WITRON Integrated Logistics 3721 Ventura Drive, Arlington Heights, IL Phone:

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1 Multi-Temperature DC All SKUs under one Roof WITRON solution for entire SKU assortment and all temperature ranges EDEKA, Germany s largest supermarket corporation has selected WITRON as the general contractor for its latest distribution center. WITRON's solutions will be used in the new 520,000 square foot logistics center located in Berbersdorf, Germany. The plant will supply 520 EDEKA stores with more than 12,000 products from departments such as dry grocery, perishable goods, gourmet foods, meat, fruits, vegetables, and frozen goods. The Ramp-up is organized in multiple steps and will start in summer The system will be completed by the first quarter of All in all there are six innovative Witron systems integrated into this DC which will be described in the following article. WITRON's Order Picking Machinery - OPM (dry goods assortment), Dynamic Picking System - DPS (dry goods assortment / meat), Ergonomic Tray Picking ETP (gourmet food / frozen goods), and Car Picking System - CPS (gourmet food / fruits + vegetables) solutions will enable EDEKA to pick up to 378,000 cases onto pallets, roll containers, insulated containers, or totes. WITRON s software enables all cases to be picked in a store friendly manner. This means that all products are arranged to be easy to unpack from the different containers. Consequently the walking distance, lifting efforts and time used to unpack are reduced significantly for the EDEKA Page 1 of 13

2 employees at each store. Additionally WITRON s software takes the layout of each of the 520 stores into account for every order. All workplaces in the material flow process were designed according to the latest ergonomic standards. Based on the implemented WITRON technology, all processes within the entire supply chain of the logistics center will be logically and physically integrated. This includes not only the actual storage and picking, but also processes like receiving, replenishment, empty pallet handling, and shipping. The results for EDEKA are high transparency, low error rates, and optimization of service and logistics costs. For example, the management of empty pallets, roll containers, and insulated containers is integrated into the receiving process from a conveyor system point of view - starting with receipt and withdrawal, to the timed re-provision in the respective picking area - efficiently controlled by means of a mechanized empties buffer. Following the storage and picking process, an automated dispatch buffer will organize and optimize the entire shipping process. The dispatch buffer is divided into different temperature zones. It stores and sorts order pallets, roll containers, and insulated containers, and transports those in a consolidated manner and in mixed mode via dispatch lanes to the dispatch gates. This is done using the shortest route, sequence-friendly, and justin-time. The implemented logistics systems OPM - Order Picking Machinery Fully-automated case picking for food retail Since its market launch in 2003, the patented, award-winning storage and picking system OPM has become the world's most successful automated case storage and picking system in food retail. The OPM is able to automatically stack 95% of the entire article spectrum of a typical grocery retailer onto pallets or roll containers in a store-friendly manner. The heart of the system is the Case Order Machine (COM), which is capable of picking cases automatically onto pallets and roll containers. - The system output amounts to more than 500 picks per hour. The OPM handles dry goods, the fresh food area, and the frozen goods sector. The OPM technology generates significant advantages along the entire supply chain. Not only are there benefits within the distribution center itself (high cost-efficiency and ergonomics), the system also optimizes transportation (up to 20% more densely packed pallets or roll containers), and offers synergies in the supermarket (store-friendly picking). Page 2 of 13

3 Due to the modularity and flexibility of the system, it is possible to use this technology costefficiently for almost all warehouse sizes without any problems - no matter if the distribution center handles 13,000 cases per day or more than 600,000 cases per day - no matter if the product range consists of 300 articles or 18,000 articles. The long-standing experiences from the projects realized so far show that the use of OPM generates a great multitude of advantages for the operator. Sustainable competitive advantages and differentiation characteristics in terms of product availability and store service in the supermarket, as well as increased cost-effectiveness and efficiency within the entire supply chain are only a few of them. Based on its ergonomic work processes, an extremely space- and energy-efficient technology, and the optimal trailer load, the OPM is also pioneering in terms of sustainability. Characteristics Automation of all processes from receiving to shipping Fully-automated order picking by the Case Order Machine "COM" Maximum availability through the use of trays Fully-automated picking of different cases OPM is used within the dry goods assortment as well as in perishable and frozen environments No need for personnel within the entire material flow process Picking onto either pallet or roll container Store-friendly picking according to the store layout Successful OPM technology. More than 500 COM machines are currently in use or in the realization phase worldwide. Page 3 of 13

4 DPS (Dynamic Picking System) Highly dynamic picking of small parts by means of pick-by-light The highly dynamic and automated picking of small parts in DPS is supported by a pick-by-light system. DPS works according to the goods-to-person and person-to-goods principles. Depending on the order structure, the articles are provided permanently or on demand in the pick front, enabling continuous optimization. DPS enables the direct storage and picking in an automated small parts warehouse (AS/RS). The replenishment of the picking zones integrated in the tote warehouse is exclusively systemcontrolled using stacker cranes within the AS/RS. The classification of the article structure is permanently verified and adapted by DPS. Based on the static and dynamic provision of the stored goods, the walking distances for each picker are reduced by up to 75%. Integrated ergonomics plays an important role for all workstations beginning at the repacking workstations where the goods are put into totes through to the workstations for the order picking. The lifting and carrying of totes in the DPS is reduced to a minimum. DPS supports different types of order picking: From tote into tote, from pallet into tote, from tote into shipping carton, etc. Characteristics Picking principle: Combination of goods-to-person and person-to-goods Integrated storage and picking in one automated system Automated replenishment of the pick front by stacker cranes Permanent provision of fast movers in static SKU channels. Demand-tailored provision of slow movers in dynamic SKU channels Compact pick front and reduction of the walking distance by up to 75% ABC-friendly article provision in the pick front Picking from triple-deep flow channels Use of pick-by-light technology and terminal visualization system Footprint savings of up to 50% compared to conventional storage Page 4 of 13

5 In DPS, walking distances are reduced by up to 75% ETP (Ergonomic Tray Picking) Ergonomic case picking supported by pick-to-light ETP is a semi-automated person-to-goods solution designed for case picking. The ETP concept is ideal for distribution centers within food retail, for regional, fast-mover warehouses, for fullrange providers, and discount retailers. It can be used in both ambient and cooled environments. In terms of mechanization, the ETP solution impresses by its ideal combination of fully-automated replenishment and ergonomic order picking. Cases are picked from a tray mini load pick front onto pallets or roll containers using specially designed person-aboard cranes. Every single order is picked according to specific requirements, family-grouped, and based on the respective store layout. The stacking algorithm corresponds exactly to the algorithm used in WITRON's mechanized OPM system. Based on this key functionality, users benefit from many years of field-proven experience with OPM. For each pick, the operator cabin is automatically positioned such that the picker doesn t need to lift, carry, or bend in order to perform his or her pick. The key optical tool is a beamer mounted on the vehicle. This shows the operator, where, and in what position, he or she should place the case on the order pallet or roll container. Thanks to this pick-to-light support, the pick efficiency during the case picking process is considerably increased and the store is provided with an aisle-friendly pallet or roll container. ETP is able to reach a very high pick performance compared to conventional warehouse systems, independent of the age or gender of the picker. ETP is not only suitable for new logistics centers, but it can also be implemented into existing buildings and systems without Page 5 of 13

6 special efforts and during running operation. Therefore, ETP is also a possible solution for modernization projects. Characteristics Picking principle: Person-to-goods Designed to handle an article range of up to 4,000 different items All articles for this assortment are provided in one aisle. No need to sequence the order pallet All module aisles work independently from each other - order will be completed in one aisle Picking with highly ergonomic, IT-controlled pick shuttles - no lifting, no carrying, no bending, no foil removal Shortening of the pick front to 1/20 of a conventional warehouse Stacker cranes supply the pick front and remove empty trays Store-friendly picking onto pallet or roll container based on an IT-generated stacking algorithm Visualizing the storage position of the picked case on the load carrier by means of beamer and screen (repeated display of the storage position, the removal quantity, and product image) The ETP, ensures the picking process is completely ergonomic. Page 6 of 13

7 CPS (Car Picking System) The CPS storage system is a manual order picking system for route-optimized picking of cases onto pallets or roll containers, supported by radio frequency, (RF), pick-by-voice, or pick-by-light technology. The order-related replenishment of the pick front is automated through the use of stacker cranes. The positioning of an article is performed in a store-friendly picking process. According to the principle "person-to-goods" it is possible in CPS to pick several orders in parallel by one picker. Characteristics Picking principle: Person-to-goods Automatic, order-dependent replenishment by means of stacker cranes o we don t offer this is practice!fast movers: static pick locations Pick front integrated within an automated pallet warehouse Use of person-aboard pick mobiles Route-optimized picking Manual picking of cases onto pallet or roll container supported by radio frequency, pick-by-voice, or pick-by-light technology, as well as terminal visualization system Possible to pick several orders at the same time In CPS, order picking is done manually. Replenishment of the pick locations is automated Page 7 of 13

8 Mechanized empties buffer The fully innovative mechanized empties buffer, with technology developed by WITRON and manufactured by its subsidiary FAS, is a solution that guarantees a cost-effective and efficient empties handling in the material flow. In this newly developed technology, pallets, and insulated containers are supplied directly by the truck driver or a warehouse operator into the logistics system when returned to the distribution center. This is done via loading points and supported by conveyor system. It is possible to directly load several load carriers of different types per conveying distance at the same time. Based on the patented technology, these load carriers can be transported on the same conveyor line and in mixed mode. Dirty load carriers can be cleaned through the integration of a washing machine. Afterwards, the different load carriers are stored into the buffer through stacker cranes, removed on demand, and supplied to the respective pick zones. If the empties are required immediately in the system, there is no immediate intermediate buffering. If more empties are required for picking than supplied, the demand is compensated by the buffer. Characteristics Optimal empties management: A lack of supply can be eliminated. This results in an optimum empties management not only on peak days, but also on days with low throughput. Cost-efficiency: Based on the mechanization of the empties process, warehouse personnel can be used for more effective tasks. The cost-efficiency of the entire empties process is increased considerably. Reduction of construction costs: The optimal use of the entire building height through the integration of rack systems results in savings of building footprint and consequently to a reduction of construction costs. Different empties types: The empties buffer enables the intermediate buffering of Euro pallets and other different empties types like roll containers and insulated containers in one system. Maintaining quality: Outdoor storage is eliminated, thus ensuring that the quality of the different load carriers is maintained. Moreover, the mechanized buffering guarantees protection against damage and theft of the load carriers. Cleanliness: An empties washing machine can be integrated into the system. Safety: Based on the completely mechanized transport, forklift traffic is reduced considerably. With the elimination of complex buffer zones, the safety in the warehouse is generally increased, and sources of errors are minimized especially since empty pallet stacks do no longer block the view Page 8 of 13

9 Mechanized shipping buffer With this completely new and mechanized shipping concept, WITRON has developed an innovative solution that significantly improves the material flow processes within the shipping area as well as trailer loading. IT-controlled and just-in-time for dispatch, all load carriers - sorted according to routes or even to store and in the optimal trailer loading sequence - are provided on the dispatch lanes for the loader. But the shipping buffer has even more benefits. For example, the individual modules can be divided into different temperature ranges. Different products like dry goods, fresh products, dairy products, fruits, or vegetables, and even frozen goods can be stored without any problems in the same shipping buffer. Separate outbound areas for every temperature zone - leading to a greater overall warehouse footprint. An optional software module developed by WITRON carries out an exact trailer filling calculation for every outbound trailer type and size. Besides the logistical benefits, WITRON's energy-efficient technologies and processes have a positive impact on the transportation costs and gasoline usage.. Densely packed load carriers, picked on the basis of proven stacking algorithms, in combination with a highly effective dispatch process, ensure an optimum trailer load, maximize the trailer utilization, improve the efficiency of the route, and make a significant contribution to environmental protection. Characteristics High cost-efficiency due to footprint savings High cost-efficiency due to reduced trailer dock time based on faster trailer loading processes High cost-efficiency due to savings of personnel based on an effective dispatch handling Reduced number of forklifts Parallel and automatic buffering and dispatch provision of Euro pallets and roll containers in one system due to modular design and patented technology - independent of article spectrum or temperature zone Page 9 of 13

10 Sequenced provision of dispatch units - optimized and IT-controlled for every tour or store, sequenced based on loading sequence and "just-in-time" for shipping High dynamics due to short distances between the shipping buffer and the dispatch dock Decoupling of picking and shipping with the automated buffer allows continuous operation of the fully-automated picking system - 24 hours a day - and at the same time, an efficient and demand-related use of operators during loading times. Thanks to the transparent storage of picked customer orders in the shipping buffer, picking is also possible in phases with no loading activities without the shipping area being overfilled. 100% loading control, as the load carriers leave the shipping buffer in the right sequence directly via the dispatch lanes towards the person responsible for loading The automated WITRON shipping buffer stores both Euro pallets and roll containers before they are shipped. The individual modules can be divided into different temperature zones at the same time. Page 10 of 13

11 Company profile WITRON Integrated Logistics Foundation: 1971 CEO: Helmut Prieschenk Employees: 1,750 (end 2012) Revenue: 320 million USD (end 2012) WITRON designs and implements innovative logistics and material flow systems with trendsetting ergonomic work places and processes that offers their customers sustainable competitive advantages. WITRON has the key elements for a successful project under one roof: logistics design information and control technology, mechanics design and mechanical production, as well as the responsibility to act as a general contractor. WITRON's experience of more than 2,000 implemented logistics projects is leveraged in the conceptual stages of system design. WITRON builds customer loyalty by offering individual service and operator models that exactly match the requirements of their customers. Moreover, a comprehensive coverage of the entire project cycle is the best way to continuously develop existing logistics modules and innovate according to the market needs. For many years the top companies throughout Europe and North America have been operating their distribution centers efficiently and successfully with WITRON's solutions. The fact that 80% of WITRON's customers are returning customers - this means customers that have already operate a WITRON system - shows the extent of customer satisfaction. The WITRON scope of supply - Logistics design - General contractor - Software & control engineering - Mechanics production - Service & maintenance - System operation - Modernizations / retrofits Page 11 of 13

12 Subsidiaries: Parkstein, Germany (headquarters), Arlington Heights, IL (USA), Toronto (Canada), Stoke-on- Trent (UK), Madrid (Spain), Strassburg (France), Venray (The Netherlands) The WITRON headquarters in Parkstein (Germany) The WITRON headquarters in Arlington Heights, IL Contact data: WITRON Integrated Logistics Corporation 3721 Ventura Drive USA-Arlington Heights IL Phone: Fax: Page 12 of 13

13 Company profile EDEKA Group The EDEKA Group is the largest food retailer in Germany. The Group's dynamics are decisively shaped by the 4,000 self-employed EDEKA retailers. With some 317,600 employees and 18,200 trainees, the EDEKA Group generated revenue of 45 billion Euros in the fiscal year The distribution network of the Group comprised a total of 11,684 food retail outlets by the end of Besides the full-range business operated by independent retailers, Netto, the third largest food retail discounter across Germany, is also part of the EDEKA Group. Company logo EDEKA Group Page 13 of 13