Issue 2LOWER picking cOsts REVIEW L GISTICS Smarter, faster, safer order picking BUiLD MiXED pALLEts Ergonomic mixed case pallet building pRODUct REviEW News, technology and software update sFs UniMARkEt: sWitzERLAnD MULTISHUTTLE & sAp DRivE 30% gAin ® FOssiL: UsA zARA: spAin FOODstUFFs: nz Multifunction Wins Best new zealand Dc sorting system Logistics Award delivers the goods DEMATIC LOGISTICS REVIEW Creating Logistics Results Zara. At Dematic. skills shortages. increase productivity and provide greater levels of service. Dematic Dematic acquires HK Systems I am very happy and excited to announce that Dematic successfully completed the acquisition of HK Systems on September 15. We call these the 10 Strategies for Distribution Logistics Success. day out. Intelligently applied. buffering & sequencing Organise your reserve stock and get it in order • Free picking Pick one. Fossil. SFS unimarket. safer logistics for Dematic customers around the world. As President and CEO of Dematic. consumer direct. Roar Isaksen. order fulfilment and distribution solutions. Dematic Working closely with Dematic’s innovative team of designers. heavy or repetitive • Wireless real-time logistics Bring the power of your ERP system to the DC • Warehouse control solutions Improve visibility and distribution management. The strategies are created from proven solutions aimed at eliminating non-value adding activities and addressing the business drivers that are most important to you. About Dematic Dematic is one of the world’s leading suppliers of logistics automation systems and solutions. 10 Strategies for Distribution Logistics Success The strategies we use to help design the best logistics solution for your business are: • Reducing time wasted travelling Condense the pick face and travel faster • Moving orders to zones Let the orders move. Dematic’s products and services are based on a tradition of industry expertise that the company has acquired over decades of commitment worldwide. accuracy and control. creates loyalty. Putting the 10 Strategies into action Dematic designs and engineers smart technologies and integrates them with world’s best practice techniques to lower costs. safER LOgIstICs Welcome to the second issue of Dematic Logistics Review – Your Window to World’s Best Practice Logistics. China Case Study: Fossil. Product. ergonomic RapidPick stations and SAP interface. Technology & Software Systems Modernisation & Uptime Solutions 4-5 6 7-9 10-11 12-13 14-15 16-17 18-19 20-22 23 WELCOME tO sMaRtER. we have developed new methods for aligning your logistics and business strategies. But as we all know. Roar Isaksen. Concurrently we address issues like workplace safety. competence and complementary technology to Dematic. and further strengthens our leading position in North America and beyond. We highlight our innovative new modular conveyor. The key to sustainable logistics results is an adaptable strategic framework that aligns all aspects of business strategy. food and beverage. 2010. these days. Further announcements about this exciting development will be made soon. technologies and techniques and – working in close collaboration with global customers like adidas. In this issue. and generates profits. simply lowering costs or providing faster. addresses current business drivers. As a systems integrator. and feature our responsive service network. and manufacturing industries. grocery. New Zealand News. developers and system engineers has helped me gain a deeper understanding of the challenges that drive your industries as you meet the demanding service levels that your customers expect. fastER. President & CEO. flexibility. President & CEO. Spain Case Study: Foodstuffs. faster. modularity and government regulation. 2 DEMATIC LOGISTICS REVIEW DEMATIC LOGISTICS REVIEW 3 .000 people. JST and Foodstuffs – create world-leading logistics. which is there to ensure you are able to deliver on your promises day in. not your people • Batching orders and sorting them out Pick multiple goods in one pass and sort to orders • Eliminating travel: split case Let the orders do the moving in a tote • Eliminating travel: full case Move cases in the best sequence to build pallets • Automating storage. We also profile the performance improvements and cost savings that smart modernisation upgrades can deliver. technology and software breakthroughs which are delivering smarter. USA Case Study: Zara. Globally the company employs around 4. systems and solutions for retail and wholesale distribution. United Kingdom Case Study: JST. from individual products and systems to complete turnkey solutions as a general contractor. Dematic provides automated material handling products. HK Systems brings great knowledge. get one for free with Negative-PUT • Automating picking When picking is too expensive. they bring your delivery strategy into alignment with your business strategy and help provide a competitive edge in your market. I often try to place myself in my customers’ shoes and reflect upon the complex tasks you take on every day when handling tens of thousands of orders and product lines. Switzerland Cover Story: SAP SubDriver Technology Feature: Mixed Case Palletising Case Study: adidas. Dematic delivers a full range of technologies and services. In this issue. more reliable delivery is not enough.Contents Cover Story: SFS Unimarket. we present product. as well as complete after-sales support and service. we show how we take our strategies. 500 during peak periods. the EWM and MFS configurations in SAP standard.” explained Mr Kabasser “Next to the connection to our SAP ERP. has increased order fulfilment productivity by 30% since commissioning a new warehouse at Rebstein. safeguard the system’s release capability at SAP level. Three container heights and compartments result in 18 different container types. enabling a large number of SKUs to be stored space-efficiently. In total. Dematic also developed a world-first interface to SAP EWM and MFS for SFS unimarket AG.” said Mr Kabasser. The Dematic solution will now form the template for a rollout of standardised technology for all of our warehouses around the world. The double-deep system provides a total storage capacity of 32. architectural hardware. up to material flows in the bulky goods and pallet long-load store – are managed and mapped through dialogs in EWM and MFS. World-first SAP process control integration SFS unimarket AG utilises SAP EWM (Extended Warehouse Management) and SAP MFS (Material Flow System) to manage inventory and warehouse operations. As one of only a few distinguished SAP implementation partners specialising in warehouse logistics. PLC control technology and the structure of the IT system – “everything from a single source. flexibility and a future-oriented solution. as well as the supply and control of picking bins and packaging stations. Five aisles incorporating 17 levels are each serviced by three Multishuttle cars. consisting of SAP EWM and SAP MFS.000 container spaces. ® MuLtIshuttLE & saP IntERfaCE sECuREs 30% gaIn fOR sfs Dematic’s David Rubie with CCA’s Major Projects Manager Grant McClean. “This was an important conclusion for us. switzeRland ELIMINATING TRAVEL: SPLIT CASE GOOds-tO-PeRsOn ORdeR PiCKinG Items required for orders are automatically retrieved and delivered in the correct sequence for orders enhancing productivity by 30%.” he said.” explained Mr Kabasser. “We are very pleased with the outcome. providing machine control all the way down to PLC level. Dematic was commissioned by SFS to conduct a feasibility study. providing a handling capacity of up to 500 put-away and 500 retrieval cycles per hour. chemical and technical products in Switzerland and neighbouring countries. “We have successfully achieved our goals with regards to increased productivity. In addition to implementing a 32. The Multishuttle cars transfer between levels using lifts located at the end of aisles. Peter Tobler. A feature of Multishuttle compared to conventional ASRS solutions is that it does not take up any valuable floor space within the warehouse. being located on the second level of the facility.” Dematic was awarded the contract as general contractor for the system design. a leading supplier of fasteners. The Dematic solution will now form the template for a roll-out of standardised technology for all of our warehouses around the world Dietmar Kabasser.000 articles. SFS unimarket AG.” said Dietmar Kabasser. it was clear that the warehouse would achieve its target of a 30% increase in productivity. Dematic (left) and Bruno Spirig. making SAP’s R/3 ERP system a true end-to-end solution. Dematic Multishuttle®: Up to 1000 cycles/hour A key contributor to this significant improvement is the site’s integrated Dematic Multishuttle automated storage and retrieval system (ASRS). Within a couple of weeks from start-up. through Multishuttle put-aways and removals. Logistics Manager SFS. tools.COVER STORY SFS UNIMARKET Rebstein. the Multishuttle houses close to 50.000 container location Multishuttle. with the typical throughput of around 4.000 items per day rising to 5. SFS services Manager “ 4 DEMATIC LOGISTICS REVIEW DEMATIC LOGISTICS REVIEW “ 5 . an integrated conveyor system delivers the containers to the appropriate picking station. mechanical equipment. Employing the highly efficient “Goodsto-Person” principle. could enable direct selection of programmable logic controls (PLC) for the mechanical equipment and the new warehouse processes. Its aim was to demonstrate whether and how the process control system. Head of SAP Competence Centre WMS. “Every process – from deconsolidation and goods-in additions to existing stock. and an important component of SAP’s supply chain management solutions. Facilitating high rate. risking product damage during transport and adding to transport costs by taking up more cubic space than necessary. 6 DEMATIC LOGISTICS REVIEW DEMATIC LOGISTICS REVIEW 7 . buffering and sequencing systems have enabled the development of two innovations designed to reduce the cost and significantly improve the efficiency. including picking. Key to ErgoPall and AMCAP was the development of storage. The second part is a hardware controller. mixed case palletising To process and palletise mixed cases accurately at high speeds. The application scope of this component includes manual and automated warehouses. automated warehouse processes can be driven directly by SAP EWM. SAP EWM (Extended Warehouse Management) Part of mySAP Supply Chain Management (mySAP SCM). in particular. EWM solutions implemented by Dematic meet the customer’s requirements to utilise standard software that has been customised to meet their needs. And. productivity and safety of building mixed case pallets – ErgoPall Ergonomic High Rate Palletising Stations and AMCAP (Automated Mixed Case Palletising). Inventory management and goods movements are closely integrated. autOMatEd MIxEd CasE PaLLEtIsIng We preview two new Dematic technology breakthroughs that revolutionise the speed. the only way to assemble a pallet containing many different SKUs (stock keeping units) was to do it manually. Both systems employ a combination of automated storage. controls and buffering and sequencing technologies have taken automated mixed case palletising in a new and exciting direction. Direct PLC link with SubDriver Dematic SubDriver consists of two elements: one part is the Material Flow Control – needed for SAP LES implementations to be connected directly to PLC level. The SFS unimarket AG project was significant in that this was a unique and world-first application in which Dematic was able to directly interface materials handling equipment and systems into the world of SAP using SAP EWM and SAP MFS. can be done more safely and with much greater efficiency. the main difference being that ErgoPall still uses people to build the pallets – but in an ergonomic way – while AMCAP uses sophisticated robotic palletisers. buffering and sequencing systems. which transfers the protocol of the SAP-world into the protocol of the PLC-world. Until recently.COVER STORY DEMATIC SAP SUBDRIVER WAREHOUSE CONTROL SOLUTIONS inteGRated PROCess COntROl TECHNOLOGY TECHNOLOGY mixed Case PalletisinG mixed Case PalletisinG ELIMINATING TRAVEL: FULL CASE ORdeR assembly nEW saP IntERfaCE dRIVEs REaL-tIME MaChInE COntROL Dematiccopy to come Intro is one of the leading implementation partners of SAP regarding WMS solutions. New advances in software. advanced software and automated materials handling equipment. accuracy and productivity when goods are presented for palletising in the correct sequence. unless mixed case pallets are carefully assembled by experienced personnel. But as logistics professionals know. Advances in software. robotics and intelligent storage. Using SAP’s Material Flow System. SAP EWM supports inventory management and goods movements in warehouses. located in electrical cabinets. Dematic’s impressive storage buffer and sequencing technology has revolutionised the possibilities with order assembly. there is an increasing demand for smart solutions that take mixed case palletising in a new and exciting direction. respectively SAP R/3. The multi-tenant warehouse management solution was designed for large warehouses with complex processes. LES supports the complete handling of customer orders. buffering and sequencing systems including Dematic’s Miniload and Multishuttle® automated storage and retrieval systems (ASRS). Manual mixed case order assembly. The SubDriver hardware is compatible with SAP EWM and SAP LES. Dematic has already carried out many migrations to SAP LES and proven its know-how and integration skills. the resulting stacks of goods may be unstable. safety and efficiency of both manual and automated mixed case pallet assembly. The advantage of this solution is that middleware is no longer applicable and a technological breach when operating different software systems can be avoided. repetitive and heavy tasks are both physically demanding and costly. Driven by OH&S concerns and skills shortages. Besides management of inventory and resources. products need to be fed in the correct sequence to suit pallet assembly. SAP LES (Logistics Execution System) SAP LES is part of SAP ERP. the pallet is automatically lowered through the mezzanine floor by an integrated lift. sequencing. 8 DEMATIC LOGISTICS REVIEW “ DEMATIC LOGISTICS REVIEW 9 . the pallet has a label applied to it as it exits on an outbound conveyor. stretch wrapped. sequencing and recognition systems. Improved productivity at both the DC and the store. however. Dematic ErgoPall Ergonomic high rate palletising stations ErgoPall Ergonomic High Rate Palletising Stations enable operators (one or two per station depending on the application) to ergonomically build mixed SKU pallets. once stacking is complete. have enabled the development of automated palletising systems capable of handling a diverse range of SKUs and packaging types including boxes of various sizes. mixed case palletising works The distribution centre’s warehouse management system (WMS) interfaces with Dematic’s WCS (warehouse control system). buffering. end-of-arm-tool (EOAT) attached to the robots’ articulated arms. height. Requiring just 28 operators. and family group rules unique to stores. servodriven articulated arm robots installed on a mezzanine. fast and reliable automated systems can handle tens-of-thousands of SKUs. When all of the goods required for an order have been placed on the pallet and the stretch wrapping completed. The ErgoPall stations deliver a constant flow of mixed cases. as the operator(s) continue assembling the order. The combined dual-robotic cycle of feeding. This universal tool can handle all standard types of packaging without stopping or changing tools. Now advances in software. which open gently transferring the already picked cases to the surface of the new pallet. it is stretch wrapped for stability. Concurrently a new empty pallet is raised by the lift to the underside of the slider plates. Lifting is virtually eliminated and. Two conveyors automatically deliver the SKUs to the work cell. After the pallet continues down through the mezzanine. the pallet automatically lowers. Dematic has implemented 16 ErgoPall stations as part of a sophisticated order assembly system for Danish supermarket giant Dansk Supermarked Gruppen (DSG). As per the ErgoPall solution. grabbing and placing the SKUs enables the system’s high throughput rate of greater than 1. storage. order accuracy and store-friendly flexibility. number of layers. enabling assembly of the next layer to begin. enabling the operator(s) to simply slide the sequenced cases into position on the pallet.000 products adds to the complexity of the order assembly challenge with up to 100 different products needing to be consolidated on the one pallet in a store-friendly sequence specific to each store and department’s requirements. and high speed articulated robots with more versatile product gripping tools. width. autOMatEd MIxEd CasE PaLLEtIsIng Palletising. weight. enabling it to grip virtually any type of packaging without product damage.000 mixed SKU cases per hour. with the two robots building each pallet cooperatively. departments. As the pallet is being lowered. The ErgoPall stations are built on a mezzanine with integrated conveyors delivering a constant flow of mixed cases to the operator. mixed case palletising a new level of flexibility. reduced labour and optimised transport costs are just some of the benefits Dematic’s ErgoPall and AMCAP systems deliver. significantly reducing the physical effort required. enabling the operator(s) to simply slide the sequenced cases into position on the pallet. increased accuracy. the WCS sorts the data and sends the pallet stock information to Dematic’s PalletGenDirector (PGD) software. open or closed cartons. When required for an order. efficiency and safety above and beyond the capabilities of conventional automated and manual palletising systems has been realised. at which point they are aligned. the necessary SKUs are automatically picked and transported in the exact sequence required to facilitate pallet assembly. When the WMS releases orders. PGD uses different attributes of the product (length. However. DSG’s large SKU range of more than 17. Optimised efficiency in the work cell Each AMCAP cell comprises two six-axis.TECHNOLOGY mixed Case PalletisinG ELIMINATING TRAVEL: FULL CASE ORdeR assembly How high rate. the layer pattern. picking. product storage. as each layer of cases is completed. Pallets of stock for the orders are then automatically delayered or manually broken down and conveyed to Dematic’s high-speed Miniload or Multishuttle storage buffer and sequencing system. labelled and exits the system. There is no use of pneumatic suction technology. A new benchmark in mixed case palletising With the emergence of high-rate. etc. until recently. stability factors. oriented and presented to the robots for pick up. “ Dematic AMCAP Automated mixed case palletising Automated palletising is a very efficient solution to building pallets in high volume distribution applications. aisles and aisle sections to determine the optimum build sequence for each pallet. typically building cube and volumeoptimised pallets with a density of 90%+ compared to 70 to 80% density for hand-stacked pallets. these extremely accurate. speed and quality of order assembly. producing compact store-friendly pallets to suit the retailer’s multiple store formats. bagged goods and sacks. the order assembly system will build 250 mixed case pallets per hour. more dense and more stable pallet. continues even while the built pallet is being removed from the ErgoPall station. slider plates close above it to form a solid surface upon which the ErgoPall station operator(s) can immediately begin stacking cases for the next pallet to be built. and improving the safety. buffering. with only a few seconds lost in the transition. cardboard trays. One of the unique aspects of AMCAP is the multi-axis. with improvements in system speed. transport and palletising. the ability to deliver to multiple store formats. with only a few seconds lost in the transition from one order to the next. which controls all aspects of the order assembly process including pallet breakdown or delayering. automated palletisers have only been capable of handling a limited range of SKUs and packaging types.) and stacking criteria factors including crushability. volume of cases per layer. Capable of building a higher. the pick face for a manual operation would have been massive and.000 SKUs. Project Manager.” A powerful combination of network consolidation and prudent investment in warehouse automation has resulted in a high performance supply chain for global sportswear brand adidas.’ said Stuart Jones. fully automated high-bay operation equipped with five Dematic pallet cranes. With pick rates averaging 500 units/hour. New picking strategies for new Trafford The purpose built 350. given the seasonal nature of our business. we would have been continually changing it – automation improves efficiency three fold. “it allows for much greater accuracy. However.adidas manChesteR. High rate put station operation A screen provides instructions with a ‘put-tolight’ system on each order location identifying which of the 24 order totes to put the item(s). the pick face for a manual operation would have been massive and. Incorporating high rate put stations. “Automation allows us to handle a lot of volume in a relatively small amount of space. Space efficient pallet storage The bulk store is a 20. in the case of partially completed orders.500 sqm) DC in Manchester was kitted out within 18 months. but the vast majority of split case goods too. we would have been continually changing it – automation improves efficiency three fold. “It also helps with labour and resource utilisation by smoothing out peaks and troughs in demand. Rockport and Ashworth – with logistics consolidated through a single automated distribution facility in Trafford.000 pallet location. Global Business Solutions Warehousing.” said Tim Adams.000 locations and is accessed by 12 cranes.” said Mr Adams. Eliminating pick faces and replenishment It soon became apparent that the system was easily capable of coping with not only the slow moving goods. As totes or cartons arrive at the picking stations. global Business solutions Warehousing.000 sqft (32. adidas group “ DEMATIC LOGISTICS REVIEW 11 . Directing warehouse control Control of the automated facility is managed by DC Director. Reebok.” Tim Adams. “With over 70. In 2006. Completed orders are pushed onto a take-away conveyor and transported to packing stations or. they enable the operator to concurrently process up to 24 orders at a time. Palletised loads leaving the high-bay are either destined for despatch or may move to one of four stations for carton picking operations. Each of the four high rate put stations has 24 ‘put-to’ locations for customer orders.000 SKUs. Analysis of the merged company’s distribution network highlighted the efficiencies that could be achieved by consolidating inventory from five key brands – adidas. “Dematic’s software team were most accommodating. adidas Group. The Miniload and integrated conveyor system provide a smooth flow of items to the picking operator in the precise sequence to fulfil order requirements. “With over 70. easy to work with and very inventive at getting the most out of the system.” he said. which keeps overheads down. Importantly. High density tote and carton storage The fully automated 20m high Dematic Miniload store has over 300. apparel and accessories is a critical issue for adidas.000 split case items a day. each equipped with a double-deep load handling device designed to handle four different-sized loads simultaneously. servicing retailers in the UK. Global Warehousing for adidas Group. replacing four existing conventional warehouses. together with a highly efficient goods-to-person (GTP) picking system. TaylorMade. The benefits that have accrued from this 20 million pound investment in automation is now shaping the way adidas is viewing its distribution strategy for Europe and wider markets. The integrated design features large automated pallet and tote automated storage and retrieval systems (ASRS). every split case item is scanned before packing into a despatch carton at one of the DC’s 22 packing stations. and the capacity to process up to 1500 units/hour. uK adidas sCOREs suPPLy ChaIn gOaLs WIth autO dC Efficient and timely distribution of its state-of-theart sports footwear. The system can perform an impressive 800 dual cycles per hour. To ensure accuracy. with its supply chain having been tested in recent years by the rapid expansion of the business. adidas can now pick more than 40. integrating with adidas’ Manhattan Associates WMS. given the seasonal nature of our business. beyond this Adams sees that in recent years automation has become far more flexible. Dematic worked with adidas to create a dynamic. Eire and Benelux. they are elevated into position ready for the operator. enabling up to 24 individual orders to be processed at a time. right down to an individual pair of shoes. “DC Director is a lot simpler to use than other systems I’ve seen. enabling a range of possibilities from the picking of cartons. acquisition of the Reebok brand presented both a challenge and an opportunity to redefine and restructure its European Area North distribution operation. enabling adidas to reduce the area allocated to manual picking by two thirds. adidas “ Automated tote picking Cases are directed to tote decanting stations and then on to the high rate put stations by Dematic’s DC Director warehouse control system. Manchester. 10 DEMATIC LOGISTICS REVIEW tim adams. ELIMINATING TRAVEL: SPLIT CASE GOOds-tO-PeRsOn ORdeR PiCKinG The high rate put stations enable the operator to concurrently pick up to 24 orders at a time. Global Business Solutions. are sent to an automated buffer awaiting completion of the order. space and cost-efficient warehouse.” said Mr Adams. for small and residual picking quantities. and the system tracks the bin to balance the workload in the manual pick area. ASRS. with just 15% of the SKUs responsible for 70% of sales volume. the system implementation has enabled the DC capacity to reach up to 390.000 cases/ hour automatically and a highly productive and flexible manual pick-to-light system capable of picking at least 36. we feature JST’s DC at Xuzhou. laser etching is applied on the end of the cases in the tote. and the tobacco industry in China.000 cartons/day with a picking accuracy over 99.000 cases/hour. with tote bins transporting orders through the DC all the way to the customer. to provide highly efficient and accurate order picking. as well as the requirements and expectations for the distribution centre. customer and order data. Dematic worked closely with JST to identify and collect information such as inventory statistics. Dematic reviewed JST’s current methods and procedures. During six months of close communication. The automatic and manual pick areas are linked by an integrated conveyor system.JIANGSU TOBACCO xuzhOu. The success of the implementation has enabled JST to alter its distribution model. Higher than expected productivity Originally planned to distribute up to 300. In researching and developing its integrated materials handling solution. In this issue. full carton.000 plus retail outlets. A pop-up wheel sorter provides 18 sort destinations for the primary sort. in some cases. bulk and reserve storage. and promotional/special picking areas.000 cartons/day. Two tier picking strategy Picking strategy plays a key role in Dematic’s design with the system including automatic picking. and a host of other factors that could influence possible solutions. warehouse practices. The result is a picking solution including an Aframe capable of picking at least 15. Working together to develop a better solution Prior to bidding for the project. order characteristics. depending on where the picks are. combines pick-to-light. Meeting China Tobacco Board requirements The China Tobacco Board requirement for case coding to easily identify product at the retail outlet was integrated. The tote bin can be inducted in either area. providing a secure and recyclable carrier. MOVING THE ORDERS TO zONES zOne ROutinG There are more than 100 SKUs plus promotional products. Provided by third parties. prior to sorting. allowing it to deliver to all shops instead of only authorised district shops. 12 DEMATIC LOGISTICS REVIEW DEMATIC LOGISTICS REVIEW 13 . China Dematic has developed a chain of automated distribution centres (DCs) capable of handling JST’s order fulfilment and distribution requirements. JST is reviewing the number of SKUs in an effort to improve production efficiency. which includes staging for receiving and despatch.8%.000 orders are completed each day with JST fulfilling a three-day order cycle to service 40. with a secondary manual sort into reverse drop sequence within each transport route. JST distribution More than 8. Each DC. IntEgRatEd dIstRIButIOn fOR ChIna’s jst Jiangsu Tobacco has built a chain of modern distribution centres (DCs) in Jiangsu province. Each tote bin travels automatically to the QA area where the PickDirector system enables order checking and positioning of the despatch label used for sorting the bin and delivery to the customer. Dematic completed a comprehensive overview of JST’s business. zone routing. and manual picking for high volume “multiple 5” order lines. located strategically within the Jiangsu province. and the order fulfilment period reduced from an initial ten hours to one shift. A-frames and. split carton. when volumes are highest. the cartons are routed back through the cross-belt sorter a third time where they will be diverted to one of five shipping lanes. But not all of us know that Fossil. put-to-light and packing/shipping.” he said. BATCHING ORDERS & SORTING THEM OUT batCh PiCK & sORt “If a different sorting system was used for each of the three functions. Fossil “ 14 DEMATIC LOGISTICS REVIEW “ DEMATIC LOGISTICS REVIEW 15 . watch and jewellery retailers. then again from its put-to-light area. “We are able to quickly shift around workloads and staff to meet our ever changing production needs. Fossil’s put-to-light stations use electronic displays to instruct the operator where to put each item. and direct to customers around the world.000 units a day on average. and we fully expect it to continue to execute these multifunctional operations at its high level of performance for many years to come. From mid-September to the end of November. The flexibility of our IT and sortation systems makes this possible. Fossil knows how to get the most out of its sortation system. from which it distributes fashion accessories daily to department and specialty retail stores.FOSSIL dallas. wholesale. those wonderfully designed watches that replicate styles reminiscent of earlier time periods. at its Dallas DC. Once the items are packed. usa Cross-belt sorter does triple duty Fossil’s DC is using a Dematic SC 100 highspeed cross-belt sorter to facilitate multiple distribution functions including picking.” Cross-belt sorters usually perform a single function.000 sqm) distribution centre (DC) in Dallas. and it is performing as expected. jewellery. where they will be diverted to one of 33 pack-out stations.” said Mr Flournoy. belts. Handling more than 25. texas. Much of the additional volume is from direct website orders which tend to be single SKUs. “We fully expect it to continue to execute these multi-functional operations at its high level of performance for many years to come. The company’s ERP (enterprise resource planning) system initiates orders into its WMS (warehouse management system). marketing and distribution company specialising in consumer fashion accessories. Sorting batch-picked goods to discrete orders The first application for the cross-belt sorter is when batched orders of product are picked. By using the cross-belt sorter for three different purposes. where the batched orders are broken down to individual order quantities. Cross-belt sorter performance “Our throughput is 80. the DC handles more than 12.” said Fossil’s Craig Flournoy. direct-to-store and ecommerce could be in process. Flexibility and functionality increases ROI “Having the cross-belt sorter perform multiple functions like this is very cost-effective. “The cross-belt sorter has passed the five-year benchmark.” Craig Flournoy. and finally from its pack-out stations. sunglasses.000 fashion accessories daily. the DC also distributes products to 350+ company-owned stores. and optimises Fossil’s ROI. put into totes and inducted to the cross-belt sorter. handbags. Using one sorter to perform the functions normally done by three.000 and 8. The operator scans each product and the illuminated put-to-light displays at each location indicate which containers require that product and how many items to put.000 fashion accessory SKUs.. Between 5. Central to Fossil’s operation is its 517. Fossil is getting the best possible utilisation of the equipment and optimising its return on investment (ROI). It sorts packages from Fossil’s pick stations. Confirmed ‘put’ results flow back through the system in real-time to update Fossil’s ERP inventory levels. with the DC’s cross-belt sorter doing triple-duty – orders are routed through it three times before shipping to 350+ company-owned stores throughout the USA and in over 90 countries worldwide. fOssIL MaxIMIsIng sORtatIOn fLExIBILIty Handling 25. The batched orders may first be sorted to the Value Added Services (VAS) area. The WMS interfaces with Dematic’s warehouse control system (WCS). The totes for each store/customer then go back onto the cross-belt sorter. “The cross-belt sorter has passed the five-year benchmar≠k . At any given time products from retail. footwear and apparel. maximises sorter utilisation. or they will be sorted to one of 22 put-to-light stations.” he said. typically sorting batch-picked goods to discrete orders for shipping. it would only be used part of the time.000 sqft (48. Fossil: a name worth watching Most of us know the name Fossil.000 SKUs and shipping 80.000 cartons are processed through the DC daily. Cianfarani. Fossil utilises one cross-belt sorter for three distinct functions.” said Mr Flournoy. started out as modest watch design shop in the 1980s. However. which manages both order and material flow achieving a high level of machine and inforation integration.. and subsequently grew into a world-leading billion dollar global design.” said Dematic’s Joseph A. Inc. “We are constantly evaluating our workload and process flows. small leather goods.000 cartons daily. including an extensive line of men’s and women’s watches. 000 units/hour • A shipping and cross-docking cross-belt sorter system for boxes • 1000 chutes. The jury of the Logistics Leaders’ Club recognised Dematic and Inditex for the effective use of sophisticated technologies in the new distribution centre (DC). An icon in the world of fashion. with both phases delivered and operational within ZARA’s deadlines. 500 for each of the two sortation systems used to pick the orders. Operating in dual mode. ZARA’s new logistics platform at Meco in Madrid was awarded Best Logistics Project by Spanish trade publicaction Manutención y Almacenaje (Material Handling and Storage Magazine). with 30 Miniloads fitted with three Double Deep extractors handling all incoming and outgoing traffic • More than 10 km of conveyor belts and roller tracks • Complete sortation system consisting of two cross-belt Double Deck sorters that are capable of conveying and sorting any type of item bi-directionally. DC distribution systems overview • Two automated warehouses with capacity to hold more than 450. Spain). DC design Dematic’s design is based on the batch pick and sort concept and includes a Double Deck crossbelt sorter for split case items.400 outlets across the world. recieves the award from Blanca Sorigué. ZARA is able to fulfil its supply chain objectives by despatching any order originating from its European stores within 24 hours. automated fashion distribution systems in the world. Manuel Muñoz.000 sqm split into three levels. and 48 hours for the rest of the world. ZARA built a major new distribution centre (DC) at Meco. and with a capacity to process 80 million items a year in three daily shifts. fashion icon Zara has implemented one of the most sophisticated. The Dematic España team. A fashion icon The first ZARA store opened in La Coruña. Stores now operate in over 400 cities throughout Europe. Asia and Africa. Coping with success Having experienced spectacular growth. Dematic soon received an order to duplicate the installation. General Manager of SIL (International Logistics Fair Barcelona. developed the optimal design for an automated sortation system matching the ZARA business model and logistics strategy. it is one of the industry’s fastest growing stars and is highly regarded for its ability to successfully produce. accurate distribution to meet tight seasonal and promotional deadlines. again with a 15-month delivery date. another cross-belt sortation system for boxes. in close collaboration with Inditex Logistics Department. sPain BATCHING ORDERS & SORTING THEM OUT batCh PiCK & sORt zaRa aWaRdEd BEst LOgIstICs PROjECt In sPaIn Success in the highly dynamic fashion industry requires fast. market and distribute the latest fashions at affordable prices. a special exit chute concept for order assembly and an automated warehouse with 15 Miniload cranes.000 boxes. it is capable of sorting 80. With the help of Dematic. with more than 4. 16 DEMATIC LOGISTICS REVIEW DEMATIC LOGISTICS REVIEW 17 . using one or two of its cells depending on product size. in its 2009 Logistics Prizes. The high reliability and accuracy of cross-belt sorters has seen them firmly establish their position as the technology of choice for the automated sortation of high volume split and full case items. Utilising this complex and extensive distribution logistics platform. America. Spain in 1975.zARA (INDITEX) madRid. featuring a floorspace of 180. CEO Dematic Southern Europe. ” said Mr Couper. with separate storage areas provided for aerosols and dangerous goods. the operator prints and applies a label to the shipper. Three regional co-operatives provide a comprehensive range of order fulfilment and distribution services to a growing number of retail and wholesale operations throughout the country. 18 DEMATIC LOGISTICS REVIEW “ fOOdstuffs nEW nz dC dELIVERs thE gOOds Foodstuffs (Wellington) Co-operative Society Limited’s new $70 million Distribution Centre (DC) at Palmerston North incorporates the latest advances in order fulfilment. Voice & RF case. David Couper.200 items per hour. stockpickers. new zealand Foodstuffs is New Zealand’s largest grocery distributor. The shipper is then pushed down the flow lane to the rear of the workstation where it will be collected and consolidated with other goods for the customer. service stations and institutional customers. Directed by Pick-to-Light (PTL) displays on each order location. two Shoprite and three Write Price stores.000 SKUs. population spread. who have the choice to shop cash’n carry or have products delivered direct. operators simply transfer stock from the totes containing the SKUs to the order shippers in a ‘Pick’ and ‘Put’ process. and one of the country’s largest organisations.400 sqm DC has enabled Foodstuffs to centralise its ambient distribution requirements through one facility. 2010. The 32.000 pallets. the 10m tall Dematic Miniload ASRS is the storage engine that drives Foodstuffs’ new split case picking solution. and sets a new standard for grocery distribution in New Zealand. providing significant supply chain benefits and cost savings.000 totes in a footprint measuring just 40m x 85m. we decided that Palmerston North. Housing 33.FOODSTUFFS wellinGtOn. with its close proximity to the state highway network. ELIMINATING TRAVEL: SPLIT CASE GOOds-tO-PeRsOn ORdeR PiCKinG Fast start up The DC commenced operations in February 2010 with throughput ramping up to the official opening on April 6. Totes containing split case items required for orders are automatically retrieved by the Miniload and delivered by integrated conveyors to a series of six ergonomic RapidPick workstations. David Couper. processing the orders has traditionally been one of the most labour intensive and time-consuming aspects of distribution for Foodstuffs. layers and pallets are processed using a combination of RF and voice-directed picking. was the ideal location for a centralised DC. As the totes arrive at the workstations. 94 Four Square. Toops Wholesale Limited fulfils the distribution requirements of the hospitality and foodservice trades. and a further caged area for secure product storage. Dematic’s automated picking system has more than doubled productivity. with operators capable of picking over 1. When a shipper is full or the order has been completed. we have been able to close five warehouses. GM Operations. “Dematic’s automated picking system has more than doubled productivity. Housing more than 15. plus the availability of land. Foodstuffs’ solution to the costly problem has been to implement New Zealand’s first ‘Goodsto-Person’ (GTP) picking system to handle the bulk of split case orders.200 items/hour. it is Foodstuffs’ innovative approach to split case order fulfilment at the Roberts Line DC that breaks new ground in New Zealand. Stock is stored in a variety of rack configurations. Foodstuffs “ DEMATIC LOGISTICS REVIEW 19 . before being transferred to despatch. making it possible for Foodstuffs to process up to 126 orders at a time. “Having analysed the labour market. Each of the regional co-operatives is owned by its retail members. demographic changes in the region. with the DC’s workforce equipped with an all-electric fleet of 80 forklifts. with further initiatives including plans to sub-let the Silverstream warehouse in due course and install automatic milk handling machines at our Grenada and Mihaere Drive distribution facilities later in the year. and other issues such as the origin of the stock that is supplied to the DC. Foodstuffs (Wellington) Co-operative Society Ltd Foodstuffs supplies goods to over 170 grocery and liquor outlets across the lower North Island. said: “We started planning to consolidate our various distribution operations under the one roof more than five years ago.” added Mr Couper. Supply chain remodelling Foodstuffs General Manager Operations. NZ’s first GTP split case picking solution However. with operators capable of picking over 1. and operates independently. “As a result of opening Roberts Line. dairies. Henry’s Beer Wines & Spirits and Duffy & Finn’s liquor outlets. the DC provides storage capacity for more than 30. While split case orders may only represent around 15% of throughput in terms of volume. reach and pallet trucks. as well as a growing number of Liquorland. they are automatically tilted to make it easier for the operator to access and handle the SKUs inside. layer and pallet picking Orders for full cases. Each of the workstations is configured to enable batches of up to 21 discrete orders to be processed concurrently. These include 46 New World and 14 PAK’nSAVE retail supermarkets. showcasing some of the latest technologies and techniques available from Dematic including: • AMCAP: an automated system for assembling mixed case pallet loads • ErgoPall: an ergonomic manual system for assembling mixed case pallet loads • DC Director: new warehouse control software Top left: Uwe Geissinger (left) CEO Dematic Central Europe with Horst Schneider. Height and rake adjustable display screens provide visual management of the pick processes. Its multicolor. with reliably high picking rates. The opening of the TechCentre was incorporated into a logistics congress with speakers from the scientific and business sectors. photos of the products to be picked. right through to optional fully or semi-automated palletising and despatch consolidation. TECHNOLOGY PRODUCT. PRODUCT. The TechCentre is dedicated to research and development. Uwe Geissinger. The operator releases the tote. “On the one hand. Guests seized the opportunity of learning first-hand about current trends and requirements in intralogistics from specialists including Prof.” he said. Germany on June 10. On the other. ten Hompel. high-resolution screen displays simple. RaPIdPICk ERgOnOMIC PICkIng statIOns Outstanding picking rates of up to 1. or be returned to the ASRS if no further SKUs are required. we have implemented a concept that is unique in Europe for allying production and customer-oriented transparency. The workstation operator picks the indicated quantity and puts the quantity into the relevant shippers. order consolidation and buffering. trays. 2010 and was joined on the occasion by 200 invited guests from the business.800 items per hour are made possible through the innovative configuration of the picking stations. When the required quantity of SKUs has been removed from the tote. which will be transported to the next workstation requiring that SKU. • RapidPick: a new ergonomic workstation used in increasingly popular ‘Goods-to-Person’ order picking solutions • Multishuttle®: an automated system for storing. the operator is informed that picking for the SKU is complete. Top right: Prof. non-fatiguing working conditions. Dr. 20 DEMATIC LOGISTICS REVIEW DEMATIC LOGISTICS REVIEW 21 . and is designed to show industry examples of best practice and innovation in logistics systems technology. gOOds tO PERsOn (gtP) ORdER PICkIng hOW It WORks Totes containing SKUs for orders are retrieved from an ASRS and transported by conveyor to the workstations in the correct sequence for efficient order assembly. The result: highly flexible. economic and political worlds. The TechCentre has been set up so that continuous material flows from goods storage via sequenced picking. For picking stations capable of processing batches of up to 24 orders at a time. and a 3D description of the positioning of the picks in the order carton. together with our customers. In his opening speech. said: “With this new customer and technology centre. Dematic Central Europe CEO. All these features contribute to fast. accurate and safe order picking without errors. large and comfortable operating controls and acknowledge buttons. cutting-edge customer and technology centre in Offenbach. Check weighing can also be integrated to further improve accuracy. ten Hompel from Germany’s Fraunhofer Institut. A monitor at the workstation indicates the pick quantity for the tote and order. are possible using items such as bins. and a new Multishuttle Move prototype. Dr. price marking. Lord Mayor Offenbach at the official opening. the TechCentre is dedicated to the research and development of economical and environmentally-compatible solutions. buffering and sequencing goods.NEWS. we can conduct live trials with state-of-the-art automation solutions and fine-tune them to a customer’s precise requirements. which can be fully tailored to match operators’ individual requirements. which utilises Multishuttle carts as automated guided vehicles. cardboard boxes or pallets. Pick to Light (PTL) displays indicate the location and quantity of SKUs required for each of the orders being processed concurrently. Operator platforms and work tables are height adjustable and the picking stations also feature optimal workplace lighting. easily understood symbols for article volumes. The totes are scanned as they enter the workstation. TECHNOLOGY & sOftwaRe Review dEMatIC OPEns nEW WIndOW tO tEChnOLOgy Dematic officially opened its new. etc. MCS uses many common components. IT and mechanical components may be all that’s needed to increase operating efficiency to meet your current requirements. MCS conveyor utilises a universal side channel as the backbone for all the conveyor models (there are over 30 different models). gapping units.NEWS. professional support throughout the life of your system. accuracy. No two systems are the same and your requirements will be unique to your business. dEMatIC MOdERnIsatIOn & LIfECyCLE suPPORt Dematic’s new Modular Conveyor System (MCS) expands the scope of conveying applications. you can rely on it. As business changes. Parameters such as conveyor speed. safety and service levels. If your logistics and materials handling systems are struggling to keep up to the task. users can make changes to their conveyor system and not have to start over with an all new conveyor network. Our technicians are trained industry specialists who share their knowledge by offering support to your operational staff to get the most out of your system. improving reliability. steerable wheel diverters. and sleep mode can be adjusted using local or central controls. New market opportunities. We are proud of our record of customer support and strive to achieve best practice. Updated controls. As your business changes we also keep an eye on the future. expansions: they can all have a huge impact on the number and type of orders you process. therefore simplifying maintenance support and reducing the spare parts inventory. TECHNOLOGY & sOftwaRe Review MOduLaR COnVEyOR systEM MCs LOgIstICs MOdERnIsatIOn New technology developments and advances in software. acquisitions. curves. Carton control is optimised with the segmented belt conveyor with automatic tracking and tensioning belts. That’s why we will combine any of our service options to create a tailored plan to suit your individual business needs. mergers. right angle transfers. and knowing that when you need to push the system hard during peak periods. inclines/declines. which provide you with specialist. Modernisation also provides the flexibility to reconfigure operations to respond efficiently to inevitable changing market forces and demands. IT and controls make it possible for older logistics and materials handling systems to be cost-effectively updated to deliver high productivity. MCS gives you the ability to “drop in” new conveyor modules or change configurations. Change is the only sure bet in business. and reducing costs. accumulation mode. Modernisation and upgrades are often quicker and less expensive than new installations. PRODUCT. transforming performance. We designed MCS from the ground up to increase operational flexibility. software. minimising downtime. Modular conveyor sections available to build your system include: roller or belted sections. a tailored modernisation program could breathe new life into your operations. uPtIME sOLutIOns With our ongoing service and support you can be confident you will continue to get the best out of your investment. That means maximising uptime. Comprehensive service plans offer the level of support you need. 22 DEMATIC LOGISTICS REVIEW DEMATIC LOGISTICS REVIEW 23 . with a new and interconnecting product range providing optimal scalability. MCS can be configured with motorised rollers and standard AC drives. continuing to work in partnership with you to anticipate and meet your ongoing system and training needs. flexibility and energy efficiency in a modular and cost-effective package. Central to this promise is our customised service solutions. Controls can be mounted onboard and are connected using CAN Bus. 111 05069-900 Sao Paolo – SP Brazil Asia Pacific Dematic Pty Limited 24 Narabang Way Belrose NSW 2085 Australia T +61 9486 5555 F +61 9486 5511 info. Plaza Masalam Jalan Tengku Ampuan Zabedah E 9/E Section 9. OXON.com Dematic Headquarters 2-8. Tower 1 Kerry Everbright City No. Banbury. L5N 2W3 Mississauga-ON Canada Europe Germany Dematic GmbH Carl-Legien-Str.A. Michigan 49505 USA T +1 877 725-7500 F +1 616 913-7701 [email protected]. P. C/Alemania.A. Rua Werner Siemens.com Singapore Dematic S. 6. Madrid Spain Switzerland Dematic Switzerland Birmensdorfer ntr.com Canada Dematic Limited 6711 Mississauga Road. 218. Level 12. avenue Charles de Gaulle L-1653 Luxembourg T +352 27 48 59 F +352 27 48 59-99 America United States Dematic Corp. Avenue Gutenberg 77600 Bussy Saint Georges France Italy Dematic S.anz@dematic. Pte. 12-03A. R. Bhd.com United Kingdom Dematic Limited Beumont Rd. 18F. Ltd.S.r.E.dematic. Via Firenze 11 20063 Cernusco sul Naviglio (MI) Italy Spain Dematic Logistic Systems S. #02-01 Eton House. Plymouth Avenue NE Grand Rapids. China DEMATIC LOGISTICS REVIEW .l. Malaysia China Dematic International Trading Ltd.A. Tian Mu road west 200070 Shanghai. Darul Ehsan. 2-4 28820 Coslada. OX16 1QZ United Kingdom Netherlands Dematic Benelux Europalaan 4c 5232 BC Den Bosch Nederland Denmark Dematic Skandinavien Skottenborg 12-14 8800 Viborg Danmark France Dematic S. 40100 Shah Alam Selangor. 507. St 8902 Urdorf Switzerland Brazil Dematic Sistemas e Equipamentos de Movimentacao de Materials Ltda. 33 Jalan Afifi 409180 Singapore Malaysia Dematic Malaysia Sdn. 15 63073 Offenbach Germany T +49 69 8903-0 F +49 69 8903-1299 info@dematic.