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Issue 7

AWARD-winning debut

L GISTICS

REVIEW

Multishuttle helps BIG W win Downunder

Global case studies

Smart ideas from the USA, Europe & Asia

Sustainable DC design Environmentally friendly wind powered DC

rapidstore unit load, mini load & multishuttle 2

TRANSFORM YOUR SUPPLY CHAIN WITH NEXT GENERATION ASRS

TESCO.COM: UK

UK’s largest retailer boosts dotcom distribution network for home deliveries

Lotte Mart: korea

Twin DCs with crossbelt sorters deliver order fulfilment flexibility for multi-channel retailer DEMATIC LOGISTICS REVIEW

Creating Logistics Results

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DELIVERING A competit through INNOVATIVE L Welcome to the 7th edition of Dematic Logistics Review, our customer magazine designed to give you an insight into the rapidly progressing world of Dematic and the success of our customers around the globe. Our cover story features the impressive 89,000 sqm general merchandise distribution centre of leading Australian retailer BIG W. The system features cross docking combined with state of the art goods-to-person picking technology.

By aligning our innovation initiatives to customer business drivers like productivity, accuracy, safety and the environment, Dematic continues to grow and develop.

As CEO of Dematic Asia Pacific, I am pleased to introduce BIG W and other case studies from customers around the world.

From the development of Automated Storage and Retrieval Systems (ASRS), to the pioneering of high-speed sortation and accumulation, Dematic has consistently been at the forefront of logistics and materials handling innovation.

This is an exciting time for Dematic. Not only are we coming off the back of a very solid year in which we completed many significant projects, we also introduced an extensive range of innovative new technology and software.

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In an industry where major innovations are often decades apart, Dematic has been prolific.

Today, Dematic continues to challenge contemporary materials handling thinking.

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Contents Cover Story: BIG W, Australia Technology: RapidStore Unit Load & Mini Load Technology: Dematic Multishuttle 2 Case Study: OWC, USA Case Study: Tesco.com, United Kingdom Case Study: Lotte Mart, Korea Case Study: Miratorg, Russia Case Study: Fairrington, USA

4-6 7-11 12-13 14-15 16-17 18-19 20-21 22-23

About Dematic Dematic is one of the world’s leading suppliers of logistics automation systems and solutions. As a systems integrator, Dematic delivers a full range of technologies and services, from individual products and systems to complete turnkey solutions as a general contractor, as well as complete after-sales support and service. Dematic provides automated material handling products, systems and solutions for retail and wholesale distribution, consumer direct, grocery, food and beverage, and manufacturing industries. Dematic’s products and services are based on a tradition of industry expertise that the company has acquired over decades of commitment worldwide. Globally the company employs around 4,000 people.

etitive edge E LOGISTICS SOLUTIONS The revolutionary Dematic Multishuttle®, used for buffering and sequencing stock in high-speed order fulfilment systems, is an outstanding example, and the newly released Multishuttle 2 delivers even higher levels of performance, as does our new range of RapidStore Unit Load and Mini Load ASRS solutions featured in this issue. Of course, none of this innovation would be complete without our fully integrated software and IT systems, which provide the intelligence to meet the high demands of a modern distribution operation. And, to support our customers throughout the life of their system, Dematic has developed and trained teams of specialist service and support technicians throughout the world to ensure your reliability and uptime wherever you are 24/7.

In this issue, we introduce many new developments and share examples of how our customers have benefited from Dematic’s flexible, scalable, modular logistics solutions. We feature case studies from the UK, USA, Korea, Australia and Russia where innovative solutions for retail, e-commerce, cold storage and mail consolidation, as well as one of the world’s fastest growing sectors – multi-channel retailing – have been implemented. I trust you will enjoy this issue of Dematic Logistics Review. Alan Bradley, CEO Dematic Asia Pacific

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BIG W Sydney, Australia

BIG W’s new Sydney DC includes a sophisticated array of materials handling and order fulfilment technologies, IT systems and software, including the first Multishuttle® & RapidPick® 1:24 GTP picking systems Downunder.

BIG W STOCKS UP ON FIRST multishuttle

Key among many innovations is Australia’s first Dematic Multishuttle® automated storage and retrieval system (ASRS), which buffers, sequences and delivers stock to the first RapidPick order fulfilment stations in the country, enabling a single operator to process up to 24 orders at a time. BIG W’s Logistics Manager, Philip Town, explained why the leading discount variety retailer decided to be first to implement the new technologies in Australia. “When the design was on the drawing board, we looked at best practice logistics and the thing that kept on coming up was Goods-to-Person (GTP), and the benefits that GTP provides by having the stock come to the picker, rather than the picker having to walk around picking every individual item,” said Mr Town. “We are now achieving significant benefits out of our GTP system, with pick rates of around 500 OMs (order multiples) per hour per station, which compares very favourably with our conventional pick-to-belt throughput of about 120 OMs per hour,” added Mr Town. Despite being the first in the southern hemisphere to implement the new technologies, BIG W was so confident its state-of-the-art order fulfilment system would be up to the task, the DC went live with the ‘big bang’ approach on March 26, 2012, servicing all of its stores at the same time, and achieving expected throughput volumes from day one.

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Stock being decanted into totes and inducted into the Multishuttle system. Australia’s first Dematic Multishuttle: A step change in ASRS Unlike conventional ASRS, which typically use cranes to access stock, Dematic’s new Multishuttle uses a fleet of self-propelled carts to retrieve and put goods away in an ultra space-efficient storage system, at very high speeds. Lifts at the end of each aisle transfer goods in and out of the system via integrated conveyors. At BIG W, the system is equipped with 70 Multishuttle carts, capable of performing several thousand storage and retrieval cycles per hour.

A screen indicates which orders require it at each of the relevant order locations ind

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Dematic multishuttle GTP SYSTEM BUFFER STORAGE, SEQUENCING, GTP picking BIG W Logistics Manager Philip Town

The Multishuttle system feeds stock to the adjacent eight GTP stations, enabling up to 192 orders to be picked concurrently.

ON AUSTRALIA’s tle GTP SYSTEM

We looked at best practice logistics and the thing that kept on coming up was Goodsto-Person, and the benefits GTP provides by having the stock come to the picker, rather than the picker walk around picking every individual item.

Dematic RapidPick GTP System Multishuttle’s very high throughput makes it an ideal buffer and sequencing platform to facilitate GTP picking. Dematic’s RapidPick GTP solution for BIG W uses a 1:24 configuration, which enables up to 24 separate orders to be picked concurrently. With eight GTP workstations, this gives BIG W the ability to process up to 192 orders at a time. With a design objective of working smarter, not harder, the RapidPick GTP workstations optimise operator comfort, minimise fatigue and ensure sustained productivity. The operator does not need to move their hands above shoulder height or extend arms beyond a comfortable reach. Stock and shippers are automatically delivered to and removed from the workstation, eliminating the need for operators to lift or push cartons and totes.

Philip Town, Logistics Manager, BIG W

ders require items from the stock tote, with put-to-light displays r locations indicating the quantity of items required.

Watch a video on BIGW @ www.dematic.com.au/BIG-W

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BIG W Sydney, Australia

Dematic multishuttle GTP SYSTEM BUFFER STORAGE, SEQUENCING, GTP picking

When totes carrying stock for orders arrive at the GTP workstations, a display panel indicates which of the 24 orders require items, with individual put-to-light (PTL) displays on the 24 order locations indicating the quantity required for the relevant orders. The operator retrieves the required number of items from the stock tote, and allocates the stock to the relevant orders, pushing the PTL buttons to confirm each put-away. When all orders requiring the stock have been fulfilled, the operator confirms they are finished picking from the stock tote, and the next tote of stock presents itself to the operator within seconds. When a carton is full or an order complete, the operator simply pushes the carton onto a takeaway conveyor. The conveyor system then routes the carton to the DC’s Crossbelt Sorting System, which diverts the case down the appropriate shipping lane for despatch. Another benefit of the GTP operation is that it enables the Hoxton Park DC to pick and pack orders in family groups, which makes put-away to the relevant department within the retail stores much quicker and easier. Smart, safe, efficient solutions At 89,000 sqm, Hoxton Park is the largest footprint DC in the Woolworths network. The flowthrough design DC is nearly half a kilometre long and about 200 m wide: you can actually fit about 11 football fields inside! The DC has the capacity to house more than 50,000 pallets within a combination of conventional ColbyRACK pallet racking, drive-in racking, and pallet live storage (PLS) within several walkpick-to-belt case picking modules.

Batch picked stock from the Full Case Pick and Cross Dock Modules is sorted to the relevant store by the Crossbelt Sorter in a very efficient ‘one-touch’ operation.

The DC also includes PLS with the capacity to hold 2,500 pallets up to 12 deep. This is used to pre-pick and stage orders for despatch during special events such as Christmas, Easter, Mother’s and Father’s Day. A big improvement for BIG W “We’ve been really pleased with the way the system has performed,” said Mr Town. “As with any start up, we’ve had some minor hiccups, but we haven’t had any major issues or downtime. We have served every one of our stores every day, without fail. “Dematic came on board very early and were key to the design of the DC. They were they ones who put forward the GTP solution, and put a lot of time and effort into helping us to understand it was the right solution for our business,” added Mr Town. A big win for BIG W BIG W was awarded both the Supply Chain Management and the Storage and Handling of Materials Awards at the recent Australian Supply Chain & Logistics Awards in Brisbane on November 8, 2012.

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Watch a video on BIGW @ www.dematic.com.au/BIG-W

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BIG-W

TECHNOLOGY FEATURE dematic RAPIDSTORE ®

AUTOMATED STORAGE & RETRIEVAL SYSTEMS UNIT LOAD & MINI LOAD storage & handling

dematic launches new Rapidstore unit load & mini load ASRS Solutions

Dematic’s modular RapidStore Unit Load (UL) and Mini Load (ML) significantly reduce the lead time, engineering complexity and costs associated with implementing automated storage and retrieval systems (ASRS). Raising ASRS standards for over 40 years

Optimising space efficiency and performance

As one of the world’s leading suppliers of ASRS, Dematic has implemented over 10,000 Storage and Retrieval Machines (SRMs) and more than 3,500 systems globally over the past 40 years.

Compared to conventional storage systems and materials handling equipment, RapidStore requires a much smaller building footprint to house the same number of pallets or totes/ cases, substantially reducing associated land, building and/or leasing costs.

This vast experience is embodied in the design of Dematic’s new, modular ASRS solutions – RapidStore Unit Load (UL) and Mini Load (ML). Combining innovative engineering and manufacturing techniques, Dematic RapidStore is a new class of SRM, delivering an outstanding combination of quality, impressive performance and unbeatable value. Suitable for both new and existing facilities, RapidStore SRMs are available in a range of sizes and speeds to precisely match storage and handling requirements.

RapidStore also offers faster cycle times than manually operated narrow aisle turret and reach trucks, and the fully automated systems greatly reduce labour and operating costs. Capable of operating 24/7 with minimal labour, RapidStore provides an excellent return on investment. The following pages provide a brief overview of the many benefits provided by Dematic RapidStore UL and ML ASRS solutions.

Download the RapidStore brochure @ www.dematic.com.au/rapidstore/brochure

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Dematic RapidStore solutions are an impressive addition to modern materials handling, delivering productivity and throughput gains, and dramatically reducing land and building costs by maximising storage density.

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TECHNOLOGY FEATURE dematic RAPIDSTORE ® UNIT LOAD (UL)

fast, reliable, cost-EFFICIENT p Faster than narrow aisle forklifts, RapidStore SRMs economically handle loads up to 1,800 kg in aisles only 200 mm wider than the load. Systems can be up to 46 m high, with throughput rates of 60 double cycles per hour depending on load weight, system height and aisle length. Ideal for bulk reserve storage in fast moving pallet handling operations, Dematic’s impressive range of RapidStore UL SRMs can be tailored to your precise storage and handling requirements. Whether it’s putting away pallet load deliveries from suppliers in a retail warehouse or storing new unit loads straight off the end of a production line, RapidStore UL provides safe, accurate and accelerated handling in a compact area. With the ability to handle loads up to 1,800 kg, storage and handling requirements can be tailored to suit virtually any operation, irrespective of load type or throughput requirements. Space-efficient storage systems High-bay racking systems are designed to exacting tolerances for high performance operation. While most racks are sourced locally for cost effectiveness, all racks are surveyed and verified by experienced Dematic engineers ensuring they meet the latest FEM and RMI standards. Dematic takes full responsibility that racks and machines are professionally integrated to ensure incident-free operation.

High-quality rails for smooth, reliable performance Dematic uses high-quality floor rails with a patented rail clamping system. All floor rails are manufactured from a single production batch, ensuring consistency of performance throughout the system. The RapidStore UL design positions the bottom rail to one side of the aisle providing a safe pathway for operating the SRM in manual mode or to gain access for maintenance. Integrated pallet in-feed/out-feed stations Dematic manufactures a comprehensive range of pallet conveyors and has extensive experience in implementing pallet in-feed and outfeed stations to suit customer requirements. From low-cost, fixed-position pick-up and deposit (P&D) stations through to integrated pallet conveyors, transfer cars and monorail systems, Dematic can provide an efficient solution to transfer goods in and out of the ASRS, seamlessly linking receiving, manufacturing, quality control, put-away, palletising and despatch.

RapidStore UL systems provide automated bulk reserve storage for a range of applications, and are ideal for storing pallet loads of raw materials and finished goods.

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BULK RESERVE UNIT LOAD STORAGE aUTOMATED UNIT LOAD STORAGE & HANDLING

NT pallet & UNIT LOAD storaGE Expert configuration ensures material flow is closely managed, eliminating bottlenecks in a range of staging, buffering, loading and unloading applications, optimising system performance. Location Control Software (LCS) Dematic’s intuitive Location Control Software (LCS) interfaces with the user’s WMS or ERP providing full system accountability and a high degree of management control. Integrated IT systems provide precise machine control and real-time visualisation capability, with a user-friendly interface displaying operating status and full service diagnostics. State-of-the-art control components and integrated IT systems include the latest in laser and barcode closed-loop positioning technologies for fast, safe, accurate operation.

The RapidStore UL1000 & UL1200 provide highspeed handling of loads of up to 1,200 kg to 30 m high. Its lightweight single mast design allows fast acceleration and high operating speeds of up to 4 m/second.

For warehouses with existing rack, the Dematic RapidStore UL1400 RF has rotating forks enabling pallets to be fully turned in the aisle for fast handling. It is ideal for those seeking to replace forklifts and can handle loads up to 1,360 kg to 18 m.

Download the RapidStore brochure @ www.dematic.com.au/rapidstore/brochure

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Integrated in-feed/out-feed solutions include pallet conveyors, transfer cars and monorail systems.

The RapidStore UL1500 is designed to handle loads up to 1,500 kg in DCs up to 46 m high. Fast acceleration and travel speed ensure high throughput. It can be modified for chiller and freezer operations, and may be fitted with an optional cabin.

Ideal for dense storage of large or heavy loads, the RapidStore UL1800 can handle loads of 1,800 kg to 33.5 m and can store pallets up to three deep. Applications include archives, automotive and operations requiring the handling of heavy loads.

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TECHNOLOGY FEATURE dematic RAPIDSTORE ÂŽ MINI LOAD (ML)

high-speed, low-cost, SPACE-S Dematic RapidStore ML and ML+ Storage & Retrieval Machines (SRMs) are highly efficient ASRS solutions for cartons, cases, trays and totes. Typical applications include kitting, buffering, staging and sequencing stock in manufacturing and distribution. Choosing the ideal Mini Load system is easy with the Dematic RapidStore ML and ML+ range. Dematic Storage & Retrieval Machines (SRMs) are designed to meet height and throughput constraints, and can be perfectly tailored to meet your storage and handling requirements. Dematic’s SRMs provide the ideal interface between bulk reserve stock and online stock, ready for picking and assembly applications. Flexible, scalable, modular solutions Whether it is in a distribution centre or raw materials store, efficiently breaking goods down from bulk unit loads to smaller loads for picking or kitting is often key to effective operations. High-speed SRMs with a comprehensive range of high-performance load handling devices (LHDs) combine to quickly select, retrieve and put-away stock stored in totes and cases in distribution and manufacturing applications.

Space-efficient storage systems Precision racking and shelving systems are designed to exacting tolerances for high-performance operation, and meet the latest European and FEM standards. Integrated conveyor systems Dematic manufactures a comprehensive range of case conveyors, diverts, merges and accumulation conveyors, as well as a full range of conveyor sorting systems. These conveyor solutions transport stock to and from the Mini Load ASRS system in precisely the right sequence to meet the exacting needs of highspeed kitting and order fulfilment applications. RapidStore load handling devices (LHDs) Designed for ultra high-speed load handling, Dematic RapidStore LHDs use precision telescoping arms with additional belt drives to handle goods quickly and effectively. Dematic Mini Load operations interface with a wide variety of conveyors, lifts and other transport devices to ensure systematic material flow and full system integration.

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TOTE & CASE BUFFER STORAGE & SEQUENCING AUTOMATED TOTE & CASE STORAGE & HANDLING

CE-SAVING tote & case STORAGE A wide range of RapidStore LHDs are available in fixed or flexible variants allowing the handling of multiple load sizes. Clever design improves shelf and load interface, minimising the distance between shelf and load and providing better overall space utilisation. Up to three LHDs can be used on dual-masted SRMs, making it possible to handle and transfer up to six loads simultaneously for optimum performance. Location Control Software (LCS) Intuitive Location Control Software (LCS) interfacing with your WMS or ERP ensures full system accountability and a high degree of management control. Controls provide visualisation with a user-friendly interface showing order status, as well as providing service diagnostics.

The ML10 & ML14 are the latest high performance solutions for dual handling of totes, trays, cartons and cases weighing up to 50 kg, to 10 and 14 m respectively. Lightweight, aluminium masts ensure rapid acceleration and travel speed.

The double-masted ML20 ensures stability and safe operation up to 20 m. Lightweight aluminium mast construction enables the ML20 to carry one, two or three load handling devices (LHDs) in single or double deep configurations.

Download the RapidStore brochure @ www.dematic.com.au/rapidstore/brochure

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Dematic LHDs enable the efficient handling of single, double or triple loads in side-by-side or stacked configurations.

The ML+300 is a heavy-duty, doublemasted ASRS made from lightweight, high-strength steel. It is capable of handling loads of 340 kg to heights up to 20 m. It is suitable for use with single and double deep telescopic tables with grippers and extractors.

The single-masted ML+350 & ML+450 are suitable for use with a range of specialised LHDs in applications as diverse as spare parts stores, machine assembly centres and libraries, where heavy loads are typically carried in steel bins or crates.

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TECHNOLOGY FEATURE dematic MULTISHUTTLE ® 2

faster buffer storage & sequ With 60 systems incorporating nearly 4000 Multishuttles throughout Europe, North America, Asia and Australia, Dematic’s Multishuttle® has revolutionised the storage, handling, buffering, staging and sequencing of totes, cases and trays in high volume order fulfilment operations, with the innovative system making a whole new range of integrated logistics solutions possible. New Dematic Multishuttle 2 is designed to supply sequenced products for order fulfilment, pick face replenishment or mixed case palletising, and can be utilised as a short-term buffer storage system or as a production support sub-system.

technology, enabling high performance storage and retrieval of variable load sizes and types of packaging, without the use of trays. The load handling device’s telescopic arms automatically adjust to the width of the load to be handled.

Next generation Multishuttle technology

Telescopic handling for flexible operations

Multishuttle 2 is Dematic’s second generation of shuttle technology. The all new design incorporates advanced engineering, aluminium construction and a new load extractor for faster operating speeds, higher payload capacity and multi-deep storage capability.

The eight-finger design of the load extractor and overlapping telescopic arms enables Multishuttle 2 carts to store products single, double, or multi-deep. Load capture fingers are carbon fibre reinforced for robust long-term performance.

Standard, Flex and Belted models enable the system to be tailored to meet each user’s unique product handling requirements. Multishuttle 2’s Flex option incorporates flexible load handling

The load extractor design minimises space between products, maximising storage density. It can be configured to handle loads up to 50 kg in a range of widths from 150-650 mm, lengths from 200-875 mm, and from 50-600 mm high.

Dematic Multishuttle 2 consists of multiple levels of racking, shuttles, buffer conveyors and software. Vertical lifts at the end of each aisle, infeed/outfeed conveyors and shuttles with flexible extraction devices enable the system to handle a wide range of totes, cartons or trays.

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TOTE & CASE BUFFER STORAGE & SEQUENCING AUTOMATED TOTE & CASE STORAGE & HANDLING

sequencing with MULTISHUTTLE 2

Dematic Multishuttle 2 is extremely space-efficient with aisles just wide enough for the carts to operate.

Dematic Multishuttle 2 Redefining Warehouse Logistics • Increased throughput: Four to seven times greater than conventional ASRS solutions Flexible, scalable, modular Multishuttle 2 Speaking at the recent ProMat 2013 Exhibition in Chicago, Mike Khodl, Dematic’s Vice President, Solution Development, said: “Multi-channel distribution is driving important changes in our industry today. “Retailers want to fill orders for large and small store formats and e-commerce from a single inventory cube. To do that, they need to transition from batch-based to dynamic, on-demand workflows because they no longer know what their work load will look like ahead of time.” Mr Khodl added: “Dematic’s solutions for multichannel distribution operations are centred around flexible modules that scale to changing operational needs and growth. Multishuttle 2 is highly effective for buffering totes, cartons, or trays. It is an efficient staging solution, which provides precise load sequencing at high rates, in less space, with greater operational flexibility.

“Most designs incorporate a storage buffer strategy that shares inventory across multiple distribution channels, but Dematic solutions have peak capacity flexibility built in to accommodate seasonal, promotional and weekly order surges.” The modular Multishuttle 2 system provides the flexibility and scalability to grow and evolve to meet your current and future materials handling and order fulfilment requirements.

View a video and visit our Multishuttle 2 micro-site @ www.multishuttle2.com

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• High utilisation: Feeds workstations with high rates to keep operators fully utilised • Smaller footprint: Fewer aisles required to obtain same throughput, reducing space required • More layout options: Fits into overhead spaces, under/over obstructions for optimum use of cube • Precise sequencing: Presents loads to pick stations or palletisers in exact sequence • Range of load types: MS Flex option accommodates various load sizes • Energy efficient: Low voltage carrier uses less energy and provides quieter operation • Redundancy with back-up: Identical interchangeable carriers enable fast replacement • Access to stock: Work platforms in aisles provide manual access to inventory and for servicing • Scalability: Easily add more shuttles at any stage to further increase throughput

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OTHER WORLD Computing ILLINOIS, USA

OWC’s Sustainable SCALABLE SOLUTION Other World Computing’s online store – www.macsales.com – is a popular choice for Apple users wanting to upgrade their Mac or get new accessories for their iPod, iPhone or iPad.

Other World Computing (OWC) has been serving technology users for 24 years and now operates a modern distribution centre (DC) with an efficient order fulfilment system, all powered with electricity generated from an on-site wind turbine. OWC was the first technology manufacturer with a DC in the US to become 100% on-site wind powered. This innovative green thinking supports OWC’s business philosophy, which revolves around getting the most from existing resources. Effective distribution is key for online retail As a pure online retailer/wholesaler (no retail stores), OWC understands that its customers have high expectations when it comes to order fulfilment and the purchasing cycle. OWC’s strategy is to control and optimise all aspects of the buying experience. The website must effectively communicate the features of the advanced technology offered for sale, and the items selected for purchase need to ship same day as ordered, with the correct items arriving asap without damage.

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A scalable solution for today and tomorrow An existing order fulfilment configuration was not providing the required results for OWC, so a new design was developed and implemented by Dematic. According to Ryan O’Connor, Operations & Logistics Manager with OWC: “The solution development engineering process offered by Dematic was particularly insightful, and Dematic’s design was ideal for our situation.” The new system is engineered to accommodate one million customer orders per year and is designed for expansion as order processing volumes increase. OWC ships orders to over 100 countries, with the majority going to customers in the US. A batch of customer orders received from the website or via telephone sales is downloaded to the order fulfilment system on average every 20 minutes. Warehouse staff perform discrete order picking using plastic totes to gather the items with one tote per order. Typical orders contain one to three lines, which equates to about three to five items. There are over 2,000 active SKUs available at any time, with each item labeled with a unique barcode.

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Sustainable DC Design ONLINE order fulfilment

When picking for an order is complete, it is delivered to one of nine packing stations where each item is scanned as it is packed. For tracking and quality assurance, ceilingmounted cameras record a view of the items in the shipping carton as each order is assembled. Once packed into a shipping carton and weighed for QC and shipping fees, orders are placed onto an out-bound conveyor network. From there, orders are conveyed through a scan tunnel, which reads the shipping barcode on the top of the carton. The sorter automatically diverts each customer order carton to the appropriate consolidation container dedicated to each shipper: FedEX, USPS, UPS, DHL, and other special handling.

The solution development engineering process offered by Dematic was particularly insightful.

Ryan O’Connor, Operations & Logistics Manager, OWC

Impressive results for OWC and the environment

Platinum-certified sustainable distribution

Technology users, especially Apple product owners, are part of a culture that expects high levels of service performance, and OWC supports this expectation at every level including the pick, pack, and ship system. From order accuracy to order processing speed and sustainable practices, the system engineering at OWC meets the challenge. Order accuracy is measured to be at 99.99%. Validated customer orders with available stock ship the same day as the order is received.

Environmental stewardship can be found nearly everywhere on the OWC corporate campus in Woodstock, northwest of Chicago. Starting with its all-in-one corporate headquarters and DC, which is LEED Platinum Certified for every operation and process, sustainability is key.

Despite the system footprint reducing in size compared to the previous configuration, order fulfilment capacity has increased by 50%. Using energy-efficient conveyor technology, the electricity required by the conveying and sorting systems has decreased by 40%. Furthermore, the conveyor system provides quiet operation making the environment more comfortable for warehouse staff. The pack and sort subsystem is modular and scalable, and is designed for fast and easy expansion as future growth is predicted to be robust at OWC.

The Platinum designation of the operation includes strict requirements – there are less than 300 buildings that have attained this distinction out of 14,000 LEED Certified buildings worldwide.

Joe Marchetti – Shipping Area Supervisor, Mirjana Madzarak – Warehouse Manager, & Ryan O’Connor – Operations & Logistics Manager

An on-site wind turbine provides the power required to operate everything in the facility from the warehouse to the offices and data centre. Other green initiatives include the use of a geothermal heating/cooling system, and a new process of bringing natural light into the warehouse, called fibre optic daylight harvesting. In addition, OWC has implemented skylights, dimming-capable fluorescent lighting, and controls to turn lights off if no activity is sensed. To complete the sustainable theme, the campus landscaping consists primarily of natural Illinois prairie, eliminating the need for fertiliser and watering.

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Tesco.com ENFIELD, England

New dotcom DC for Tesco home delivery Tesco, the United Kingdom’s largest retailer, continues to expand its dotcom distribution network to keep up with the growth of online grocery shopping in the UK, with a new 120,000 sq ft distribution centre (DC) at Enfield in England.

Tesco.com’s DC network enables the retailer to fulfil an increasing amount of customer home delivery orders from dedicated distribution facilities, rather than have employees pick online orders straight from the shelves of its retail stores. Commenting on the new Enfield DC, Ken Towle, Tesco’s Internet Retailing Director, said: “We pick shopping every day for customers in over 300 stores around the country, but the demand on our stores is getting to be so great, that we’ve now reached the point where we can create the investment in facilities like this. He added: “Our strategy is to have a balance of the two. The stores around the country give us reach, and facilities like this in dense urban areas give us the opportunity to provide a very concentrated and focused service for customers. “I’m really excited about Tesco’s passion and determination to make home shopping something that we are the best at. We’ve got as much excitement today around the potential this has for Tesco and the job we can do for customers, as we had when it was just the beginning of an idea.”

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Tesco’s dotcom DC network Tesco’s DC at Enfield is the fourth dotcom facility dedicated to servicing its online grocery home delivery business, with the others located at Greenford, Aylesford and Croydon.

Products are picked at a series of ergonomic workstations with integrated conveyors.

A fifth Tesco.com facility is due to go live in early 2013 at Crawley, near London. The Enfield DC features smart zone routing integrated conveyor systems and zone picking solutions for ambient and chilled goods. Separate ambient and chilled Dematic Multishuttle systems function as order consolidation buffers. Dematic’s zone picking system directs customer order totes to pick zones as required within the ambient area, and separate totes across multiple zones in the chilled area. Tesco.com’s Personal Shoppers pick grocery, produce and bakery goods into the order totes according to instructions received via wrist-mounted Radio Data Terminals. After picking has been completed in one zone, order totes are transported to the next zone requiring picks via an integrated conveyor system.

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AMBIENT & CHILLED GROCERY distribution ONLINE Grocery home delivery SYSTEM

r delivery

He added: “Having gone out to tender, we picked Dematic because we felt their system would enable us to achieve our objectives of faster picking, accuracy and reliability, enabling us to give our customers excellent standards of service, while still providing a profitable model for Tesco. “This system will help us to reduce our running costs and offer more delivery slots to customers from earlier in the day. We wanted to ensure we could get orders picked, and vans loaded and out on time with the freshest possible produce. The system also gives us the accuracy we need to ensure the highest possible service levels,” he said.

Buffering and sequencing orders for despatch Completed order totes are routed to the Multishuttle ambient and chilled consolidation buffers, where they are held until ready for despatch. When a full delivery load has been consolidated, the completed customer order totes are sent in the appropriate sequence for loading to one of the DC’s despatch docks, where operators load delivery vans. All of the DC’s integrated system operations are controlled by Dematic’s DC Director Warehouse Management System (WMS). Improving home delivery service quality “With each of our dotcom stores we aim to move forward the model in terms of accuracy and quality for the customers, as well as productivity for Tesco,” explained Tesco’s Operations Development Manager, David Burroughs.

Tesco was particularly keen on Dematic’s Multishuttle, added Mr Burroughs. “The Multishuttle offers a number of advantages over similar systems, particularly its speed for loading our vans and its ability to swap individual shuttles, which gives us a tremendous advantage in avoiding downtime. “The height of the system enables us to make use of air space that would otherwise be wasted, which minimises the system’s footprint,” he said. Dematic’s Sales Project Manager, Shane Faulkner, said: “The integrated logistics system enables Tesco to pick and deliver within the concentrated floor space of the Enfield DC, which eliminates the need for online order picking in many of the surrounding Tesco stores. “By automating its online order picking process, Tesco can increase volumes and maintain the high service levels that are essential with home delivery,” he said. People said it would not work In a presentation to the recent Financial Times Innovate 2012 Conference in London on November 6, 2012 Tesco’s Group Chief Executive, Philip Clarke, said: “When we launched the first online grocery business 12 years ago, people said it would not work. “The challenges were immense: entire processes had to be designed so that customers got what they want, when they wanted it. “Today, Tesco.com is the world’s largest and most profitable online grocery retailer, and we are rolling out the service across all our markets.”

Ambient and chilled Multishuttle systems store completed customer orders until they are ready for despatch, at which time the orders are automatically sequenced by the Multishuttle systems and transported by integrated conveyors to the loading docks to facilitate delivery van loading.

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Lotte MART OSAN/GIMHAE, KOREA

SMART flow-through DCs for Lotte Mart Dematic’s integrated conveyor sortation system for Lotte Mart’s Osan DC is designed to process large volumes of flow-through product previously handled in low productivity manual operations with limited throughput capacity. Capable of processing up to 17,500 cartons per hour, the innovative DC design includes Asia Pacific’s largest ever crossbelt sorting system, featuring dual entry spiral chutes, advanced camera barcode reading technology and Dematic’s multi-lingual SortDirector software. The integrated logistics solution also incorporates another first for the region – the use of integrated voice terminals to direct secondary sorting at the end of each sortation lane. In addition to achieving improved distribution capacity, productivity and accuracy, Lotte Mart is also able to service department stores and supermarkets from the same facility. First crossbelt sorting system for Korea Dematic’s innovative solution for Lotte Mart includes a number of firsts for the region including the first crossbelt sorter in Korea, and the use of voice terminals for secondary sortation. Crossbelt sorters are highly accurate, high speed, bi-directional sorters, which transport goods gently to their destinations, regardless of their shape, size and surface characteristics. Individual carriages, each with its own belt conveyor, enable crossbelt sorters to deliver products to destinations with pinpoint accuracy. This enables divert locations to be closely spaced, making crossbelt sorters very space efficient.

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h

multi-channel retail distribution CROSSDOCK conveyor sortation system

Kim Chan Sik, Centre Manager, Osan Lotte Mart Distribution Centre

The project included a number of firsts for Dematic Asia Pacific, with the systems delivering accuracy, productivity and throughput increases, with associated inventory reductions. On the back of the project’s success, Dematic was called upon to implement a similar solution at Gimhae, to service stores in the south.

Lotte Mart is one of Korea’s top retailers, with a growing number of department stores and supermarkets taking advantage of the strong growth in the discount store sector. Key to supporting its expansion are improved supply chain operations, including a pair of innovative distribution centres. Crossbelt sorting system operation Dematic’s crossbelt sorting system is designed to handle up to 17,500 cartons per hour and includes ten induction stations across two induction areas and 76 dual-entry spiral chutes. The sorter is configured as a single loop with one side of the loop running above the other. The combination of dual-entry spiral chutes and the inclusion of two induction areas allows a high proportion of the individual crossbelt carriers to be utilised twice per loop, virtually doubling the system’s throughput capacity. The system layout has been designed to maximise operational access and space efficiency, with unobstructed wheeled materials handling equipment access provided beneath the sorter and between sort lanes in order to facilitate the efficient movement of empty and full roll cages.

Voice terminals are used to direct secondary sortation at the end of sort lanes, enabling Lotte Mart to build store-friendly orders and gain further productivity benefits at store level. Above Left: Custom-designed spiral chutes were selected because of their space efficient, quiet, maintenancefree operation, zero air/power needs and low lifecycle cost. Left: Cartons being inducted onto the crossbelt sorter.

Goods receipt The majority of Lotte Mart’s products are received into the facility as loose loads in trucks from various suppliers. Telescopic conveyors, which extend into the back of the trucks, transfer stock onto the DC’s integrated conveyor in-feed system and on to the crossbelt sorting system. Inducting goods onto the crossbelt sorter Cartons are automatically inducted onto the sortation system at one of ten induction stations. Cartons are allocated to one or two crossbelt carriers depending on their length. The system tracks the carriers and their associated carton information as they travel around the loop.

Carton barcodes are read by an array of camera readers with the majority of product sorted based on carton product barcodes, minimising the cost and labour associated with manually applying barcoded labels to large volumes of product. SortDirector’s proven algorithms manage the apportionment of products across sort lanes according to demand, with shortage handling strategies and the ability to prioritise product allocation to certain stores if desired. Secondary sortation using voice technology Dematic’s solution for Lotte Mart also includes the use of integrated voice terminals to direct secondary sortation at the end of each sort lane. This enables Lotte Mart to build store-friendly orders and gain further productivity benefits at store level, with the secondary sortation process also managed by Dematic’s SortDirector. It provides an efficient and accurate way to direct cartons to store departments at the end of the sortation lane, as well as keeping track of what has been placed on each roll cage for manifesting and tracking. System-directed secondary sortation also gives Lotte Mart the flexibility to assign a store and its associated departments to multiple lanes or to assign multiple stores to a single lane, depending on order volumes. To maximise productivity and minimise training/operator issues, the process has been designed so that the operator does not even need to speak to the voice terminal. They simply scan the carton, listen to the secondary sort position, place the goods into position and scan the roll cage ID to confirm put-away.

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MIRATORG Moscow, RUSSIA

New DC handles 100 t/day of frozen FOOD for Miratorg Intensive planning, the introduction of efficient logistics processes and the optimal integration of existing IT infrastructure to Dematic’s DC Director warehouse management system (WMS) has resulted in a state-of-the-art DC for Miratorg.

The contract included the high-rise warehouse structure, roof and walls, stacker cranes, pallet and carton conveyors, logistics IT, and integration into Miratorg’s existing business processes.

Vertically-integrated food manufacturing and distribution

Despite a demanding project schedule, the DC in Domodedovo, 20 km south of Moscow, was delivered on time.

Miratorg is a vertically-integrated food products distributor covering the entire production cycle from pasture to plate, and aims for maximum efficiency in all stages of production and the supply chain.

“The tight project schedule could only be met by meticulous planning, precise project management and by running three shifts at times during installation,” explained Manfred Kanitz, Director, Dematic Russia.

“Special focus is placed on transport and storage logistics,” said Miratorg’s Director of Project Development, Maxim Dragavtsev. Dematic was awarded the contract as the general contractor for the entire logistics facility following an international tender.

Cold supply chain challenges Proper handling of refrigerated and frozen goods is one of the most challenging tasks in the distribution of foodstuffs. It is important to keep frozen foods such as fish, meat and vegetables between -18 and -24 degrees Celsius.

Dematic’s automated system for carton and full pallet shipping meets the targets set by us. We are very satisfied with the results. Maxim Dragavtsev, Director of Project Development, Miratorg

Leading Russian food producer Miratorg has expanded its logistics capabilities with a new high-bay distribution centre (DC) to supply the Greater Moscow region.

A combination of space-efficient storage and automated materials handling systems optimise energy efficiency within the DC. Right: Pick-to-Light (PTL) displays direct high-rate, walk-pick-to-belt batch picking.

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COLD STORAGE & DISTRIBUTION BATCH CASE & PALLET PICKING

Service providers such as Miratorg have to meet high quality and performance requirements, and its hygiene and supply chain must meet Hazard Analysis Critical Control Point (HACCP) standards. The DC, which operates on the FIFO (first-in, first-out principle), distributes around 100 tonnes of frozen and chilled goods daily to the stores of 3,000 corporate customers and retailers in the Moscow area – over 25,000 tonnes per year. In addition to distributing full pallets, the system also facilitates the picking of up to 16,000 cartons a day. “Dematic’s automated system for carton and full pallet shipping meets the targets set by us. We are very satisfied with the results,” said Mr Dragavtsev. Dematic’s integrated solution for Miratorg 16,000 pallet locations are available in the highbay warehouse. Incoming goods are checked for weight and shape, have a customised barcode label attached, and are recorded by the WMS and transportation management system. A pallet conveyor loop transports incoming pallets to the high-bay warehouse, with the automated storage and retrieval system operating at a rate of up to 130 pallets per hour. Miratorg’s existing data collection systems and forklifts were incorporated into the new DC. “That saved retraining employees on new user interfaces and contributed significantly to the rapid introduction and acceptance,” said Mr Kanitz. Dematic’s DC Director WMS arranges for the reservation of the required inventory and generates pick orders according to different order fulfilment strategies, taking into account order quantity and total weight. Full pallet picks are consolidated within three zones, while case picking is a two-stage, batchpick operation with pick-to-belt. Directed by pick-to-light (PTL) displays, employees place picked cases onto a powered conveyor, which transports them to the sorting system. The sorter has the capacity to sort up to 2,400 cartons per hour. Orders are manually palletised, with consolidation taking place in the outbound area. “Our new DC provides compact, energy-saving storage of goods, high picking rates and efficient order assembly processes,” said Miratorg’s Mr Dragavtsev. “Dematic successfully coordinated the task of managing the building trades and implementing the solution within a very tight time schedule. This led to an optimal solution with the best performance results,” added Mr Dragavtsev.

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Fairrington CHICAGO/NEW JERSEY, USA

Smart co-pal mailing sys improves services, cut Fairrington has 600,000 sq ft of warehouse space between suburban Chicago and Central New Jersey. The company provides daily service to every major metropolitan area in the US, delivering 50,000 pallets each week. From on-line tracking to fully automated sorting systems for periodicals and standard mail, and from JIT warehousing to customised supply chain solutions – Fairrington delivers. Introducing a new logistics process for enhanced mail handling and delivery

Fairrington makes sure that the physician in Boston gets his weekly medical journal, while the family in Illinois receives their favourite holiday catalogue and the retired couple in Arizona receives a solicitation to help a worthy cause. That’s because Fairrington provides innovative logistics and distribution solutions for the publishing industry and the direct marketing divisions of the retail, banking, healthcare, telecoms and insurance industries.

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Fairrington is an innovator in a logistics process called co-palletisation (Co-Pal), which is a new process that combines addressed, pre-sorted mail from different sources into pallet-sized drop shipments. With Co-Pal, mailers can move more pieces deeper into the mail stream and realise destination discounts. The advantages for periodical mailers include a decrease in container charges and the ability to reduce zone and editorial pound charges by entering at the Area Distribution Centre (ADC) and Sectional Centre Facility (SCF) level. The advantage for Standard A mailers includes the migration of pieces from origin entry (and hence no entry discount) to NDC (Network Distribution Centre) and SCF pallets with the corresponding entry discounts. In both cases in-home delivery is improved.

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mail & package handling conveyor transport & sortation Dematic conveyor solution helps mail and packages to flow To support the co-palletisation strategy, Fairrington partnered with Dematic to design and implement a system solution that could convey and sort mail for co-palletising. Fairrington deployed two identical Dematic convey and sort systems, one located in Illinois and the other in New Jersey. The system configuration consists of accumulation and transportation conveyor, barcode scan tunnel, automatic label print and apply module, nine sorters with two-way transfer, and 18 accumulation conveyor lanes prior to palletising. The system is engineered to accommodate both trays and bundles of magazines.

ailing system cuts costs Operators manually de-palletise trays or bundles of addressed, pre-sorted mail onto the conveyor system. Each tray or bundle flows through the scan tunnel. The system controls process each scan as the load indexes into the automatic label print and apply module where a new humanreadable label is placed on each load. Controls assign each load to a destination, and the trays and bundles flow on the conveyor to the assigned sort point and automatically divert left or right. Each tray and bundle is then placed on a pallet. Conveyor system supports co-palletisation The entire convey, scan, label and sort process accommodates fast, accurate, reliable and efficient building of co-palletised loads. Modular system design allows operational flexibility along with the ability to expand and change the layout. The system supports Fairrington’s processing requirements for 11 shifts per week, with the quiet conveyor network providing a more comfortable workplace for staff.

Fairrington customers get increased postal discounts, improved home delivery of mail, piece tracking to destination, and opportunities to consolidate multi-cell mailings to hit USPS on the same pallet at the same time. Fairrington’s Darl Leman and Diana Zelms.

Typical productivity is 12,000 trays or 18,000 bundles per shift. Accurate sorting and processing combined with robust system performance allows Fairrington to successfully support its copalletisation service, while supporting the overall company on-time delivery rate that runs at +96%.

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www.dematic.com

Dematic Headquarters Dematic Group S.à r.l. 2-8, avenue Charles de Gaulle L-1653 Luxembourg T +352 27 48 59 F +352 27 48 59-99

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

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

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

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

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

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

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

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Eastern & South East Europe Dematic GmbH Micurinova 36/1 21000 Novi Sad Serbia T +381 21 530 422 info@dematic.com France Dematic S.A.S. Parc Gustave Eiffel 6, Avenue Gutenberg 77600 Bussy Saint Georges T +33 1 64 76 45-76 contact.france@dematic.com Germany Dematic GmbH Carl-Legien-Str. 15 63073 Offenbach T: +49 69 8903-0 anfrage@dematic.com Italy Dematic S.r.l. Via Firenze 11 20063 Cernusco sul Naviglio (MI) T +39 02 92 90 541 infodesk.italy@dematic.com Russia/CIS Dematic GmbH Russian Representative Office ul. Bakhrushina 32/1 115054 Moscow T +7 495 668 0969 info@dematic.com

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

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

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

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

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

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

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

Malaysia Dematic Malaysia Sdn. Bhd. 12-03A, Level 12, Plaza Masalam Jalan Tengku Ampuan Zabedah E 9/E Section 9, 40100 Shah Alam Selangor Darul Ehsan T +60 2 5512 2688 info.asia@dematic.com New Zealand Dematic Pty Ltd Eastside - Building 7, 15 Accent Dr East Tamaki, Auckland T +61 9 273 0052 info.anz@dematic.com Singapore Dematic S.E.A. Pte. Ltd. 10 Eunos Road 8 #09-01A Singapore Post Centre Singapore 408600 T +65 6398 3980 info.asia@dematic.com

© Copyright February 2013

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Dematic Logistics Review - Issue 7  

BIG W, Dematic RapidStore ASRS, OWC, Tesco.com, Dematic Multishuttle 2, Lotte Mart, Miratorg, Farrington

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