Issue 2

LOWER picking cOsts



Smarter, faster, safer order picking

Ergonomic mixed case pallet building


News, technology and software update

sFs UniMARkEt: sWitzERLAnD


FOssiL: UsA zARA: spAin FOODstUFFs: nz
Multifunction Wins Best new zealand Dc sorting system Logistics Award delivers the goods


Creating Logistics Results

accuracy and control. and feature our responsive service network. About Dematic Dematic is one of the world’s leading suppliers of logistics automation systems and solutions. and manufacturing industries. consumer direct. get one for free with Negative-PUT • Automating picking When picking is too expensive. technologies and techniques and – working in close collaboration with global customers like adidas. 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. Roar Isaksen. buffering & sequencing Organise your reserve stock and get it in order • Free picking Pick one. Putting the 10 Strategies into action Dematic designs and engineers smart technologies and integrates them with world’s best practice techniques to lower costs. USA Case Study: Zara. JST and Foodstuffs – create world-leading logistics. Globally the company employs around 4. systems and solutions for retail and wholesale distribution. Spain Case Study: Foodstuffs. Zara. safer logistics for Dematic customers around the world. they bring your delivery strategy into alignment with your business strategy and help provide a competitive edge in your market. day out. HK Systems brings great knowledge. As a systems integrator. as well as complete after-sales support and service. Dematic delivers a full range of technologies and services. Roar Isaksen. 2010. We highlight our innovative new modular conveyor. New Zealand News. modularity and government regulation. Concurrently we address issues like workplace safety. addresses current business drivers. Further announcements about this exciting development will be made soon. ergonomic RapidPick stations and SAP interface. SFS unimarket. flexibility. grocery. In this issue. faster. At Dematic. safER LOgIstICs Welcome to the second issue of Dematic Logistics Review – Your Window to World’s Best Practice Logistics. order fulfilment and distribution solutions. more reliable delivery is not enough. 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. Dematic’s products and services are based on a tradition of industry expertise that the company has acquired over decades of commitment worldwide. and further strengthens our leading position in North America and beyond. The key to sustainable logistics results is an adaptable strategic framework that aligns all aspects of business strategy. skills shortages. food and beverage. We also profile the performance improvements and cost savings that smart modernisation upgrades can deliver. Dematic provides automated material handling products. President & CEO. As President and CEO of Dematic. from individual products and systems to complete turnkey solutions as a general contractor. 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. Intelligently applied. 2 DEMATIC LOGISTICS REVIEW DEMATIC LOGISTICS REVIEW 3 . We call these the 10 Strategies for Distribution Logistics Success. which is there to ensure you are able to deliver on your promises day in. simply lowering costs or providing faster. we have developed new methods for aligning your logistics and business strategies. In this issue. Product. technology and software breakthroughs which are delivering smarter. Fossil. fastER. competence and complementary technology to Dematic. 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. increase productivity and provide greater levels of service. 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. Switzerland Cover Story: SAP SubDriver Technology Feature: Mixed Case Palletising Case Study: adidas. 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. creates loyalty. and generates profits. President & CEO. these days. we present product. we show how we take our strategies. China Case Study: Fossil. United Kingdom Case Study: JST. 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.Contents Cover Story: SFS Unimarket.000 people. 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. Dematic Working closely with Dematic’s innovative team of designers. But as we all know.

In total. being located on the second level of the facility. The Dematic solution will now form the template for a rollout of standardised technology for all of our warehouses around the world. Five aisles incorporating 17 levels are each serviced by three Multishuttle cars.” Dematic was awarded the contract as general contractor for the system design. chemical and technical products in Switzerland and neighbouring countries. providing machine control all the way down to PLC level. SFS unimarket AG. safeguard the system’s release capability at SAP level. it was clear that the warehouse would achieve its target of a 30% increase in productivity. “We are very pleased with the outcome. 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. A feature of Multishuttle compared to conventional ASRS solutions is that it does not take up any valuable floor space within the warehouse. as well as the supply and control of picking bins and packaging stations. Three container heights and compartments result in 18 different container types. Dematic was commissioned by SFS to conduct a feasibility study. 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).COVER STORY SFS UNIMARKET Rebstein. tools. with the typical throughput of around 4. The double-deep system provides a total storage capacity of 32. providing a handling capacity of up to 500 put-away and 500 retrieval cycles per hour. Logistics Manager SFS. Within a couple of weeks from start-up.” he said. As one of only a few distinguished SAP implementation partners specialising in warehouse logistics. an integrated conveyor system delivers the containers to the appropriate picking station. “This was an important conclusion for us.000 items per day rising to 5. a leading supplier of fasteners. Employing the highly efficient “Goodsto-Person” principle. Dematic also developed a world-first interface to SAP EWM and MFS for SFS unimarket AG.” said Dietmar Kabasser. the EWM and MFS configurations in SAP standard. 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%. has increased order fulfilment productivity by 30% since commissioning a new warehouse at Rebstein. Peter Tobler. enabling a large number of SKUs to be stored space-efficiently. Dematic (left) and Bruno Spirig.000 articles. SFS services Manager “ 4 DEMATIC LOGISTICS REVIEW DEMATIC LOGISTICS REVIEW “ 5 . making SAP’s R/3 ERP system a true end-to-end solution. 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. consisting of SAP EWM and SAP MFS.000 container location Multishuttle.” said Mr Kabasser. The Multishuttle cars transfer between levels using lifts located at the end of aisles. “Every process – from deconsolidation and goods-in additions to existing stock. ® MuLtIshuttLE & saP IntERfaCE sECuREs 30% gaIn fOR sfs Dematic’s David Rubie with CCA’s Major Projects Manager Grant McClean. Head of SAP Competence Centre WMS. PLC control technology and the structure of the IT system – “everything from a single source.” explained Mr Kabasser. In addition to implementing a 32. up to material flows in the bulky goods and pallet long-load store – are managed and mapped through dialogs in EWM and MFS.” explained Mr Kabasser “Next to the connection to our SAP ERP. the Multishuttle houses close to 50. through Multishuttle put-aways and removals. architectural hardware. mechanical equipment.500 during peak periods. could enable direct selection of programmable logic controls (PLC) for the mechanical equipment and the new warehouse processes. “We have successfully achieved our goals with regards to increased productivity. Its aim was to demonstrate whether and how the process control system. flexibility and a future-oriented solution.000 container spaces.

mixed case palletising To process and palletise mixed cases accurately at high speeds. Both systems employ a combination of automated storage. unless mixed case pallets are carefully assembled by experienced personnel. Using SAP’s Material Flow System. Until recently. respectively SAP R/3. The application scope of this component includes manual and automated warehouses. Manual mixed case order assembly. 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. SAP LES (Logistics Execution System) SAP LES is part of SAP ERP. LES supports the complete handling of customer orders. buffering and sequencing systems have enabled the development of two innovations designed to reduce the cost and significantly improve the efficiency. EWM solutions implemented by Dematic meet the customer’s requirements to utilise standard software that has been customised to meet their needs.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. risking product damage during transport and adding to transport costs by taking up more cubic space than necessary. which transfers the protocol of the SAP-world into the protocol of the PLC-world. SAP EWM supports inventory management and goods movements in warehouses. safety and efficiency of both manual and automated mixed case pallet assembly. And. Inventory management and goods movements are closely integrated. SAP EWM (Extended Warehouse Management) Part of mySAP Supply Chain Management (mySAP SCM). Dematic’s impressive storage buffer and sequencing technology has revolutionised the possibilities with order assembly. advanced software and automated materials handling equipment. Besides management of inventory and resources. autOMatEd MIxEd CasE PaLLEtIsIng We preview two new Dematic technology breakthroughs that revolutionise the speed. products need to be fed in the correct sequence to suit pallet assembly. the resulting stacks of goods may be unstable. repetitive and heavy tasks are both physically demanding and costly. buffering and sequencing systems including Dematic’s Miniload and Multishuttle® automated storage and retrieval systems (ASRS). there is an increasing demand for smart solutions that take mixed case palletising in a new and exciting direction. can be done more safely and with much greater efficiency. Driven by OH&S concerns and skills shortages. located in electrical cabinets. The multi-tenant warehouse management solution was designed for large warehouses with complex processes. and an important component of SAP’s supply chain management solutions. The second part is a hardware controller. the main difference being that ErgoPall still uses people to build the pallets – but in an ergonomic way – while AMCAP uses sophisticated robotic palletisers. controls and buffering and sequencing technologies have taken automated mixed case palletising in a new and exciting direction. The advantage of this solution is that middleware is no longer applicable and a technological breach when operating different software systems can be avoided. Dematic has already carried out many migrations to SAP LES and proven its know-how and integration skills. accuracy and productivity when goods are presented for palletising in the correct sequence. robotics and intelligent storage. 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. Advances in software. 6 DEMATIC LOGISTICS REVIEW DEMATIC LOGISTICS REVIEW 7 . But as logistics professionals know. The SubDriver hardware is compatible with SAP EWM and SAP LES. in particular. Facilitating high rate. New advances in software. automated warehouse processes can be driven directly by SAP EWM. including picking. the only way to assemble a pallet containing many different SKUs (stock keeping units) was to do it manually. productivity and safety of building mixed case pallets – ErgoPall Ergonomic High Rate Palletising Stations and AMCAP (Automated Mixed Case Palletising). buffering and sequencing systems. Key to ErgoPall and AMCAP was the development of storage.

weight. transport and palletising. the layer pattern. When the WMS releases orders. 8 DEMATIC LOGISTICS REVIEW “ DEMATIC LOGISTICS REVIEW 9 . grabbing and placing the SKUs enables the system’s high throughput rate of greater than 1. picking. As the pallet is being lowered. PGD uses different attributes of the product (length. As per the ErgoPall solution. and family group rules unique to stores. After the pallet continues down through the mezzanine. aisles and aisle sections to determine the optimum build sequence for each pallet. The ErgoPall stations are built on a mezzanine with integrated conveyors delivering a constant flow of mixed cases to the operator. efficiency and safety above and beyond the capabilities of conventional automated and manual palletising systems has been realised. significantly reducing the physical effort required. This universal tool can handle all standard types of packaging without stopping or changing tools. enabling it to grip virtually any type of packaging without product damage. open or closed cartons. continues even while the built pallet is being removed from the ErgoPall station. more dense and more stable pallet. buffering. with only a few seconds lost in the transition. order accuracy and store-friendly flexibility. at which point they are aligned. Capable of building a higher. with only a few seconds lost in the transition from one order to the next. 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. volume of cases per layer. the pallet is automatically lowered through the mezzanine floor by an integrated lift. buffering. the pallet automatically lowers. have enabled the development of automated palletising systems capable of handling a diverse range of SKUs and packaging types including boxes of various sizes. the pallet has a label applied to it as it exits on an outbound conveyor. However. increased accuracy. “ Dematic AMCAP Automated mixed case palletising Automated palletising is a very efficient solution to building pallets in high volume distribution applications. Improved productivity at both the DC and the store. once stacking is complete. product storage. stability factors. height. cardboard trays. storage. mixed case palletising works The distribution centre’s warehouse management system (WMS) interfaces with Dematic’s WCS (warehouse control system). mixed case palletising a new level of flexibility.000 mixed SKU cases per hour. Requiring just 28 operators. it is stretch wrapped for stability. enabling assembly of the next layer to begin. fast and reliable automated systems can handle tens-of-thousands of SKUs. automated palletisers have only been capable of handling a limited range of SKUs and packaging types. until recently. autOMatEd MIxEd CasE PaLLEtIsIng Palletising.TECHNOLOGY mixed Case PalletisinG ELIMINATING TRAVEL: FULL CASE ORdeR assembly How high rate. and improving the safety. Dematic has implemented 16 ErgoPall stations as part of a sophisticated order assembly system for Danish supermarket giant Dansk Supermarked Gruppen (DSG). which controls all aspects of the order assembly process including pallet breakdown or delayering. When all of the goods required for an order have been placed on the pallet and the stretch wrapping completed. end-of-arm-tool (EOAT) attached to the robots’ articulated arms. the necessary SKUs are automatically picked and transported in the exact sequence required to facilitate pallet assembly. reduced labour and optimised transport costs are just some of the benefits Dematic’s ErgoPall and AMCAP systems deliver. oriented and presented to the robots for pick up. with the two robots building each pallet cooperatively. DSG’s large SKU range of more than 17. 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.) and stacking criteria factors including crushability. Lifting is virtually eliminated and. producing compact store-friendly pallets to suit the retailer’s multiple store formats. typically building cube and volumeoptimised pallets with a density of 90%+ compared to 70 to 80% density for hand-stacked pallets. the order assembly system will build 250 mixed case pallets per hour. servodriven articulated arm robots installed on a mezzanine. Two conveyors automatically deliver the SKUs to the work cell. The combined dual-robotic cycle of feeding. etc. sequencing and recognition systems. labelled and exits the system. sequencing. A new benchmark in mixed case palletising With the emergence of high-rate. 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. as each layer of cases is completed. There is no use of pneumatic suction technology. bagged goods and sacks. as the operator(s) continue assembling the order. which open gently transferring the already picked cases to the surface of the new pallet. One of the unique aspects of AMCAP is the multi-axis. the ability to deliver to multiple store formats.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. The ErgoPall stations deliver a constant flow of mixed cases. enabling the operator(s) to simply slide the sequenced cases into position on the pallet. however. stretch wrapped. When required for an order. Now advances in software. width. departments. these extremely accurate. number of layers. and high speed articulated robots with more versatile product gripping tools. speed and quality of order assembly. Optimised efficiency in the work cell Each AMCAP cell comprises two six-axis. the WCS sorts the data and sends the pallet stock information to Dematic’s PalletGenDirector (PGD) software. enabling the operator(s) to simply slide the sequenced cases into position on the pallet. Concurrently a new empty pallet is raised by the lift to the underside of the slider plates. with improvements in system speed.

apparel and accessories is a critical issue for adidas. As totes or cartons arrive at the picking stations. Eliminating pick faces and replenishment It soon became apparent that the system was easily capable of coping with not only the slow moving goods. Global Business Solutions Warehousing. Project Manager. the pick face for a manual operation would have been massive and. we would have been continually changing it – automation improves efficiency three fold. beyond this Adams sees that in recent years automation has become far more flexible. “With over 70. 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. With pick rates averaging 500 units/hour. every split case item is scanned before packing into a despatch carton at one of the DC’s 22 packing stations. Incorporating high rate put stations. Importantly. 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).000 pallet location. integrating with adidas’ Manhattan Associates WMS. “It also helps with labour and resource utilisation by smoothing out peaks and troughs in demand.” 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. replacing four existing conventional warehouses.adidas manChesteR. enabling up to 24 individual orders to be processed at a time.000 locations and is accessed by 12 cranes. “it allows for much greater accuracy. New picking strategies for new Trafford The purpose built 350. which keeps overheads down. “Dematic’s software team were most accommodating. Space efficient pallet storage The bulk store is a 20.” said Mr Adams. the pick face for a manual operation would have been massive and. Dematic worked with adidas to create a dynamic. 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. servicing retailers in the UK. Completed orders are pushed onto a take-away conveyor and transported to packing stations or.” said Tim Adams. Rockport and Ashworth – with logistics consolidated through a single automated distribution facility in Trafford. adidas can now pick more than 40.” said Mr Adams. are sent to an automated buffer awaiting completion of the order. adidas Group. they enable the operator to concurrently process up to 24 orders at a time. High density tote and carton storage The fully automated 20m high Dematic Miniload store has over 300. we would have been continually changing it – automation improves efficiency three fold. Global Warehousing for adidas Group. Eire and Benelux. Global Business Solutions.” Tim Adams. right down to an individual pair of shoes.500 sqm) DC in Manchester was kitted out within 18 months. acquisition of the Reebok brand presented both a challenge and an opportunity to redefine and restructure its European Area North distribution operation. TaylorMade. enabling a range of possibilities from the picking of cartons. uK adidas sCOREs suPPLy ChaIn gOaLs WIth autO dC Efficient and timely distribution of its state-of-theart sports footwear. Palletised loads leaving the high-bay are either destined for despatch or may move to one of four stations for carton picking operations. easy to work with and very inventive at getting the most out of the system. In 2006. Manchester. Reebok. 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 its supply chain having been tested in recent years by the rapid expansion of the business. Analysis of the merged company’s distribution network highlighted the efficiencies that could be achieved by consolidating inventory from five key brands – adidas.000 split case items a day. given the seasonal nature of our business.000 sqft (32. each equipped with a double-deep load handling device designed to handle four different-sized loads simultaneously. adidas group “ DEMATIC LOGISTICS REVIEW 11 . 10 DEMATIC LOGISTICS REVIEW tim adams. “With over 70. The integrated design features large automated pallet and tote automated storage and retrieval systems (ASRS). given the seasonal nature of our business. global Business solutions Warehousing. in the case of partially completed orders. However.” he said. fully automated high-bay operation equipped with five Dematic pallet cranes. Each of the four high rate put stations has 24 ‘put-to’ locations for customer orders. Directing warehouse control Control of the automated facility is managed by DC Director. together with a highly efficient goods-to-person (GTP) picking system.000 SKUs. they are elevated into position ready for the operator.000 SKUs. To ensure accuracy. The system can perform an impressive 800 dual cycles per hour. enabling adidas to reduce the area allocated to manual picking by two thirds. 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. “Automation allows us to handle a lot of volume in a relatively small amount of space. but the vast majority of split case goods too. and the capacity to process up to 1500 units/hour. “DC Director is a lot simpler to use than other systems I’ve seen. space and cost-efficient warehouse.

000 plus retail outlets. The success of the implementation has enabled JST to alter its distribution model. Dematic reviewed JST’s current methods and procedures. with just 15% of the SKUs responsible for 70% of sales volume. bulk and reserve storage. as well as the requirements and expectations for the distribution centre. Provided by third parties. In researching and developing its integrated materials handling solution. laser etching is applied on the end of the cases in the tote. The tote bin can be inducted in either area. Each DC. Higher than expected productivity Originally planned to distribute up to 300. split carton. and manual picking for high volume “multiple 5” order lines. and the system tracks the bin to balance the workload in the manual pick area. China Dematic has developed a chain of automated distribution centres (DCs) capable of handling JST’s order fulfilment and distribution requirements. In this issue. with tote bins transporting orders through the DC all the way to the customer. for small and residual picking quantities. The result is a picking solution including an Aframe capable of picking at least 15. During six months of close communication. 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.JIANGSU TOBACCO xuzhOu. IntEgRatEd dIstRIButIOn fOR ChIna’s jst Jiangsu Tobacco has built a chain of modern distribution centres (DCs) in Jiangsu province. customer and order data. the system implementation has enabled the DC capacity to reach up to 390. MOVING THE ORDERS TO zONES zOne ROutinG There are more than 100 SKUs plus promotional products. order characteristics.000 cartons/day with a picking accuracy over 99. ASRS. prior to sorting. Meeting China Tobacco Board requirements The China Tobacco Board requirement for case coding to easily identify product at the retail outlet was integrated. with a secondary manual sort into reverse drop sequence within each transport route. Dematic completed a comprehensive overview of JST’s business. and the order fulfilment period reduced from an initial ten hours to one shift. and a host of other factors that could influence possible solutions. The automatic and manual pick areas are linked by an integrated conveyor system. Working together to develop a better solution Prior to bidding for the project. located strategically within the Jiangsu province. JST distribution More than 8. to provide highly efficient and accurate order picking. warehouse practices. allowing it to deliver to all shops instead of only authorised district shops. Dematic worked closely with JST to identify and collect information such as inventory statistics. A-frames and. 12 DEMATIC LOGISTICS REVIEW DEMATIC LOGISTICS REVIEW 13 .8%. we feature JST’s DC at Xuzhou. providing a secure and recyclable carrier. and the tobacco industry in China. zone routing.000 cartons/day. A pop-up wheel sorter provides 18 sort destinations for the primary sort. which includes staging for receiving and despatch. depending on where the picks are. and promotional/special picking areas.000 cases/ hour automatically and a highly productive and flexible manual pick-to-light system capable of picking at least 36.000 cases/hour. full carton. in some cases.000 orders are completed each day with JST fulfilling a three-day order cycle to service 40. Two tier picking strategy Picking strategy plays a key role in Dematic’s design with the system including automatic picking. JST is reviewing the number of SKUs in an effort to improve production efficiency. combines pick-to-light.

” said Mr Flournoy. and subsequently grew into a world-leading billion dollar global design. or they will be sorted to one of 22 put-to-light stations. the DC also distributes products to 350+ company-owned stores. from which it distributes fashion accessories daily to department and specialty retail stores. The company’s ERP (enterprise resource planning) system initiates orders into its WMS (warehouse management system).000 fashion accessories daily. maximises sorter utilisation.000 units a day on average. The totes for each store/customer then go back onto the cross-belt sorter.” Cross-belt sorters usually perform a single function.” said Dematic’s Joseph A. Flexibility and functionality increases ROI “Having the cross-belt sorter perform multiple functions like this is very cost-effective. Central to Fossil’s operation is its 517. Fossil’s put-to-light stations use electronic displays to instruct the operator where to put each item. when volumes are highest. Handling more than 25. Sorting batch-picked goods to discrete orders The first application for the cross-belt sorter is when batched orders of product are picked. and optimises Fossil’s ROI. those wonderfully designed watches that replicate styles reminiscent of earlier time periods. “The cross-belt sorter has passed the five-year benchmark. The WMS interfaces with Dematic’s warehouse control system (WCS). then again from its put-to-light area. Using one sorter to perform the functions normally done by three. the DC handles more than 12. started out as modest watch design shop in the 1980s. the cartons are routed back through the cross-belt sorter a third time where they will be diverted to one of five shipping lanes. “We are able to quickly shift around workloads and staff to meet our ever changing production needs. Fossil is getting the best possible utilisation of the equipment and optimising its return on investment (ROI). Inc. marketing and distribution company specialising in consumer fashion accessories. where they will be diverted to one of 33 pack-out stations. However. Fossil “ 14 DEMATIC LOGISTICS REVIEW “ DEMATIC LOGISTICS REVIEW 15 .000 cartons are processed through the DC daily. Fossil: a name worth watching Most of us know the name Fossil.000 and 8. 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.” said Fossil’s Craig Flournoy. fOssIL MaxIMIsIng sORtatIOn fLExIBILIty Handling 25.000 fashion accessory SKUs.000 cartons daily. small leather goods. Much of the additional volume is from direct website orders which tend to be single SKUs. 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. including an extensive line of men’s and women’s watches. which manages both order and material flow achieving a high level of machine and inforation integration. and it is performing as expected. and direct to customers around the world. jewellery.” said Mr Flournoy. handbags. From mid-September to the end of November. “The cross-belt sorter has passed the five-year benchmar≠k . and finally from its pack-out stations. typically sorting batch-picked goods to discrete orders for shipping. put-to-light and packing/shipping. put into totes and inducted to the cross-belt sorter. Between 5. At any given time products from retail. Confirmed ‘put’ results flow back through the system in real-time to update Fossil’s ERP inventory levels. it would only be used part of the time. sunglasses. watch and jewellery retailers.000 SKUs and shipping 80.FOSSIL dallas. and we fully expect it to continue to execute these multifunctional operations at its high level of performance for many years to come. Fossil utilises one cross-belt sorter for three distinct functions.000 sqft (48. Cianfarani. Once the items are packed.. The flexibility of our IT and sortation systems makes this possible. BATCHING ORDERS & SORTING THEM OUT batCh PiCK & sORt “If a different sorting system was used for each of the three functions. texas.” he said. “We are constantly evaluating our workload and process flows. The batched orders may first be sorted to the Value Added Services (VAS) area. where the batched orders are broken down to individual order quantities.” Craig Flournoy. direct-to-store and ecommerce could be in process. “We fully expect it to continue to execute these multi-functional operations at its high level of performance for many years to come..000 sqm) distribution centre (DC) in Dallas. at its Dallas DC. Cross-belt sorter performance “Our throughput is 80. But not all of us know that Fossil. footwear and apparel. 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. By using the cross-belt sorter for three different purposes. It sorts packages from Fossil’s pick stations. belts. Fossil knows how to get the most out of its sortation system. wholesale.” he said.

DC distribution systems overview • Two automated warehouses with capacity to hold more than 450. America. A fashion icon The first ZARA store opened in La Coruña. Spain). it is one of the industry’s fastest growing stars and is highly regarded for its ability to successfully produce. 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. developed the optimal design for an automated sortation system matching the ZARA business model and logistics strategy. The jury of the Logistics Leaders’ Club recognised Dematic and Inditex for the effective use of sophisticated technologies in the new distribution centre (DC). a special exit chute concept for order assembly and an automated warehouse with 15 Miniload cranes.000 boxes. The Dematic España team. 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. Manuel Muñoz. Dematic soon received an order to duplicate the installation.zARA (INDITEX) madRid. and 48 hours for the rest of the world. with both phases delivered and operational within ZARA’s deadlines. 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. it is capable of sorting 80. recieves the award from Blanca Sorigué. accurate distribution to meet tight seasonal and promotional deadlines. 16 DEMATIC LOGISTICS REVIEW DEMATIC LOGISTICS REVIEW 17 . market and distribute the latest fashions at affordable prices. With the help of Dematic. ZARA built a major new distribution centre (DC) at Meco. in close collaboration with Inditex Logistics Department. 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. 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). An icon in the world of fashion. Operating in dual mode. General Manager of SIL (International Logistics Fair Barcelona. in its 2009 Logistics Prizes. another cross-belt sortation system for boxes.000 units/hour • A shipping and cross-docking cross-belt sorter system for boxes • 1000 chutes. again with a 15-month delivery date. Asia and Africa. automated fashion distribution systems in the world. with more than 4. 500 for each of the two sortation systems used to pick the orders. featuring a floorspace of 180. CEO Dematic Southern Europe. fashion icon Zara has implemented one of the most sophisticated. Utilising this complex and extensive distribution logistics platform. using one or two of its cells depending on product size. and with a capacity to process 80 million items a year in three daily shifts. ZARA is able to fulfil its supply chain objectives by despatching any order originating from its European stores within 24 hours. Stores now operate in over 400 cities throughout Europe.000 sqm split into three levels. Spain in 1975. Coping with success Having experienced spectacular growth.400 outlets across the world.

as well as a growing number of Liquorland. Housing more than 15. “Having analysed the labour market. with operators capable of picking over 1. with the DC’s workforce equipped with an all-electric fleet of 80 forklifts. population spread. 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.000 totes in a footprint measuring just 40m x 85m. with operators capable of picking over 1. plus the availability of land. reach and pallet trucks. was the ideal location for a centralised DC. layer and pallet picking Orders for full cases. and sets a new standard for grocery distribution in New Zealand. they are automatically tilted to make it easier for the operator to access and handle the SKUs inside. two Shoprite and three Write Price stores. the 10m tall Dematic Miniload ASRS is the storage engine that drives Foodstuffs’ new split case picking solution. who have the choice to shop cash’n carry or have products delivered direct. it is Foodstuffs’ innovative approach to split case order fulfilment at the Roberts Line DC that breaks new ground in New Zealand. Toops Wholesale Limited fulfils the distribution requirements of the hospitality and foodservice trades. we decided that Palmerston North. layers and pallets are processed using a combination of RF and voice-directed picking. 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. with its close proximity to the state highway network. stockpickers. “Dematic’s automated picking system has more than doubled productivity. As the totes arrive at the workstations. making it possible for Foodstuffs to process up to 126 orders at a time. and a further caged area for secure product storage. Housing 33. Each of the regional co-operatives is owned by its retail members.” added Mr Couper. and one of the country’s largest organisations. Stock is stored in a variety of rack configurations.FOODSTUFFS wellinGtOn. “As a result of opening Roberts Line.” said Mr Couper. 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. new zealand Foodstuffs is New Zealand’s largest grocery distributor. 94 Four Square. These include 46 New World and 14 PAK’nSAVE retail supermarkets. Supply chain remodelling Foodstuffs General Manager Operations. Foodstuffs “ DEMATIC LOGISTICS REVIEW 19 . NZ’s first GTP split case picking solution However. processing the orders has traditionally been one of the most labour intensive and time-consuming aspects of distribution for Foodstuffs.000 pallets. the DC provides storage capacity for more than 30. with separate storage areas provided for aerosols and dangerous goods. operators simply transfer stock from the totes containing the SKUs to the order shippers in a ‘Pick’ and ‘Put’ process. 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. GM Operations. 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.400 sqm DC has enabled Foodstuffs to centralise its ambient distribution requirements through one facility. and other issues such as the origin of the stock that is supplied to the DC. we have been able to close five warehouses. David Couper. Voice & RF case. providing significant supply chain benefits and cost savings. 2010. The 32.200 items/hour. While split case orders may only represent around 15% of throughput in terms of volume. 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. Henry’s Beer Wines & Spirits and Duffy & Finn’s liquor outlets.200 items per hour. Directed by Pick-to-Light (PTL) displays on each order location. Each of the workstations is configured to enable batches of up to 21 discrete orders to be processed concurrently. When a shipper is full or the order has been completed. demographic changes in the region. Foodstuffs (Wellington) Co-operative Society Ltd Foodstuffs supplies goods to over 170 grocery and liquor outlets across the lower North Island. David Couper. dairies. Dematic’s automated picking system has more than doubled productivity. the operator prints and applies a label to the shipper.000 SKUs. 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. and operates independently. service stations and institutional customers. before being transferred to despatch. said: “We started planning to consolidate our various distribution operations under the one roof more than five years ago.

cutting-edge customer and technology centre in Offenbach. The operator releases the tote. the TechCentre is dedicated to the research and development of economical and environmentally-compatible solutions. buffering and sequencing goods. with reliably high picking rates. Dr. which will be transported to the next workstation requiring that SKU. The TechCentre is dedicated to research and development. together with our customers. Check weighing can also be integrated to further improve accuracy. The totes are scanned as they enter the workstation. are possible using items such as bins. order consolidation and buffering. Guests seized the opportunity of learning first-hand about current trends and requirements in intralogistics from specialists including Prof. ten Hompel from Germany’s Fraunhofer Institut. photos of the products to be picked. Dr. we have implemented a concept that is unique in Europe for allying production and customer-oriented transparency. cardboard boxes or pallets. trays. price marking. 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. and is designed to show industry examples of best practice and innovation in logistics systems technology. Its multicolor. For picking stations capable of processing batches of up to 24 orders at a time. high-resolution screen displays simple. right through to optional fully or semi-automated palletising and despatch consolidation. TECHNOLOGY & sOftwaRe Review dEMatIC OPEns nEW WIndOW tO tEChnOLOgy Dematic officially opened its new. Germany on June 10. we can conduct live trials with state-of-the-art automation solutions and fine-tune them to a customer’s precise requirements.800 items per hour are made possible through the innovative configuration of the picking stations. economic and political worlds. and a 3D description of the positioning of the picks in the order carton. A monitor at the workstation indicates the pick quantity for the tote and order. and a new Multishuttle Move prototype.” he said. 2010 and was joined on the occasion by 200 invited guests from the business. The result: highly flexible. which utilises Multishuttle carts as automated guided vehicles. easily understood symbols for article volumes. The workstation operator picks the indicated quantity and puts the quantity into the relevant shippers. When the required quantity of SKUs has been removed from the tote. which can be fully tailored to match operators’ individual requirements. “On the one hand. ten Hompel. Height and rake adjustable display screens provide visual management of the pick processes. 20 DEMATIC LOGISTICS REVIEW DEMATIC LOGISTICS REVIEW 21 . The opening of the TechCentre was incorporated into a logistics congress with speakers from the scientific and business sectors. All these features contribute to fast. or be returned to the ASRS if no further SKUs are required. said: “With this new customer and technology centre. large and comfortable operating controls and acknowledge buttons. accurate and safe order picking without errors. Pick to Light (PTL) displays indicate the location and quantity of SKUs required for each of the orders being processed concurrently. TECHNOLOGY PRODUCT. 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. RaPIdPICk ERgOnOMIC PICkIng statIOns Outstanding picking rates of up to 1. non-fatiguing working conditions. In his opening speech. Uwe Geissinger.NEWS. PRODUCT. the operator is informed that picking for the SKU is complete. Lord Mayor Offenbach at the official opening. Operator platforms and work tables are height adjustable and the picking stations also feature optimal workplace lighting. Top right: Prof. On the other. The TechCentre has been set up so that continuous material flows from goods storage via sequenced picking. Dematic Central Europe CEO. • RapidPick: a new ergonomic workstation used in increasingly popular ‘Goods-to-Person’ order picking solutions • Multishuttle®: an automated system for storing.

New market opportunities. dEMatIC MOdERnIsatIOn & LIfECyCLE suPPORt Dematic’s new Modular Conveyor System (MCS) expands the scope of conveying applications. Central to this promise is our customised service solutions. accuracy. Modernisation and upgrades are often quicker and less expensive than new installations. minimising downtime. and knowing that when you need to push the system hard during peak periods. Modernisation also provides the flexibility to reconfigure operations to respond efficiently to inevitable changing market forces and demands. curves. expansions: they can all have a huge impact on the number and type of orders you process. 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. IT and mechanical components may be all that’s needed to increase operating efficiency to meet your current requirements. with a new and interconnecting product range providing optimal scalability. professional support throughout the life of your system. you can rely on it. users can make changes to their conveyor system and not have to start over with an all new conveyor network. Carton control is optimised with the segmented belt conveyor with automatic tracking and tensioning belts. continuing to work in partnership with you to anticipate and meet your ongoing system and training needs. mergers. MCS uses many common components. That’s why we will combine any of our service options to create a tailored plan to suit your individual business needs. and sleep mode can be adjusted using local or central controls. If your logistics and materials handling systems are struggling to keep up to the task. PRODUCT. We designed MCS from the ground up to increase operational flexibility. transforming performance. Modular conveyor sections available to build your system include: roller or belted sections. Parameters such as conveyor speed. safety and service levels. MCS conveyor utilises a universal side channel as the backbone for all the conveyor models (there are over 30 different models). That means maximising uptime. We are proud of our record of customer support and strive to achieve best practice. 22 DEMATIC LOGISTICS REVIEW DEMATIC LOGISTICS REVIEW 23 . Change is the only sure bet in business. Controls can be mounted onboard and are connected using CAN Bus. which provide you with specialist. acquisitions. uPtIME sOLutIOns With our ongoing service and support you can be confident you will continue to get the best out of your investment. Updated controls. software. Comprehensive service plans offer the level of support you need. steerable wheel diverters. gapping units. right angle transfers. inclines/declines. As your business changes we also keep an eye on the future. improving reliability.NEWS. a tailored modernisation program could breathe new life into your operations. flexibility and energy efficiency in a modular and cost-effective package. etc. accumulation mode. therefore simplifying maintenance support and reducing the spare parts inventory. and reducing costs. 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. No two systems are the same and your requirements will be unique to your business. MCS can be configured with motorised rollers and standard AC drives. As business changes. TECHNOLOGY & sOftwaRe Review MOduLaR COnVEyOR systEM MCs LOgIstICs MOdERnIsatIOn New technology developments and advances in software.

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.A. Dematic Headquarters 2-8.A. 507. avenue Charles de Gaulle L-1653 Luxembourg T +352 27 48 59 F +352 27 48 59-99 America United States Dematic Corp. Tian Mu road west 200070 Shanghai. 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.r. 12-03A. Tower 1 Kerry Everbright City No. China DEMATIC LOGISTICS REVIEW . 15 63073 Offenbach Germany T +49 69 8903-0 F +49 69 8903-1299 info@dematic.E. Pte. C/Alemania. 218. Bhd.A. R.S.dematic.l. Rua Werner Siemens. Level 12. Plaza Masalam Jalan Tengku Ampuan Zabedah E 9/E Section 9. Michigan 49505 USA T +1 877 725-7500 F +1 616 913-7701 usinfo@dematic. Banbury. Plymouth Avenue NE Grand Rapids. St 8902 Urdorf Switzerland Brazil Dematic Sistemas e Equipamentos de Movimentacao de Materials Ltda. Darul Ehsan. #02-01 Eton House. P. L5N 2W3 Mississauga-ON Canada Europe Germany Dematic GmbH Carl-Legien-Str. 40100 Shah Alam Selangor. 2-4 28820 Coslada. Madrid Spain Switzerland Dematic Switzerland Birmensdorfer ntr. Malaysia China Dematic International Trading Ltd. OXON. 33 Jalan Afifi 409180 Singapore Malaysia Dematic Malaysia Sdn.www. Via Firenze 11 20063 Cernusco sul Naviglio (MI) Italy Spain Dematic Logistic Systems Singapore Dematic S. Canada Dematic Limited 6711 Mississauga United Kingdom Dematic Limited Beumont Rd. Avenue Gutenberg 77600 Bussy Saint Georges France Italy Dematic S.

Sign up to vote on this title
UsefulNot useful