SlideShare uma empresa Scribd logo
1 de 24
Baixar para ler offline
Issue 1

                                 POSITIVE APPROACH
                                 Pick more with Negative-PUT picking


    L GISTICS                    BUFFER STORAGE


    REVIEW
                                 Sequencing stock for high rate picking

                                 PRODUCT REVIEW
                                 Logistics technology & software update




NEXT: UK
Ergonomic Fashion &
Apparel Distribution

FERDINAND GROSS:
GERMANY
The World’s First Multishuttle
Goods to Person Solution

NEWEGG.COM: USA &
ELGIGANTEN: SWEDEN
High Performance
E-logistics




COCA-COLA AMATIL: AUSTRALIA

DEMATIC DELIVERS
RECORD PICK RATES
FOR COCA-COLA
                                         DEMATIC LOGISTICS REVIEW
                                                  Creating Logistics Results
WELCOME
    TO YOUR WINDOW
    TO WORLD’S BEST
    PRACTICE LOGISTICS
    Welcome to Dematic Logistics Review.
    We hope you find this publication and interesting
    and valuable resource for keeping up to date
    with the latest logistics and supply chain news,
    case studies, research, product, technology and
    software developments from around the world.




                     I am delighted to introduce the first issue of our      Dematic Goods to Person delivers the goods
                     new global magazine Dematic Logistics Review.          With systems already in operation and many more
                     Dematic has provided many impressive logistics         underway, Dematic is challenging convention
                     solutions and in this issue you will find examples      with the development of ‘Goods to Person’ (GTP)
                     of best practice logistics. I am confident that         order fulfillment strategies and technologies for
                     through innovation and our proven track record         high volume distributors.
                     we will to continue to deliver outstanding logistics
                     results for our customers throughout the world.        Our Dematic Multishuttle® automated storage
                                                                            buffer, picking and sequencing system interfaced
                     Investing in innovation                                with ergonomic workstations delivers safe, accu-
                     As a platform for growth, we are increasing our        rate, high-rate, high-productivity picking across a
                     investment in Research and Development.                wide range of industries and applications.

                     Dematic sees significant innovation potential in        Case studies on retail clothing giant Next from
                     order fulfillment and will continue to focus R&D        the UK and German industrial supplier Ferdinand
                     investment in this area.                               Gross demonstrate the amazing accuracy, pro-
                                                                            ductivity and throughput possible with GTP.
                                                                            If GTP is new to you, make sure you see our exclu-
                                                                            sive GTP feature article, which outlines what GTP
                                                                            is, how it works and Multishuttle’s role in picking,
                                                                            buffering and sequencing stock to optimize order
                                                                            assembly efficiency and accuracy, while eliminat-
                                                                            ing travel and reducing the physical impact of pick
                                                                            and pack operations.




2   DEMATIC LOGISTICS REVIEW
Contents
                                                     Cover Story: Coca-Cola Amatil, Australia                             4-6
                                                     Technology Feature: Goods to Person                                  7-9
                                                     Case Study: Ferdinand Gross, Germany                               10-11
                                                     Case Study: Next, United Kingdom                                   12-13
                                                     Case Study: Newegg.com, USA                                        14-15
                                                     Case Study: Elgiganten, Sweden                                     16-17
                                                     Case Study: Leche Pascual, Spain                                   18-19
                                                     Case Study: Zuellig Pharma, Malaysia                               20-21
                                                     Product, Technology & Software Review                              22-23

                                                     About Dematic
                                                     Dematic is one of the world’s leading suppliers of logistics automation sys-
                                                     tems 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 distri-
                                                     bution, 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 com-
                                                     mitment worldwide. Globally the company employs around 3,000 people.




Innovative E-business order fulfillment               The DC features the world’s first application of De-
We also profile how two leading e-retailers on        matic’s patented Negative-PUT technology and
either side of the Atlantic – Newegg.com from        software for maximizing the efficiency and opti-
the USA and Sweden’s Elgiganten – tackle the         mizing the safety of mixed pallet order assembly.
challenge of high-volume, high-service direct-to-    By pairing like orders, Negative-PUT allows pick-
consumer distribution in the booming e-business      ers to fulfill two or more picks with one, enabling
sector. It is interesting to compare how Dematic’s   high productivity rates of 1400 picks/hour to be
solutions for customers differ significantly in the   achieved through ergonomic workstations.
design and technologies applied, to best suit        World’s first SAP software integration for SFS
local market dynamics and each company’s busi-
                                                      Dematic has also developed the world’s first
ness needs and budget.
                                                      interface to SAP EWS (Extended Warehouse
Accuracy and traceability key drivers of              System) and MFS (Material Flow System) for
pharmacy DC design                                    Swiss industrial supplier SFS Unimarket, elimi-
                                                      nating the need for middleware, making SAP’s               Roar Isaksen,
Picking orders accurately and keeping track of                                                                President & CEO,
them at all stages of the supply chain are key        R/3 Enterprise Resource Planning system a true
                                                     ‘end to end solution’. Look for details of this ex-              Dematic
drivers in pharmacy distribution. The small
quantities required for many orders adds to the       citing breakthrough in the next issue of Dematic
challenge.                                            Logistics Review.

Dematic’s integrated order fulfillment system for     Our success illustrates the importance of knowl-
Malaysia’s largest distributor, Zuellig Pharma,      edge, innovation and the ability to deliver a ro-
achieves the accuracy, productivity, throughput      bust solution. Our team of logistics professionals
and traceability required through the use of smart   is second to none in the industry.
technologies, software and controls.                 With our unique mix of innovative products and
How a negative approach is achieving record          solutions, superior planning and project manage-
productivity for Coca-Cola                           ment competence, we are confident Dematic will
                                                     continue to grow and help our customers prosper
Our cover story reports on how Coca-Cola is
                                                     now and into the future.
achieving record picking rates at its new Route
Trade distribution center (DC) in Sydney.            Roar Isaksen,
                                                     President & CEO, Dematic




                                                                                            DEMATIC LOGISTICS REVIEW                3
COVER STORY
    COCA-COLA AMATIL SYDNEY, AUSTRALIA


                                                                   Dematic’s
                                                             David Rubie with
                                                                 CCA’s Major
                                                            Projects Manager
                                                              Grant McClean.




    RECORD
    PRODUCTIVITY
    FOR COCA-COLA
    Pickers at Coca-Cola Amatil’s new distribution center at Eastern
    Creek in Sydney are achieving phenomenal rates of more than
    1400 picks/hour thanks to Dematic’s new Negative-PUT concept.

    Industry recognition for Dematic’s world                                    Negative-PUT: Killing two birds with one stone




                                                           “
    breakthrough                                                                Dematic’s new Negative-PUT process optimizes
    Coca-Cola Amatil (CCA) was presented with the                               case picking productivity in mixed pallet order
    prestigious Manufacturing Logistics Award at the                            assembly by pairing suitable orders and fulfilling
    Supply Chain & Logistics Association of Australia’s                         them through ergonomically designed ‘Goods to
    recent national awards ceremony in Melbourne.                               Person’ pick modules. Dematic’s patented
                                                                                Negative-PUT software re-sequences orders to
    The award recognizes the achievements of CCA’s                              generate the highest quantity of negative pick
    supply chain remodeling program, Project Jupi-
    ter, which has substantially improved order fulfill-
                                                          The net effect of     opportunities and the optimum order fulfillment
                                                                                sequence for any batch of orders, creating sub-
    ment efficiency, reduced distribution and trans-        Negative-PUT         stantial productivity gains.
    port costs, and cut greenhouse gas emissions.          is that around
                                                                                “Around 70% of the DC’s orders pass through the
    A key element of Project Jupiter was the construc-       20% of the          Negative-PUT module, with about 35% of the or-
    tion of a new distribution center (DC) at Eastern
    Creek to service CCA’s 14,000 Route Trade cus-
                                                          cases for mixed        ders complete when they exit,” explained Grant
                                                                                 McClean, CCA’s Major Projects Manager.
    tomers in New South Wales from Bega to Coffs            pallet orders
    Harbour, an area covering about 1000km.                                     “The net effect of Negative-PUT is that around
                                                           are dispatched        20% of the cases for mixed pallet orders are dis-
    Route Trade customers range from corner stores          without ever         patched without ever being picked,” he said.
    and convenience shops to service stations, small
    grocery and fresh food outlets, as well as an in-       being picked.       Other key Dematic solutions include:
    creasing number of liquor shops and wholesalers,       Grant McClean,       Inbound Logistics: RO-RO auto truck unloading
    and account for close to half of CCA’s throughput      Major Projects
    during the summer peak.
    Within just eight weeks of operation, CCA was
    achieving record-breaking productivity rates of
    more than 1400 picks/hour at the Eastern Creek
    DC thanks to an innovative new order picking
                                                           “
                                                           Manager CCA
                                                                                More than 95% of the stock is delivered from CCA’s
                                                                                Northmead production plant. To ensure efficient
                                                                                goods receiving and minimize forklift operations,
                                                                                the DC features three roll-on, roll-off (RO-RO) au-
                                                                                tomated ‘skate-type’ truck unloading docks, each
                                                                                capable of unloading 22 pallets in under 15 minutes.
    methodology developed by Dematic.                                           Pallets are automatically scanned, check-weighed
                                                                                and transported by integrated pallet conveyor to
                                                                                a pick-up station near their reserve storage put-
                                                                                away location.




4   DEMATIC LOGISTICS REVIEW
NEGATIVE-PUT PICKING: HOW IT WORKS




Inbound Logistics: Three RO-RO automated
truck unloading docks provide rapid
turnaround of vehicles delivering to the DC.




The integrated pallet conveyor delivers full
pallets with picking stock and empty pallets
to the Negative-PUT pick module operators.




                                               Dematic’s new Negative-PUT system optimizes case picking in mixed
                                               pallet order fulfillment by taking advantage of a practice used by expe-
                                               rienced pickers to reduce their workload.
                                               Smart pickers occasionally notice that among the orders they have a
                                               couple with which they can ‘kill two birds with one stone’, or, in this
                                               case, complete two orders with one pick.
                                               However, the practice tends to be opportunistic and a systematic ap-
                                               proach can identify all negative pick opportunities. The productivity
                                               gains which can be made by matching like orders and picking them in a
                                               high rate pick module are very substantial.
                                               Dematic’s patented Negative-PUT software uses a number of complex
                                               algorithms to re-sequence orders to generate the highest quantity of
                                               negative pick opportunities and the optimum order fulfillment sequence
                                               for any batch of orders.
                                               Each time a new order is to be picked, integrated pallet conveyors au-
                                               tomatically deliver two full pallets (donor pallets) and two empty pallets
                                               (put pallets). Large screen workstations provide clear visual instruc-
                                               tions for the operators, with Dematic’s Negative-PUT software direct-
                                               ing the picker to take a quantity of cases from the first donor pallet
                                               and place it onto the first put pallet. They may then be asked to take a
                                               further quantity of stock and place it onto the second put pallet.
                                               They may then be instructed to remove a quantity of cases from the
                                               second donor pallet and place them to the first and second put pallets.
                                               In this example, the Negative-PUT process has completed four work or-
                                               ders with the minimum possible number of case movements. The stock
                                               quantity on the two donor pallets now matches that required to fulfill
                                               two orders, while the cases on the put pallets form the base pallets to
                                               which any remaining items required for the two orders will be picked
                                               conventionally.
                                               Check-weighers confirm the operator has picked the correct number of
                                               pallets, and the conveyor transports the pallets to the outfeed station.


Large screens direct the pick module
operators to transfer stock from the
‘donor’ pallets to the ‘put’ pallets.
                                                                                   DEMATIC LOGISTICS REVIEW                 5
Outbound Logistics: Faster, safer truck loading
                                                      “The Auto Dispatch System (ADS) gives CCA the
                                                       ability to pre-pick, assemble and stage orders,”
                                                       explained Dematic’s David Rubie.
                                                      The ADS features a Pallet Runner satellite stor-
                                                      age system with 144 lanes, each capable of stor-
                                                      ing up to 12 pallets, the typical capacity of CCA’s
                                                      Route Trade delivery fleet. “This means the ADS
                                                      can stage the orders for up to 144 truckloads at
                                                      any one time, which provides a buffer of around
                                                      16 hours during peak periods,” said Mr Rubie.
                                                      “Staging orders takes order assembly off the crit-
                                                       ical path, ensures efficient, reliable truck load-
                                                       ing, and minimizes truck turnaround time in the
                                                       busy dispatch area.”

    Completed orders are taken to the ADS by          OH&S Initiatives: A safer workplace
    forklift and pallet truck. Once loaded onto the   The DC incorporates a number of innovative              Voice directed
    ADS infeed, all pallet handling is automated.     storage design features including wider than            computing is used
    The ADS features a 144 lane Pallet Runner         normal aisles, a higher first beam level plus            for all other case
    satellite storage system, enabling CCA to         additional space between and around pallets.            picking activities.
    stage orders for up to 144 truck loads at any     Wider aisles ensure safer forklift and pallet
    one time, providing a buffer of around 16         truck flow and more space around the pick face
    hours during peak periods.                        which provides quicker and easier access to
                                                      stock whether it is at the front or rear of a pallet,
                                                      reducing the potential for the picker to trip or
                                                      stumble while reaching for and lifting cases.
                                                      The remodeling of CCA’s supply chain has in-
                                                      volved capital expenditure of $180 million and
                                                      provides CCA with the ability and capacity to
                                                      store and deliver forecast volumes until 2015.



                                                      CCA opted for the semi-automated Pallet
                                                      Runner for its outbound logistics because of
                                                      its inherent flexibility, with throughput easily
                                                      increased with the addition of extra Pallet
                                                      Runner carts and forklift operators.


                                                        Benefits
                                                        CCA’s Eastern Creek DC has substantially improved the efficiency of CCA’s
                                                        mixed pallet order fulfillment. As well as reducing distribution and transport
                                                        costs, CCA expects the DC to provide consistent productivity and throughput
                                                        gains of around 20% to 30%. Other key benefits and savings include:
                                                        • Elimination of 20% of all physical case picks
                                                        • Improved customer service through increased pick and invoice accuracy
                                                          and pallet build quality
                                                        • Fewer errors, reduced returns and damage
                                                        • Substantial reduction in truck mileage from old supply chain to new, with
                                                          significant reductions in greenhouse gas emissions
                                                        • Automated RO-RO truck unloading with integrated pallet conveyor infeed
                                                        • Innovative, ergonomically-designed, high-rate Negative-PUT module
                                                        • Wireless Bluetooth-enabled voice-directed computing for order picking
                                                        • Faster, safer, more efficient order staging and truck loading with ADS
                                                        • Numerous OH&S initiatives aimed at maintaining a safer workplace
                                                        • Integrated IT including WMS, Negative-PUT and voice-directed computing
                                                        • Satisfies CCA’s NSW supply chain requirements until 2015.




6   DEMATIC LOGISTICS REVIEW
TECHNOLOGY
GOODS TO PERSON ORDER FULFILLMENT

Most order pickers actually spend much more
time travelling between picks than they do picking
– even if they are equipped with forklifts or pallet
trucks – adding significantly to distribution costs.




DEMATIC GTP F0R
FASTER, SAFER
ORDER FULFILLMENT
                                                        “
Goods to Person order assembly                                             High Rate Put Stations for fast movers
So imagine how much more efficient, productive                              Dematic High Rate Put Stations can be an ideal
and safe your order picking team would be if                               solution for fast moving product lines. Directed by
the goods they needed to fulfill orders came to                             Pick-to-Light (PTL) or Voice, pickers fulfill batches
them, instead of them having to go, find and                                of orders without having to leave their workstation.
transport the goods.                                                       This is only possible where sophisticated sequenc-
                                                       Directed by PTL     ing software and controls seamlessly supply the
The principle of Goods to Person (GTP) picking is
not new. But changes in government regulations,
                                                       or Voice, pickers   right stock to the Put Station, precisely when it is
                                                       fulfill batches of   needed to match a corresponding order. Human
combined with advances in technology and soft-
                                                                           errors are virtually eliminated and productivity is
ware, are increasingly making GTP a very attrac-        orders without     optimized, with pick rates of up to 1,000 items per
tive option for many distribution operations.
                                                          leaving their    hour possible. This is suited to high volume ap-
Dematic’s innovative semi-automated GTP distri-                            plications where the same product line is needed
bution solutions comprise two key sub-systems:
                                                         workstation.
                                                                           to fulfill several orders, such as for retail grocery,
                                                           This is only    apparel or publishing outlets.
• Ergonomically designed, manually operated
  Pick and Put Stations for high rate order fulfill-     possible where     High Rate Pick Stations for slower movers
  ment (1,000+ picks/hour across several hundred         sophisticated     The High Rate Pick Station is also suited to the re-
  line items): and
                                                           sequencing      quirements of slow moving product lines within a
• Automated buffer storage systems which se-                 software      DC. Fed by Dematic’s new high throughput Multi-
  quence and transport the required items to                               shuttle storage and retrieval engine, these stations
  Pick and Put Stations in the correct order to          and controls      can deliver pick rates of up to 700 lines per hour.
  facilitate efficient order assembly.                      seamlessly      This means one person at a pick station can do
Ergonomic Pick and Put Stations                        supply the right    the work of up to ten people in a traditional picking
                                                                           environment. Furthermore, the space efficiency of
Dematic has developed and implemented Ergo-               stock to the     the GTP solution means the building footprint may
nomic Pick and Put Workstation configurations             workstation,      be reduced by up to 50%.
capable of fulfilling multiple orders concurrently.
                                                        precisely when     How Dematic Pick and Put Stations work
Workstations can facilitate split case picking, with
                                                           it is needed    Empty order totes and full inventory totes carrying
designs including the use of Pick-to-Light (PTL)
displays or voice-directed computing to further             to match a     the goods for picking are transported by an inte-
improve accuracy, productivity and throughput.
                                                        “
                                                        corresponding
                                                               order.
                                                                           grated conveyor system, arriving concurrently at the
                                                                           workstations in the exact sequence required to
                                                                           fulfill the next order(s). Minimal manual handling and
                                                                           effort is needed by the operator to pick and place
                                                                           the required items to the order(s) being picked, with
                                                                           the conveyor system transporting order totes to
                                                                           dispatch and the inventory totes back to storage.




                                                                                       DEMATIC LOGISTICS REVIEW                    7
TECHNOLOGY
    GTP ORDER FULFILLMENT




    Dematic Multishuttle®:
    Automated storage buffer and order sequencing
    Picking goods efficiently through Ergonomic Work-
    stations is one thing; supplying the goods needed
    to fulfill orders in the correct sequence to facilitate
    order assembly is the other half of Dematic’s Goods
    to Person (GTP) solution.
    Dematic’s Multishuttle is a new generation solution
    for automated storage and retrieval of cases, totes
    and trays. Designed to enhance the interface be-
    tween bulk storage and functions like order assem-
    bly, the Multishuttle dramatically increases speed,
    accuracy and throughput.
    With sophisticated controls and performance en-
    hancing software, the Multishuttle can interface
    with a wide range of storage media and handling
    containers. Its inherent flexibility enables it to be
    easily adapted to any shape or size of building, in-
    cluding existing facilities.
    Multi-function Multishuttle
    Dematic’s Multishuttle extends the range of appli-
    cations possible with automated storage systems,
    allowing a completely new range of automated so-
    lutions to be developed.
    The Multishuttle differs from conventional ASRS
                                                             The Shuttle Cars             DEMATIC MULTISHUTTLE
    (automated storage and retrieval systems) in that
    instead of a single crane per storage aisle, the         The shuttle car is a         SYSTEM OVERVIEW
                                                             transportation device
    Multishuttle uses intelligent self-propelled carts
                                                             designed to store and
    throughout different levels of the storage system.       retrieve goods in multiple
    The carts ‘shuttle’ goods in and out of the very         levels of storage racks.
    space-efficient storage system, interfacing with an       Each shuttle car runs
                                                             on rails and is equipped
    integrated conveyor system, which transports and
                                                             with grippers used to
    delivers the goods to the pick face in exactly the       handle a wide range of
    correct sequence to facilitate efficient order as-        cartons, trays and totes.
    sembly and load building.                                An incremental encoder
                                                             and sensors ensure highly
    Dematic Multishuttle: How it works                       accurate positioning and
    The Multishuttle buffer storage system houses all        collect power from running
                                                             rails via a bus bar.
    of the stock required to assemble the next batch of
    orders. As items are being picked and sent to the
    pick face, new items are automatically inducted to
    replenish the storage buffer.
    It provides a vital interlink and buffer between bulk
    storage and order fulfillment, ensuring the necessary
    stock to fulfill orders is always on hand, improving
    order fill rates and customer service levels.
     The Multishuttle can operate in two configurations
    – Captive and Roaming.




8   DEMATIC LOGISTICS REVIEW
Multishuttle differs      Dematic Multishuttle Captive for high volume,
                                              from conventional         high throughput
                                              ASRS in that instead      The “Captive” format is ideal for high throughput
                                              of cranes servicing       applications such as order picking and order con-
                                              each aisle, intelligent   solidation buffers. A dedicated shuttle is used at
                                              self-propelled cars       each storage level in every aisle so that retrieval
                                              ‘shuttle’ goods           and put away are handled simultaneously, with up
                                              in and out of the         to 600 double cycles per aisle per hour possible.
                                              system, interfacing
                                              with an integrated        Intelligent controls enable complex sequencing,
                                              conveyor system.          which contributes to flexibility and building store-
                                                                        friendly orders.
                                                                        Dematic Multishuttle Roaming for low to medium
                                                                        throughputs
                                                                        The efficiency of the Multishuttle design is such
                                                                        that the performance of a conventional ASRS can
                                                                        be equaled with just a few shuttles.
                                                                        Dematic’s Roaming Multishuttle meets the needs
                                                                        of low to medium throughput applications while
                                                                        providing maximum flexibility. In the roaming con-
                                                                        figuration, shuttles are not dedicated to a single
                                                                        storage level, but can move between different lev-
                                                                        els via shuttle lifts. As throughput requirements
                                                                        increase, the system capacity can be boosted
                                                                        with the addition of extra shuttles.
                                                                        Real time logistics and software integration
                                  Tote Lift
                                                                        Scheduling and sequencing stock to fulfill a large
    Dematic high speed lifts are located
     in front of each aisle. In the Captive                             number of orders at the same time requires smart
            system they have the function                               software and integrated controls.
          of picking up goods from buffer
                                                                        Dematic’s DC DIRECTOR interfaces with the
   conveyors and delivering them to the
      outfeed level. By handling two at a                               user’s host computer system, typically a ware-
time, each lift offers double throughput                                house management system (WMS) or enterprise
       and optimal system performance.                                  resource planning (ERP) software suite.
In the Roaming system the lift transfers
shuttles between levels and the infeed/
                                                                        Order information downloaded from the host is
                      outfeed conveyors.                                processed and sequenced by DC DIRECTOR to
                                                                        ensure the goods required to assemble orders
        Infeed and Outfeed Conveyors
                                                                        arrive at the pick face in the correct sequence. This
                                                                        includes reverse stacking of containers or pallets
        Goods are fed into and taken                                    to ensure the heaviest goods are located at the
        away from the Multishuttle
                                                                        bottom, or in reverse drop sequence for delivery of
        by highly efficient conveyors
        that can be located at a single                                 mixed orders to multiple locations.
        level or, when throughput                                       Dematic Goods to Person (GTP) solutions
        demands, at multiple levels of
        the Multishuttle system.                                        Dematic is progressively developing the GTP con-
                                                                        cept with several of the world’s leading manufac-
                                                                        turers, retailers and distributors implementing sys-
                                                                        tems with varying degrees of complexity. For real
                                                                        life applications, see the following case studies
                                                                        on Germany’s Ferdinand Gross and UK clothing
                                                                        retailer Next.




                                                                                    DEMATIC LOGISTICS REVIEW                    9
FERDINAND GROSS
     LEINFELDEN-ECHTERDINGEN, GERMANY




     MULTISHUTTLE
     DELIVERS FOR
     FERDINAND GROSS
     Leading German fastener and connectivity technology supplier
     Ferdinand Gross has transformed its supply chain performance
     following the installation of Dematic’s new Multishuttle
     Automated Storage and Retrieval System (ASRS).
     Multiple benefits of Dematic Multishuttle®                Transforming the Kanban supply chain
     Incorporating both types of Dematic’s Multishut-         Customers utilizing Kanban have benefited the
     tle for the first time Worldwide, Ferdinand Gross         most from Ferdinand Gross’ enhanced supply
     has achieved remarkable service improvements             chain, with order fulfillment times being cut from
     including:                                               an average of one week to a single day.
     • A reduction in order processing times, from up         Previously, customers’ shipping containers had          MULTISHUTTLE
       to three and a half hours to as little as 30 minutes   a fixed label, showing article number, article de-       ROAMING
                                                              scription, amount and customer name. Once the                    FERDINAND GROSS
     • The ability to extend daily order cut-off deadlines
                                                              customer emptied the container, Ferdinand Gross                  LEINFELDEN-ECHTERDIN
       by three hours
                                                              would collect and return it to the DC, ready to be
     • Reducing order fulfillment times for Kanban cus-        refilled and shipped out again.
       tomers from one week to one day.
                                                              With the new system, customer containers can
     Multishuttle helps deliver new levels of                 now be relabeled for filling with any product rather
     customer service                                         than waiting for the original empty container to re-
     Improving customer service was a primary ob-             turn to trigger the order. Consequently, return trips
     jective of Ferdinand Gross’ logistics systems up-        with empty boxes can now be bundled, reducing
     grade at its distribution center (DC) in Leinfelder-     the number of trips to and from the customer, fur-
     Echterdingen, Germany.                                   ther cutting transport and handling costs.

     The Multishuttle brings the total number of shelf        Dematic Multishuttle
     storage locations within the DC to 120,000, which        Dematic Multishuttle is a versatile new technology
     is necessary to house the company’s massive              for fast, accurate, automated picking within high-
     product range of 72,000 standard parts, 24,000           density storage systems, making it ideal for sup-
     customer specific parts and 11,000 tools perma-           porting a wide range of manufacturing and lo-
     nently in stock.                                         gistics applications, from kitting and product as-
                                                                                                                      MULTISHUTTLE
     Being able to extend the incoming order cut-off          sembly to order picking and distribution. Instead       CAPTIVE
     time by three hours provides customers with con-         of using cranes in each aisle to pick and trans-
     siderably greater ordering flexibility, and reduced       port goods, Multishuttle uses multiple intelligent
     distribution costs.                                      self-propelled carts, which can roam throughout
                                                              the different levels of the storage systems.
     At a delivery deadline established by the customer,      Increased throughput is achieved by adding extra
     all pending orders in the system are bundled into        carts. The carts automatically ‘shuttle’ goods in and
     a single shipment.                                       out of the densely packed storage system, inter-
     The later order dispatch window made possible            facing with an integrated conveyor, which delivers
     by Multishuttle allows better bundling of individual     the picked items in exactly the correct sequence
     orders, reducing the number of packages to be            to facilitate and significantly improve the produc-
     consigned, and associated transport and other            tivity and accuracy of product or order assembly.
     costs.




10   DEMATIC LOGISTICS REVIEW
Thomas Erb, Chief Executive Officer, Ferdinand Gross,
                  Thomas Erb, Chief Executive Officer, Ferdinand Gross,
                         Ferdinand Gross XXXXXX, XXXXXXXX XXXXXX,
                  Inset: A schematic overview of the Multishuttle system.
                  Inset: A schematic overview of the Multishuttle system.


            Multishuttle roaming               Ferdinand Gross implements world-first                    Multishuttle Captive
            applications are designed          Dematic Multishuttle
            for low to medium                                                                           The Multishuttle Captive area manages order pick-
            throughput and offer               The Multishuttle at Ferdinand Gross has highly           ing of items from the Roaming section, shelf stor-
            the advantage of flexible          dynamic picking with unsurpassed flexibility, due         age system and picking-related logistics.
NGEN, GERMANY
            growth when required.              to its unique installation. This project features the    Here, each level in the aisle is equipped with its own
                                               world’s first installation of Dematic’s two Multi-        shuttle. The shuttles retrieves tote boxes from stor-
                                               shuttle versions – “Captive” and “Roaming” – in          age positions and convey them to a lift at the end of
                                               a single storage system with identical shuttles          the lane. The lift vertically transfers the boxes to the
                                               in both areas. Up to 30 shelf levels are provided        outfeed conveyors, which lead to ergonomically-
                                               within the high density Multishuttle, which is con-      optimized picking stations. Here, sequencing to
                                               tained in an area measuring around 12m high,             customer specification is possible, i.e. delivery of
                                               20m wide and 30m long                                    goods from inventory in the precise sequence that
                                               The Multishuttle consistently provides picking per-      they are needed for picking for the order.
                                               formance in excess of 1,000 picks per hour, typi-        A total of 12 shuttles are operational in the Captive
                                               cally processing around 40 tons each of incoming         area, servicing 5,000 storage positions at a rate of
                                               and outgoing goods each day.                             514 double cycles per hour.
                                               Multishuttle Roaming                                     Multishuttle Benefits
                                               The Multishuttle Roaming system is dedicated pri-        • Space-efficient expansion of storage capacity
                                               marily to the fastest moving items, improving avail-       by 60,000 positions
                                               ability and flexibility.                                  • Improvement in order fulfillment times,
                        Ideal in very high
                throughput applications,       The Roaming system delivers significant optimiza-           extending order cut-off deadlines by three hours
                 Multishuttle captive has      tion and cost-savings compared to conventional           • Improved service performance thanks to the
                         shuttles located
                                               automated small parts picking systems. In the              additional Multishuttle Captive lane
                       at every level in all
                      aisles, serviced by
                                               Roaming area, 20 shuttles service 59,000 stor-           • Automated sequencing to customer
                         high-speed lifts.     age positions at a throughput rate of 615 double           specifications and individual labeling
                                               cycles (parallel put-away and pick operations) per
                                                                                                        • Ergonomic order assembly workstations for
                                               hour. Every aisle contains one shuttle, with the
                                                                                                          improved operator performance and safety
                                               carts transferring between levels via a lift in a mat-
                                               ter of seconds. The self-propelled shuttle carts         • One employee processes the entire order,
                                               run on rails to the selected storage position, and         improving accuracy and traceability
                                               put-away or retrieve the required goods.                 • Modular concept, allowing for future expansion.




                                                                                                                    DEMATIC LOGISTICS REVIEW                       11
NEXT
     YORKSHIRE, ENGLAND




     NEXT & DEMATIC
     PIONEER NEW ERA IN
     ORDER FULFILLMENT
     Next, one of the UK’s leading retailers, has achieved a dramatic
     increase in distribution productivity and capacity at its distribution
     center (DC) in South Elmsall, West Yorkshire following the
     commissioning of a new Goods to Person order fulfillment solution.


12   DEMATIC LOGISTICS REVIEW
300% improvement in pick rates                          The High Rate Put Stations, in contrast, minimize
Designed and implemented by Dematic, the High           the time taken by staff travelling between store
Rate Put Stations have delivered a near-threefold       orders. Operators are fed with a continual supply
increase in order picking rates, along with far         of products, and the ergonomic design of the sta-
greater peak capacity to meet changing business         tions ensures that high productivity is combined
requirements.                                           with minimal physical demands on operators.

High Rate Put Stations: Ergonomically optimized         Thanks to Dematic’s innovative design, Next’s op-
for performance                                         erators now achieve pick rates up to 1,000 items
                                                        per hour depending on the order profile. An addi-
One of the first such systems to be implemented          tional benefit of supplying stock to pickers is that
in the UK, the High Rate Put Stations at Next rep-      errors are substantially reduced, improving accu-
resent a step change in order picking efficiency.        racy and customer service levels.
Dedicated to the company’s fast moving clothing,        Optimizing operator management
footwear, accessories and home product lines, 20
stations fulfill orders for up to 24 stores each.        Dematic’s Labor Management software plays a
                                                        critical role in ensuring the full potential of the sys-
At each High Rate Put Station, an operator is di-       tem is realized. Individual operator performance
rected by pick-to-light (PTL) displays to fulfill a      figures are expressed as a ‘percentage efficiency’,
series of orders, fed by a seamless, sequenced          where 100% efficiency is calculated dynamically
supply of product from storage.                         by the software using standard times for each
Product is automatically delivered to the station’s     task undertaken by the operator.
central picking point from Dematic’s existing auto-     The software is also used to manage a bonus pay-
mated storage and retrieval system.                     ment scheme, which rewards operators for per-
Each station holds up to 24 order totes destined        formance in excess of 100%, thereby addressing
for one of Next’s 500 plus retail outlets.              the tendency for operator productivity to ‘level off’
                                                        when it reaches designated performance targets.
The PTL displays at each location indicate how
many items must be put into each of the order           Equally, the software ensures that managers and
totes, allowing a single operator to work on up to      supervisors have the real-time information ne-
24 store orders at the same time.                       cessary to intervene quickly where individual staff
                                                        members are falling below expected standards.
When an order tote is full, the display instructs the
operator to push it on to a take-away conveyor for      Benefits
transfer to dispatch and loading onto vehicles.         • 300% increase in pick rate
Tripling picking productivity per operator              • Up to 1,000 items per hour per operator
Before the introduction of the High Rate Put Sta-       • Fast, responsive system
tions, Next employed a manual order picking sys-
tem for its fast moving product lines.                  • Very high accuracy

Given the scale of the company’s product range,         • Ergonomically optimized picking
operators had to travel significant distances be-        • Improved OH&S
tween static pick locations. Seasonal peaks in de-
                                                        • Enhanced operator management.
mand could only be met by significantly increasing
the number of pickers employed.




                                                                    DEMATIC LOGISTICS REVIEW                       13
NEWEGG.COM
     EDISON, NEW JERSEY, USA




     BUILDING A NEW DC
     FOR NEWEGG.COM
     INTERNET RETAILING
     With up to 600,000 visitors each day to its website, consumer
     electronics and communications products online superstore,
     Newegg.com is the United States’ second largest online-only
     retailer, generating net sales of more than $2 billion per annum.




                                                               “
     Newegg.com                                                                       Efficient distribution facilitates rapid growth
     Newegg’s success is largely based on providing                                  “Our business had grown so dramatically over the
     its customers with a superior purchasing experi-                                 past couple years that we needed a new DC to
     ence. It offers:                                                                 keep up with it,” said Bob Zelis, Vice President Lo-
                                                                                      gistics, Newegg.com.
     • The industry’s broadest product selection of more
                                                                  Dematic’s
       than 40,000 items                                                             “The New Jersey DC consolidates two smaller op-
                                                                 automation           erations into one large automated facility to better
     • A very user-friendly website
                                                              solution covers         service the eastern states, where we have a sig-
     • Fast and efficient order processing, with 98% of                                nificant customer base.
       orders shipped within one business day.                    our entire
                                                                                     “To optimize fulfillment for our customers, we now
     The company has been ranked within the top ten           operation from          have inventory placed in three DCs throughout the
     retailers in the US for customer service, with more      picking through         country. By locating our DCs in California, Tennes-
     than eight million shoppers rating Newegg as one                                 see and now New Jersey, we are able to service
     of the best online retailers in the world.
                                                                 to shipping.
                                                                                      all of our US customers by way of ground service,
     Internet retail distribution at its best
                                                                  Everything          and get them the best possible shipping cost. Or-

     Inventory capacity, accuracy of order fulfillment
                                                                goes through          ders received by 3:00pm local time are handled
                                                                                      same day enabling customers to receive their
     and speed of order processing are critical to main-        the conveyer          goods within three business days.”
     taining Newegg’s high-profile market position, with        system except
     its latest distribution center (DC) in New Jersey                                Dematic’s end-to-end logistics solution
     representing Internet retail distribution at its best.       for larger,
                                                                                     “After an intensive review of our needs and suppli-
     A showpiece of state-of-the-art logistics, the             bulkier items         ers, we settled on Dematic to handle the design
     33,660sqm DC incorporates some of the industry’s         like televisions.       and system integration for all of the materials han-
     most efficient high-speed materials handling sys-
     tems, including energy-efficient conveyors, pick-
     ing systems with pick-to-light and zone routing,
     pop-up sorters and serialized tracking.
     Designed by Dematic, the DC supports Newegg’s
                                                               “Bob Zelis, Vice
                                                              President Logistics,
                                                                 Newegg.com
                                                                                      dling equipment,” added Mr Zelis.
                                                                                     “We wanted the latest technology to move our
                                                                                      products through the DC, so we could capitalize
                                                                                      on the fastest and most efficient systems. Demat-
                                                                                      ic’s automation solution covers our entire opera-
                                                                                      tion from picking through to shipping. Everything
     existing DCs in California and Tennessee. The
     company also operates five DCs in China.                                          goes through the conveyor system except for larg-
                                                                                      er, bulkier items like televisions.”




14   DEMATIC LOGISTICS REVIEW
Newegg operates on a ‘just in time’ inventory            “Newegg is very tuned in to the comfort of the peo-   Left: Bob Zelis, Vice
model. It does not accept back orders. Once it has        ple who work in its DCs,” said Dematic’s Stewart     President Logistics,
sold out of a product, it instantly takes that item       Resnick.                                             Newegg.com
down from its website. Inventory is closely tracked      “Ambient noise was a concern, but our new con-
all the way through the system using serialized           veyors are very quiet compared to conventional
tracking. If a customer has a problem with a prod-        systems. Modularity, interchangeability of parts,
uct, Newegg can track that specific item right back        ease of maintenance, and low energy usage were
to the receiving purchase order.                          additional features that Newegg liked.”
Fast efficient order fulfillment and tracking              Integrated warehouse control
Orders are also tightly tracked through the system.      Integrating with Newegg’s Warehouse Manage-
They are received through the company’s main             ment System (WMS), Dematic’s warehouse con-
server in California, and routed to the DC closest
                                                         trol system (WCS) - SortDirector, provides ad-
to the delivery address. After an order gets to the
                                                         vanced graphic systems monitoring for the entire
New Jersey DC, it is assigned to a barcoded tote.
                                                         conveying, zone routing and sortation operations.
The tote is automatically transported through a dig-
ital zone-routing pick system equipped with pick-        A full graphical layout of the system clearly dis-
to-light (PTL) technology, only stopping in zones        plays the operating condition of the system com-
where goods are required for the order.                  ponents using color coding, giving operators
                                                         highly detailed and accurate, real-time control of
With the PTL system, the operator scans the bar-
                                                         product movement and reporting.
coded tote. Digital displays located in front of each
stock location from which items are required light       At a glance, users can identify system status
up, letting the operator know which stock keep-          and easily diagnose any material handling equip-
ing units (SKUs) to pick and how many, optimizing        ment issues.
productivity and accuracy, and improving occu-           Benefits
pational health and safety (OH&S).
                                                         • High volume order processing capacity with
High-efficiency, low-noise conveying                        further scope for expansion
The DC utilizes Dematic’s latest energy-efficient         • Fast order processing – 98% of orders shipped
conveyor design, which significantly cuts opera-            within one day
tional noise and maintenance requirements, and
also reduces reliance on oils/lubricants and com-        • High accuracy and improved customer service
pressed air. The conveyor system also has the            • Enhanced delivery – 98% of shipments received
functionality to automatically turn itself off when it     within three days
is not needed, reducing power consumption by up
                                                         • Better productivity and workplace safety.
to 30%, and further cutting maintenance require-
ments and costs.




                                                                                                DEMATIC LOGISTICS REVIEW               15
ELGIGANTEN
     JÖNKÖPING, SWEDEN




     HELPING SWEDEN’S
                                                                                                                 Elgiganten’s
                                                                                                                 Daniel Lundby
                                                                                                                 & Andreas
                                                                                                                 Thimour.




     ELGIGANTEN
     MANAGE E-GROWTH
     The sale of electronics over the internet is booming, especially
     for Elgiganten, with a new pick and pack solution from Dematic
     helping Scandinavia’s leading electronics retailer keep on top of
     50% annual growth rates in its e-retail business.
     Dematic’s integrated solution for Elgiganten          The e-business boom in electronics poses signifi-
     Dematic’s integrated logistics solution enables El-   cant order fulfillment challenges.
     giganten’s central Nordic warehouse in Jönköping,     Rather than processing mostly multi-product ord-
     Sweden to gain close to 100% pick accuracy and        ers for traditional distribution, Elgiganten now
     meet increasingly rigorous demands for picking        handles a constantly increasing volume of single
     efficiency and quality.                                customer orders for just one or a couple of items.
     The warehouse distributes over 4000 products to       To accommodate Elgiganten’s ever growing pro-
     the group’s 247 megastores in Norway, Sweden,         duct range and rapidly changing distribution re-
     Denmark, Finland, Iceland, Greenland and the          quirements, Dematic’s integrated logistics solution
     Faroe Islands, and also fulfills the rapidly growing   provides the necessary flexibility to meet the com-
     volume of direct-to-customer orders.                  pany’s expanding e-business and support its ag-
                                                           gressive growth plans, which include significantly
                                                           increasing the number of outlets in the Nordic re-
                                                           gion over the coming years.




16   DEMATIC LOGISTICS REVIEW
New flexible pick and pack solution                                             Vocollect voice picking integrated by Dematic
“Our e-business channel has been growing at a rate                              The Vocollect Voice terminals maintain wireless




                                                          “
 of 50% per annum, and our product range is also                                real-time contact with the voice control system
 expanding rapidly. We initially contacted Dematic                              and warehouse management system (WMS). The
 with a view to developing a Split Case Module to bet-                          terminal reads out the location and quantity to the
 ter handle these types of orders,” explained Elgig-                            picker, who confirms the completed assignment
 anten’s Development Manager, Andreas Thimour.                                  by reading the last three numbers of the product’s
The Dematic Split Case Module is an ‘island of au-          The areas           EAN code. This ensures the correct product is
tomation’ within the 100,000sqm warehouse.                                      picked, virtually eliminating picking errors.
                                                          Dematic was
It is a zone-routing system in which order cartons                             “The last detail is important because many products
                                                         responsible for        are valuable and, in some cases, will be dis-
are conveyed to the relevant picking zones where
products for the orders are located. Zones that          work perfectly.        patched directly to the end customer,” explained
                                                                                Andreas Thimour.
do not have product required for the order are              They have
skipped. To improve the speed, efficiency and re-                                Voice picking has delivered wide-ranging benefits:
sponsiveness of order fulfillment, the warehouse
                                                         been extremely
                                                                                • Productivity up to 35% over paper or RF picking
is divided into several picking zones.                    professional,
                                                          delivered high        • Almost 100% picking accuracy
Fast and slow movers are picked in separate areas
so that the system and organization can be geared          quality, and         • A reduction in the time spent training new staff
differently to optimize productivity.                                           • Greater job safety and reduced staff turnover.
                                                           were quick
 Voice-directed computing
                                                          to respond to         Flexible use of manpower
Warehouse staff are verbally directed to pick items                            “Since implementing the system in May 2008, we
such as mobile phones, MP3 players, curling irons
                                                          challenges as
                                                                                have continued to optimize and improve its effi-
and digital cameras by voice-directed computing.           they arose.          ciency,” said Project Manager, Daniel Lundby.
The pickers wear a small belt-mounted voice ter-
                                                          Daniel Lundby,
minal and headset with microphone. They receive
clear vocal commands and confirm tasks verbally
via a Voice terminal. Voice picking lets the pickers
keep their hands and eyes free at all times, making
it faster and easier to pick the right products in the
right order, and safer by letting the user concen-
                                                          “
                                                         Project Manager,
                                                            Elgiganten
                                                                               “The areas Dematic was responsible for work per-
                                                                                fectly. They have been extremely professional, de-
                                                                                livered high quality, and were quick to respond to
                                                                                challenges as they arose,” said Mr Lundby.
                                                                               “Productivity and efficiency is maximized with
                                                                                Dematic’s order fulfillment system enabling ware-
trate on product handling.                                                      house staff to be easily redeployed to other duties
Gone is the need for pick lists or RF terminals,                                in other parts of the warehouse,” he said.
which require pickers to use their hands and eyes                              “We can also increase throughput by increasing
to read, navigate and confirm tasks.                                             the number of pickers in the zone routing system
                                                                                during peak periods like Christmas.”



                                                          Elgiganten’s tips to consider when
                                                          implementing new warehouse
                                                          solutions
                                                          Elgiganten’s Daniel Lundby and Andreas Thimour highlight five key
                                                          considerations when implementing new warehouse solutions:
                                                          1. Chart and analyze the product structure beforehand
                                                          2. Be especially aware of system integration between the PLC
                                                             and WMS interfaces. Establish early dialogue and aim for
                                                             the simplest interfaces possible
                                                          3. Be clear about what you want to achieve and the stability of
                                                             the work situation
                                                          4. Be sure to communicate relevant information to operators.
                                                             This can be done by training ‘superusers’ on all shifts and
                                                             by ensuring that they are actively involved in the project
                                                             from start to finish
                                                          5. Establish as clear a transition as possible from the
                                                             implementation team to daily operation, by involving the
                                                             operational organization.




                                                                                            DEMATIC LOGISTICS REVIEW                  17
LECHE PASQUAL
     ARANDA DE DUERO, SPAIN




     NEW LOGISTICS
     PLATFORM FOR
     LECHE PASCUAL
     Dematic and the project team at Grupo Leche Pascual have
     implemented an innovative, three-pronged integrated logistics
     solution to boost the dairy distributors’ supply chain performance
     and provide a platform for growth.




18   DEMATIC LOGISTICS REVIEW
Leche Pascual                                            Together the three automated warehouses provide
Ever since UHT milk in cartons became available,         a total storage capacity of more than 50,000
the history of Grupo Leche Pascual has been one          pallets.
of innovation and quality. Today the group has 12        All three facilities are linked by a mixed system of
production plants, almost 3,000 employees and,           roller track conveyors, plus a total of 76 carriers
in addition to its activities in Spain, has a presence   moving along a monorail circuit.
in over 60 countries.
                                                         Management of the physical flows of pallets,
Aranda Operational Logistics Platform                    storage and retrieval at the silos, and movements
Leche Pascual, which celebrated its 40th anniver-        between them via the cart system, is controlled by
sary last year, has implemented innovative new           Dematic software.
logistics and data management systems to physi-          Dual picking circuit
cally link all storage and planning activities prior
                                                         A dual picking circuit has been implemented for
to order preparation and distribution at its new                                                                Benefits
                                                         order provisioning: the first automated picking
Aranda Operational Logistics Platform.
                                                         system (APS) is located on the upper level of the      • Concentration of
Distribution activities are performed within three       platform, with the second semi-automated system          all order picking,
warehouses, two picking circuits and a dynamic           on the lower level.                                      previously spread
warehouse plus loading bays.                                                                                      across various
                                                         Both picking circuits feature a series of double-
The various systems are connected by an auto-            fixed tables, where complete pallets are set down
                                                                                                                  facilities, into a
mated transport system, with the efficient concept        and from which orders are picked. The carts of the
                                                                                                                  single platform
replacing the use of forklifts.                          lower circuit and the overhead monorail carriers       • Optimization of
Given the complexity of the movements involved,          feed the tables with new pallets, arriving from any      warehouse space
overhead monorail circuits were selected as the          one of the automated warehouse facilities.             • Real time inventory
ideal solution, complemented by 50/70 floor-level         In the APS upper level, the storage and retrieval        management
conveyor belts and elevators.                            of pallets, as well as picking, is automated. This     • Simplified
50,000+ pallets: three automated warehouses              picking circuit prepares multi layer orders using        product loading
                                                         dynamic layer picking robots, irrespective of the
The automated warehouse for yogurts and                                                                           and unloading,
                                                         order scope or layer configuration. The objective
desserts (104m wide, 30m deep and 28m high),                                                                      minimizing
                                                         is to absorb workload peaks and minimize the
provides a storage capacity of 20,000 pallets                                                                     logistics costs and
                                                         need for manual handling.
across two zones. The first is equipped with four                                                                  response times
transelevators and operates at room temperature.         The lower level also features a dynamic ware-          • Better control of
The second also has four transelevators, and             housing section with 15 lanes of double tables and       stored products
operates at 5ºC.                                         a holding capacity of 2,100 pallets. Its purpose
                                                                                                                • Enhanced quality
The new 14,500 pallet capacity buffer warehouse          is to act as a buffer between provisioning and
                                                                                                                  of processes and
(55 x 21 x 35m), located between the UHT ware-           loading the picked pallets and half pallets.
                                                                                                                  customer service
house and the yogurts warehouse, absorbs any             21 high capacity loading bays
storage overflow from these products, as well                                                                    • Improved
                                                         The main loading and unloading area on the lower         overall working
as products coming from other plants within the
                                                         floor has 21 unloading bays, eight of which are           environment,
group. It is equipped with three double-depth
                                                         equipped with an automated loading system (ATLS)         eliminating the
transelevators, two operating at room temperature
                                                         to enhance productivity and the efficiency of             potential for
and the third in a refrigerated area.
                                                         goods receipt/dispatch.                                  human error.
The 15,600 pallet capacity UHT milk warehouse
(76x35x21m) has a further eight transelevators.




                                                                                                 DEMATIC LOGISTICS REVIEW               19
ZUELLIG PHARMA
     SELANGOR, MALAYSIA




                                Maikel Kuijpers,
                                Chief Operating
                                 Officer, Zuellig
                               Pharma Malaysia




     TRACEABILITY &
     ACCURACY KEY FOR
     ZUELLIG PHARMA
     To help Zuellig Pharma, one of Asia Pacific’s leading pharmaceutical and healthcare
     product distributors, and the largest in Malaysia, meet growing throughput and
     service level requirements, Dematic implemented an order fulfillment system at its
     24,000sqm DC situated at Bukit Jelutong, outside of Kuala Lumpur.
                          Zuellig’s order fulfillment challenge                     Dematic’s integrated logistics solution
                          Since the new order fulfillment system has been           The key to Dematic’s integrated logistics system
                          operational, Zuellig has achieved a dramatic in-         is its PickDirector software, a fully integrated
                          crease in picker productivity together with signifi-      order fulfillment system that seamlessly interfaces
                          cant improvements in accountability and inventory        with Zuellig’s host computer system. PickDirector
                          traceability. Today, Zuellig handles more products       uses wireless mobile terminals to direct split case,
                          and orders, more accurately, at less cost.               full case and pallet picking.
                          Zuellig Pharma has experienced significant busi-          It also manages an automated conveying system,
                          ness growth in Malaysia in an industry which de-         which provides zone routing through split case
                          mands accuracy, traceability and speed.                  picking zones, together with check weighing and
                                                                                   sortation of outbound shippers.
                          Zuellig’s distribution is dominated by split case
                          picking for a very large number of small orders, with    Accuracy improved with paperless picking
                          many for only one or two items. Picking and ass-
                                                                                   The use of paperless picking technologies for or-
                          embling small order quantities like these is labor
                                                                                   der fulfillment has virtually eliminated picking er-
                          intensive and costly, and presented the biggest
                                                                                   rors throughout the operation, improving custom-
                          opportunity for Zuellig to gain significant improve-
                                                                                   er service and reducing distribution costs.
                          ments in productivity, accuracy and accountability.
                                                                                   With PickDirector, operators are instructed to fol-
                          “In healthcare, it is vital that errors are kept to an
                                                                                   low picking paths that minimize travel.
                           absolute minimum. The extremely high level of
                           accuracy provided by Dematic’s order fulfillment         Hand-held and wearable RF terminals are used to
                           system has allowed us to greatly improve our            scan and validate each item and its batch number,
                           overall distribution operations and customer serv-      ensuring the highest levels of productivity, accur-
                           ice levels,” said Maikel Kuijpers, Chief Operating      acy and traceability during picking.
                           Officer, Zuellig Pharma Malaysia.




20   DEMATIC LOGISTICS REVIEW
Intelligent conveyors keep goods on the move
The space efficient multi-tier split case picking
area consists of several picking zones serviced by
an integrated conveyor system, which interfaces
with PickDirector.
The intelligent conveyor system transports, routes
and diverts orders to only those zones where
items are required, bypassing those with no pick-
ing requirements, reducing picker travel and order
processing time. Picked orders are automatically
transported by the conveyor system to the down-
stream checking, packing and dispatch areas.
Global order induction boosts productivity
and throughput
Dematic’s PickDirector supports global induction,
which enables operators to start an order any-
where within the system. This enables operators
to “pull” work to them, rather than waiting for it to
arrive, improving operator utilization, productivity
and throughput.
Pick locations for fast moving split case products
are arranged in compact zones of high-density car-
ton flow racks, which provide a large online buffer
of picking stock and separates pickers from re-




                                                          “
plenishment operators.                                                       Improvements in bulk
When picking in the zone is complete, the picked                             Full pallet and full case picking instructions are dis-
items are placed into totes, which are pushed onto                           tributed to operators working in the bulk area via
a powered takeaway conveyor.                                                 RF terminals. PickDirector automatically batches
                                                                             full case picking requirements by delivery route
Slower moving products are stored in shelving loca-      In healthcare,      into pallet-sized picking tasks.
tions on the mezzanine level, achieving efficiencies
by clustering multiple orders together for concur-        it is vital that   By picking the requirements for several orders with
rent picking.                                           errors are kept      a single pass of the pick face, picker productivity
                                                                             is improved. Dispatch labels required for tracking
Weighing-in with outstanding accuracy                    to an absolute      and delivery purposes are automatically printed in
Totes on the conveying system are automatically             minimum.         the correct sequence and applied, scanned and
transported over an in-line weigh scale, with Pick-                          validated during picking.
                                                         The extremely
Director checking that the weight of the contents
in each tote is correct and recording it for account-        high level      Real time tracking and management information
ability purposes. Totes failing the weight check are       of accuracy       Apart from accuracy and productivity improvements,
diverted to a Quality Control (QC) station for fur-                          Zuellig also benefits from the real time information
ther inspection.
                                                           provided by       and management tools provided by PickDirector.
Efficient and accurate dispatch
                                                            Dematic’s        It allows workload progress monitoring and pro-
                                                                             vides the ability to “drill down” and track:
Beyond the weighing and QC station, totes are trans-
                                                        order fulfillment
                                                           system has        • The progress of each order
ported to a packing area, where operators pack
items into cartons or bags for dispatch.                  allowed us to      • Order and container contents
A PickDirector terminal is used to print dispatch       greatly improve      • Every pick performed by each operator.
labels and track the items packed into each ship-                            This provides visibility and traceability across the
ping container.                                             our overall
                                                                             entire operation, enabling Zuellig to accurately
Completed shipments are placed on a takeaway               distribution      record and monitor operator performance and
conveyor and transported to the sorter, where               operations       other KPIs.
they are automatically scanned and diverted into         and customer        Benefits
decline conveyor lanes leading to security-caged
dispatch areas.                                          service levels.     • Up to 50% increase in picker productivity

The sorter is installed overhead so that the space       Maikel Kuijpers,    • Increased throughput capacity
below can be used for operational activities.             “
                                                         Chief Operating
                                                          Officer, Zuellig
                                                         Pharma Malaysia
                                                                             • Better space efficiency
                                                                             • Higher accuracy
                                                                             • Inventory traceability
                                                                             • Supply chain accountability.




                                                                                         DEMATIC LOGISTICS REVIEW                      21
PRODUCT, TECHNOLOGY
     & SOFTWARE REVIEW



     DEMATIC MIXED CASE
     PALLETIZING SOLUTIONS




     AMCAP: Auto Mixed Case Palletizing                   Dematic offers
                                                          automated and
     Automated mixed case palletizing (AMCAP)             manual mixed case
     automatically builds mixed-product pallets,          palletizing solutions.
     addressing the latest requirements by companies
     particularly in the retail, grocery, food and                                 ErgoPall: Manual
     beverage, and manufacturing industries.                                       Mixed Pallet
     With a sophisticated gripper, AMCAP can handle                                Assembly
     over 10,000 different items including small boxes,                            ErgoPall enables
     cans, and jars in cardboard trays, open and                                   operators to
     closed cartons, beverages and sacks.                                          ergonomically build
     Integrated software and materials handling                                    mixed product pallets
     equipment control the constant cycle of feeding,                              or rollcages.
     grabbing and placing articles, achieving                                      Incorporating the
     impressive throughput rates. Intelligent software                             same software and
     calculates the way the pallet needs to be built to                            controls as AMCAP,
     suit customer requirements.                                                   sequenced cases are
     Dematic’s PalletGenDirector uses 16 different                                 delivered to operators
     attributes of the product (length, width, height,                             who simply slide the
     weight, crushability, etc.) as well as specific                                cases into position.
     delivery requirements (i.e. aisle position) to                                Lifting is virtually
     determine the build sequence for each pallet.                                 eliminated and, as
     The necessary goods are picked, buffered and                                  each layer of cases
     automatically delivered to AMCAP in the exact                                 is completed, the
     sequence to facilitate pallet building, with the                              pallet or roll cage
     robots operating at a rate of more than 1,000                                 automatically drops
     mixed-SKU cases per hour.                                                     down, allowing
     Once stacking is complete, the completed pallet                               assembly of the
     is lowered through the mezzanine floor with a lift,                            next layer to begin,
     and has a label applied as it comes out on the                                significantly improving
     outbound conveyor.                                                            safety and throughput.




22   DEMATIC LOGISTICS REVIEW
Your system can be upgraded with new versions
of controls and software



Modernization programs for material
handling systems, facilities, & operations
Dematic has introduced      upgrades. For facilities,
a suite of modernization    the suite offers re-
products and services       lamping or lighting
designed to increase        upgrades, arc flash
productivity and            analysis, and energy
reduce operating            management. For
costs. The offering         operations, the suite
includes a wide variety     includes operations
of solutions arranged       assessments,
in three categories:        maintenance audits,
material handling           preventative maintenance
                                                        Optimizing manual case picking with Laser Trucks+Voice
systems, facilities and     services and resident       Automating warehouse trucks and pallet movers with the latest laser guidance
operations. For material    maintenance programs.       technology can significantly improve warehouse productivity and safety.
handling systems, the       For more information,
suite includes sorter       go to the Customer          Dematic’s Laser Trucks+ eliminate many of the non-value adding tasks asso-
repair/rebuild kits,        Service page at             ciated with case picking. Pickers don’t need to constantly get on/off or drive a
replacement rollers,        www.dematic.us, and         warehouse truck, letting them focus entirely on the task of picking.
motorized roller retro-fit   reference “Modernization    Laser Trucks+ automatically retrieve new shipping pallets and deliver them to
kits, powered pulley        & Upgrades, Products        the picker, and take away completed pallets to dispatch.
upgrades, conveyor          & Services.”
                                                        Within the pick aisle, Laser Trucks+ automatically move with the operator to
replacements and
                                                        the next pick location, enabling fast and safe mixed case order assembly.
software/controls
                                                        When combined with voice-directed computing, Laser Trucks+ have the
                                                        potential to more than double picking productivity.




                                                                                              DEMATIC LOGISTICS REVIEW                     23
Dematic Logistics Review #1

Mais conteúdo relacionado

Semelhante a Dematic Logistics Review #1

Dematic Logistics Review #4
Dematic Logistics Review #4Dematic Logistics Review #4
Dematic Logistics Review #4
hagenbucksw
 
dematic-logistics-review-issue-9
dematic-logistics-review-issue-9dematic-logistics-review-issue-9
dematic-logistics-review-issue-9
scottcottingham
 
NEW PERSPECTIVES FOR ENERGY UTILITIES
NEW PERSPECTIVES FOR ENERGY UTILITIES NEW PERSPECTIVES FOR ENERGY UTILITIES
NEW PERSPECTIVES FOR ENERGY UTILITIES
CGI
 

Semelhante a Dematic Logistics Review #1 (20)

Dematic Logistics Review #4
Dematic Logistics Review #4Dematic Logistics Review #4
Dematic Logistics Review #4
 
Dematic Logistics Review #3 R 2
Dematic Logistics Review #3 R 2Dematic Logistics Review #3 R 2
Dematic Logistics Review #3 R 2
 
Dematic Logistics Review #3 R 2
Dematic Logistics Review #3 R 2Dematic Logistics Review #3 R 2
Dematic Logistics Review #3 R 2
 
Dematic Logistics Review Volume3
Dematic Logistics Review Volume3Dematic Logistics Review Volume3
Dematic Logistics Review Volume3
 
DLR #10
DLR #10DLR #10
DLR #10
 
DEMATIC logistics review 7
DEMATIC  logistics review 7DEMATIC  logistics review 7
DEMATIC logistics review 7
 
dematic-logistics-review-issue-9
dematic-logistics-review-issue-9dematic-logistics-review-issue-9
dematic-logistics-review-issue-9
 
Collaboration in Supply Chain Networks: #4 Think Ecosystems
Collaboration in Supply Chain Networks: #4 Think EcosystemsCollaboration in Supply Chain Networks: #4 Think Ecosystems
Collaboration in Supply Chain Networks: #4 Think Ecosystems
 
NEW PERSPECTIVES FOR ENERGY UTILITIES
NEW PERSPECTIVES FOR ENERGY UTILITIES NEW PERSPECTIVES FOR ENERGY UTILITIES
NEW PERSPECTIVES FOR ENERGY UTILITIES
 
The IoT-CSX Transformation
The IoT-CSX TransformationThe IoT-CSX Transformation
The IoT-CSX Transformation
 
Class Discussion (ERP Vendors)
Class Discussion (ERP Vendors)Class Discussion (ERP Vendors)
Class Discussion (ERP Vendors)
 
Smart Factory Logistics
Smart Factory LogisticsSmart Factory Logistics
Smart Factory Logistics
 
ORSYP - About US
ORSYP - About USORSYP - About US
ORSYP - About US
 
Agile Network India | Industry 4.0 - Digital Agility Vade Mecum | Atul Jadhav
Agile Network India | Industry 4.0 - Digital Agility Vade Mecum | Atul JadhavAgile Network India | Industry 4.0 - Digital Agility Vade Mecum | Atul Jadhav
Agile Network India | Industry 4.0 - Digital Agility Vade Mecum | Atul Jadhav
 
Brochure : The EMC Big Data Solution
Brochure : The EMC Big Data Solution Brochure : The EMC Big Data Solution
Brochure : The EMC Big Data Solution
 
ESG Lab Report - Catalogic Software DPX
ESG Lab Report - Catalogic Software DPXESG Lab Report - Catalogic Software DPX
ESG Lab Report - Catalogic Software DPX
 
Enterprise Integration of Disruptive Technologies
Enterprise Integration of Disruptive TechnologiesEnterprise Integration of Disruptive Technologies
Enterprise Integration of Disruptive Technologies
 
Services Brochure - Keystone Logic
Services Brochure - Keystone LogicServices Brochure - Keystone Logic
Services Brochure - Keystone Logic
 
Media & Entertainment Solutions via Innovative IT
Media & Entertainment Solutions via Innovative ITMedia & Entertainment Solutions via Innovative IT
Media & Entertainment Solutions via Innovative IT
 
Dupont Customer Success Story - Enterprise Inventory Optimization
Dupont Customer Success Story -  Enterprise Inventory OptimizationDupont Customer Success Story -  Enterprise Inventory Optimization
Dupont Customer Success Story - Enterprise Inventory Optimization
 

Último

Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...
Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...
Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...
amitlee9823
 
Call Girls In DLf Gurgaon ➥99902@11544 ( Best price)100% Genuine Escort In 24...
Call Girls In DLf Gurgaon ➥99902@11544 ( Best price)100% Genuine Escort In 24...Call Girls In DLf Gurgaon ➥99902@11544 ( Best price)100% Genuine Escort In 24...
Call Girls In DLf Gurgaon ➥99902@11544 ( Best price)100% Genuine Escort In 24...
lizamodels9
 
Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...
Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...
Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...
lizamodels9
 
Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...
Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...
Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...
amitlee9823
 
Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...
Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...
Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...
daisycvs
 
unwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabi
unwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabiunwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabi
unwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabi
Abortion pills in Kuwait Cytotec pills in Kuwait
 
Call Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service Bangalore
Call Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service BangaloreCall Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service Bangalore
Call Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service Bangalore
amitlee9823
 

Último (20)

Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...
Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...
Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...
 
Call Girls In DLf Gurgaon ➥99902@11544 ( Best price)100% Genuine Escort In 24...
Call Girls In DLf Gurgaon ➥99902@11544 ( Best price)100% Genuine Escort In 24...Call Girls In DLf Gurgaon ➥99902@11544 ( Best price)100% Genuine Escort In 24...
Call Girls In DLf Gurgaon ➥99902@11544 ( Best price)100% Genuine Escort In 24...
 
BAGALUR CALL GIRL IN 98274*61493 ❤CALL GIRLS IN ESCORT SERVICE❤CALL GIRL
BAGALUR CALL GIRL IN 98274*61493 ❤CALL GIRLS IN ESCORT SERVICE❤CALL GIRLBAGALUR CALL GIRL IN 98274*61493 ❤CALL GIRLS IN ESCORT SERVICE❤CALL GIRL
BAGALUR CALL GIRL IN 98274*61493 ❤CALL GIRLS IN ESCORT SERVICE❤CALL GIRL
 
Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...
Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...
Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...
 
Business Model Canvas (BMC)- A new venture concept
Business Model Canvas (BMC)-  A new venture conceptBusiness Model Canvas (BMC)-  A new venture concept
Business Model Canvas (BMC)- A new venture concept
 
Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...
Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...
Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...
 
Falcon Invoice Discounting platform in india
Falcon Invoice Discounting platform in indiaFalcon Invoice Discounting platform in india
Falcon Invoice Discounting platform in india
 
It will be International Nurses' Day on 12 May
It will be International Nurses' Day on 12 MayIt will be International Nurses' Day on 12 May
It will be International Nurses' Day on 12 May
 
Mondelez State of Snacking and Future Trends 2023
Mondelez State of Snacking and Future Trends 2023Mondelez State of Snacking and Future Trends 2023
Mondelez State of Snacking and Future Trends 2023
 
How to Get Started in Social Media for Art League City
How to Get Started in Social Media for Art League CityHow to Get Started in Social Media for Art League City
How to Get Started in Social Media for Art League City
 
Call Girls In Panjim North Goa 9971646499 Genuine Service
Call Girls In Panjim North Goa 9971646499 Genuine ServiceCall Girls In Panjim North Goa 9971646499 Genuine Service
Call Girls In Panjim North Goa 9971646499 Genuine Service
 
Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...
Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...
Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...
 
Call Girls Ludhiana Just Call 98765-12871 Top Class Call Girl Service Available
Call Girls Ludhiana Just Call 98765-12871 Top Class Call Girl Service AvailableCall Girls Ludhiana Just Call 98765-12871 Top Class Call Girl Service Available
Call Girls Ludhiana Just Call 98765-12871 Top Class Call Girl Service Available
 
Katrina Personal Brand Project and portfolio 1
Katrina Personal Brand Project and portfolio 1Katrina Personal Brand Project and portfolio 1
Katrina Personal Brand Project and portfolio 1
 
Value Proposition canvas- Customer needs and pains
Value Proposition canvas- Customer needs and painsValue Proposition canvas- Customer needs and pains
Value Proposition canvas- Customer needs and pains
 
unwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabi
unwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabiunwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabi
unwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabi
 
(Anamika) VIP Call Girls Napur Call Now 8617697112 Napur Escorts 24x7
(Anamika) VIP Call Girls Napur Call Now 8617697112 Napur Escorts 24x7(Anamika) VIP Call Girls Napur Call Now 8617697112 Napur Escorts 24x7
(Anamika) VIP Call Girls Napur Call Now 8617697112 Napur Escorts 24x7
 
B.COM Unit – 4 ( CORPORATE SOCIAL RESPONSIBILITY ( CSR ).pptx
B.COM Unit – 4 ( CORPORATE SOCIAL RESPONSIBILITY ( CSR ).pptxB.COM Unit – 4 ( CORPORATE SOCIAL RESPONSIBILITY ( CSR ).pptx
B.COM Unit – 4 ( CORPORATE SOCIAL RESPONSIBILITY ( CSR ).pptx
 
Dr. Admir Softic_ presentation_Green Club_ENG.pdf
Dr. Admir Softic_ presentation_Green Club_ENG.pdfDr. Admir Softic_ presentation_Green Club_ENG.pdf
Dr. Admir Softic_ presentation_Green Club_ENG.pdf
 
Call Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service Bangalore
Call Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service BangaloreCall Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service Bangalore
Call Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service Bangalore
 

Dematic Logistics Review #1

  • 1. Issue 1 POSITIVE APPROACH Pick more with Negative-PUT picking L GISTICS BUFFER STORAGE REVIEW Sequencing stock for high rate picking PRODUCT REVIEW Logistics technology & software update NEXT: UK Ergonomic Fashion & Apparel Distribution FERDINAND GROSS: GERMANY The World’s First Multishuttle Goods to Person Solution NEWEGG.COM: USA & ELGIGANTEN: SWEDEN High Performance E-logistics COCA-COLA AMATIL: AUSTRALIA DEMATIC DELIVERS RECORD PICK RATES FOR COCA-COLA DEMATIC LOGISTICS REVIEW Creating Logistics Results
  • 2. WELCOME TO YOUR WINDOW TO WORLD’S BEST PRACTICE LOGISTICS Welcome to Dematic Logistics Review. We hope you find this publication and interesting and valuable resource for keeping up to date with the latest logistics and supply chain news, case studies, research, product, technology and software developments from around the world. I am delighted to introduce the first issue of our Dematic Goods to Person delivers the goods new global magazine Dematic Logistics Review. With systems already in operation and many more Dematic has provided many impressive logistics underway, Dematic is challenging convention solutions and in this issue you will find examples with the development of ‘Goods to Person’ (GTP) of best practice logistics. I am confident that order fulfillment strategies and technologies for through innovation and our proven track record high volume distributors. we will to continue to deliver outstanding logistics results for our customers throughout the world. Our Dematic Multishuttle® automated storage buffer, picking and sequencing system interfaced Investing in innovation with ergonomic workstations delivers safe, accu- As a platform for growth, we are increasing our rate, high-rate, high-productivity picking across a investment in Research and Development. wide range of industries and applications. Dematic sees significant innovation potential in Case studies on retail clothing giant Next from order fulfillment and will continue to focus R&D the UK and German industrial supplier Ferdinand investment in this area. Gross demonstrate the amazing accuracy, pro- ductivity and throughput possible with GTP. If GTP is new to you, make sure you see our exclu- sive GTP feature article, which outlines what GTP is, how it works and Multishuttle’s role in picking, buffering and sequencing stock to optimize order assembly efficiency and accuracy, while eliminat- ing travel and reducing the physical impact of pick and pack operations. 2 DEMATIC LOGISTICS REVIEW
  • 3. Contents Cover Story: Coca-Cola Amatil, Australia 4-6 Technology Feature: Goods to Person 7-9 Case Study: Ferdinand Gross, Germany 10-11 Case Study: Next, United Kingdom 12-13 Case Study: Newegg.com, USA 14-15 Case Study: Elgiganten, Sweden 16-17 Case Study: Leche Pascual, Spain 18-19 Case Study: Zuellig Pharma, Malaysia 20-21 Product, Technology & Software Review 22-23 About Dematic Dematic is one of the world’s leading suppliers of logistics automation sys- tems 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 distri- bution, 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 com- mitment worldwide. Globally the company employs around 3,000 people. Innovative E-business order fulfillment The DC features the world’s first application of De- We also profile how two leading e-retailers on matic’s patented Negative-PUT technology and either side of the Atlantic – Newegg.com from software for maximizing the efficiency and opti- the USA and Sweden’s Elgiganten – tackle the mizing the safety of mixed pallet order assembly. challenge of high-volume, high-service direct-to- By pairing like orders, Negative-PUT allows pick- consumer distribution in the booming e-business ers to fulfill two or more picks with one, enabling sector. It is interesting to compare how Dematic’s high productivity rates of 1400 picks/hour to be solutions for customers differ significantly in the achieved through ergonomic workstations. design and technologies applied, to best suit World’s first SAP software integration for SFS local market dynamics and each company’s busi- Dematic has also developed the world’s first ness needs and budget. interface to SAP EWS (Extended Warehouse Accuracy and traceability key drivers of System) and MFS (Material Flow System) for pharmacy DC design Swiss industrial supplier SFS Unimarket, elimi- nating the need for middleware, making SAP’s Roar Isaksen, Picking orders accurately and keeping track of President & CEO, them at all stages of the supply chain are key R/3 Enterprise Resource Planning system a true ‘end to end solution’. Look for details of this ex- Dematic drivers in pharmacy distribution. The small quantities required for many orders adds to the citing breakthrough in the next issue of Dematic challenge. Logistics Review. Dematic’s integrated order fulfillment system for Our success illustrates the importance of knowl- Malaysia’s largest distributor, Zuellig Pharma, edge, innovation and the ability to deliver a ro- achieves the accuracy, productivity, throughput bust solution. Our team of logistics professionals and traceability required through the use of smart is second to none in the industry. technologies, software and controls. With our unique mix of innovative products and How a negative approach is achieving record solutions, superior planning and project manage- productivity for Coca-Cola ment competence, we are confident Dematic will continue to grow and help our customers prosper Our cover story reports on how Coca-Cola is now and into the future. achieving record picking rates at its new Route Trade distribution center (DC) in Sydney. Roar Isaksen, President & CEO, Dematic DEMATIC LOGISTICS REVIEW 3
  • 4. COVER STORY COCA-COLA AMATIL SYDNEY, AUSTRALIA Dematic’s David Rubie with CCA’s Major Projects Manager Grant McClean. RECORD PRODUCTIVITY FOR COCA-COLA Pickers at Coca-Cola Amatil’s new distribution center at Eastern Creek in Sydney are achieving phenomenal rates of more than 1400 picks/hour thanks to Dematic’s new Negative-PUT concept. Industry recognition for Dematic’s world Negative-PUT: Killing two birds with one stone “ breakthrough Dematic’s new Negative-PUT process optimizes Coca-Cola Amatil (CCA) was presented with the case picking productivity in mixed pallet order prestigious Manufacturing Logistics Award at the assembly by pairing suitable orders and fulfilling Supply Chain & Logistics Association of Australia’s them through ergonomically designed ‘Goods to recent national awards ceremony in Melbourne. Person’ pick modules. Dematic’s patented Negative-PUT software re-sequences orders to The award recognizes the achievements of CCA’s generate the highest quantity of negative pick supply chain remodeling program, Project Jupi- ter, which has substantially improved order fulfill- The net effect of opportunities and the optimum order fulfillment sequence for any batch of orders, creating sub- ment efficiency, reduced distribution and trans- Negative-PUT stantial productivity gains. port costs, and cut greenhouse gas emissions. is that around “Around 70% of the DC’s orders pass through the A key element of Project Jupiter was the construc- 20% of the Negative-PUT module, with about 35% of the or- tion of a new distribution center (DC) at Eastern Creek to service CCA’s 14,000 Route Trade cus- cases for mixed ders complete when they exit,” explained Grant McClean, CCA’s Major Projects Manager. tomers in New South Wales from Bega to Coffs pallet orders Harbour, an area covering about 1000km. “The net effect of Negative-PUT is that around are dispatched 20% of the cases for mixed pallet orders are dis- Route Trade customers range from corner stores without ever patched without ever being picked,” he said. and convenience shops to service stations, small grocery and fresh food outlets, as well as an in- being picked. Other key Dematic solutions include: creasing number of liquor shops and wholesalers, Grant McClean, Inbound Logistics: RO-RO auto truck unloading and account for close to half of CCA’s throughput Major Projects during the summer peak. Within just eight weeks of operation, CCA was achieving record-breaking productivity rates of more than 1400 picks/hour at the Eastern Creek DC thanks to an innovative new order picking “ Manager CCA More than 95% of the stock is delivered from CCA’s Northmead production plant. To ensure efficient goods receiving and minimize forklift operations, the DC features three roll-on, roll-off (RO-RO) au- tomated ‘skate-type’ truck unloading docks, each capable of unloading 22 pallets in under 15 minutes. methodology developed by Dematic. Pallets are automatically scanned, check-weighed and transported by integrated pallet conveyor to a pick-up station near their reserve storage put- away location. 4 DEMATIC LOGISTICS REVIEW
  • 5. NEGATIVE-PUT PICKING: HOW IT WORKS Inbound Logistics: Three RO-RO automated truck unloading docks provide rapid turnaround of vehicles delivering to the DC. The integrated pallet conveyor delivers full pallets with picking stock and empty pallets to the Negative-PUT pick module operators. Dematic’s new Negative-PUT system optimizes case picking in mixed pallet order fulfillment by taking advantage of a practice used by expe- rienced pickers to reduce their workload. Smart pickers occasionally notice that among the orders they have a couple with which they can ‘kill two birds with one stone’, or, in this case, complete two orders with one pick. However, the practice tends to be opportunistic and a systematic ap- proach can identify all negative pick opportunities. The productivity gains which can be made by matching like orders and picking them in a high rate pick module are very substantial. Dematic’s patented Negative-PUT software uses a number of complex algorithms to re-sequence orders to generate the highest quantity of negative pick opportunities and the optimum order fulfillment sequence for any batch of orders. Each time a new order is to be picked, integrated pallet conveyors au- tomatically deliver two full pallets (donor pallets) and two empty pallets (put pallets). Large screen workstations provide clear visual instruc- tions for the operators, with Dematic’s Negative-PUT software direct- ing the picker to take a quantity of cases from the first donor pallet and place it onto the first put pallet. They may then be asked to take a further quantity of stock and place it onto the second put pallet. They may then be instructed to remove a quantity of cases from the second donor pallet and place them to the first and second put pallets. In this example, the Negative-PUT process has completed four work or- ders with the minimum possible number of case movements. The stock quantity on the two donor pallets now matches that required to fulfill two orders, while the cases on the put pallets form the base pallets to which any remaining items required for the two orders will be picked conventionally. Check-weighers confirm the operator has picked the correct number of pallets, and the conveyor transports the pallets to the outfeed station. Large screens direct the pick module operators to transfer stock from the ‘donor’ pallets to the ‘put’ pallets. DEMATIC LOGISTICS REVIEW 5
  • 6. Outbound Logistics: Faster, safer truck loading “The Auto Dispatch System (ADS) gives CCA the ability to pre-pick, assemble and stage orders,” explained Dematic’s David Rubie. The ADS features a Pallet Runner satellite stor- age system with 144 lanes, each capable of stor- ing up to 12 pallets, the typical capacity of CCA’s Route Trade delivery fleet. “This means the ADS can stage the orders for up to 144 truckloads at any one time, which provides a buffer of around 16 hours during peak periods,” said Mr Rubie. “Staging orders takes order assembly off the crit- ical path, ensures efficient, reliable truck load- ing, and minimizes truck turnaround time in the busy dispatch area.” Completed orders are taken to the ADS by OH&S Initiatives: A safer workplace forklift and pallet truck. Once loaded onto the The DC incorporates a number of innovative Voice directed ADS infeed, all pallet handling is automated. storage design features including wider than computing is used The ADS features a 144 lane Pallet Runner normal aisles, a higher first beam level plus for all other case satellite storage system, enabling CCA to additional space between and around pallets. picking activities. stage orders for up to 144 truck loads at any Wider aisles ensure safer forklift and pallet one time, providing a buffer of around 16 truck flow and more space around the pick face hours during peak periods. which provides quicker and easier access to stock whether it is at the front or rear of a pallet, reducing the potential for the picker to trip or stumble while reaching for and lifting cases. The remodeling of CCA’s supply chain has in- volved capital expenditure of $180 million and provides CCA with the ability and capacity to store and deliver forecast volumes until 2015. CCA opted for the semi-automated Pallet Runner for its outbound logistics because of its inherent flexibility, with throughput easily increased with the addition of extra Pallet Runner carts and forklift operators. Benefits CCA’s Eastern Creek DC has substantially improved the efficiency of CCA’s mixed pallet order fulfillment. As well as reducing distribution and transport costs, CCA expects the DC to provide consistent productivity and throughput gains of around 20% to 30%. Other key benefits and savings include: • Elimination of 20% of all physical case picks • Improved customer service through increased pick and invoice accuracy and pallet build quality • Fewer errors, reduced returns and damage • Substantial reduction in truck mileage from old supply chain to new, with significant reductions in greenhouse gas emissions • Automated RO-RO truck unloading with integrated pallet conveyor infeed • Innovative, ergonomically-designed, high-rate Negative-PUT module • Wireless Bluetooth-enabled voice-directed computing for order picking • Faster, safer, more efficient order staging and truck loading with ADS • Numerous OH&S initiatives aimed at maintaining a safer workplace • Integrated IT including WMS, Negative-PUT and voice-directed computing • Satisfies CCA’s NSW supply chain requirements until 2015. 6 DEMATIC LOGISTICS REVIEW
  • 7. TECHNOLOGY GOODS TO PERSON ORDER FULFILLMENT Most order pickers actually spend much more time travelling between picks than they do picking – even if they are equipped with forklifts or pallet trucks – adding significantly to distribution costs. DEMATIC GTP F0R FASTER, SAFER ORDER FULFILLMENT “ Goods to Person order assembly High Rate Put Stations for fast movers So imagine how much more efficient, productive Dematic High Rate Put Stations can be an ideal and safe your order picking team would be if solution for fast moving product lines. Directed by the goods they needed to fulfill orders came to Pick-to-Light (PTL) or Voice, pickers fulfill batches them, instead of them having to go, find and of orders without having to leave their workstation. transport the goods. This is only possible where sophisticated sequenc- Directed by PTL ing software and controls seamlessly supply the The principle of Goods to Person (GTP) picking is not new. But changes in government regulations, or Voice, pickers right stock to the Put Station, precisely when it is fulfill batches of needed to match a corresponding order. Human combined with advances in technology and soft- errors are virtually eliminated and productivity is ware, are increasingly making GTP a very attrac- orders without optimized, with pick rates of up to 1,000 items per tive option for many distribution operations. leaving their hour possible. This is suited to high volume ap- Dematic’s innovative semi-automated GTP distri- plications where the same product line is needed bution solutions comprise two key sub-systems: workstation. to fulfill several orders, such as for retail grocery, This is only apparel or publishing outlets. • Ergonomically designed, manually operated Pick and Put Stations for high rate order fulfill- possible where High Rate Pick Stations for slower movers ment (1,000+ picks/hour across several hundred sophisticated The High Rate Pick Station is also suited to the re- line items): and sequencing quirements of slow moving product lines within a • Automated buffer storage systems which se- software DC. Fed by Dematic’s new high throughput Multi- quence and transport the required items to shuttle storage and retrieval engine, these stations Pick and Put Stations in the correct order to and controls can deliver pick rates of up to 700 lines per hour. facilitate efficient order assembly. seamlessly This means one person at a pick station can do Ergonomic Pick and Put Stations supply the right the work of up to ten people in a traditional picking environment. Furthermore, the space efficiency of Dematic has developed and implemented Ergo- stock to the the GTP solution means the building footprint may nomic Pick and Put Workstation configurations workstation, be reduced by up to 50%. capable of fulfilling multiple orders concurrently. precisely when How Dematic Pick and Put Stations work Workstations can facilitate split case picking, with it is needed Empty order totes and full inventory totes carrying designs including the use of Pick-to-Light (PTL) displays or voice-directed computing to further to match a the goods for picking are transported by an inte- improve accuracy, productivity and throughput. “ corresponding order. grated conveyor system, arriving concurrently at the workstations in the exact sequence required to fulfill the next order(s). Minimal manual handling and effort is needed by the operator to pick and place the required items to the order(s) being picked, with the conveyor system transporting order totes to dispatch and the inventory totes back to storage. DEMATIC LOGISTICS REVIEW 7
  • 8. TECHNOLOGY GTP ORDER FULFILLMENT Dematic Multishuttle®: Automated storage buffer and order sequencing Picking goods efficiently through Ergonomic Work- stations is one thing; supplying the goods needed to fulfill orders in the correct sequence to facilitate order assembly is the other half of Dematic’s Goods to Person (GTP) solution. Dematic’s Multishuttle is a new generation solution for automated storage and retrieval of cases, totes and trays. Designed to enhance the interface be- tween bulk storage and functions like order assem- bly, the Multishuttle dramatically increases speed, accuracy and throughput. With sophisticated controls and performance en- hancing software, the Multishuttle can interface with a wide range of storage media and handling containers. Its inherent flexibility enables it to be easily adapted to any shape or size of building, in- cluding existing facilities. Multi-function Multishuttle Dematic’s Multishuttle extends the range of appli- cations possible with automated storage systems, allowing a completely new range of automated so- lutions to be developed. The Multishuttle differs from conventional ASRS The Shuttle Cars DEMATIC MULTISHUTTLE (automated storage and retrieval systems) in that instead of a single crane per storage aisle, the The shuttle car is a SYSTEM OVERVIEW transportation device Multishuttle uses intelligent self-propelled carts designed to store and throughout different levels of the storage system. retrieve goods in multiple The carts ‘shuttle’ goods in and out of the very levels of storage racks. space-efficient storage system, interfacing with an Each shuttle car runs on rails and is equipped integrated conveyor system, which transports and with grippers used to delivers the goods to the pick face in exactly the handle a wide range of correct sequence to facilitate efficient order as- cartons, trays and totes. sembly and load building. An incremental encoder and sensors ensure highly Dematic Multishuttle: How it works accurate positioning and The Multishuttle buffer storage system houses all collect power from running rails via a bus bar. of the stock required to assemble the next batch of orders. As items are being picked and sent to the pick face, new items are automatically inducted to replenish the storage buffer. It provides a vital interlink and buffer between bulk storage and order fulfillment, ensuring the necessary stock to fulfill orders is always on hand, improving order fill rates and customer service levels. The Multishuttle can operate in two configurations – Captive and Roaming. 8 DEMATIC LOGISTICS REVIEW
  • 9. Multishuttle differs Dematic Multishuttle Captive for high volume, from conventional high throughput ASRS in that instead The “Captive” format is ideal for high throughput of cranes servicing applications such as order picking and order con- each aisle, intelligent solidation buffers. A dedicated shuttle is used at self-propelled cars each storage level in every aisle so that retrieval ‘shuttle’ goods and put away are handled simultaneously, with up in and out of the to 600 double cycles per aisle per hour possible. system, interfacing with an integrated Intelligent controls enable complex sequencing, conveyor system. which contributes to flexibility and building store- friendly orders. Dematic Multishuttle Roaming for low to medium throughputs The efficiency of the Multishuttle design is such that the performance of a conventional ASRS can be equaled with just a few shuttles. Dematic’s Roaming Multishuttle meets the needs of low to medium throughput applications while providing maximum flexibility. In the roaming con- figuration, shuttles are not dedicated to a single storage level, but can move between different lev- els via shuttle lifts. As throughput requirements increase, the system capacity can be boosted with the addition of extra shuttles. Real time logistics and software integration Tote Lift Scheduling and sequencing stock to fulfill a large Dematic high speed lifts are located in front of each aisle. In the Captive number of orders at the same time requires smart system they have the function software and integrated controls. of picking up goods from buffer Dematic’s DC DIRECTOR interfaces with the conveyors and delivering them to the outfeed level. By handling two at a user’s host computer system, typically a ware- time, each lift offers double throughput house management system (WMS) or enterprise and optimal system performance. resource planning (ERP) software suite. In the Roaming system the lift transfers shuttles between levels and the infeed/ Order information downloaded from the host is outfeed conveyors. processed and sequenced by DC DIRECTOR to ensure the goods required to assemble orders Infeed and Outfeed Conveyors arrive at the pick face in the correct sequence. This includes reverse stacking of containers or pallets Goods are fed into and taken to ensure the heaviest goods are located at the away from the Multishuttle bottom, or in reverse drop sequence for delivery of by highly efficient conveyors that can be located at a single mixed orders to multiple locations. level or, when throughput Dematic Goods to Person (GTP) solutions demands, at multiple levels of the Multishuttle system. Dematic is progressively developing the GTP con- cept with several of the world’s leading manufac- turers, retailers and distributors implementing sys- tems with varying degrees of complexity. For real life applications, see the following case studies on Germany’s Ferdinand Gross and UK clothing retailer Next. DEMATIC LOGISTICS REVIEW 9
  • 10. FERDINAND GROSS LEINFELDEN-ECHTERDINGEN, GERMANY MULTISHUTTLE DELIVERS FOR FERDINAND GROSS Leading German fastener and connectivity technology supplier Ferdinand Gross has transformed its supply chain performance following the installation of Dematic’s new Multishuttle Automated Storage and Retrieval System (ASRS). Multiple benefits of Dematic Multishuttle® Transforming the Kanban supply chain Incorporating both types of Dematic’s Multishut- Customers utilizing Kanban have benefited the tle for the first time Worldwide, Ferdinand Gross most from Ferdinand Gross’ enhanced supply has achieved remarkable service improvements chain, with order fulfillment times being cut from including: an average of one week to a single day. • A reduction in order processing times, from up Previously, customers’ shipping containers had MULTISHUTTLE to three and a half hours to as little as 30 minutes a fixed label, showing article number, article de- ROAMING scription, amount and customer name. Once the FERDINAND GROSS • The ability to extend daily order cut-off deadlines customer emptied the container, Ferdinand Gross LEINFELDEN-ECHTERDIN by three hours would collect and return it to the DC, ready to be • Reducing order fulfillment times for Kanban cus- refilled and shipped out again. tomers from one week to one day. With the new system, customer containers can Multishuttle helps deliver new levels of now be relabeled for filling with any product rather customer service than waiting for the original empty container to re- Improving customer service was a primary ob- turn to trigger the order. Consequently, return trips jective of Ferdinand Gross’ logistics systems up- with empty boxes can now be bundled, reducing grade at its distribution center (DC) in Leinfelder- the number of trips to and from the customer, fur- Echterdingen, Germany. ther cutting transport and handling costs. The Multishuttle brings the total number of shelf Dematic Multishuttle storage locations within the DC to 120,000, which Dematic Multishuttle is a versatile new technology is necessary to house the company’s massive for fast, accurate, automated picking within high- product range of 72,000 standard parts, 24,000 density storage systems, making it ideal for sup- customer specific parts and 11,000 tools perma- porting a wide range of manufacturing and lo- nently in stock. gistics applications, from kitting and product as- MULTISHUTTLE Being able to extend the incoming order cut-off sembly to order picking and distribution. Instead CAPTIVE time by three hours provides customers with con- of using cranes in each aisle to pick and trans- siderably greater ordering flexibility, and reduced port goods, Multishuttle uses multiple intelligent distribution costs. self-propelled carts, which can roam throughout the different levels of the storage systems. At a delivery deadline established by the customer, Increased throughput is achieved by adding extra all pending orders in the system are bundled into carts. The carts automatically ‘shuttle’ goods in and a single shipment. out of the densely packed storage system, inter- The later order dispatch window made possible facing with an integrated conveyor, which delivers by Multishuttle allows better bundling of individual the picked items in exactly the correct sequence orders, reducing the number of packages to be to facilitate and significantly improve the produc- consigned, and associated transport and other tivity and accuracy of product or order assembly. costs. 10 DEMATIC LOGISTICS REVIEW
  • 11. Thomas Erb, Chief Executive Officer, Ferdinand Gross, Thomas Erb, Chief Executive Officer, Ferdinand Gross, Ferdinand Gross XXXXXX, XXXXXXXX XXXXXX, Inset: A schematic overview of the Multishuttle system. Inset: A schematic overview of the Multishuttle system. Multishuttle roaming Ferdinand Gross implements world-first Multishuttle Captive applications are designed Dematic Multishuttle for low to medium The Multishuttle Captive area manages order pick- throughput and offer The Multishuttle at Ferdinand Gross has highly ing of items from the Roaming section, shelf stor- the advantage of flexible dynamic picking with unsurpassed flexibility, due age system and picking-related logistics. NGEN, GERMANY growth when required. to its unique installation. This project features the Here, each level in the aisle is equipped with its own world’s first installation of Dematic’s two Multi- shuttle. The shuttles retrieves tote boxes from stor- shuttle versions – “Captive” and “Roaming” – in age positions and convey them to a lift at the end of a single storage system with identical shuttles the lane. The lift vertically transfers the boxes to the in both areas. Up to 30 shelf levels are provided outfeed conveyors, which lead to ergonomically- within the high density Multishuttle, which is con- optimized picking stations. Here, sequencing to tained in an area measuring around 12m high, customer specification is possible, i.e. delivery of 20m wide and 30m long goods from inventory in the precise sequence that The Multishuttle consistently provides picking per- they are needed for picking for the order. formance in excess of 1,000 picks per hour, typi- A total of 12 shuttles are operational in the Captive cally processing around 40 tons each of incoming area, servicing 5,000 storage positions at a rate of and outgoing goods each day. 514 double cycles per hour. Multishuttle Roaming Multishuttle Benefits The Multishuttle Roaming system is dedicated pri- • Space-efficient expansion of storage capacity marily to the fastest moving items, improving avail- by 60,000 positions ability and flexibility. • Improvement in order fulfillment times, Ideal in very high throughput applications, The Roaming system delivers significant optimiza- extending order cut-off deadlines by three hours Multishuttle captive has tion and cost-savings compared to conventional • Improved service performance thanks to the shuttles located automated small parts picking systems. In the additional Multishuttle Captive lane at every level in all aisles, serviced by Roaming area, 20 shuttles service 59,000 stor- • Automated sequencing to customer high-speed lifts. age positions at a throughput rate of 615 double specifications and individual labeling cycles (parallel put-away and pick operations) per • Ergonomic order assembly workstations for hour. Every aisle contains one shuttle, with the improved operator performance and safety carts transferring between levels via a lift in a mat- ter of seconds. The self-propelled shuttle carts • One employee processes the entire order, run on rails to the selected storage position, and improving accuracy and traceability put-away or retrieve the required goods. • Modular concept, allowing for future expansion. DEMATIC LOGISTICS REVIEW 11
  • 12. NEXT YORKSHIRE, ENGLAND NEXT & DEMATIC PIONEER NEW ERA IN ORDER FULFILLMENT Next, one of the UK’s leading retailers, has achieved a dramatic increase in distribution productivity and capacity at its distribution center (DC) in South Elmsall, West Yorkshire following the commissioning of a new Goods to Person order fulfillment solution. 12 DEMATIC LOGISTICS REVIEW
  • 13. 300% improvement in pick rates The High Rate Put Stations, in contrast, minimize Designed and implemented by Dematic, the High the time taken by staff travelling between store Rate Put Stations have delivered a near-threefold orders. Operators are fed with a continual supply increase in order picking rates, along with far of products, and the ergonomic design of the sta- greater peak capacity to meet changing business tions ensures that high productivity is combined requirements. with minimal physical demands on operators. High Rate Put Stations: Ergonomically optimized Thanks to Dematic’s innovative design, Next’s op- for performance erators now achieve pick rates up to 1,000 items per hour depending on the order profile. An addi- One of the first such systems to be implemented tional benefit of supplying stock to pickers is that in the UK, the High Rate Put Stations at Next rep- errors are substantially reduced, improving accu- resent a step change in order picking efficiency. racy and customer service levels. Dedicated to the company’s fast moving clothing, Optimizing operator management footwear, accessories and home product lines, 20 stations fulfill orders for up to 24 stores each. Dematic’s Labor Management software plays a critical role in ensuring the full potential of the sys- At each High Rate Put Station, an operator is di- tem is realized. Individual operator performance rected by pick-to-light (PTL) displays to fulfill a figures are expressed as a ‘percentage efficiency’, series of orders, fed by a seamless, sequenced where 100% efficiency is calculated dynamically supply of product from storage. by the software using standard times for each Product is automatically delivered to the station’s task undertaken by the operator. central picking point from Dematic’s existing auto- The software is also used to manage a bonus pay- mated storage and retrieval system. ment scheme, which rewards operators for per- Each station holds up to 24 order totes destined formance in excess of 100%, thereby addressing for one of Next’s 500 plus retail outlets. the tendency for operator productivity to ‘level off’ when it reaches designated performance targets. The PTL displays at each location indicate how many items must be put into each of the order Equally, the software ensures that managers and totes, allowing a single operator to work on up to supervisors have the real-time information ne- 24 store orders at the same time. cessary to intervene quickly where individual staff members are falling below expected standards. When an order tote is full, the display instructs the operator to push it on to a take-away conveyor for Benefits transfer to dispatch and loading onto vehicles. • 300% increase in pick rate Tripling picking productivity per operator • Up to 1,000 items per hour per operator Before the introduction of the High Rate Put Sta- • Fast, responsive system tions, Next employed a manual order picking sys- tem for its fast moving product lines. • Very high accuracy Given the scale of the company’s product range, • Ergonomically optimized picking operators had to travel significant distances be- • Improved OH&S tween static pick locations. Seasonal peaks in de- • Enhanced operator management. mand could only be met by significantly increasing the number of pickers employed. DEMATIC LOGISTICS REVIEW 13
  • 14. NEWEGG.COM EDISON, NEW JERSEY, USA BUILDING A NEW DC FOR NEWEGG.COM INTERNET RETAILING With up to 600,000 visitors each day to its website, consumer electronics and communications products online superstore, Newegg.com is the United States’ second largest online-only retailer, generating net sales of more than $2 billion per annum. “ Newegg.com Efficient distribution facilitates rapid growth Newegg’s success is largely based on providing “Our business had grown so dramatically over the its customers with a superior purchasing experi- past couple years that we needed a new DC to ence. It offers: keep up with it,” said Bob Zelis, Vice President Lo- gistics, Newegg.com. • The industry’s broadest product selection of more Dematic’s than 40,000 items “The New Jersey DC consolidates two smaller op- automation erations into one large automated facility to better • A very user-friendly website solution covers service the eastern states, where we have a sig- • Fast and efficient order processing, with 98% of nificant customer base. orders shipped within one business day. our entire “To optimize fulfillment for our customers, we now The company has been ranked within the top ten operation from have inventory placed in three DCs throughout the retailers in the US for customer service, with more picking through country. By locating our DCs in California, Tennes- than eight million shoppers rating Newegg as one see and now New Jersey, we are able to service of the best online retailers in the world. to shipping. all of our US customers by way of ground service, Internet retail distribution at its best Everything and get them the best possible shipping cost. Or- Inventory capacity, accuracy of order fulfillment goes through ders received by 3:00pm local time are handled same day enabling customers to receive their and speed of order processing are critical to main- the conveyer goods within three business days.” taining Newegg’s high-profile market position, with system except its latest distribution center (DC) in New Jersey Dematic’s end-to-end logistics solution representing Internet retail distribution at its best. for larger, “After an intensive review of our needs and suppli- A showpiece of state-of-the-art logistics, the bulkier items ers, we settled on Dematic to handle the design 33,660sqm DC incorporates some of the industry’s like televisions. and system integration for all of the materials han- most efficient high-speed materials handling sys- tems, including energy-efficient conveyors, pick- ing systems with pick-to-light and zone routing, pop-up sorters and serialized tracking. Designed by Dematic, the DC supports Newegg’s “Bob Zelis, Vice President Logistics, Newegg.com dling equipment,” added Mr Zelis. “We wanted the latest technology to move our products through the DC, so we could capitalize on the fastest and most efficient systems. Demat- ic’s automation solution covers our entire opera- tion from picking through to shipping. Everything existing DCs in California and Tennessee. The company also operates five DCs in China. goes through the conveyor system except for larg- er, bulkier items like televisions.” 14 DEMATIC LOGISTICS REVIEW
  • 15. Newegg operates on a ‘just in time’ inventory “Newegg is very tuned in to the comfort of the peo- Left: Bob Zelis, Vice model. It does not accept back orders. Once it has ple who work in its DCs,” said Dematic’s Stewart President Logistics, sold out of a product, it instantly takes that item Resnick. Newegg.com down from its website. Inventory is closely tracked “Ambient noise was a concern, but our new con- all the way through the system using serialized veyors are very quiet compared to conventional tracking. If a customer has a problem with a prod- systems. Modularity, interchangeability of parts, uct, Newegg can track that specific item right back ease of maintenance, and low energy usage were to the receiving purchase order. additional features that Newegg liked.” Fast efficient order fulfillment and tracking Integrated warehouse control Orders are also tightly tracked through the system. Integrating with Newegg’s Warehouse Manage- They are received through the company’s main ment System (WMS), Dematic’s warehouse con- server in California, and routed to the DC closest trol system (WCS) - SortDirector, provides ad- to the delivery address. After an order gets to the vanced graphic systems monitoring for the entire New Jersey DC, it is assigned to a barcoded tote. conveying, zone routing and sortation operations. The tote is automatically transported through a dig- ital zone-routing pick system equipped with pick- A full graphical layout of the system clearly dis- to-light (PTL) technology, only stopping in zones plays the operating condition of the system com- where goods are required for the order. ponents using color coding, giving operators highly detailed and accurate, real-time control of With the PTL system, the operator scans the bar- product movement and reporting. coded tote. Digital displays located in front of each stock location from which items are required light At a glance, users can identify system status up, letting the operator know which stock keep- and easily diagnose any material handling equip- ing units (SKUs) to pick and how many, optimizing ment issues. productivity and accuracy, and improving occu- Benefits pational health and safety (OH&S). • High volume order processing capacity with High-efficiency, low-noise conveying further scope for expansion The DC utilizes Dematic’s latest energy-efficient • Fast order processing – 98% of orders shipped conveyor design, which significantly cuts opera- within one day tional noise and maintenance requirements, and also reduces reliance on oils/lubricants and com- • High accuracy and improved customer service pressed air. The conveyor system also has the • Enhanced delivery – 98% of shipments received functionality to automatically turn itself off when it within three days is not needed, reducing power consumption by up • Better productivity and workplace safety. to 30%, and further cutting maintenance require- ments and costs. DEMATIC LOGISTICS REVIEW 15
  • 16. ELGIGANTEN JÖNKÖPING, SWEDEN HELPING SWEDEN’S Elgiganten’s Daniel Lundby & Andreas Thimour. ELGIGANTEN MANAGE E-GROWTH The sale of electronics over the internet is booming, especially for Elgiganten, with a new pick and pack solution from Dematic helping Scandinavia’s leading electronics retailer keep on top of 50% annual growth rates in its e-retail business. Dematic’s integrated solution for Elgiganten The e-business boom in electronics poses signifi- Dematic’s integrated logistics solution enables El- cant order fulfillment challenges. giganten’s central Nordic warehouse in Jönköping, Rather than processing mostly multi-product ord- Sweden to gain close to 100% pick accuracy and ers for traditional distribution, Elgiganten now meet increasingly rigorous demands for picking handles a constantly increasing volume of single efficiency and quality. customer orders for just one or a couple of items. The warehouse distributes over 4000 products to To accommodate Elgiganten’s ever growing pro- the group’s 247 megastores in Norway, Sweden, duct range and rapidly changing distribution re- Denmark, Finland, Iceland, Greenland and the quirements, Dematic’s integrated logistics solution Faroe Islands, and also fulfills the rapidly growing provides the necessary flexibility to meet the com- volume of direct-to-customer orders. pany’s expanding e-business and support its ag- gressive growth plans, which include significantly increasing the number of outlets in the Nordic re- gion over the coming years. 16 DEMATIC LOGISTICS REVIEW
  • 17. New flexible pick and pack solution Vocollect voice picking integrated by Dematic “Our e-business channel has been growing at a rate The Vocollect Voice terminals maintain wireless “ of 50% per annum, and our product range is also real-time contact with the voice control system expanding rapidly. We initially contacted Dematic and warehouse management system (WMS). The with a view to developing a Split Case Module to bet- terminal reads out the location and quantity to the ter handle these types of orders,” explained Elgig- picker, who confirms the completed assignment anten’s Development Manager, Andreas Thimour. by reading the last three numbers of the product’s The Dematic Split Case Module is an ‘island of au- The areas EAN code. This ensures the correct product is tomation’ within the 100,000sqm warehouse. picked, virtually eliminating picking errors. Dematic was It is a zone-routing system in which order cartons “The last detail is important because many products responsible for are valuable and, in some cases, will be dis- are conveyed to the relevant picking zones where products for the orders are located. Zones that work perfectly. patched directly to the end customer,” explained Andreas Thimour. do not have product required for the order are They have skipped. To improve the speed, efficiency and re- Voice picking has delivered wide-ranging benefits: sponsiveness of order fulfillment, the warehouse been extremely • Productivity up to 35% over paper or RF picking is divided into several picking zones. professional, delivered high • Almost 100% picking accuracy Fast and slow movers are picked in separate areas so that the system and organization can be geared quality, and • A reduction in the time spent training new staff differently to optimize productivity. • Greater job safety and reduced staff turnover. were quick Voice-directed computing to respond to Flexible use of manpower Warehouse staff are verbally directed to pick items “Since implementing the system in May 2008, we such as mobile phones, MP3 players, curling irons challenges as have continued to optimize and improve its effi- and digital cameras by voice-directed computing. they arose. ciency,” said Project Manager, Daniel Lundby. The pickers wear a small belt-mounted voice ter- Daniel Lundby, minal and headset with microphone. They receive clear vocal commands and confirm tasks verbally via a Voice terminal. Voice picking lets the pickers keep their hands and eyes free at all times, making it faster and easier to pick the right products in the right order, and safer by letting the user concen- “ Project Manager, Elgiganten “The areas Dematic was responsible for work per- fectly. They have been extremely professional, de- livered high quality, and were quick to respond to challenges as they arose,” said Mr Lundby. “Productivity and efficiency is maximized with Dematic’s order fulfillment system enabling ware- trate on product handling. house staff to be easily redeployed to other duties Gone is the need for pick lists or RF terminals, in other parts of the warehouse,” he said. which require pickers to use their hands and eyes “We can also increase throughput by increasing to read, navigate and confirm tasks. the number of pickers in the zone routing system during peak periods like Christmas.” Elgiganten’s tips to consider when implementing new warehouse solutions Elgiganten’s Daniel Lundby and Andreas Thimour highlight five key considerations when implementing new warehouse solutions: 1. Chart and analyze the product structure beforehand 2. Be especially aware of system integration between the PLC and WMS interfaces. Establish early dialogue and aim for the simplest interfaces possible 3. Be clear about what you want to achieve and the stability of the work situation 4. Be sure to communicate relevant information to operators. This can be done by training ‘superusers’ on all shifts and by ensuring that they are actively involved in the project from start to finish 5. Establish as clear a transition as possible from the implementation team to daily operation, by involving the operational organization. DEMATIC LOGISTICS REVIEW 17
  • 18. LECHE PASQUAL ARANDA DE DUERO, SPAIN NEW LOGISTICS PLATFORM FOR LECHE PASCUAL Dematic and the project team at Grupo Leche Pascual have implemented an innovative, three-pronged integrated logistics solution to boost the dairy distributors’ supply chain performance and provide a platform for growth. 18 DEMATIC LOGISTICS REVIEW
  • 19. Leche Pascual Together the three automated warehouses provide Ever since UHT milk in cartons became available, a total storage capacity of more than 50,000 the history of Grupo Leche Pascual has been one pallets. of innovation and quality. Today the group has 12 All three facilities are linked by a mixed system of production plants, almost 3,000 employees and, roller track conveyors, plus a total of 76 carriers in addition to its activities in Spain, has a presence moving along a monorail circuit. in over 60 countries. Management of the physical flows of pallets, Aranda Operational Logistics Platform storage and retrieval at the silos, and movements Leche Pascual, which celebrated its 40th anniver- between them via the cart system, is controlled by sary last year, has implemented innovative new Dematic software. logistics and data management systems to physi- Dual picking circuit cally link all storage and planning activities prior A dual picking circuit has been implemented for to order preparation and distribution at its new Benefits order provisioning: the first automated picking Aranda Operational Logistics Platform. system (APS) is located on the upper level of the • Concentration of Distribution activities are performed within three platform, with the second semi-automated system all order picking, warehouses, two picking circuits and a dynamic on the lower level. previously spread warehouse plus loading bays. across various Both picking circuits feature a series of double- The various systems are connected by an auto- fixed tables, where complete pallets are set down facilities, into a mated transport system, with the efficient concept and from which orders are picked. The carts of the single platform replacing the use of forklifts. lower circuit and the overhead monorail carriers • Optimization of Given the complexity of the movements involved, feed the tables with new pallets, arriving from any warehouse space overhead monorail circuits were selected as the one of the automated warehouse facilities. • Real time inventory ideal solution, complemented by 50/70 floor-level In the APS upper level, the storage and retrieval management conveyor belts and elevators. of pallets, as well as picking, is automated. This • Simplified 50,000+ pallets: three automated warehouses picking circuit prepares multi layer orders using product loading dynamic layer picking robots, irrespective of the The automated warehouse for yogurts and and unloading, order scope or layer configuration. The objective desserts (104m wide, 30m deep and 28m high), minimizing is to absorb workload peaks and minimize the provides a storage capacity of 20,000 pallets logistics costs and need for manual handling. across two zones. The first is equipped with four response times transelevators and operates at room temperature. The lower level also features a dynamic ware- • Better control of The second also has four transelevators, and housing section with 15 lanes of double tables and stored products operates at 5ºC. a holding capacity of 2,100 pallets. Its purpose • Enhanced quality The new 14,500 pallet capacity buffer warehouse is to act as a buffer between provisioning and of processes and (55 x 21 x 35m), located between the UHT ware- loading the picked pallets and half pallets. customer service house and the yogurts warehouse, absorbs any 21 high capacity loading bays storage overflow from these products, as well • Improved The main loading and unloading area on the lower overall working as products coming from other plants within the floor has 21 unloading bays, eight of which are environment, group. It is equipped with three double-depth equipped with an automated loading system (ATLS) eliminating the transelevators, two operating at room temperature to enhance productivity and the efficiency of potential for and the third in a refrigerated area. goods receipt/dispatch. human error. The 15,600 pallet capacity UHT milk warehouse (76x35x21m) has a further eight transelevators. DEMATIC LOGISTICS REVIEW 19
  • 20. ZUELLIG PHARMA SELANGOR, MALAYSIA Maikel Kuijpers, Chief Operating Officer, Zuellig Pharma Malaysia TRACEABILITY & ACCURACY KEY FOR ZUELLIG PHARMA To help Zuellig Pharma, one of Asia Pacific’s leading pharmaceutical and healthcare product distributors, and the largest in Malaysia, meet growing throughput and service level requirements, Dematic implemented an order fulfillment system at its 24,000sqm DC situated at Bukit Jelutong, outside of Kuala Lumpur. Zuellig’s order fulfillment challenge Dematic’s integrated logistics solution Since the new order fulfillment system has been The key to Dematic’s integrated logistics system operational, Zuellig has achieved a dramatic in- is its PickDirector software, a fully integrated crease in picker productivity together with signifi- order fulfillment system that seamlessly interfaces cant improvements in accountability and inventory with Zuellig’s host computer system. PickDirector traceability. Today, Zuellig handles more products uses wireless mobile terminals to direct split case, and orders, more accurately, at less cost. full case and pallet picking. Zuellig Pharma has experienced significant busi- It also manages an automated conveying system, ness growth in Malaysia in an industry which de- which provides zone routing through split case mands accuracy, traceability and speed. picking zones, together with check weighing and sortation of outbound shippers. Zuellig’s distribution is dominated by split case picking for a very large number of small orders, with Accuracy improved with paperless picking many for only one or two items. Picking and ass- The use of paperless picking technologies for or- embling small order quantities like these is labor der fulfillment has virtually eliminated picking er- intensive and costly, and presented the biggest rors throughout the operation, improving custom- opportunity for Zuellig to gain significant improve- er service and reducing distribution costs. ments in productivity, accuracy and accountability. With PickDirector, operators are instructed to fol- “In healthcare, it is vital that errors are kept to an low picking paths that minimize travel. absolute minimum. The extremely high level of accuracy provided by Dematic’s order fulfillment Hand-held and wearable RF terminals are used to system has allowed us to greatly improve our scan and validate each item and its batch number, overall distribution operations and customer serv- ensuring the highest levels of productivity, accur- ice levels,” said Maikel Kuijpers, Chief Operating acy and traceability during picking. Officer, Zuellig Pharma Malaysia. 20 DEMATIC LOGISTICS REVIEW
  • 21. Intelligent conveyors keep goods on the move The space efficient multi-tier split case picking area consists of several picking zones serviced by an integrated conveyor system, which interfaces with PickDirector. The intelligent conveyor system transports, routes and diverts orders to only those zones where items are required, bypassing those with no pick- ing requirements, reducing picker travel and order processing time. Picked orders are automatically transported by the conveyor system to the down- stream checking, packing and dispatch areas. Global order induction boosts productivity and throughput Dematic’s PickDirector supports global induction, which enables operators to start an order any- where within the system. This enables operators to “pull” work to them, rather than waiting for it to arrive, improving operator utilization, productivity and throughput. Pick locations for fast moving split case products are arranged in compact zones of high-density car- ton flow racks, which provide a large online buffer of picking stock and separates pickers from re- “ plenishment operators. Improvements in bulk When picking in the zone is complete, the picked Full pallet and full case picking instructions are dis- items are placed into totes, which are pushed onto tributed to operators working in the bulk area via a powered takeaway conveyor. RF terminals. PickDirector automatically batches full case picking requirements by delivery route Slower moving products are stored in shelving loca- In healthcare, into pallet-sized picking tasks. tions on the mezzanine level, achieving efficiencies by clustering multiple orders together for concur- it is vital that By picking the requirements for several orders with rent picking. errors are kept a single pass of the pick face, picker productivity is improved. Dispatch labels required for tracking Weighing-in with outstanding accuracy to an absolute and delivery purposes are automatically printed in Totes on the conveying system are automatically minimum. the correct sequence and applied, scanned and transported over an in-line weigh scale, with Pick- validated during picking. The extremely Director checking that the weight of the contents in each tote is correct and recording it for account- high level Real time tracking and management information ability purposes. Totes failing the weight check are of accuracy Apart from accuracy and productivity improvements, diverted to a Quality Control (QC) station for fur- Zuellig also benefits from the real time information ther inspection. provided by and management tools provided by PickDirector. Efficient and accurate dispatch Dematic’s It allows workload progress monitoring and pro- vides the ability to “drill down” and track: Beyond the weighing and QC station, totes are trans- order fulfillment system has • The progress of each order ported to a packing area, where operators pack items into cartons or bags for dispatch. allowed us to • Order and container contents A PickDirector terminal is used to print dispatch greatly improve • Every pick performed by each operator. labels and track the items packed into each ship- This provides visibility and traceability across the ping container. our overall entire operation, enabling Zuellig to accurately Completed shipments are placed on a takeaway distribution record and monitor operator performance and conveyor and transported to the sorter, where operations other KPIs. they are automatically scanned and diverted into and customer Benefits decline conveyor lanes leading to security-caged dispatch areas. service levels. • Up to 50% increase in picker productivity The sorter is installed overhead so that the space Maikel Kuijpers, • Increased throughput capacity below can be used for operational activities. “ Chief Operating Officer, Zuellig Pharma Malaysia • Better space efficiency • Higher accuracy • Inventory traceability • Supply chain accountability. DEMATIC LOGISTICS REVIEW 21
  • 22. PRODUCT, TECHNOLOGY & SOFTWARE REVIEW DEMATIC MIXED CASE PALLETIZING SOLUTIONS AMCAP: Auto Mixed Case Palletizing Dematic offers automated and Automated mixed case palletizing (AMCAP) manual mixed case automatically builds mixed-product pallets, palletizing solutions. addressing the latest requirements by companies particularly in the retail, grocery, food and ErgoPall: Manual beverage, and manufacturing industries. Mixed Pallet With a sophisticated gripper, AMCAP can handle Assembly over 10,000 different items including small boxes, ErgoPall enables cans, and jars in cardboard trays, open and operators to closed cartons, beverages and sacks. ergonomically build Integrated software and materials handling mixed product pallets equipment control the constant cycle of feeding, or rollcages. grabbing and placing articles, achieving Incorporating the impressive throughput rates. Intelligent software same software and calculates the way the pallet needs to be built to controls as AMCAP, suit customer requirements. sequenced cases are Dematic’s PalletGenDirector uses 16 different delivered to operators attributes of the product (length, width, height, who simply slide the weight, crushability, etc.) as well as specific cases into position. delivery requirements (i.e. aisle position) to Lifting is virtually determine the build sequence for each pallet. eliminated and, as The necessary goods are picked, buffered and each layer of cases automatically delivered to AMCAP in the exact is completed, the sequence to facilitate pallet building, with the pallet or roll cage robots operating at a rate of more than 1,000 automatically drops mixed-SKU cases per hour. down, allowing Once stacking is complete, the completed pallet assembly of the is lowered through the mezzanine floor with a lift, next layer to begin, and has a label applied as it comes out on the significantly improving outbound conveyor. safety and throughput. 22 DEMATIC LOGISTICS REVIEW
  • 23. Your system can be upgraded with new versions of controls and software Modernization programs for material handling systems, facilities, & operations Dematic has introduced upgrades. For facilities, a suite of modernization the suite offers re- products and services lamping or lighting designed to increase upgrades, arc flash productivity and analysis, and energy reduce operating management. For costs. The offering operations, the suite includes a wide variety includes operations of solutions arranged assessments, in three categories: maintenance audits, material handling preventative maintenance Optimizing manual case picking with Laser Trucks+Voice systems, facilities and services and resident Automating warehouse trucks and pallet movers with the latest laser guidance operations. For material maintenance programs. technology can significantly improve warehouse productivity and safety. handling systems, the For more information, suite includes sorter go to the Customer Dematic’s Laser Trucks+ eliminate many of the non-value adding tasks asso- repair/rebuild kits, Service page at ciated with case picking. Pickers don’t need to constantly get on/off or drive a replacement rollers, www.dematic.us, and warehouse truck, letting them focus entirely on the task of picking. motorized roller retro-fit reference “Modernization Laser Trucks+ automatically retrieve new shipping pallets and deliver them to kits, powered pulley & Upgrades, Products the picker, and take away completed pallets to dispatch. upgrades, conveyor & Services.” Within the pick aisle, Laser Trucks+ automatically move with the operator to replacements and the next pick location, enabling fast and safe mixed case order assembly. software/controls When combined with voice-directed computing, Laser Trucks+ have the potential to more than double picking productivity. DEMATIC LOGISTICS REVIEW 23