opm order from mercadona (spain) - witron service · pdf fileat the end of december 2008,...
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At the end of December 2008,
WITRON was awarded the order
for the design and realization of
a distribution center for the dry
goods assortment for the Spanish
supermarket chain Mercadona at
its location in Leon (North Spain).
Leon is planned to supply up to
170 stores in the future. As with
Mercadona�s three other WITRON-
designed distribution centers,
Leon will also be equipped with
WITRON�s OPM (Order Picking
Machinery) and DPS (Dynamic
Picking System) modular picking
systems.
Mercadona is considered the most
expansive grocery retailer in
Spain. It has 61,500 employees
and operates 1,210 stores, with
an annual turnover of approx.
15.5 billion Euros in 2008.
The system in Leon is composed
of a 28-aisle tray warehouse with
176,500 locations. In the future,
some 146,000 cases will be picked
each day with 16 COM machines
onto load carriers. Picking will be
fully automated without human
intervention, resulting in store-
friendly order pallets free from
any pick errors. A DPS system with
6,800 locations and 6 workstations
will pick an additional 9,000 small
volume trading units. The DC also
includes the unique ability to pick
half pallets for certain stores using
the same AS/RS cranes that handle
CONTENT
WITRON
Press Conference 2008
in Parkstein (Germany)
» P. 2
WITRON's Logistics Day at
... EDEKA Hamm (Germany)
» P. 3
WITRON is awarded
Kroger's (USA) next
distribution project
» P. 4
4th OPM order from MERCADONA (Spain)
standard sized pallets. All orders
from the different picking areas
are consolidated prior to shipping.
An 18-aisle pallet high bay ware-
house with approx. 18,000
locations supplies the OPM and
DPS system with articles. The HBW
allows for the automated picking
of full and half pallets at the same
time. Leon�s entire article range
covers some 5,900 different
products from Mercadona�s dry
goods assortment.
With this project, Mercadona and
WITRON are continuing their
successful partnership that started
in 2004. WITRON has already
realized two distribution centers
Issue Summer 2009
www.witron.com
for Mercadona�s dry goods
assortment and temperature-
controlled products in Ciem-
pozuelos (near Madrid) working
with the OPM and DPS solution.
Another OPM system for frozen
goods is up and running in
Ribarroja (near Valencia).
When Leon reaches productive use
in mid 2010, Mercadona will have
a total of 98 operating COM
machines across 4 DCs handling
dry, fresh, and frozen goods. The
projects realized since 2004 are a
clear message of Mercadona�s
satisfaction with WITRON, and
prove the efficiency, flexibility
and high availability of the OPM
and DPS systems.
MERCADONA and WITRON continue to expand their successful partnership.
Alliance Boots and
WITRON presented the
Store Service Centre (SSC)
in Nottingham (UK)
» P. 3
www.witron.com
WITRON Press Conference 2008
All about innovation and efficiency
The focus of WITRON�s press conference 2008 was not only the second
generation of its �Order Picking Machinery� (OPM), but also its new
fully-automated shelf solution SRS to be used for efficient replenish-
ment inside a store. Moreover, WITRON announced that it will develop
and produce tote conveyor systems in its own german production
facilities in Parkstein and Saarbruecken in the future.
With the Shelf Replenishment System (SRS) for automatic shelf re-
plenishment in the store, WITRON provides a new solution with the
goal of effectively reducing labour costs and optimizing the processes
in food retail stores. Such a solution is important considering the
magnitude of the logistics cost generated at the point of sale due to
high personnel expenditures for restocking the shelves, designing the
facing, and managing the out-of-stock situations.
All sales items in SRS are carried and pushed carefully by means of slat
conveyors, belt conveyors or push-off devices � similar to WITRON�s
OPM system. The goods are silently transported by shuttles in a
replenishment aisle that is directly integrated into the shelf and
therefore invisible to the customer. The sales front consists of passive
shelves without sensor technology with a specific drive system. The
shelf stock is automatically registered by means of a scanner that is
located on the shuttle, allowing the system to directly determine the
replenishment volume in the shelf. Replenishment is carried out by
the system without human intervention, without the customer taking
notice.
The trend in retail is towards larger stores and wider assortments, and
that makes a fully automated shelf replenishment system especially
beneficial.
WITRON manufactures conveyor systems and mechanical components
in their own production facility
Based on the experiences with their OPM and DPS systems, WITRON
has decided to manufacture conveyors and mechanical components
in their own production facility in the future. To accomplish this task,
WITRON integrated FAS FoerderAnlagen Systeme GmbH. Tote AS/RS
cranes, COMs, as well as tray and tote conveyor systems are now being
produced in Saarbruecken and Parkstein (Germany). Driven by the
speed of innovation at WITRON, it became necessary to take up the
development and production of conveyor system elements on our
own. With the expansion of our portfolio, we will now have more
influence on system availability and system performance. The conveyor
system components, especially developed for WITRON solutions, provide
the highest availability without losing sight of WITRON's successful
standardization strategy. WITRON's demand is to provide ideal
mechanical solutions with maximum life cycle.
New OPM Generation with higher performance values
After several years of successful practical experience with customers
like EDEKA (Germany), Mercadona (Spain), and Kroger (USA), WITRON
has improved its fully-automated warehouse and picking system �Order
Picking Machinery� (OPM), increasing its performance by 25 percent.
Our improvements were made by keeping the established OPM concepts
and elements and by re-structuring and simplifying the material flow
process. Our improvements also resulted in a 35 % reduction in the
number of components. The pick performance of the new COM
generation amounts to between 520 and 570 cases per COM per hour,
with clearly reduced energy consumption and operating costs at the
same time. With the new COM-technology, several projects have already
been won.
Walter Winkler: "OPM is the most important innovation in WITRON�s history
so far. The technological advantage over our competitors is measured by
more than 250 sold COM machines within only five years".
The Shelf Replenishment System (SRS) enables the shelf replenishment in
the store without human intervention.
System performance could be increased considerably
with the new OPM generation.
www.witron.de
"We would definitely go for it again"
EDEKA and WITRON welcomed more than fifty high-ranking logistics
managers from retail companies across ten different European countries
to EDEKA�s Hamm warehouse. A tour and panel discussion offered
these visitors an inside look at the processes and material flow within
this highly automated 90,000 square meter warehouse. Throughout
the warehouse tour, the international participants were impressed
with the capability and the practical feasibility of the systems they
saw.
EDEKA Regionalgesellschaft Rhein-Ruhr is the first German company
to have implemented WITRON�s OPM solution (Order Picking Machinery)
for automated case picking. The OPM at EDEKA�s new central warehouse
in Hamm-Rhynern virtually eliminates direct labor for case picking,
while automating handling from receiving through shipping.
The conclusion of Thomas Kerkenhoff, head of logistics and organization
at EDEKA � Rhein-Ruhr, was clear: �Looking back to our experience with
this technology, we can clearly say that we would definitely make the
same decision again. We were aware that our decision for OPM meant
breaking new ground in terms of picking technology�but our
expectations have been met. The entire supply chain, from receiving
through order picking up to the workflows in the stores, has been
optimized thanks to WITRON�s solutions. The individual picking systems
are modular, efficient, and flexible. The use of standardized technologies
has resulted in high system availability. With the distribution center
in Hamm it is now possible for us to provide our 1,000 EDEKA stores
with goods on a daily basis. At peak days some 500,000 trading units
are shipped from the central warehouse. Our approach at Hamm
leads to significant competitive advantages � improved availability,
fewer missing articles at the stores, a higher SKU assortment within
a smaller warehouse footprint, lower costs, improved turnover, higher
market share, and most importantly, more satisfied customers.�
More than fifty logistics experts had a chance to learn about the
capabilities of EDEKA's new central warehouse in Hamm.
EDEKA Rhein-Ruhr and WITRON presented the central warehouse in Hamm (Germany) to logistics experts from 10 european countries.
Boots and WITRON presented the SSC Nottingham (UK)
storage. Even during the busiest time of the year, the second phase
of the SSC began exactly according to the agreed time schedule in
December 2008 with the delivery of the so-called Order Consolidation
Buffer (OCB). Since then the CPS began operation in January this year,
followed by the second DPS phase in March 2009. At present,
approximately half of Boots retail sales stock is despatched from the
SSC. Final acceptance of the complete project is scheduled for autumn
2009.
One of the most challenging tasks during the whole project was the
installation of very modern supply chain technology into existing
warehouse buildings. As a brownfield solution it has been important
to strike a balance between what is technically optimal and what is
possible at the Boots site without affecting existing operations. �WITRON
delivered their promise� is the positive conclusion drawn by the Boots
Supply Chain Director, Gavin Chappell, �we can even say that the results
we expected, in this difficult business case, have been surpassed�.
Around 45 delegates from companies located in the UK, Germany and
the Benelux countries took a close look at the cost efficient and highly
flexible automated central warehouse concept currently being
implemented by WITRON for Alliance Boots in Nottingham (UK).
�Our mission and purpose in the Boots supply chain is to be the best
pharmacy-led retail health and beauty supply chain, and to help our
stores look and feel better than ever thought possible,� said Gavin
Chappell, Supply Chain Director at Boots. He also pointed out that the
Stores Service Centre (SSC) in Nottingham, UK is the key to enabling
Alliance Boots to achieve their future supply chain mission and purpose.
�The WITRON concept is very much aligned with this, which is really
helpful and important for us. We are expecting the completion of the
SSC to produce impressive cost efficiency and sustainable optimization
through the introduction of store-friendly deliveries,� added Gavin
Chappell. "We want our staff to do customer-focused activities for 80
per cent of their time instead of non-customer focused stock counting
and replenishment. The store-friendly delivery features of the WITRON
concept contribute significantly to that.�
In the future, about 2,600 Boots stores will be supplied centrally from
the SSC in Nottingham. The facility can hold up to 30,000 SKUs and has
the capacity to process up to 2.8 million picks, 5,200 inbound pallets,
98,000 outbound totes and 4,640 outbound roller containers across a
20 hour operation. In order to achieve this, WITRON has implemented
the following modular system solutions into an impressive integrated
system: The Dynamic Picking System (DPS) as a tote picking system,
the Car Picking System (CPS) as a roll container picking system, the
Order Consolidation Buffer (OCB) for ready picked totes and a High Bay
Warehouse (HBW) for pallet storage.
The delegates were highly impressed by fully automated picking and
www.witron.com
The participants of the WITRON's Logistics Day at SSC Nottingham (UK).
www.witron.com
KROGER and WITRON - a successful partnership
In an effort to improve distribution efficiency and productivity, Kroger
has once again turned to automation. A new distribution center
supporting the west coast region will be the third automated case
picking facility awarded to WITRON. Kroger�s partnership with WITRON
extends beyond case picking, with two automated piece picking
systems already in operation.
Kroger�s automated case picking experience:
More than 3 million order pallets
This fully automated warehouse will not be the first of its kind. Kroger
was the world�s first implementer of automatic case picking systems
from WITRON. Those systems have shipped a combined total of more
than 3 million order pallets since they went live in 2004 and 2006.
Unlike the first two installations which were integrated inside existing
conventional warehouses, the new site will be a �greenfield� project.
Kroger felt confident embarking on a third automated case picking
facility, as their existing two facilities are delivering more than 4,000
mixed order pallets to over 500 supermarkets every day using WITRON�s
�OPM� (Order Picking Machinery) technology.
After engaging WITRON to improve their piece picking operations in
2003, Kroger recognized that case picking offered even more
opportunities. Kroger worked extensively with WITRON to develop its
OPM system. Fully automated case picking was invented using WITRON�s
material flow expertise, coupled with the operational experience and
grocery industry knowledge from Kroger. When first introduced, OPM
technology was a revolution for the entire retail and distribution world.
The first OPM system in the world was the culmination of several years
of partnership and development between WITRON and Kroger. �We
are very proud of the success of our two existing OPM installations,
which were only made possible with the cooperation and support
WITRON is awarded US-company Kroger's next distribution project
Since end of 2004, Kroger has
automatically produced more than
3 million mixed order pallets using
WITRON�s OPM system.
Kroger�s first fully automated distribution center has been using WITRON�s
OPM technology since 2004. This solution was installed within an existing
conventional facility. It features 16 COMs.
Issuer
WITRON Logistik + Informatik GmbH
Neustädter Str. 21
D-92711 Parkstein
http://www.witron.com
Responsibility
Helmut Prieschenk
co-CEO
Editorial staff
Cornelia Troglauer / Udo Schwarz
Phone: +49-9602-600-227
Fax: +49-9602-600-211
marketing@witron.de
Spintler Druck und Verlag GmbH
Hochstr. 21
D-92637 Weiden/OPf.
Reprint and processing of the information presented, requires the
written permission of the issuer. Despite highest possible diligence,
no guarantee and/or liability is taken over for accuracy of statement.
from the entire Kroger team� comments Karl Hoegen, COO of WITRON
USA. �We look forward to the continuation of our successful partnership
with this third fully automated case picking facility.�
The benefits of an OPM system extend beyond the DC, with a reduction
in effort to fill store shelves as a result of store-friendly pallets. In
addition, transportation benefits can be realized from improved order
pallet density. All in all, the OPM addresses the most significant
challenge facing today�s retailers: improving service levels at the lowest
cost. Those benefits are made possible through WITRON�s innovative
and proprietary COM (Case Order Machine) at the heart of the OPM
system.
WITRON and Kroger, A Partnership In Automation
Kroger�s success with automation is by no means limited to case
picking. In fact, Kroger began its partnership with WITRON several
years ago with a piece picking system. Like the OPM system for case
picking, WITRON�s piece picking system is both innovative and efficient.
Using WITRON�s Dynamic Picking System (DPS), Kroger is able to pick
nearly 1.6 million units per day from a range of approximately 18,000
SKUs. The success of this project has led to the award of a second DPS
for piece picking, marking yet another step in the Kroger/WITRON
automation partnership.
The Kroger Company
Kroger is headquartered in Cincinnati, Ohio (USA) where it was founded
in 1883. With sales in excess of 70 billion USD and more than 320,000
employees, Kroger is the second largest seller of groceries in the
United States. In addition to its network of more than 2,500 stores,
Kroger operates 42 food processing plants and 27 distribution centers.
Kroger�s stores can be found in 44 major markets under 19 different
banner names across the United States.
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