MIGROS & WITRON. Application for the IFOY Award Category: Integrated Warehouse Solution. Copyright WITRON, 2018

Transcription

1 MIGROS Distribution Center Suhr Highly dynamic, customer-friendly, and cost-efficient Omni-Channel Logistics MIGROS & WITRON Application for the IFOY Award 2018 Category: Integrated Warehouse Solution Copyright WITRON, 2018 Page: 1

2 Overview Page: 2

3 Migros at a glance SWITZERLAND Area: 41,285 km 2 Population: 8,431,702 Page: 3

4 Migros at a glance Page: 4

5 Migros at a glance Page: 5

6 Migros and Migrolino Leading retailer for supermarkets and convenience stores in Switzerland Cooperative organization including 10 sales regions; holding company Migros-Genossenschafts-Bund Supply of 600+ stores with more than 4,500 different items Number 1 convenience shop operator in Switzerland Part of the Migros-Genossenschafts-Bund Serves 300+ shops (train stations, kiosks, gas stations, service stations, etc.) with more than 3,000 different products for the daily needs; convenience items, tobacco, alcohol, and magazines The shops are open almost 365 days a year Entrepreneur store owners and external customers!! Page: 6

7 WITRON at a glance Foundation: 1971 by Dipl.-Ing. Walter Winkler CEO: Helmut Prieschenk WITRON Martin Stich WITRON / FAS Christian Dietl WITRON Service GmbH & Co. KG Employees worldwide: 3,100 (as of December 31, 2017) Revenue worldwide: 515 million Euros (as of December 31, 2017) Headquarters: Parkstein, Upper Palatinate/Bavaria (Germany) Company: Owner-run family enterprise / foundation model Subsidiaries: Germany, Rimpar USA, Arlington Heights, Illinois Canada, Toronto The Netherlands, Venray UK, Stoke-on-Trent Spain, Madrid France, Strasbourg Singapore Page: 7

8 WITRON Focus: Retail Logistics Non Food + Food (all temperature zones) Pieces Cases Layer Pallets Scalability Level of automat. Size Partial solutions Complete solutions Retail + Distribution Stationary + Online Greenfield + Brownfield Central + Decentral Solutions Page: 8

9 Mission & Challenge Doubling of the Migrolino volume Intelligent mechanization of the Convenience Business Integration of two business models in a true Multi-Channel-Solution Utilization of the existing building Parallel realization and production Page: 9

10 The solution at a glance MIGROS Omni-Channel Distribution Center Suhr, Switzerland Page: 10

11 The solution at a glance Project Future COM MIGROS Omni-Channel Distribution Center Suhr, Switzerland Page: 11

12 The solution at a glance Project EVO 2 MIGROS Omni-Channel Distribution Center Suhr, Switzerland Page: 12

13 The solution at a glance Project figures Migros Dry Goods Logistics supply of 600+ Migros stores General figures Number of SKUs: 4,500 Number of supplied stores: 600 Picks/peak day: 315,000 Implemented Witron system: OPM Order Picking Machinery (OPM) Case Order Machines (COM): 28 Coordinate Rack Shuttles (CRS): 59 Tray aisles: 56 Tray stacker cranes: 56 Tray storage locations: 285,000 Depalletizers: 12 Wrappers: 6 High Bay Warehouse (HBW) Pallet storage locations: 100,300 Stacker cranes: 24 Aisles: 24 Migrolino Convenience Logistics supply of 300+ mini shops (max. 160 m 2 ) General Figures Number of SKUs: 3,000 Number of supplied stores: > 300 Picks/peak day: 118,000 Implemented Witron systems: OPM, DPS, ATS, shipping buffer DPS / ATS (Automated Tote System) cooled (+2 C) Tote storage locations: 16,850 Tote flow channels: 400 Pallet flow channels: 76 Picking workstations: 8 Depalletizer: 1 Tote stacker crane: 1 Picking Mini Loads: 7 Pallet stacker crane: 1 Palletizing station: Pallet Warehouse cooled (+2 C) Pallet storage locations: 160 Pallet flow channels: 76 Aisle: 1 Stacker crane: 1 Shipping Buffer cooled (+2 C) Roll container storage locations: 650 Double transfer cars: 4 Order Picking Machinery (OPM) uncooled / air-conditioned Case Order Machines (COM): 5 Tray storage locations: 41,600 Aisles: 10 Stacker cranes: 10 Depalletizers: 2 Wrapper: 1 Dynamic Picking System (DPS) - uncooled Tote storage locations: 3,970 Aisles: 2 Stacker cranes: 2 Flow channels: 820 Picking workstations: 6 Repacking stations: 4 Page: 13

14 State-of-the-art: Material Flow Migrolino Convenience Logistics Migrolino Convenience Logistics Migros Dry Goods Logistics DPS cooled ATS cooled DPS uncooled OPM Manual Warehouse OPM EPS Shipping Buffer cooled Ground Floor (cooled) Manual Warehouse Basement Floor (uncooled) Upper Floor (uncooled) End-to-End integration and interconnection of all logistics components (cross-channel) Optimal utilization and close synchronization of all logistics components within a dynamic fluctuating business Intelligent management of order peaks Already existing logistics areas, IT and logistics components have been integrated intelligently into the overall process (investment preservation) Investment protection Page: 14

15 State-of-the-art: Logistics 4.0 The Highlights Intelligent, cross-channel connection Sevenfold vertical + horizontal balancing Optimal use of resources in the daily business (fluctuations / week / season / growth) Migrolino Convenience Logistics Migrolino Convenience Logistics Migros Dry Goods Logistics DPS cooled DPS uncooled OPM ATS uncooled Manual Warehouse OPM Manual Warehouse EPS Shipping Buffer cooled Ground Floor (cooled) Basement Floor (uncooled) Upper Floor (uncooled) Page: 15

16 State-of-the-art: The solution in detail Automation Holistic connection of all systems and areas High level of automation in all sub-systems - OPM (dry goods) - DPS (convenience items) - ATS (full tote picking + Cross Docking) - Fully automated shipping buffer Maximum dynamics and availability Sub-systems support each other Utilization of already existing mechanics components (e.g. pallet HBW) Extremely compact construction / low space requirement Page: 16

17 State-of-the-art: Automated storage and picking modules (1) Order Picking Machinery OPM Level of automation: fully automated Product range: dry goods Highlight: store-friendly + error-free picking of cases, beverage formats + totes onto pallets and roll containers Speed: more than 500 picks/hour/com Dynamic Picking System DPS Level of automation: semi-automatic Product range: dry goods + fresh products Highlight: high-speed picking system with up to 800 picks/hour/workstation automatic pick front profiling through stacker cranes depending on the order structure reduction of the walking distances by up to 75% picking from tote into tote integrated value added services Page: 17

18 State-of-the-art: Automated storage and picking modules (2) Automated Tote System Level of automation: Product range: Highlight: fully automated fresh area + Cross Docking business store-friendly picking and stacking of totes and tote stacks picking and stacking of up to 1,000 totes per hour Shipping Buffer Level of automation: Product range: Highlight: fully automated fresh products fully automated, route-optimized just-in-time staging of all customer orders in the dispatch area Maintaining the cold chain Product quality Cost-efficiency cold chain Page: 18

19 State-of-the-art: The solution in detail IT System End-to-End warehouse management functionalities ( fluid logistics / WITRON Software Suite 4.0) Characteristics of every single day permanently in view Forecast on all logistics areas, logistics sub-systems, and distribution channels Continuous optimization depending on the current conditions Full transparency (storage, order picking, consolidation, transport, and route scheduling) Suitable for both Store Business and Convenience Business Page: 19

20 Digital Twin Physics Digital Twin Page: 20

21 Mission accomplished Numerous synergy effects (inventory, logistics, transport) through the combination of Convenience Logistics and Store Business, and the resulting cost savings Logistical handling of different product groups (dry, fresh, temperaturecontrolled) in one system Supply to different distribution channels (store, convenience, wholesale logistics) from one logistics center Page: 21

22 Mission accomplished Volume share dry goods Volume share fresh goods Volume volatility Friday = 2 x Wednesday / before holidays factor 4 Consolidation of stored goods with flow-through items SKU dynamics Promo dynamics Page: 22

23 Mission accomplished Page: 23

24 Mission accomplished Supply of 600+ Migros stores and 300 migrolino shops with some 433,000 store-friendly and error-free picked cases and pick units on a peak day Significant drop in customer complaints and returns (59%) The self control and optimization of the system ensures shorter throughput times. Thus, customer service is increased as customers are able to order various product ranges up to 08:30 AM on the picking day. The stores need to be supplied once a day only. Value Added Services such as - Anti-theft devices - Content list - RFID tracking - Individual weight products including coding and invoicing Page: 24

25 Mission accomplished in the distribution center High level of employee satisfaction due to ergonomic workstations and various tasks Reduced workload due to optimal interaction between leading-edge IT functionalities and highly dynamic mechanical elements Significant increase of the pick performance (factor 3 compared to a manual warehouse) due to highly dynamic and automated solutions 95% of the product range can be picked without human intervention in the stores Optimal and error free supply quality correct, complete delivery elimination of QA Significantly easier and faster storage of goods due to store-friendly and shelf-friendly picked transport units for the consumer High quality in terms of presentation and freshness of goods Optimal product range Minimization of stock-outs Page: 25

26 Mission accomplished The focus is a holistic and intelligent end-to-end connection of different distribution channels, clients, product ranges, and temperature zones Thus, the quality, productivity, and flexibility of all logistical services for both the Convenience Logistics and the Store Business have been sustainably increased Page: 26

27 From Supply Chains to EcoSystems Page: 27

28 WITRON 4.0 EcoSystem Page: 28

29 Cloud / Digital Platforms Page: 29

30 Web Service Rest Points WITRON Cloud Services Available 2019 Native Mobile App (IOS und Android) Web-App Web-Enabled Core components will be complemented with a new portal for the integration of mobile applications and partner software Web Service Rest Outbound Web Service Rest Inbound Hybrid architecture consisting of on premise solution and completed with web services for management, partner, and machines Mobile transparency of the processes Better process control Improved integration into supply chain Proven interface technologies such as FTP, TCP, ARFC, SRFC, IBM Websphere will be supported as usual Mobile Devices LAN 1 LAN 2 Workstations and Service Panels PLC Representational State Transfer REST Modern web communication Standard communication modules for safe communication via internet or other open networks Page: 30

31 WITRON Cloud Services Management Port Modern web technology Data and information at a glance Modern, simple, and responsive operation Stationary use - Control center - Score boards Mobile use - Control center - Management - On the surface Adjustable, expandable Cloud-enabled Page: 31

32 Mission accomplished in the distribution center existing building during transportation in the stores Effectivity gains due to holistic process automation / manpower optimization, inventory optimization, and increasing process speed Investment protection through the utilization of existing assets and integration of state-of-the-art technology into the existing 3-storey facility Savings in transportation costs due to densely packed order roll containers based on stacking algorithms, maximum order consolidation, and volume calculation Efficiency increase due to store-friendly supply, faster storage, and elimination of QA efforts Page: 32

33 Conclusion The ambitious customer goals were achieved and exceeded With this project we successfully combined different highly dynamic retail channels in a flexible, cost-efficient, and customer-friendly hybrid distribution center. Management Board, Migros Verteilzentrum Suhr AG The horizontal and vertical integration of all processes as well as the visibility and transparency across all system levels were the deciding factors for this success. Project Management, WITRON Page: 33

34 Thank you very much for your attention! WITRON Logistik + Informatik GmbH Neustaedter Str. 21, Parkstein Page: 34