minimum quantity orders delivered up to three times a week,” said Markus Bigler, owner and Managing Director of the long-standing Swiss firm.

“We needed an intelligent solution for short-term storage and efficient single item order picking.

Dematic presented the most innovative solution based on a four-aisle integrated Multishuttle system supporting goods-to-person (GTP) order picking.”

Meeting current needs and planning for future growth The 7,000+ container capacity Multishuttle system and building have been designed so that a fifth aisle can be added at a later stage without any major construction work.

The smart design also allows for the installation of a mezzanine floor above the GTP order picking stations to create a second warehouse level in the building, providing space for an additional Multishuttle system housing up to a further 6,600 containers.

The space-efficient Multishuttle’s flexible configuration options led to it being housed in the building’s basement, enabling it to be maintained at a considerably lower temperature than would have been possible in the order picking area.

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BIGLER AG BÜREN AN DER AARE, SWITZERLAND Multishuttle® system operation A total of 32 shuttles on nine levels perform up to 1,600 inward and outward goods movements every hour.

Items are stored as evenly as possible across all aisles, which helps speed put-away and retrieval and guarantees availability, even if one of the aisles is unavailable for any reason.

Order processing is managed by Bigler’s ERP system, which interfaces with Dematic’s material flow control software.

“Due to the requirements of the best-before date (BBD), and outward movements in accordance with the first-in/first-out (FIFO) principle, reliable product control was essential. A high level of systems expertise was required on the part of Dematic to interface the various elements of the solution,” added Mr Bigler.

The space-efficient Multishuttle’s flexible configuration options led to it being housed in Bigler’s basement, enabling it to be maintained at a considerably lower temperature than would have been possible in the order picking area.

The ability to utilise Multishuttle across multiple temperature zones is a key benefit for storage and order picking applications in the food industry.

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“

Problem-free implementation and a commissioning process with no notable start-up difficulties have shown we made the correct decision.

We are now well equipped to meet changing customer requirements and future growth.

Markus Bigler, Owner & Managing Director, Bigler AG

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Containers retrieved by the Multishuttles are transferred to integrated lifts at the end of the aisles. The lifts interface with two conveyor loops, an upper loop connected to four automatic workstations and a lower loop feeding three automatic and three manual workstations.

SPLIT CASE ORDER FULFILMENT BUFFER STORAGE, SEQUENCING & GTP PICKING

Multifunction Multishuttle® The conveyor loops are used to buffer and sequence the high volume of goods for order picking, with the containers supplied via a buffer conveyor in front of the workstations. Picking is directed via screens for optimum accuracy.

Goods are picked, weighed and labelled according to customer specifications into order containers, with the product containers returning to the Multishuttle store.

In the same way, pre-picked, full order containers can be transported back into the warehouse via a separate conveyor and stored temporarily, prior to despatch.

A better solution for split-case picking “Compared to the conventional ASRS in our other plant, Dematic’s solution is considerably more efficient for individual item order picking,” said Mr Bigler.

“We process around 1,000 order lines per hour, and have the potential to increase this up to 1,800 per hour.

“Problem-free implementation and a commissioning process with no notable start-up difficulties have shown we made the correct decision.

“We are now well equipped to meet changing customer requirements and future growth,” concluded Mr Bigler.

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TECHNOLOGY FEATURE DEMATIC MULTISHUTTLE ®

HOW MULTISHUTTLE IS REVOLUTIONISING ORDER FULFILMENT In just a couple of years, Dematic’s Multishuttle® has revolutionised the market for automated storage and retrieval systems (ASRS) worldwide.

Dematic’s innovative approach to automating the handling of small units loads like totes has made a whole new range of integrated logistics solutions possible, with Multishuttle systems now driving high-rate order fulfilment and assembly operations in Europe, North America, Asia and Australia.

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Multishuttle: A step change in ASRS Unlike conventional ASRS, which typically use cranes to access stock, Dematic’s Multishuttle uses a fleet of self-propelled carts to retrieve and put goods away in an ultra space-efficient storage system, at very high speeds. Lifts at the end of each aisle transfer goods in and out of the system via integrated conveyors.

Given that each Multishuttle is capable of performing at rates significantly faster than cranes, imagine the phenomenal productivity and throughput rates that can be achieved when tens or hundreds of Multishuttles are integrated within a single system.

AUTOMATED STORAGE & RETRIEVAL BUFFER STORAGE, SEQUENCING & PICKING

Another significant advantage MultishuttleÂŽ has over conventional ASRS is its ability to sequence workflow and do parallel processing, by handling multiple loads across multiple levels at the same time.

Driving order fulfilment into the 21st Century Just as more powerful software drives the need for faster computers and vice versa, so too does Multishuttle technology drive the possibility of faster sequencing and integration of stock and orders. Multishuttle’s very high throughput rates suddenly made it possible for Dematic to develop a series of clever applications that have the capability to bring customers to a new level of efficiency; arguably the ultimate in split case picking and order assembly.

By deploying Multishuttle as a buffer and sequencing platform between bulk storage and order picking stations, a new goods-to-person (GTP) picking methodology evolved that would change the face of picking forever, and provide an efficient platform for dealing with a constantly changing distribution challenge.

Factors influencing the supply chain today A diverse mix of emerging societal trends, including the growth of online shopping, have had a significant impact on retail shopping habits, with dot.com home shopping now accounting for 5% of all retail in Australia, and up to 40% in markets such as Korea.

Add other factors like the general shortage and high cost of labour in many economies and increasingly restrictive workplace safety legislation, together with the demand for smaller, more frequent deliveries in the supply chain, and, suddenly, manufacturers, wholesalers and retailers all around the world have had to rapidly reassess their supply chains, and adopt new, more flexible distribution strategies to cost-efficiently process larger numbers of orders for smaller quantities.

Multishuttle’s very high throughput rates makes it possible to automate activities in the DC that have never been economically viable before.

With its ability to deliver precisely that, Multishuttle was a technology that had come of age at precisely the time it was needed, addressing all of the issues generated by the societal drivers impacting the supply chain.

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TECHNOLOGY FEATURE DEMATIC MULTISHUTTLE ®

The need for faster more ergonomic picking

Facilitating high rate, mixed case palletising

The success of the Multishuttle® buffer concept had an impressive side effect by creating a new opportunity in handling and picking. The Multishuttle system had the capacity to move stock and order totes so fast, that new picking stations became necessary to allow pickers to keep up with the flow of goods.

The Multishuttle storage buffer concept can also be applied to sequencing mixed cases for manual or automated palletising. Manual mixed case order assembly, in particular, can be carried out safely and with much greater efficiency, accuracy and productivity when goods are presented for palletising in the correct sequence.

To take full advantage of Multishuttle’s very high throughput, Dematic developed a new concept of high-speed picking station, enabling operators to achieve previously unheard of productivity rates of up to 1500 picks or 1000 order lines per hour.

Dematic ErgoPall Palletising Stations enable operators to build mixed SKU pallets by simply sliding sequenced cases into position on a pallet.

As each layer 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 manual palletising.

Dematic RapidPick® System configurations include one-to-one workstations where a single order tote and stock tote are presented to the operator. One-to-multiple stations can also be used depending on 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, order profile and the type of products being handled.

As picking stations began to facilitate faster picking, operator ergonomics became an important issue. With a design objective of working smarter, not harder, the RapidPick workstations include height-adjustable platforms and screens to optimise comfort, minimise fatigue and ensure sustained productivity. The operator picks only in the “golden zone”, and does not need to move hands above shoulder height or extend arms beyond a comfortable reach. Stock and shippers are automatically delivered to and removed from the workstation, eliminating the need for operators to lift or push cartons and totes.

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Faster picking led to more efficient sequencing The next challenge for Dematic was finding a way to keep the stock and orders flowing to pickers fast enough to optimise the high throughput rates achievable with the new pick station designs.

This led to the development of sophisticated sequencing software. Complex sequencing algorithms ensure stock and orders flow to the picking stations in the correct sequence, when required. And, with a tote exchange time of less than one second, picking station operators don’t have to wait for the next item to be picked.

Design, software and integration the key There is no doubt that Multishuttle technology has driven a paradigm shift in materials handling and order fulfilment thinking. It is important to understand, however, that while Multishuttles are an important component; ultimately they are only a transport mechanism in what is a very complex and intelligent integrated system.

Dematic RapidPick® configurations may include any arrangement from 1:1 up to 1:24 or more, depending on order volumes, order profile and the products being handled.

AUTOMATED STORAGE & RETRIEVAL BUFFER STORAGE, SEQUENCING & PICKING

The real smarts lie in Multishuttle’s design, configuration and the powerful software and controls developed to prioritise, sequence and coordinate the thousands of actions required every second the system is running, and to interface it seamlessly with upstream picking and downstream replenishment processes.

Multishuttle’s ability to sequence workflow and enable parallel processing, makes it a very efficient tool for interlinking processes.

Modular, scalable, flexible It’s not enough to simply have the fastest shuttles and smart picking stations. It is the integration of all the critical software, controls and subsystems handling all of the different activities such as replenishment, buffering, sequencing and picking, that is the key to the successful implementation of extremely complex integrated systems.

Dematic ErgoPall Palletising Stations make it easy for operators to build mixed SKU pallets by simply sliding sequenced cases into position on a pallet, which automatically lowers as each layer is completed.

With the logistics landscape changing at a faster pace than ever before, it is essential that integrated distribution solutions be modular, scalable and flexible so they can be replicated quickly, and scaled to suit the necessary volumes as business needs change.

Multishuttle’s modular design and inherent flexibility means it can be designed to fit in practically any shape or area of building, even unused roofspace. Simply adding additional Multishuttles to a system can also significantly increase throughput capacity.

One certainty is this: as each new customer comes to Dematic with their own unique distribution requirements, Multishuttle and its associated enabling technologies will continue to evolve and create powerful new solutions for optimising distribution for many years to come.

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WONDERSUN HARBIN, CHINA

AUTOMATED DC HELPS WONDERSUN DAIRY GROW In a recent project, Wondersun engaged the design skills of Dematic’s China team to conceive and build a new distribution and quality control centre for its Harbin plant in the north of China.

The plant has the capacity to produce 800 tons of liquid milk every day and up to 280,000 tons of fresh milk annually.

Integrated storage and handling In addition to product storage and handling, Dematic faced the additional challenge of developing a batch track and trace system to enhance product security and build better customer satisfaction. From the very beginning of the project, Wondersun decided it wanted to partner world class suppliers with extensive experience in the dairy industry. The entire production supply chain uses advanced processes and equipment from leading suppliers like GEA, ABB, Tetrapak and, of course, Dematic.

High capacity, high performance ASRS Dematic provided a 23m high automated storage and retrieval system (ASRS) with a capacity of

7,800 locations serviced by six RapidStore® Unit Load storage and retrieval machines (SRMs).

The distribution centre is temperature-controlled, with the ASRS primarily used as a finished goods warehouse. The solution is ideal as it provides efficient in-feed, out-feed and safe product handling.

The ASRS system integrates storage, production and distribution via computer control, and works efficiently to eliminate losses previously experienced with manual handling methods.

The system also maintains records of product age, batch, quantity, and stock distribution, while at the same time providing high-density storage and optimum space utilisation.

Interfacing with production The ASRS lies at the end of an automated production line. After milk cartons come off the production line, automated robots pack goods into cases and check-weigh. Once cases are sealed, they are conveyed to palletising robots capable of operating around the clock.

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“

The most impressive thing is that the system is safer, more reliable and more effective.

The productivity of operators has increased by 600%.

Sun Yingkai, Maintenance and Administration Supervisor, Wondersun Dairy

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Wondersun Dairy is a leader in the Chinese dairy industry. Through aggressive expansion plans, it has become a household name in China supplying a quality range of fresh, long-life powdered milk and infant formula products under famous brand names like Sunshine Dairy.

UNIT LOAD HANDLING AUTOMATED STORAGE & RETRIEVAL

“The whole process is quite impressive,” said one field operator. Dematic integrated palletising robots into its solution so that they can group finished goods and match goods information with pallets. Robots palletise cases in a “flower shape” which ensures stability during transport and minimises the risk of product damage during handling.

Each robot performs at the rate of around six full-time employees, and can control up to three production lines at the same time.”

Efficient quality control Dematic transfer cars are also used in the solution. These are used to transport finished pallets to quality control stations where the system checks pallet data and stack shape in detail.

Once checked, pallets are assigned to storage locations according to Dematic’s warehouse management and location control software.

The project, which was commissioned in early 2010, has since delivered substantial benefits for Wondersun. Commenting on the system’s performance, Wondersun Dairy’s Maintenance and Administration Supervisor, Mr Sun Yingkai, said: “The most impressive thing is that the system is safer, more reliable and more effective.”

“The productivity of operators has increased by 600%. What’s more, any dairy consumers concerns about product quality have been allayed,” added Mr Sun. “Thanks to the integrated system, Wondersun can provide customers with full visibility about the place of milk origin, raw material suppliers, production date, production batch numbers, working shift, operators, finished goods inspectors, release staff, and where every batch is stored and despatched to,” he said.

“Most importantly, the solution ensures a superior level of quality control for Wondersun.”

Sun Yingkai, Maintenance and Administration Supervisor, Wondersun Dairy, China

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iHerb.com CALIFORNIA, USA

HIGH PERFORMANCE DOT PIECE PICKING SOLUTIO iHerb.com is an internet retailer providing a much broader, competitively-priced product range than customers can get from local stores – offering over 30,000 vitamins, sports nutrition, supplements, health care and organic products – with the convenience of home delivery.

The iHerb.com promise to its customers is that any order it receives by 1:00 PM (Pacific time) will ship the same day.

In order to accomplish this speedy service, iHerb.com enlisted the help of Dematic to implement a high-performance distribution system specifically designed and configured for ecommerce order fulfilment.

Dematic’s solution combines a batch pick voicedirected piece picking system, a series of lightdirected PutWall modules to sort batch-picked items into customer orders, and light-directed “PackWalls” to expedite shipping.

Optimising productivity with batch picking iHerb’s warehouse management system (WMS) groups orders into batches and determines how much of each type of product is needed to fulfil all of the orders – if 20 customers order Aloe Vera Gel, the WMS will direct a picker to retrieve 20 containers at the same time, rather than making 20 separate trips.

Using voice-directed technology, the WMS tells pickers where to go, and how many of which products to pick for each batch of orders, keeping hands and eyes-free, and improving order picking speed and ergonomics.

The batched goods are then conveyed to a processing area where they are broken down to individual orders in a series of put-to-light (PTL) stations. iHerb.com is achieving high picking productivity rates using a combination of voice and put-to-light (PTL) at its 320,000 sq ft climate-controlled distribution centre in Moreno Valley, California.

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The area is divided into small work cells, alongside which are rows of bins used to accumulate customer orders, with the size of the bin depending on the products and the size of order.

SPLIT CASE ORDER FULFILMENT VOICE-DIRECTED & PUT-TO-LIGHT PICKING

OT.COM ON

Batched orders are separated into discrete orders in the Dematic PutWall incorporating Put-to-Light technology.

Seeing the light when processing orders As the picker removes each item and scans it, a light flashes below the relevant order bin for a customer.

The picker deposits the item into the bin and confirms the task, until all products from the batch been have been assigned to the relevant orders.

When all of the items for a customer have been picked, a light indicates the order is ready to be packed.

Packed shippers are conveyed to a sliding-shoe sorter, which diverts the cartons to the appropriate shipping lane.

Dematic’s voice pick and PutWall systems enable iHerb to process tens of thousands of customer orders each day, on time and to an accuracy level of 99.98%, and at rates of up to 500 items “put” per hour.

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ERHARDT & FISCHER GMBH & CO KARLSRUHE, GERMANY

DEMATIC DC DIRECTOR & VOICE DOUBLES ORDER PICKING PRODUCTIVITY Dematic’s powerful DC Director and a pick-by-voice application for order picking form the basis of a new order fulfilment system for German paper and IT products distributor Erhardt & Fischer.

Following a merger in 2010, Erhardt & Fischer required a new distribution centre, and enlisted the help of Dematic to develop an intelligent and cost-effective order fulfilment solution.

With timing critical, Dematic worked hard to meet E&F’s demanding start-up schedule of just six months from placing the order. The 4,000 sqm DC was fitted out with a combination of existing and new materials handling and storage equipment, together with completely new integrated communications and IT systems.

E&F holds more than 10,000 stock items and a variety of storage and order picking methods are used at the new DC to suit different product sizes, weights and handling requirements.

Fast moving goods are typically housed in shelving, with a unit load storage area providing capacity for the storage of more than 1,000 pallets.

Systems integration the key A key element in Dematic’s integrated solution was interfacing E&F’s ERP system with Dematic’s WCS. The ERP system transfers customer orders to DC Director, which identifies and transmits route-optimised picking instructions to employees equipped with voice-directed computer terminals. These voice computers are connected via a digital Voice Manager to the WCS, which instructs pickers where to go and what to pick.

With Dematic’s WCS providing wide-ranging functionality spanning the entire warehouse – including picking, inventory control and shipping – it has helped to reduce picking errors, misreads and mistakes, and virtually eliminated expensive and time-consuming quality control procedures.

Hands-free, eyes-free order picking Pickers wear a headset and a portable, beltmounted voice computer terminal, which communicates to the host computer via a wireless LAN. With no paperwork, operators are free to push their pick carts and to pick with both hands. Traditional picking tasks such as reading, writing and searching for stock locations are eliminated.

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SPLIT-CASE ORDER FULFILMENT WCS & VOICE-DIRECTED PICKING

The use of pick carts enables the parallel processing of up to 16 orders at a time by each employee. After all of the goods for an order have been picked, they are forwarded to the packing area, which includes five integrated packing stations.

Virtually error-free picking With the DC typically processing around 800 orders a day, the accuracy of Dematic’s solution is impressive with stock availability at 96% and an error rate of less than 0.1%.

“With the new order processing procedures, productivity has doubled, providing E&F with a rapid return on investment (ROI). We are very satisfied with the advantages and flexibility offered by the future-ready Dematic solution,” said E&F’s Managing Director, Tony Volz.

System Benefits • Short implementation period of six months • All stock master data maintained online • Cross-process optimisation of resources and goods flow

The use of pickcarts enables operators to process up to 16 orders at a time.

• Route-optimised voice-directed picking • Error rate close to zero • Increased process reliability • Fast order turnaround • Flexibility for changing business processes • Improved quality of delivery • Sustainable plant design • Rapid ROI

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ENVIRONMENTAL INITIATIVES DEMATIC

DEMATIC DRIVING SUSTAINABLE, ENERGYEFFICIENT DC DESIGNS Dematic has demonstrated continual support for the environment through many initiatives over the past two decades. Highlights include: • Being the first provider to include a patented energy recovery feature in its ASRS solutions • Developing low-energy, double-zone warehouses for temperature-sensitive goods • Becoming the first provider to introduce the highly energy-efficient Multishuttle®.

New Dematic Ecodrive Software In another industry first, Dematic has recently introduced “Dematic Ecodrive” – smart, energy-saving software, which by improving the efficiency of process control in automated warehouses and production plants, has the potential to reduce CO2 emissions by 10-15%.

Following are some brief details on how Dematic is working closely with customers all around the world, helping them to save energy and reduce their environmental impact in many ways.

Environmental protection is a cornerstone of future industrial development. The implementation of ever more efficient automation is a core objective for Dematic and the logistics systems sector in playing a key role in reducing CO2 emissions.

Our customers are increasingly responding to these requirements when undertaking new investments and upgrading existing logistics systems.

And Dematic is leading in the quest to create sustainable logistics operations by providing innovative solutions that assist our customers in using less power and more environmentally-friendly packaging.

In this overview of our environmental efforts, we preview several initiatives that Dematic is engaging in around the world to provide our staff, customers and their families a more sustainable future.

Europe In Europe, Dematic has added to the wealth of knowledge on sustainability by focusing on ecological product and production design, and contributing to the new VDMA sustainability initiative “Blue Competence”. The VDMA (Verband Deutscher Maschinen-und Anlagenbau - German Engineering Federation) is one of the key association service providers in Europe and offers the largest engineering industry network in Europe.

Dematic has joined forces with the new “Blue Competence” sustainability initiative that the VDMA started in July 2011 for ecology and environmental technology in plant and machinery construction.

The aim of the initiative is to continue to strengthen and expand the long-term role of plant and machinery construction in Europe as a worldwide technology leader. In parallel, the intention is to highlight the sector’s high level of creative innovation in terms of energy-efficient products and solutions to the public.

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“

SUSTAINABLE TECHNOLOGY ENERGY-EFFICIENT DC DESIGNS

We are advancing our commitment to increasing sustainability in the form of energy efficiency in raw materials and equipment, and intend to actively shape the development of sustainable logistics concepts for the future.

“

Roar Isaksen, President & CEO, Dematic

scheduled maintenance.

At the Dematic-sponsored Material Handling & Logistics Conference (www.mhlc.com) in Park City, Utah, Jeff Smith, Senior Director of Logistics, Maintenance, and Purchasing for Walmart, detailed some of the steps the company has taken to reduce energy consumption within its distribution centres. In one key project, the company retrofitted the lighting in more than 100 distribution centres, resulting in annual average savings of US$124,300 (EUR 92,009) per facility.

The high importance that the issue of resource efficiency holds is reflected in the numerous developments introduced by Dematic in the last two decades.

As early as 1995, Dematic was the first provider to include energy recovery in ASRS systems, developed the patented, low-energy, double-zone warehouse for the storage of temperature-sensitive goods, and, in 2006, was the first systems provider to introduce the highly energy-efficient Multishuttle®.

The latest example of this innovation is Dematic’s Ecodrive software for improved energy efficiency in process control and automated warehousing.

The software permits an additional reduction in CO2 emissions in automated warehouses of 1015%, improves the ecological balance by up to 20%, and meets the protocol requirements for tax savings in line with ISO 16001.

North America In North America, through a Dematic Service initiative, thousands of warehouses have engaged Dematic to upgrade to more energy-efficient lighting, work which is completed during regular

W.W. Grainger’s Senior Manager, Property Management, Patrick Shurtliff, said in a separate presentation at a Dematic conference that his company upgraded lighting in its 16 branch facilities in 2010 and is expecting to implement the same upgrade in 36 more distribution centres in 2011.

The company also installed a 9,600-panel photovoltaic system on the roof of a New Jersey DC. Asia Pacific In Asia Pacific, Dematic undertook a comprehensive risk analysis of environmental impacts, especially focusing on our manufacturing operations, and compiled a register of environmental hazards.

The exercise led to Dematic Australia being granted ISO14001 certification for its environmental management system, which is integrated into the normal business processes and systems.

Some of the outcomes achieved so far under the program include the establishment of a spill response team and spill kits throughout our factory and grounds, the inclusion of a waste management template for use during customer project installations, a 13% reduction in fuel consumption through the use of more efficient service vehicles, and, through new storage system designs, an 8.7% reduction in steel content in production.

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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 United States Dematic Corp.

507, Plymouth Avenue NE Grand Rapids, Michigan 49505 T +1 877 725-7500 usinfo@dematic.com Dematic New Berlin 2855 S. James Drive New Berlin, WI 53151 T +1 262 860-7000 usinfo@dematic.com

Europe Dematic Europe GmbH Lyoner Str. 9 60528 Frankfurt / Main T +49 69 583025-0 info@dematic.com Austria Dematic Services GmbH Hirschstettnerstr. 19-21 / Z 201 1220 Vienna T +43 1 205552-0 info.at@dematic.com

Canada Dematic Limited 6750 Century Avenue, Suite 302 Mississauga, Ontario L5N 2V8 T +1 (877) 567-7300 usinfo@dematic.com

Baltic States Dematic Kaunas Raudondvario Pl. 107 47186 Kaunas Lithuania T +370 37 328410 kaunas@dematic.com

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

Benelux Dematic Benelux Europalaan 4c 5232 BC Den Bosch Netherlands T +31 736 460-460 info.nl@dematic.com Denmark & Scandinavia Dematic Scandinavia Skottenborg 12-14 8800 Viborg Denmark T +45 8669 9796 info.dk@dematic.com

Additional Contacts For more local offices, service locations and partners in Finland, Israel, Poland and South Africa please refer to www.dematic.com/europe

DEMATIC LOGISTICS REVIEW © Copyright July 2012

Eastern & South East Europe Dematic GmbH Micurinova 36/1 21000 Novi Sad Serbia T +381 21 530 422 info@dematic.com France Dematic S.A.S. Parc Gustave Eiffel 6, Avenue Gutenberg 77600 Bussy Saint Georges T +33 1 64 76 45-76 contact.france@dematic.com Germany Dematic GmbH Carl-Legien-Str. 15 63073 Offenbach T: +49 69 8903-0 anfrage@dematic.com Italy Dematic S.r.l.

Via Firenze 11 20063 Cernusco sul Naviglio (MI) T +39 02 92 90 541 infodesk.italy@dematic.com Russia/CIS Dematic GmbH Russian Representative Office ul. Bakhrushina 32/1 115054 Moscow T +7 495 668 0969 info@dematic.com

Spain & Portugal Dematic Logistic Systems S.A. Alemania, 2-4 28820 Coslada, Madrid T +34 91 205 7700 info@dematic.com

Asia Pacific Australia Dematic Pty Ltd 24 Narabang Way Belrose NSW 2085 T: +61 2 9486 5555 info.anz@dematic.com

Switzerland Dematic GmbH Switzerland Zentrum Spitzacker Birmensdorferstr. 87 8902 Urdorf T +41 43 455 60 60 logistics.ch@dematic.com

China Dematic Shanghai Floor 18, No. 763 Meng Zi Road Xinfugang Center 200023 Shanghai T +86 21 6086 2999 infochina@dematic.com

United Kingdom Dematic Ltd Beaumont Road, Banbury, OXON OX16 1QZ T +44 1295 274 600 info.uk@dematic.com

Korea Dematic Korea S05, 9th Floor, Garden5 TOOL 292 Munjeong-Dong, Songpa-Gu Seoul, Korea 138-962 T +82 2 6925 4763 info.asia@dematic.com

Turkey İzmirli Mühendislik Lojistik Danışmanlık Denetim ve Proje San. Tic. Ltd. Şti. Çavuşoğlu Mah. Sanayi Caddesi Sade Sanayi Sitesi B-Blok No:8 34873 Kartal-İstanbul T +90 216 374 8666 info@dematic.com

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 T +60 2 5512 2688 info.asia@dematic.com New Zealand Dematic Pty Ltd Eastside - Building 7, 15 Accent Dr East Tamaki, Auckland T +61 9 273 0052 info.anz@dematic.com Singapore Dematic S.E.A. Pte. Ltd. 10 Eunos Road 8 #09-01A Singapore Post Centre Singapore 408600 T +65 6398 3980 info.asia@dematic.com