DEMATIC logistics review 7

DEMATIC LOGISTICS REVIEW

Issue 7

L GISTICSREVIEW

AWARD-Winning Debut Multishuttle helps BIG W win Downunder

globAl cAse stuDies Smart ideas from the USA, Europe & Asia

sustAinAble Dc Design Environmentally friendly wind powered DC

tesco.coM: uKuK’s largest retailer boosts dotcom distribution network for home deliveries

Creating Logistics Results

tesco.coM: uKuK’s largest retailer boosts dotcom distribution network for home deliveries

RApiDstoRe unit loAD, Mini loAD & Multishuttle® 2

TRANSFORM YOUR SUPPLY CHAIN WITH NEXT GENERATION ASRS

RApiDstoRe unit loAD, Mini loAD & Multishuttle® 2

TRANSFORM YOUR SUPPLY CHAIN WITH NEXT GENERATION ASRS

lotte MARt: KoReA twin Dcs with crossbelt sorters deliver order fulfillment flexibility for multi-channel retailer

lotte MARt: KoReA twin Dcs with crossbelt sorters deliver order fulfillment flexibility for multi-channel retailer


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

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

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.

Today, Dematic continues to challenge contemporary materials handling thinking.

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 1,000,000 sq ft general merchandise distribution center of leading Australian retailer BIG W. The system features cross docking combined with state of the art goods-to-person picking technology.

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

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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DELIVERING A compEtItIVE EDGE thRouGh INNoVAtIVE LoGIStIcS SoLutIoNS


About Dematic

Dematic is one of the world’s leading suppliers of logistics automation sys-tems 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 distri-bution, 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 com-mitment worldwide. Globally the company employs around 4,000 people.

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DELIVERING A compEtItIVE EDGE thRouGh INNoVAtIVE LoGIStIcS SoLutIoNS

Alan Bradley, CEO Dematic Asia Pacific

The revolutionary Dematic Multishuttle®, used for buffering and sequencing stock in high-speed order fulfillment 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.

4-6 7-11

12-13 14-15 16-17 18-19 20-21 22-23

contentsCover Story: BIG W, AustraliaTechnology: RapidStore Unit Load & Mini Load Technology: Dematic Multishuttle 2Case Study: OWC, USACase Study: Tesco.com, United KingdomCase Study: Lotte Mart, Korea Case Study: Miratorg, RussiaCase Study: Fairrington, USA


BIG W Sydney, AuStrAliA

Key among many innovations is Australia’s first Dematic Multishuttle® automated storage and re-trieval system (ASRS), which buffers, sequences and delivers stock to the first RapidPick order ful-fillment stations in the country, enabling a single operator to process up to 24 orders at a time.

BIG W’s Logistics Manager, Philip Town, ex-plained why the leading discount variety retailer decided to be first to implement the new tech-nologies 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 favorably 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 fulfillment 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.

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

BIG W StocKS up oN AuStRALIA’S FIRSt muLtIShuttLE Gtp SYStEm

Australia’s first Dematic Multishuttle: A step change in ASRS

Unlike conventional ASRS, which typically use cranes to access stock, Dematic’s new Multi-shuttle uses a fleet of self-propelled carts to re-trieve and put goods away in an ultra space-ef-ficient 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.

Stock being decanted into totes and inducted into the multishuttle system.

A screen indicates which orders require items from the stock tote, with put-to-light displays at each of the relevant order locations indicating the quantity of items required.

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DEMATIC LOGISTICS REVIEW 5

DematIc multIshuttle GtP sYstemBuFFer StOrAGe, SeQuenCinG, GtP PiCkinG

“

“

We looked at best practice logistics and the thing that kept on coming up was Goods-to-person, and

the benefits Gtp provides by having the stock come to the picker, rather than the picker

walk around picking every

individual item.

Philip Town, Logistics Manager,

BIG W

BIG W StocKS up oN AuStRALIA’S FIRSt muLtIShuttLE Gtp SYStEm

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 en-ables up to 24 separate orders to be picked con-currently. 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 opti-mize operator comfort, minimize fatigue and en-sure 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 au-tomatically delivered to and removed from the workstation, eliminating the need for operators to lift or push cartons and totes.

the multishuttle system feeds stock to the adjacent eight Gtp stations, enabling up to 192 orders to be picked concurrently.

A screen indicates which orders require items from the stock tote, with put-to-light displays at each of the relevant order locations indicating the quantity of items required.

BIG W Logistics manager philip town

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

6 DEMATIC LOGISTICS REVIEW

BIG W Sydney, AuStrAliA

DematIc multIshuttle GtP sYstemBuFFer StOrAGe, SeQuenCinG, GtP PiCkinG

Batch picked stock from the Full case pick and cross Dock modules is sorted to the relevant store by the cross-belt Sorter in a very efficient ‘one-touch’ operation.

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

When totes carrying stock for orders arrive at the GTP workstations, a display panel indicates which of the 24 orders require items, with indi-vidual 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 con-firms 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 take-away 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 dispatch.

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 more than one million square feet, Hoxton Park is the largest footprint DC in the Woolworths net-work. The flow-through design DC is more than 1,600 ft long and about 650 ft wide: you can ac-tually fit about 11 football fields inside!

The DC has the capacity to house more than 50,000 pallets within a combination of conven-tional ColbyRACK pallet racking, drive-in racking, and pallet live storage (PLS) within several walk-pick-to-belt case picking modules.

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 dispatch during special events such as Christmas, Easter, Moth-er’s and Father’s Day.

A big improvement for BIG W

“We’ve been really pleased with the way the sys-tem 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 the 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 Man-agement and the Storage and Handling of Materials Awards at the recent Australian Supply Chain & Lo-gistics Awards in Brisbane on November 8, 2012.


Raising ASRS standards for over 40 years

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.

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 manu-facturing techniques, Dematic RapidStore is a new class of SRM, delivering an outstanding combination of quality, impressive perform-ance 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.

DEmAtIc LAuNchES NEW RApIDStoRE uNIt LoAD & mINI LoAD ASRS SoLutIoNS

Optimizing space efficiency and performance

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.

RapidStore also offers faster cycle times than manually operated narrow aisle turret and reach trucks, and the fully automated systems greatly reduce labor and operating costs.

Capable of operating 24/7 with minimal labor, RapidStore provides an excellent return on in-vestment.

The following pages provide a brief overview of the many benefits provided by Dematic Rapid-Store UL and ML 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).

techNOlOGY FeatuRedemAtiC rAPidStOre®

autOmateD stORaGe & RetRIeVal sYstems unit lOAd & mini lOAd StOrAGe & hAndlinG

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

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


techNOlOGY FeatuRedemAtiC rAPidStOre® unit lOAd (ul)

FASt, RELIABLE, coSt-EFFIcIENt pALLEt & uNIt LoAD StoRAGE Faster than narrow aisle forklifts, RapidStore SRMs economically handle loads up to 4,000 lb in aisles only 8 inches wider than the load. Systems can be up to 150 feet high, with throughput rates of 60 double cycles per hour depending on load weight, system height and aisle length.

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.

Ideal for bulk reserve storage in fast moving pal-let 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 produc-tion 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 tai-lored to suit virtually any operation, irrespective of load type or throughput requirements.

Space-efficient storage systems

High-bay racking systems are designed to exact-ing 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 en-sure incident-free operation.

High-quality rails for smooth, reliable performance

Dematic uses high-quality floor rails with a pat-ented rail clamping system. All floor rails are manufactured from a single production batch, ensuring consistency of performance through-out the system.

The RapidStore UL design positions the bottom rail to one side of the aisle providing a safe path-way 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 experi-ence in implementing pallet in-feed and out-feed stations to suit customer requirements.

From low-cost, fixed-position pick-up and de-posit (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, seam-lessly linking receiving, manufacturing, quality control, put-away, palletizing and dispatch.


BulK ReseRVe uNIt lOaD stORaGe AutOmAted unit lOAd StOrAGe & hAndlinG

FASt, RELIABLE, coSt-EFFIcIENt pALLEt & uNIt LoAD StoRAGE

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

the RapidStore uL1000 & uL1200 provide high-speed handling of loads of up to 2,645 lb to 100 ft high.Its lightweight single mast design allows fast acceleration and high operating speeds of up to 13 ft/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 3,000 lb to 60 ft.

the RapidStore uL1500 is designed to handle loads up to 3,300 lb in Dcs up to 150 ft 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 4,000 lb to 110 ft and can store pallets up to three deep. Applications include archives, automotive and operations requiring the handling of heavy loads.

Expert configuration ensures material flow is closely managed, eliminating bottlenecks in a range of staging, buffering, loading and unload-ing applications, optimizing 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 visualization capability, with a user-friendly interface displaying operat-ing status and full service diagnostics.

State-of-the-art control components and inte-grated IT systems include the latest in laser and barcode closed-loop positioning technologies for fast, safe, accurate operation.



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 center or raw mate-rials store, efficiently breaking goods down from bulk unit loads to smaller loads for picking or kit-ting 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 de-signed to exacting tolerances for high-perfor-mance operation, and meet the latest European and FEM standards.

Integrated conveyor systems

Dematic manufactures a comprehensive range of case conveyors, diverts, merges and ac-cumulation 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 se-quence to meet the exacting needs of high-speed kitting and order fulfillment applications.

RapidStore load handling devices (LHDs)

Designed for ultra high-speed load handling, Dematic RapidStore LHDs use precision tele-scoping arms with additional belt drives to han-dle goods quickly and effectively.

techNOlOGY FeatuRedemAtiC rAPidStOre® mini lOAd (ml)

hIGh-SpEED, LoW-coSt, SpAcE-SAVING totE & cASE StoRAGE

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.

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.


tOte & case BuFFeR stORaGe & seQueNcING AutOmAted tOte & CASe StOrAGe & hAndlinG

A wide range of RapidStore LHDs are available in fixed or flexible variants allowing the han-dling of multiple load sizes.

Clever design improves shelf and load interface, minimizing the distance between shelf and load and providing better overall space utilization.

Up to three LHDs can be used on dual-masted SRMs, making it possible to handle and trans-fer up to six loads simultaneously for optimum performance.

Location Control Software (LCS)

Intuitive Location Control Software (LCS) inter-facing with your WMS or ERP ensures full sys-tem accountability and a high degree of man-agement control. Controls provide visualization with a user-friendly interface showing order sta-tus, as well as providing service diagnostics.

hIGh-SpEED, LoW-coSt, SpAcE-SAVING totE & cASE StoRAGE

the mL10 & mL14 are the latest high performance solutions for dual handling of totes, trays, cartons and cases weighing up to 110 lb, to 33 and 46 ft respectively. Lightweight, aluminum masts ensure rapid acceleration and travel speed.

the double-masted mL20 ensures stability and safe operation up to 66 ft. Lightweight aluminum mast construction enables the mL20 to carry one, two or three load handling devices (LhDs) in single or double deep configurations.

the mL+300 is a heavy-duty, double-masted ASRS made from lightweight, high-strength steel. It is capable of handling loads of 750 lb to heights up to 66 ft. 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 specialized LhDs in applications as diverse as spare parts stores, machine assembly centers and libraries, where heavy loads are typically carried in steel bins or crates.

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



New Dematic Multishuttle 2 is designed to sup-ply sequenced products for order fulfillment, pick face replenishment or mixed case palletizing, and can be utilized as a short-term buffer storage sys-tem or as a production support sub-system.

Next generation Multishuttle technology

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

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

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.

Telescopic handling for flexible operations

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

The load extractor design minimizes space be-tween products, maximizing storage density. It can be configured to handle loads up to 110 lb in a range of widths from 5.9-25.6”, lengths from 7.9-34.4”, and from 1.9-23.6” high.

techNOlOGY FeatuRedemAtiC multiShuttle® 2

FAStER BuFFER StoRAGE & SEquENcING WIth muLtIShuttLE 2With 60 systems incorporating nearly 4000 Multishuttles throughout Europe, North America, Asia and Australia, Dematic’s Multishuttle® has revolutionized the storage, handling, buffering, staging and sequencing of totes, cases and trays in high volume order fulfillment operations, with the innovative system making a whole new range of integrated logistics solutions possible.

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.


FAStER BuFFER StoRAGE & SEquENcING WIth muLtIShuttLE 2

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

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.

Dematic Multishuttle 2 Redefining Warehouse Logistics

• Increased throughput: Four to seven times greater than conventional ASRS solutions

• High utilization: Feeds workstations with high rates to keep operators fully utilized

• 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 palletizers 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

Flexible, scalable, modular Multishuttle 2

Speaking at the recent ProMat 2013 Exhibition in Chicago, Mike Khodl, Dematic’s Vice Presi-dent, Solution Development, said: “Multi-chan-nel 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 transi-tion from batch-based to dynamic, on-demand workflows because they no longer know what their workload will look like ahead of time.”

Mr Khodl added: “Dematic’s solutions for multi-channel distribution operations are centered around flexible modules that scale to changing operational needs and growth.

“Most designs incorporate a storage buffer strat-egy that shares inventory across multiple dis-tribution 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 fulfillment requirements.

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

tOte & case BuFFeR stORaGe & seQueNcING AutOmAted tOte & CASe StOrAGe & hAndlinG


Other World Computing (OWC) has been serving technology users for 24 years and now operates a modern distribution center (DC) with an efficient order fulfillment system, all powered with electric-ity 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 fulfillment and the purchasing cycle. OWC’s strategy is to control and optimize 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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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.

oWc’S SuStAINABLE ScALABLE SoLutIoN

A scalable solution for today and tomorrow

An existing order fulfillment configuration was not providing the required results for OWC, so a new design was developed and implemented by De-matic. According to Ryan O’Connor, Operations & Logistics Manager with OWC: “The solution development engineering process offered by De-matic 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 de-signed 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 fulfillment 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.

the solution development engineering process offered by

Dematic was particularly insightful.Ryan O’Connor,

Operations & Logistics Manager, OWC

OtheR WORlD cOmPutINGillinOiS, uSA


When picking for an order is complete, it is deliv-ered to one of nine packing stations where each item is scanned as it is packed.

For tracking and quality assurance, ceiling-mounted 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.

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oWc’S SuStAINABLE ScALABLE SoLutIoN

sustaINaBle Dc DesIGNOnline Order FulFillment

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

“ “ 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

Technology users, especially Apple product own-ers, 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.

Despite the system footprint reducing in size compared to the previous configuration, order fulfillment 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 comfort-able for warehouse staff. The pack and sort sub-system is modular and scalable, and is designed for fast and easy expansion as future growth is predicted to be robust at OWC.

Platinum-certified sustainable distribution

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 op-eration and process, sustainability is key.

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

An on-site wind turbine provides the power re-quired to operate everything in the facility from the warehouse to the offices and data center. Other green initiatives include the use of a geothermal heating/cooling system, and a new process of bringing natural light into the warehouse, called fiber optic daylight harvesting.

In addition, OWC has implemented skylights, dim-ming-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, elimi-nating the need for fertilizer and watering.

DEMATIC LOGISTICS REVIEW16

tescO.cOmenField, enGlAnd

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 center (DC) at Enfield in England.

Tesco.com’s DC network enables the retailer to fulfill an increasing amount of customer home delivery orders from dedicated distribution facili-ties, rather than have employees pick online or-ders 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 concen-trated and focused service for customers.

“I’m really excited about Tesco’s passion and de-termination to make home shopping something that we are the best at. We’ve got as much ex-citement 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.”

Tesco’s dotcom DC network

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

A fifth Tesco.com facility is due to go live in early 2013 at Crawley, near London.

The Enfield DC features smart zone routing inte-grated conveyor systems and zone picking so-lutions for ambient and chilled goods. Separate ambient and chilled Dematic Multishuttle sys-tems 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.

NEW Dotcom Dc FoR tESco homE DELIVERY

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

DEMATIC LOGISTICS REVIEW 17DEMATIC LOGISTICS REVIEW

Buffering and sequencing orders for dispatch

Completed order totes are routed to the Multi-shuttle ambient and chilled consolidation buffers, where they are held until ready for dispatch.

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 dispatch docks, where operators load delivery vans. All of the DC’s integrated system operations are controlled by Dematic’s DC Direc-tor 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 qual-ity for the customers, as well as productivity for Tesco,” explained Tesco’s Operations Develop-ment Manager, David Burroughs.

He added: “Having gone out to tender, we picked Dematic because we felt their system would en-able 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.

Tesco was particularly keen on Dematic’s Multi-shuttle, added Mr Burroughs. “The Multishuttle of-fers 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 minimizes 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 No-vember 6, 2012 Tesco’s Group Chief Execu-tive, 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 roll- ing out the service across all our markets.”

Ambient and chilled multishuttle systems store completed customer orders until they are ready for dispatch, 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.

amBIeNt & chIlleD GROceRY DIstRIButION Online GrOCery hOme delivery SyStem


lOtte maRt OSAn/GimhAe, kOreA

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 Pa-cific’s largest ever crossbelt sorting system, fea-turing dual entry spiral chutes, advanced cam-era 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 su-permarkets from the same facility.

SmARt FLoW-thRouGh DcS FoR LottE mARt

First crossbelt sorting system for Korea

Dematic’s innovative solution for Lotte Mart in-cludes 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 gen-tly to their destinations, regardless of their shape, size and surface characteristics.

Individual carriages, each with its own belt con-veyor, 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.


multI-chaNNel RetaIl DIstRIButIONCrOSSdOCk COnveyOr SOrtAtiOn SyStem

Crossbelt sorting system operation

Dematic’s crossbelt sorting system is designed to handle up to 17,500 cartons per hour and in-cludes ten induction stations across two induc-tion 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 utilized twice per loop, virtually doubling the system’s throughput capacity.

The system layout has been designed to maxi-mize 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.

Goods receipt

The majority of Lotte Mart’s products are re-ceived 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 sor-tation 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 cam-era readers with the majority of product sorted based on carton product barcodes, minimizing the cost and labor associated with manually ap-plying barcoded labels to large volumes of prod-uct.

SortDirector’s proven algorithms manage the apportionment of products across sort lanes ac-cording to demand, with shortage handling strat-egies and the ability to prioritize product alloca-tion 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 or-ders 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 maximize productivity and minimize 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 second-ary sort position, place the goods into position and scan the roll cage ID to confirm put-away.

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 centers.

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, maintenance-free operation, zero air/power needs and low lifecycle cost.

Left: cartons being inducted onto the crossbelt sorter.

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.

Kim chan Sik, center manager, osan Lotte mart Distribution center


mIRatORGmOSCOw, ruSSiA

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

Intensive planning, the introduction of efficient lo-gistics processes and the optimal integration of existing IT infrastructure to Dematic’s DC Direc-tor warehouse management system (WMS) has resulted in a state-of-the-art DC for Miratorg.

Vertically-integrated food manufacturing and distribution

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

“Special focus is placed on transport and storage logistics,” said Miratorg’s Director of Project De-velopment, Maxim Dragavtsev.

Dematic was awarded the contract as the gen-eral contractor for the entire logistics facility fol-lowing an international tender.

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

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

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

Cold supply chain challenges

Proper handling of refrigerated and frozen goods is one of the most challenging tasks in the dis-tribution of foodstuffs. It is important to keep frozen foods such as fish, meat and vegetables between -18 and -24 oC (-0.4 to -11.2f).

“ “

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

NEW Dc hANDLES 100 t/DAY oF FRozEN FooD FoR mIRAtoRG

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

DEMATIC LOGISTICS REVIEW 21DEMATIC LOGISTICS REVIEW

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 tons of frozen and chilled goods daily to the stores of 3,000 corporate customers and retailers in the Moscow area – over 25,000 tons per year.

In addition to distributing full pallets, the system also facilitates the picking of up to 16,000 car-tons 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 Dra-gavtsev.

Dematic’s integrated solution for Miratorg

16,000 pallet locations are available in the high-bay warehouse. Incoming goods are checked for weight and shape, have a customized barcode label attached, and are recorded by the WMS and transportation management system.

A pallet conveyor loop transports incoming pal-lets to the high-bay warehouse, with the auto-mated 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 in-terfaces 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 gen-erates pick orders according to different order fulfillment strategies, taking into account order quantity and total weight.

Full pallet picks are consolidated within three zones, while case picking is a two-stage, batch-pick operation with pick-to-belt.

Directed by pick-to-light (PTL) displays, employ-ees 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 palletized, with consolida-tion 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 implement-ing the solution within a very tight time schedule. This led to an optimal solution with the best per-formance results,” added Mr Dragavtsev.

NEW Dc hANDLES 100 t/DAY oF FRozEN FooD FoR mIRAtoRG


FaIRRINGtON ChiCAGO/new JerSey, uSA

22

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, deliv-ering 50,000 pallets each week.

From online tracking to fully automated sorting systems for periodicals and standard mail, and from JIT warehousing to customized supply chain solutions – Fairrington delivers.

Introducing a new logistics process for enhanced mail handling and delivery

Fairrington is an innovator in a logistics process called co-palletization (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 realize destination discounts.

The advantages for periodical mailers include a decrease in container charges and the ability to reduce zone and editorial pound charges by en-tering at the Area Distribution Center (ADC) and Sectional Center 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 Dis-tribution Center) and SCF pallets with the corre-sponding entry discounts.

In both cases in-home delivery is improved.

SmARt co-pAL mAILING SYStEm ImpRoVES SERVIcES, cutS coStS

Fairrington makes sure that the physician in Boston gets his weekly medical journal, while the family in Illinois receives their favorite holiday catalog 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.


maIl & PacKaGe haNDlING COnveyOr trAnSPOrt & SOrtAtiOn

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.

Dematic conveyor solution helps mail and packages to flow

To support the co-palletization strategy, Fair-rington partnered with Dematic to design and implement a system solution that could convey and sort mail for co-palletizing. Fairrington de-ployed two identical Dematic convey and sort systems, one located in Illinois and the other in New Jersey.

The system configuration consists of accumula-tion and transportation conveyor, barcode scan tunnel, automatic label print and apply module, nine sorters with two-way transfer, and 18 ac-cumulation conveyor lanes prior to palletizing. The system is engineered to accommodate both trays and bundles of magazines.

SmARt co-pAL mAILING SYStEm ImpRoVES SERVIcES, cutS coStS

Operators manually de-palletize 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 la-bel print and apply module where a new human- readable 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-palletization

The entire convey, scan, label and sort process accommodates fast, accurate, reliable and effi-cient building of co-palletized loads.

Modular system design allows operational flex-ibility 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.

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


www.dematic.com

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© Copyright February 2013

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DEMATIC logistics review 7

Technology

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