1. Linfox Kellogg’s.
Award winning technology.

3. “Pallets of finished product are uploaded
onto an automated pallet conveyor, taken over the
airbridge and delivered to the distribution centre.”
The new Linfox DC for Kellogg’s recently Collectively, Kellogg’s and Linfox identified
won the inaugural ‘Award for Excellence the need to manage the distribution centre
in Supply Chain Management and processes with less manual involvement
Distribution’ at the SMART 2007 Conference and more automation. The challenge was
in Sydney. to create an environment that could
automatically process high demand
The award winning state-of-the-art facility
volumes whilst also achieving high storage
was commissioned to manage the
density. The decision was made to co-locate
warehousing and distribution of all Kellogg’s
the new Linfox facility alongside the Kellogg’s
cereal products manufactured at its Botany
manufacturing facility to achieve this goal.
manufacturing facility. Linfox originally
gained the Kellogg’s business when it
Design for flexibility.
acquired Mayne Logistics in 2003.
The new distribution centre was designed
Prior to the new facility being commissioned, to provide Linfox with flexibility on how the
Linfox engaged a 24-hour shuttle service building may be used over its useful life. As
between the Botany facility and the Linfox a result, the Kellogg’s solution had to meld
Minto warehousing operation. On a daily with the ‘general purpose’ configuration of
basis, a significant number of pallets the building.
would be loaded onto articulated vehicles,
The solution design and concept were
transported to Minto, and then manually
complex as it was necessary to maintain
handled in and around the warehouse.
the best storage density and maximise
The Minto warehouse accommodated volume throughput. Dexion worked with
28,000 pallet positions and was 27,000 Linfox and Kellogg’s to develop this design.
square metres in size, with no automation The system had to incorporate Kellogg’s
to speak of. requirements to receive product from the
Dexion Case Study – Linfox Kellogg’s

4. “Linfox has experienced about a 10% reduction
in pick error rate with the new system,
and product damage has reduced by 85%.”
manufacturing facility 24 hours a day, 7 days The new Botany distribution centre can Distribution System’ (RDS), which is the • ncreased responsiveness to
i
a week, and to minimise any disruption to hold a total of 32,000 pallets within the command-and-control centre. The RDS customer demands,
manufacturing by the warehouse operations. automated storage component and the drives the ASRS from a logical viewpoint • minimal stock movement.
conventional section of the warehouse. and interfaces with the Linfox warehouse
Throughout the design process Dexion
management system, which in turn An automated system solution was superior
worked with Linfox and Kellogg’s, confident The automated storage and retrieval system
to a labour-based solution in meeting these
in the knowledge that the final design (ASRS) enables pallets to be stored in five communicates with the Kellogg’s ERP
requirements. Linfox has experienced
concept would be both acceptable and aisles, six-pallets-deep on either side. system.
about a 10% reduction in pick error rate
competitive. As the design process evolved, Each aisle is serviced by its own automated
The command-and-control centre provides with the new system, and product damage
Dexion continually researched the supplier crane. Each crane has a satellite carriage
a pictorial view of the ASRS operation and has reduced by 85%. The company has also
market and identified ‘best of breed’ unit that drives into the racking to deposit
enables the operator to see what the system been able to reduce its labour requirement
equipment for the overall solution. This or pick up pallets. The ASRS can put away
is doing in real time. It is designed to reduce - indicative of this is the ability to halve its
included pallet conveyors, robotics, storage up to 90 pallets per hour and retrieve 120
and retrieval systems, and IT hardware. the amount of time taken to resolve a forklift requirements in the new facility.
pallets per hour.
particular issue since the operator is able to The time from when the product is packed
The chosen solution saw the production The system presented a number of
facility connected with the distribution see where the problem is and fix it quickly. to it being available for picking in the
challenges for the Dexion project warehouse has reduced from two days to
centre by an ‘airbridge’ placed over the management team. Fundamentally, they
dividing road. Pallets of finished product are The goal. being received and ready for picking within
had to engineer an advanced integrated one hour.
uploaded onto an automated pallet conveyor, system for a building designed for Linfox and Kellogg’s required a new
taken over the airbridge and delivered to warehouse design that would provide a
conventional warehousing. The system was How it works.
the distribution centre. Previously, stock true ‘win-win’ for both businesses.
selected due to its reliability and proven
was transferred by semi-trailers travelling At the end of the manufacturing process,
technology, but it is the innovation in the Some of the key deliverables sought were:
approximately 40 kilometres from Botany Kellogg’s cartons are automatically
design of the overall system that makes this
to Minto, so the amount of product • educed reliance on labour and manual
r palletised and then wrapped by a shrink
project so interesting.
handling has been significantly decreased wrapper. Each pallet is checked at the
handling of stock,
by the automated airbridge, with vehicle A unique feature of the system is a profile checking station for pallet overhang
movements reduced to exceptions only. component of Dexion’s ‘Real-time • a long-term partnership solution, on all four sides, to ensure the bottom
Dexion Case Study – Linfox Kellogg’s

5. “Ideally, to optimise the operation of the system,
only the fastest moving lines are stored in the ASRS.
To maintain a constant flow of pallets to the cranes,
each pallet transferred into a crane aisle is preceded by
an occupancy check of the crane’s infeed conveyors.”
boards are present and that loads do not Pallets travelling along the airbridge pass
exceed height restrictions. The profile through an automatic roller door onto
checker also ensures the SSCC number another pallet lift. They are then lowered to
(within the bar-coded pallet labels) isn’t the warehouse floor level by the frame lift
missing. and discharged onto the conveyor system
that accumulates each pallet before
Pallets that fail any of these criteria are
discharging it.
flagged for local rejection. A circular log is
created for all rejected pallets in the The induction conveyor is the primary
programmable logic controller (PLC), which ‘decision point’ location on the crane
details what is wrong with each pallet. conveyor loop. The EXE warehouse
management system provides the
Rejected pallets are transported by conveyor corresponding receiving task to the Dexion
through a return path to an existing Kellogg’s RDS prior to each pallet arriving at this
turntable and reject lane, where they are induction conveyor. Pallets are check-
unloaded via existing methods controlled weighed to confirm that the weight is less
by Kellogg’s. than the crane rating, and pallets
Pallets that pass the profile-check are exceeding this weight are redirected to a
transferred from the infeed turntable reject lane.
conveyor onto an accumulation conveyor. On confirmation of a good label scan and
This conveyor mechanically accumulates weight check, the pallets are inducted into
pallets before discharging them onto the the RDS control system. The warehouse
elevator turntable. The elevator raises the management system looks at the SKU
pallet to the airbridge conveyor level, and information to see if it is to be stored in the
holds the pallet until the airbridge conveyor ASRS, i.e. if it is in the ‘top 40’. If so, it
is ready to accept it. hands the order over to the Dexion RDS
Dexion Case Study – Linfox Kellogg’s

6. “To maximise performance, the closest pallet positions
are selected, and to maximise storage utilisation,
like batch-numbered pallets are stored within the same
six pallet-deep location and across all cranes.”
which puts the pallet away in the ASRS. location. The pallet is picked up by the
The pallet will then move to one of the five satellite cart, which drives into the rack and
crane aisles. deposits (or collects) pallets.
If it’s a pallet destined for manual racking, There are five automated stacker cranes
it will be moved to this area and put away operating within the ASRS system. Each
into the conventional racking. If the ASRS crane is controlled by its own dedicated
is full, the system will automatically move PLC located in the crane’s control cubicle.
pallets to conventional racking also, or Crane operational commands are fed to
store them in block stack. the crane PLC as required by the crane’s
SCADA system. This system acts as the
Production pallets destined for the interface between the Dexion RDS control
conventional racking are moved to an exit system and the individual cranes.
conveyor where they wait until the forklift
take-off conveyor is free. An indicator light To maximise performance, the closest pallet
announces that the pallet is ready and positions are selected, and to maximise
safe for taking off by the forklift operator. storage utilisation, like batch-numbered
pallets are stored within the same six
Ideally, to optimise the operation of the pallet-deep location and across all cranes.
system, only the fastest moving lines are
stored in the ASRS. To maintain a constant When retrieving pallets, the system selects
flow of pallets to the cranes, each pallet the closest available storage locations,
taking account of Kellogg’s FIFO batch
transferred into a crane aisle is preceded
code philosophy. To maximise storage
by an occupancy check of the crane’s
space utilisation, the system retrieves all
infeed conveyors. If they are all full, the
six pallets from a selected location, and
pallet is redirected to another crane.
like batch-numbered pallets are retrieved
The conveyor loads a pallet onto the crane, evenly across all cranes. Once a pallet is
which takes the pallet to the correct retrieved it is then sent to despatch.
Dexion Case Study – Linfox Kellogg’s

7. “The cranes are designed to work in the dark,
further reducing lighting requirements.”
Despatch. proceeds to remove cartons from the pallet, Safety first! Unauthorised opening of the gate during
At despatch the system features a robotic generally three at a time. General access to the ASRS pallet racking automatic operation causes the respective
de-palletising and container-loading system, Cartons placed on the take-away conveyor is prevented by a full perimeter fence without robot to immediately shut down. The pallet
which is a self-contained operational unit flow automatically away from the robot access points. Each crane run-out area is entry opening of these safety fences is
not connected with either RDS or other area, then divert onto the lane conveyor fully enclosed by a safety fence. Access to protected by a light barrier to guard against
conveyor controls. It consists of two associated with the boom conveyor each run-out area is controlled by key and unauthorised access by personnel climbing
identical robotic units, each capable of position. Sensors on the conveyor check electrical interlocking of the respective over the pallet conveyor. Unauthorised
delivering cartons to one of two container for jams or a natural build-back of cartons, access gates. Entry is restricted to entry at these points will immediately shut
positions. and stop and start the conveyor as required authorised maintenance personnel who down the respective robot.
Before de-palletising can commence, the to ensure an even flow onto the boom are fully trained to operate under approved
conveyor. Access to the robots’ pallet stacker is
telescopic boom conveyor is driven to the procedures.
protected by automatic doors. These doors
appropriate container loading door and If cartons bank up to the robot put-down The pallet lift conveyor is fully fenced and remain shut at all times except when the
activated, and the associated carton area, depalletising will stop until the carton
protected by a light barrier system. completed pallet stack is being removed.
conveyor system is started. The container- conveyor is free again. Cartons discharge
Breaking of the light barrier will cause a
door delivery lane is selected automatically onto the boom conveyor, which transports OHS levels have been greatly enhanced
general pallet conveyor system emergency
by the position of the boom conveyor, them up to the working face within the
stop. Each of the two de-palletiser robots with the new system. There are 32,000
and the required pallet stacking patterns container.
is fully enclosed by a safety fence, and pallet positions in the ASRS and conventional
are stored in the subsystem with their
Workers unload and stack the cartons in access to these areas is controlled by key racking, so every time a pallet is picked
corresponding Global Trade Identification
the container with the boom conveyor and electrical interlocking of the respective from a high level bay there would be the
Numbers (GTIN).
moving backwards or forwards, up and access gates. potential for product, pallet or racking
A new pallet arriving at the de-palletising down, as the container is filled. All orders damage.
position is detected automatically by the are pre-ticketed before the truck arrives Entry is once again restricted to authorised
robot control system and the carton GTIN to avoid congestion at the loading dock, maintenance personnel who are fully However, there is no issue with the ASRS
is scanned. The system checks the GTIN as it is critical that there are no delays in trained to operate under approved because the cranes are the only equipment
against valid stacking patterns and then turnaround time. procedures. touching the pallets.
Dexion Case Study – Linfox Kellogg’s

8. “This state-of-the-art Linfox distribution centre
is a first for the Australian third-party logistics industry,
and marks a new direction in relationships between
customers and third-party logistics providers.”
Environment. loads of greenhouse gas-producing vehicle
Environmental issues were a key movements each year.
consideration during the design and
awarding phase of the Botany distribution An award-winning achievement.
centre. The distribution centre is lit by This state-of-the-art Linfox distribution
lights that emit the lowest possible amount centre is a first for the Australian third-
of greenhouse gases. party logistics industry, and marks a
new direction in relationships between
The cranes are designed to work in the
dark, further reducing lighting requirements. customers and third-party logistics
The construction of the warehouse also providers.
accounted for environmental factors, such It is the first facility where a third-party
as insulation and the use of sky-lights. provider has implemented a fully automated
There are also recycling programs in place system on behalf of a manufacturing
at this facility. customer. This is important for Linfox and
Product close to its use-by date is donated important for the Australian manufacturing
to charities nominated by Kellogg’s rather industry. Australian manufacturers
than being sent to landfill, further reducing increasingly recognise that their expertise
the impact on the environment. lies in manufacturing and that logistics Dexion began this construction in May resulting in the facility winning the
should be left to the experts. 2006 and Kellogg’s then gave Linfox until prestigious “Award for Excellence in
The greatest environmental benefit
achieved by Kellogg’s and Linfox with the Increasingly, they look to logistics partners the end of September to prove that the Supply Chain Management and
new facility is in reducing the number of such as Linfox to mirror their organisation. system was 100% operational, which has Distribution” at the inaugural SMART 2007
now been confirmed beyond doubt. Awards for Supply Chain Excellence.
semi-trailers travelling on the arterials Many are international companies seeking
between Botany and Minto. This is estimated partners that can support them across the The system was delivered in full, on time
to have eliminated approximately 11,200 Asia-Pacific region. and to the operational specification
Dexion Case Study – Linfox Kellogg’s