Dematic Logistics Review #4

Issue 4

CEMAT 2011 OVERVIEW

L GISTICS
Exciting new products launched at CeMAT

AUTOMATING SIEMENS

REVIEW
Multishuttle in production line support role

PROdUCT REVIEW
News, technology and software update

TECHNOLOGY FEATURE:

RAPIDPICK SYSTEM:
SYSTEM TM

FASTER, SMARTER, SAFER
HALFORdS: UK BARE ESCENTUALS: USA
Sorting out small Integrated order fulfillment
parts order picking for cosmetics supply chain

DEMATIC LOGISTICS REVIEW
Creating Logistics Results

FLEXIBLE, scaLaBLE,
Welcome to Issue 4 of Dematic Logistics Review –
Your Window to World’s Best Practice Logistics.

In the last issue of DLR, we presented a new One consistent theme began to emerge and it
white paper “10 Strategies for Distribution Lo- pleased me a great deal.
gistics Success.” This hierarchical approach to
Lowering costs and increasing service is a given.
eliminating non-value adding activities evalu-
But logistics professionals need more.
ated concepts designed to reduce picking cost
and increase customer service. In particular you need the ability to respond
rapidly to change. We know that the only future
At recent major tradeshows in Europe and North
certainty is change so, in my opinion, there is a
America, Dematic’s senior management and
strong need to address this challenge.
I had the opportunity to meet customers from
around the world. Smart solutions need to be designed to meet
today’s needs but with tomorrow’s require-
You told us the “10 Strategies” made very good
ments firmly in mind, and that means taking into
sense, because it showed how Dematic offered
account issues like growth, change in product
solutions for businesses with differing levels
range or new market or channel requirements.
of distribution logistics requirements. You also
shared your experiences in dealing with real At Dematic, we address the issue of “future-
world operational issues. proofing” solutions, technologies and informa-
tion platforms by ensuring our systems are flex-
ible, scalable and modular:

2 DEMATIC LOGISTICS REVIEW

contents
Cover Story: NCPC, China 4-5
Technology Feature: RapidPickTM System 6-8
Case Study: Siemens, Germany 9-11
Case Study: Bare Escentuals, USA 12-13
Case Study: Blackmores, Australia 14-15
Case Study: Halfords, UK 16-17
Case Study: D&H Distributing, USA 18-19
CeMAT 2011 Review 20-21
News, Product, Technology & Software 22-23

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.

MODULaR LOgIstIcs
• Flexible designs give you the ability to respond Dematic has been addressing these issues for
efficiently to changing demands by employing years. Our newly released RapidPickTM Goods-
proven technology solutions for multiple ap- to-Person system, Dematic MultishuttleTM Flex,
plications, and ensuring systems incorporate RapidStore ML & UL range, our range of Modu-
sufficient redundancy to cope with expansion lar Conveyors and Sorters and our DC Director
software are all designed to meet your changing
• Scalable means designing our systems so they
needs.
can be upgraded easily to meet your changing
requirements – you don’t need to start again. In this issue we present a range of integrated lo-
Plus, a scalable system can grow as your busi- gistics system solutions delivered to well-known
ness needs grow, avoiding the cost and need customers around the world. We also update
to re-engineer a system or retrain staff you on new Dematic innovations, with an over-
view of the latest Dematic products launched at
• Modular means that the components of our
the recent CeMAT Exhibition in Germany.
systems can be easily combined to drive mul- Roar Isaksen,
tiple functionalities. At the same time, all com- Most importantly, we present a detailed discus- President & CEO,
ponents are designed to interface seamlessly, sion about our innovative RapidPickTM System. Dematic
providing end-to-end material flow and infor- Our new Goods-to-Person split-case picking
mation management. solution highlights the way in which Dematic
is embracing the principles of flexible, scalable
and modular in all the work we do.

Roar Isaksen,
President & CEO, Dematic

DEMATIC LOGISTICS REVIEW 3

COVER STORY NORTH CHINA PHARMACEUTICAL CORPORATION (NCPC)
Hebei Province, cHinA

NEW Dc thE
pREscRIptION
FOR Ncpc
Founded in 1953, North China Pharmaceutical Corporation (NCPC) has
achieved constant growth to the point where it is now a leader in the
pharmaceutical industry in China. Dematic has recently assisted NCPC
with the construction of a new DC at Shijiazhuang in Hebei Province.


“
AUTOMATING PROdUCTION
rAw MAteriAls & FinisHed Goods storAGe

Dematic works
professionally,
efficiently and
in a customer-
friendly manner
... and have
helped lead
us into great
achievements
on the project.
Yang Baiyue,
“
Distribution
Center Manager,
NCPC

North China Pharmaceutical Corporation (NCPC), They are a reliable, stable and safe partner. We
a leading pharmaceutical manufacturer in China, are lucky to have Dematic working with us and
produces over 430 kinds of antibiotics, semi- Dematic helped lead us into great achievements
synthetic antibiotics, pharmaceutical interme- on the project,” said Distribution Center Manager
diates, vitamins, biotechnology products, vet- Mr Yang Baiyue.
erinary and neutraceuticals, both in bulk and in
Optimizing Space Utilization with Mezzanine
finished products.
With space at a premium, Dematic utilized a mez-
When NCPC decided to invest in a new plant to
zanine to house a low-noise MCS (modular con-
produce and handle cephalosporin-based an-
veyor system), which connects the production
tibiotics, it turned to Dematic. The new plant is
Yang Baiyue, line to high speed pop-up belt sorters.
expected to generate annual sales revenue of up
Distribution to RMB 12 billion, which will help NCPC form a As goods are produced, they are merged onto a
center Manager, complete industrial chain and a rich line-up of ce- single accumulation MCS before being present-
Ncpc Dc phalosporin antibiotics. ed to the high speed sorter. The sorter organizes
products in SKUs and batches prior to palletizing.
Auto checking, tracking and QC for Risk Free DC
A walking robotic palletizing system is then fed by
At the heart of the NCPC’s system is a 10,000 a 26 lane high speed sorter capable of achieving
pallet ASRS for storage of raw materials and fin- rates of 700 cartons per hour.
ished goods. The ASRS is located adjacent to a Integrated Finished Goods Handling and Stor-
two-level building where production of a wide age
range of cephalosporin antibiotics occurs.
The fully integrated system uses two robots,
The ASRS is integrated with the production lines shuttle cars and pallet conveyors to send the
at both ends of the system, feeding raw materials completed pallets to the ASRS system for stor-
in at one end and receiving finished goods after age. The mezzanine frees up sufficient space on
they have been palletized. the first floor for pallet and carton dispatch, as
When developing the new facility, NCPC wanted well as infeed and outfeed of raw materials and
a risk-free system that would increase utiliza- consumer materials.
tion and reliability. They also required automatic Batch management has been strictly imple-
checking, tracking and quality control throughout mented in NCPC in line with Chinese legislation.
the process. All products are double scanned, first at sort-
Dematic completed systems installation and ing and again at palletizing. If scanning fails, the
commissioning in just 14 weeks meeting NCPC’s goods will be sent to an end-of-line chute for
high expectations. “Dematic works profession- manual scanning. The double scanning meth-
ally, efficiently and in a customer-friendly manner. odology ensures batch integrity from storage
through to distribution to individuals.


TECHNOLOGY FEATURE
rAPidPick tM systeM
Dematic RapidpicktM system Ergonomic 1:1 picking station

DEMatIc
RapIDpIck sYstEM
tM
sMaRtER, FastER, saFER
In today’s modern world an old fashioned idea has been reborn due to technology
advances and changing business needs. Goods-to-Person (GTP) picking has been
around in many forms for years, but there has been a paradigm shift in thinking.
It is no longer sufficient to lower costs, increase productivity or deliver a short ROI.
These traditional drivers are taken as a given. The difference today is a new global
attitude involving safe and ergonomic work practices, the expanding e-tailing
sector, is staying ahead of rapid economic and regulatory change.


GOOdS-TO-PERSON
erGonoMic sPlit cAse PickinG

In recognition of these dynamics Dematic has Faster
developed an end-to-end solution for split case With the stock for orders delivered directly to
picking that, until recently, was simply not possi- the operator, who only has to place the required
ble. Today, greater computing power, advanced quantity of goods to the relevant orders, very
software and dramatic innovations in materials high productivity rates can be achieved.
handling technology have combined to make
GTP the new standard in order fulfillment. It is engineered to pick at rates up to 1000 or-
der lines per operator per hour. Also, with a one
Dematic RapidPickTM System second tote exchange time, the operator does
Dematic RapidPick System is a high perfor- not have to wait for the next item to be picked.
mance order fulfillment solution, which takes Product flows into the workstation smoothly and
full advantage of the benefits of GTP making consistently ensuring high staff utilization.
split case picking smarter, faster, and safer. En- The high rate of inventory flow into the pick sta-
gineered with modular components, the Rapid- tion is made possible by automated inventory
Modular buffer and sequencing Pick System can be scaled up and expanded as staging buffers like the Dematic MultishuttleTM or
systems such as the Dematic business requirements change. The RapidPick Dematic RapidStore Mini-Load system.
Multishuttle (above) and System seamlessly integrates hardware and
software to efficiently stage and transfer stock These “storage engines” are integrated using
Rapidstore Mini-Load (below) sequencing algorithms to ensure that stock and
arrange stock in the precise and orders quickly and accurately. This enables
the order picker to work highly productively in a orders arrive at the pick stations in the correct
order required to enable high sequence, exactly when they are needed.
speed goods-to-person picking. comfortable work environment.
Smarter More Ergonomic
The time wasted travelling between picks in nor- RapidPick workstations are designed for sus-
mal distribution is eliminated with the operator tained productivity and employee comfort. The
staying in one place, while items are delivered to operator picks only in the “golden zone” and
them in the precise sequence required for assem- does not need to move hands above the shoul-
bly. Heavy items first, fragile items last, by family der or extend arms beyond a comfortable reach.
group or in whatever sequence needs dictate. The work platform is adjustable in order to ac-
commodate different height operators.
The RapidPick System allows ultra high pick ac-
curacy as only one SKU is presented to the op- Operator screens adjust for height and angle to
erator at a time. Modular pick station configura- minimize neck strain. Loads are automatically
tions include one-to-one stations where a single delivered to and removed from the workstation
order tote and SKU tote are presented to an op- eliminating the need for operators to lift or push
erator. One-to-multiple stations can also be used cartons and totes.
depending on throughput requirements. In these The ergonomic design and simple, icon-driven
applications a single stock tote is used to fulfill operator touch screen allows the pick station to
multiple orders at the same time. meet Universal Access guidelines.
Configurations may include any arrangement
from 1:1 up to 1:24 or more, depending on order
volumes and the type of products being handled.

Bulk Stock Empty Order Cartons/Totes

supply delayered/ supply empty
decanted stock cartons/totes

supply return completed orders
BUFFER STORE sequenced stock Unused stock Ergonomic Pick Stations dispatch
Multishuttle/rapidstore Ml rapidPick

Dematic Rapidpick system


TECHNOLOGY FEATURE GOOdS-TO-PERSON
rAPidPick tM systeM erGonoMic sPlit cAse PickinG

productivity and
throughput can
be further
optimized with
Rapidpick system
one-to-many
workstations.
this example shows
24 orders being
picked concurrently.

“
More Compact Suitable for Changing Order Profiles
The RapidPick System fits into a compact foot- As new products are introduced and market
print, typically 30 to 50 percent smaller than demands change, so too do order profiles. The
conventional solutions. Both Multishuttle and RapidPick system easily accommodates chang-
Mini-Load enable high cube utilization in a high es. Single item and multi item orders are accom-
density storage configuration. modated with equal efficiency. This means devel-
Dematic has
Dematic buffering and sequencing technology is oping trends like smaller, more frequent orders
developed an end- do not compromise the productivity of the Rapid-
made up of modular components with the rack,
to-end solution the shuttles, load handling devices and software Pick System.
for split case fully integrated to ensure optimum performance. Flexibility, Even at the Pick Face
picking that, Shuttles and Mini-Load cranes can access loads With the RapidPick System, there is no dedi-
on both sides of an aisle, single or double deep. cated pick face. Therefore, the labor intensive
until recently,
High Uptime and Redundancy tasks associated with put-away, slotting and re-
was simply slotting the warehouse, and pick face replenish-
Dematic Multishuttle technology has many advan-
not possible. tages. The simple design is engineered for high ment are all gone, along with the complex and
ongoing churn of SKU velocity analysis. Space
Today, greater uptime with built-in redundancy. Each Multishuttle
operates using a low voltage electrical system, so efficiency in the warehouse is also improved with
computing the elimination of dedicated pick faces.
it’s also more energy efficient. There are no batter-
power, advanced ies, chargers, or onboard computers. It’s simple to Accommodates SKU Proliferation
software and use and control. If more SKUs are added or order volume increas-
dramatic Easy Replenishment es, the RapidPick System can be easily scaled to
absorb the new requirements by adding modular,
innovations in There are a variety of options for replenishing the
buffer engine. Depending on throughput, bulk space efficient Multishuttle zones and pick sta-
materials handling tions. The need to invest in completely new sys-
stock can be automatically delayered and de-
technology have canted into totes and supplied to different buffer tems is eliminated, as is the high cost of training
and change management.
combined to zones using one of our wide range of sorting op-
tions. Replenishment is optimized and put away
make GTP the
“
new standard in
order fulfillment.
is automated.
Operational Flexibility
Staff can work in parallel, unaffected by each
other’s pace. Pick stations can be opened and
closed according to business volume on a partic-
ular shift. There is redundancy in this configura-
Dematic Rapidpick system
Engineered for the highest pick rate
and highest accuracy in an ergonomic
environment, the Rapidpick system is
tion since items can be processed at any location compact and energy efficient, offers
as the workstations are completely decoupled. daily operational flexibility and can
change or expand to accommodate
your future order fulfillment needs.

SIEMENS AUTOMATING PROdUCTION
AMberG, GerMAny bUFFerinG & seQUencinG systeMs

MULtIshUttLE tM

aUtOMatEs
pRODUctION LINE
FOR sIEMENs

The flexibility of using Dematic MultishuttleTM as a storage buffer
and sequencing system in manufacturing applications is clearly
demonstrated by its role in automating production line supply at
Siemens switchgear manufacturing plant in Amberg, Germany.
The restructured material flow solution has increased
productivity, provides almost 100% product availability, and
its space efficiency is such that Siemens has been able to
utilize 25% more floorspace for production.


SIEMENS
AMberG, GerMAny

More than 50,000 switchgear devices are
manufactured each day on the fully automated
production lines in the Siemens plant, which is
equipped with precision assembly robots. “Un-
der the project name ‘ARRIBA’, we developed a
rough concept for fully automated material flows
in addition to automation of production facilities,”
said Martin Schönthaler, Project Manager for
Siemens AG.
“The aim was complete process automation from
incoming goods through to production. We also
wanted to make better use of the space we had
by restructuring internal logistics.”
“We needed an integrated, space-efficient solu-
tion that could be adapted to fit existing condi-
tions, and this is exactly what Dematic provided
with the Multishuttle. Dematic’s product range
and planning expertise were also factors in our
decision,” he said.
Multifunction MultishuttleTM By taking Multishuttle Production Line Buffers
Dematic’s modular Multishuttle offers the ulti- advantage of This meant it was possible to easily add a space-
mate in design flexibility, with the system at Sie- Multishuttle’s saving second level to the 13 feet high production
mens being built to suit the space available over flexible design lines in the Siemens plant.
multiple building levels. and configuration
options, Siemens Two Multishuttle line buffers with three system
Thanks to the disconnection and parallel design has been able to vehicles and 540 container spaces keep com-
of goods in/out, storage and transport processes, free up about 25% ponents flowing for the automated production of
the system offers a scalable and redundant per- extra floorspace coil winding systems, drives and contacts.
formance level in comparison to standard auto- for production. “This was an initial expansion stage as we had to
mated small parts storage systems.
implement the conversion during on-going op-
Also, Multishuttle is not restricted to convention- erations,” said Mr Schönthaler.
ally-shaped areas. Thanks to its modular design
“By May 2011, two additional line buffers up to 260
Multishuttle can be modified to fit virtually any Multishuttle carts feet in length, with almost 1,000 storage spaces
space, and, unlike traditional storage systems, transfer between
and six Multishuttle vehicles will be installed
Multishuttle does not have to be installed on the levels using
above the final assembly lines.”
ground level. integrated lifts.
Multishuttle Production Buffer Warehouse
The central component of the material flow de-
sign is a further Multishuttle warehouse with
3,400 container spaces, which is sufficient to
support three hours of standalone production.
Supply for the production line buffers is provided
by this system.
The two-aisle compact Multishuttle, with a total of
four vehicles servicing eight shelving levels, was
designed to suit the space available in the base-
ment of the original factory. From there, the line
buffers are supplied with the materials required
for the current production via an integrated, el-
evated conveyor system.
“Overall, there is a twice-daily complete turnover of
the buffer warehouse at optimum production vol-
ume”, explained Mr Schönthaler. “Thanks to the
Multishuttles, we have a 98% availability level.”
The entire system logic, from warehouse manage-
ment through to kanban, is controlled by Dematic
DC Director software, which interfaces with the
site’s SAP ERP system.


AUTOMATING PROdUCTION
bUFFerinG & seQUencinG systeMs

“
Managing Material Flow When required, containers are moved to transfer
Via a connection to the central incoming goods points that are also connected to the line buff-
warehouse in Amberg, which was also imple- ers. Here the individual container and tray stacks
mented by Dematic, materials required for pro- are transferred to supply the production lines. For
duction are placed into the Multishuttle ware- optimum production robot access, the articles
house. The components for all products are are precisely positioned within the trays so that
We needed an automated handling is possible on the produc-
stored there. When the production lines receive
an order, outward goods movement of the con- integrated, space- tion line.
tainers is initiated in the buffer warehouse. efficient solution In parallel to the processes on the production
The system at Siemens is set up with an inward that could be lines, the buffer warehouse is refilled in the base-
and outward goods movement volume of up to ment level. Finished goods are also removed
adapted to fit our from the production lines via the line palletizers
100 containers per hour, with the system per-
forming up to 200 dual movements. existing conditions, and line buffers. Thanks to the flexible and effi-
cient Multishuttle system, the Siemens plant is
The Multishuttle vehicles remove the containers and this is exactly
continually achieving high throughput and rapid,
from storage and transfer them to the conveyor what Dematic error-free order picking for production supply.
system via Multishuttle lifts.
provided with “A flawless kanban system with fully automated
In total, seven lifting devices are set up; three of
the Multishuttle. processes,” said Mr Schönthaler.
them ending on the production level, with the
other four lifting devices primarily supporting the Dematic’s product “The holistic solution will provide us with around
25% more production area in the final expansion
Multishuttle line buffers. range and planning
stage, minimize manual transport and provide us
“All the interconnecting conveyors run under the expertise were also with the transparency for modern material track-
building roof, which enabled us to achieve even
better space utilization,” added Mr Schönthaler.
factors in ing from component delivery to the end of the
production cycle.
our decision.
Multishuttle System Operation “The modular system design also opens up a wide
The conveyor moves the ordered material con- Martin Schönthaler, range of options for our future growth,” he said.
tainers to transfer points for the line buffer Mul-
tishuttles. Here the containers are lowered onto
the same level as the line buffer and placed into
storage by the shuttle vehicles.
“
Project Manager,
Siemens AG


BARE ESCENTUALS
oHio, UsA

chaNgINg thE
OF DIstRIBUtIO
BaRE EscENtU
Bare Escentuals once filled orders using paper lists and carts
around the warehouse picking one discrete order at a time – a
hour, not including packing. During peak seasons, order fulfillm
extended and more costly, expedited shipping was needed to
Today, using a Voice and Pick-to-Light-enabled integrated zone-
Bare Escentuals has increased productivity to more than 500 pie

Split-Case Picking Solution
To improve service to its customer base of retail
store boutiques and spas, Bare Escentuals im-
plemented an all new split-case picking system
including Pick-to-Light (PTL) and a smart zone-
routing conveyor network.
Today, Dematic PickDirector warehouse control
software (WCS) manages and directs the entire
picking process with efficiency and operational
flexibility. Paper pick lists are no longer required.
PTL and Zone Skipping Lift Productivity 500%
Operators pick orders using Pick-to-Light tech-
nology. A conveyor system transports shipping
containers (one carton size for all orders) only to
zones where picks are required. Operators stay
in one zone and do not travel the entire ware-
house. As a result, productivity has significantly
increased with each operator capable of picking
500 pieces per hour on average.
The system fills and ships approximately 600
customer orders – about 70,000 pieces per day.
Order accuracy has also improved by 50%. Fur-
thermore, packing is now done by the picker,
enabling separate pack stations to be eliminat-
ed from the distribution process.

“
Smart Packing and Shipping System Cuts
Costs 500+ pieces per picker per hour
Additional automation was implemented to sup-
port the order finishing and pack-out function.
Label print and apply technology, a carton sealer,
and weighscale are built into the conveyor net-
work. To obtain the best parcel shipping rates,
the system utilizes rate shopping software.
70,000 items per day
productivity up by over 500%
accuracy up by 50%
packing done by picker
“
Real-time management
Reduced shipping costs

SPLIT CASE PICKING
voice & Ptl sUPPorted Zone roUtinG

FacE
ON at
UaLs
s, which were pushed
about 85 pieces per
ment time became
meet delivery dates.
-routing solution, Voice picking has helped
eces per hour. Bare Escentuals keep up
with growing e-tail orders.

The Dematic WCS has an interface to the parcel of three standard carton sizes; small cube size
shipping software to provide integrated system orders are shipped in a bag. When the picking
performance from order induction to shipping. process is complete, the cartons are delivered
Picked orders are weighed, rate-shopped for best to pack stations where each order is audited.
cost shipping, and have the carrier’s shipping la-
Improved Resource and Labor Management
bel applied. The entire process is automated.
PickDirector provides real-time systems and op-
A Flexible, Scalable, Modular Solution
erations control. Using the browser-based inter-
The order fulfillment system is modular and ex face, supervisors can monitor % orders complete,
pandable, and its ability to flex and expand was as well as verify order contents and make adjust-
soon utilized. After launching the order fulfillment ments to ensure orders are shipped complete.
system for spas/boutiques, the e-tail channel ex-
PickDirector maintains comprehensive statis-
perienced dramatic growth. Typical order volume
tics so supervisors know how many orders, lines
grew to 2,500-3,000 orders per day. During spe-
and pieces each operator handles. Orders can be
cial promotions and holiday peak periods, order
put on hold and then released to an “active” from
volume can be three to four times normal.
a “pending” order pool. SKUs can be slotted in
Voice Answers the Call for Low Volume Orders multiple locations to facilitate workload balanc-
ing. The software also tracks SKU velocity and
Using the existing Dematic PickDirector software,
recommends appropriate slotting locations.
an order fulfillment configuration was added for
the e-tail channel utilizing voice-directed picking. More Efficient Resource and Labor Management
The voice technology is ideal for e-tail channel
The number of operators per shift is allocated
fulfillment as high accuracy and productivity can
depending on order volume. If volume is up,
be achieved in a moderate order volume environ-
more operators can be assigned to the PTL
ment. More operators can be easily added dur-
zones, and more can be assigned to the voice-
ing peak periods. Both e-tail and spas/boutiques
directed pick carts, thereby making it scalable
order fulfillment use the same inventory from re-
and flexible. In addition, the system is portable
serve storage, about 1,000 to 1,200 SKUs.
so it is easy to move if the operation is relocated
pick-to-Light has increased Adding e-Tail Fulfillment to the Order in the future.
accuracy, productivity and The e-tail order fulfillment system is centered The results are compelling: no more costly ex-
throughput. around batch pick carts. Pick instructions are pedited shipping, a five-fold increase in picking
communicated from PickDirector to each oper- productivity, process improvements, real-time
ator via wearable voice devices. Each batch pick management and control, increased order ac-
cart accommodates approximately 20 customer curacy, operational flexibility, annual physical
orders for each trip through the picking aisles. inventory eliminated (using cycle count), and re-
Each order is picked into and shipped using one duced order processing time.


Left: Dematic
key account
BLACKMORES Manager soeren
sydney, AUstrAliA schauki with
Blackmores
Director of
Operations
Liz Burrows.

NEW hq a tONIc
FOR BLackMOREs
Over the past 70 years, Blackmores has become Dematic has designed our new distribution center
one of the most trusted brands in Australia. The (DC) as a flow-through facility,” said Ms Burrows.
company supports a customer base of more “Raw materials feed through to production, and
than 5000 health food stores, pharmacies, su- finished goods back through to storage and dis-
permarkets and health practitioners throughout tribution. Materials handling is optimized at all
the country. It has also established strong export stages, and the DC has been equipped with the
markets in the Australasian and SE Asian regions. latest generation of order picking technologies
Fundamental to this growth has been its commit- including smart conveyors, Voice Picking, RF
ment to good manufacturing practice and supply and Pick-to-Light (PTL) systems.”
chain innovation. “We have also been able to rationalize our distri-
The Blackmores Campus brings the company’s bution IT systems with Dematic’s new PickDirec-
operations under one roof for the first time in over tor software,” she said.
15 years. Strong growth had made it necessary
Real-Time DC Management with PickDirector
for Blackmores to split its manufacturing and dis-
tribution operations across a number of separate In a world-first, Dematic integrated Blackmores
facilities. Bringing these services together at the put-away and replenishment functions within
Warriewood site, together with the technology PickDirector, which seamlessly interfaces with
enhancements, will bring new efficiencies and Blackmores host computer system, JD Edwards’
cost savings to the business. Enterprise One.
“Bringing our operations back under one roof will Blackmores Chief Technology Officer, Lee Rich-
not only provide direct supply chain savings in ards, said: “A key driver when we planned our IT Voice-directed picking
excess of $1 million per annum, it will also enable strategy, was to identify and eliminate potential keeps both hands and eyes
us to significantly streamline our supply chain points of failure within our IT systems. free at all times improving
and enhance productivity across the board,” said productivity and safety.
“The broad-ranging functionality of Dematic’s Pick-
Blackmores Director of Operations, Liz Burrows. Director order management and control software
Flow-Through Manufacturing and Distribution has enabled us to do so in the DC,” he said.
“We have taken the opportunity to install an ad- “With PickDirector providing the interface for all
ditional production line in the new manufacturing of our DC technologies we were able to decom-
facility, giving the business 20% increased pro- mission a number of servers, systems and inter-
duction capacity to support future growth, and faces, which has allowed us to simplify the DC’s


SPLIT ANd FULL CASE PICKING
inteGrAted soFtwAre And systeMs

Australia’s leading natural health supplements supplier,
Blackmores, has consolidated head office, manufacturing
and distribution at its new Blackmores Campus in Sydney.

“
Voice picking is used in the full case
and pick-to-Light in the split-case pick
modules to improve accuracy, productivity
and order management.

IT systems architecture, enhancing reliability and Integrated SKU, case and pallet order fulfillment
Bringing our
reducing IT systems management.” Blackmores processes up to 500 orders per day.
operations back All split-case products are picked from a Pick
Dematic’s Key Account Manager Soeren Schauki
under one roof will said: “Our integrated logistics solution gives Module. Conveyors transport orders through the
not only provide Blackmores the tools with which it can handle, module, with all locations equipped with Pick-to-
store, pick and dispatch goods faster and more Light (PTL) for fast, accurate paperless picking.
direct supply chain Fast moving full case SKUs are picked from a
accurately now, and for many years to come.”
savings in excess combination of Pallet Live Storage (PLS) and se-
Flexibility for the Future
of $1 million per lective racking within the full case Pick Module.
“Our DC systems incorporate a lot of flexibility to A combination of RF and Voice Picking may be
annum, it will ensure efficient materials handling, storage and used for picking full case SKUs, which are la-
also enable us order fulfillment, even if Blackmores distribution beled and placed directly onto a central powered
to significantly requirements were to change over time,” he said. take-away conveyor.
streamline our “We believed this was necessary because the Full pallets for larger customer and export orders
company’s SKU (stock keeping unit) profile has are also picked from bulk storage by RF or Voice
supply chain and changed considerably in recent years as a result Picking and transported to dispatch by forklift.
enhance productivity of market growth and maturity.
Voice Picking Doubles Case Picking Productivity
across the board. “The trend towards larger pack sizes in high vol-
“The hands-free, eyes-free feature of Voice Pick-
ume products such as fish oil capsules, together
Liz Burrows,
“
Director of Operations,
Blackmores
with strong growth in supermarket sales and ex-
port markets, means Blackmores now processes
a much higher volume of full case orders than it
did just a few years ago,” explained Mr Schauki.
“That’s why our DC design provides a range of
ing is providing both productivity and OH&S ben-
efits over RF picking,” said Blackmores Supply
Chain Manager, Stephen Vile.
“We are now able to pick full cases twice as
quickly as before, and with only half the people!
However, we will be running our existing RF sys-
efficient strategies and technologies for handling
tem in conjunction with Voice Picking, until all of
increasing quantities of full case goods, includ-
our people are familiar with the new technology.”
ing the introduction of Voice Picking,” he said.


HALFORdS
coventry, enGlAnd

DEMatIc sORts OUt
sMaLL paRts pIckINg
at haLFORDs
Halfords’ 320,000 sq ft
Coventry DC operates an
innovative small parts picking
system, designed and installed
by Dematic, which combines
conveyors, a combination
of picking technologies and
an automated buffer that
consolidates picked totes
into store orders. The system
is helping the UK’s leading
retailer of automotive, leisure
and cycling products to send
out up to 200,000 items a
day in a highly efficient order
fulfillment operation.

pick-to-Light and To achieve highly efficient store order fulfillment
Voice picking Halfords’ recently consolidated two distribution
have improved centers into a single new DC in Coventry, which
productivity and now holds all of the retailer’s range other than bi-
accuracy for cycles and serves Halfords’ entire network of 470
halfords. stores across the UK and the Republic of Ireland.
This means ultra high throughputs are required
from the new DC. The key to achieving this would
be creating a small parts store for picking 10,000
Stock Keeping Units (SKUs) of small products
quickly and accurately into order totes, and con-
solidating them for delivery to the stores.
Space Saving, Integrated Solution for Halfords
Working together with Halfords, Dematic designed
a solution that located a small parts picking center
on a double deck mezzanine. Running along the
entire 540 feet length of the DC over the loading
bay doors, the structure facilitates marshalling be-
low, yet provides 70,000 sq ft of picking area in
what would normally be unused space, allowing
Halfords to truly optimize the warehouse cube.


INTEGRATEd ORdER FULFILLMENT
sMAll PArts PickinG systeM

Dematic’s cost efficient and highly productive small
parts picking solution comprises a conveyor-based
system with pick-to-light and pick-by-voice tech-
nology. On the mezzanine’s first level, 3,600 SKUs
of faster moving small parts are picked from live
storage lanes using fast and accurate pick-to-light
(PTL) technology. The simplicity of this system al-
lows 300 lines per hour to be picked.
The upper level of the small parts store houses Hal-
fords 6,000 slower moving SKUs, which are located
in bins on inclined shelves for ergonomic picking.
Keeping Small Parts Picking on the Move
Dematic’s small parts picking system helps
achieve the high throughputs required at the DC,
while improved tote filling has halved the number
of totes each store receives in a delivery to 30. The
simplicity of PTL not only ensures fast and accu-
rate picking, but means new pickers can achieve
good pick speeds after just an hour’s training.
Voice picking gives accuracy and speed benefits
for slower moving products at a lower cost.
Dematic MultishuttleTM maintains higher through- steve Mole, Operations Manager site services halfords,
with Dematic‘s Business Development Manager Dave Bull.

“
put and gives greater flexibility for order con-
solidation than can be achieved with sortation
systems that require lanes of conveyors, which Smart Zone Picking
places constraints on operations.
This high rate is helped by concentrating picks
The entire small parts picking scheme is future- into smaller areas so that each tote only travels to
proofed with room for another double deck mez- one or two zones for it to be filled. Travel distanc-
zanine along the side of the DC, which could be es for staff, who have their hands free, are also
linked into the current system thanks to the Mul- The design, significantly reduced, improving pick efficiency.
tishuttle’s modular design, which allows more planning and Dematic supplied 60 voice terminals for the Cov-
lanes to be added, without any change to the
flow of Halfords’ operation. implementation entry DC. 20 of these are used in the pick-to-voice
system, with the remaining units used for other
Voice picking technology allows 200 lines per of the small
operations within the facility, such as bulk picking,
hour of these products to be picked at a much parts picking bulk put-away and decanting. These are all con-
lower capital cost than PTL. system went trolled by Manhattan Associates’ WMS, which
also feeds orders to Dematic’s DC Director WCS.
very well and The WCS looks after stock profiling and inte-
we developed grates the PTL and voice technologies seamless-
a good working ly to achieve the most efficient fulfillment possible.

relationship with Completed order totes are sent to the Dematic
MultishuttleTM Captive Buffer, which is designed
Dematic. We to increase speed, accuracy and throughput.
asked them to The system’s intelligent controls enable complex
sequencing, which contributes to the solution’s
take our numbers
flexibility and allows Halfords to build store-
and come back friendly orders, calling out whole or part store
with a design orders as required. The Multishuttle can even en-
sure that the heaviest tote is at the bottom of the
that would give stack when they get to a Halfords store.
the results we Customer Benefits
were looking for. • Improved carton fill halves case deliveries to stores

“
Mark Shirley,
Logistics Controller,
Halfords
• PTL offers high throughput and accuracy
• Minimal training required for PTL and voice
• Accuracy and speed benefits with voice
• Flexibility to consolidate whole or part orders
• Optimum use of dead space over loading docks.


d&H dISTRIBUTING
AtlAntA, UsA

sMaRt zONE ROUtINg
sYstEM OpItIMIzEs
ORDER FULFILLMENt
With an annual turnover of $2 billion plus, D&H Distributing is one of the
USA’s leading technology specialists, distributing an extensive range of IT,
electronics, entertainment and gaming products.
D&H has grown with technology it sells, distributing the first color TV, the first
home PC and the first gaming system in the USA. D&H’s broad reach and
breadth of products enable it to service businesses of all sizes from small
independent retailers, dealers, integrators and installers to big box chains.
D&H also provides fulfillment for e-commerce retailers.

Keeping Distribution a Step Ahead of Demand The new DC’s 476,000 sq ft floorplan includes
“Our business has been growing double digits smart zone-routing conveyors for streamlined
year over year for the past decade,” said D&H picking, and allows for expansion of up to
Director of Logistics Dennis Pardon. 250,000 sq ft.
“Every couple of years we found ourselves out- Smart Pick Zone-Routing Improves Efficiency
growing our facilities. We needed to be making With 90% of what D&H ships comprising
an investment that was a lot more forward look- orders for split-case items, efficient piece
ing, and that’s when we decided to build a big picking is essential. Its WMS batches or-
box DC and put in the type of automation that ders with others for the same or similar
would support growth for the next 10-15 years.” products to improve pick rate efficiencies.


SPLIT ANd FULL CASE PICKING
inteGrAted sortinG And Zone roUtinG

Orders are picked in one of two Pick Modules, Intelligent Conveyor Control System Reduces
with RF scanning used to ensure accuracy. Bar- Energy Consumption and Delivers Rapid ROI
code-labeled cartons are automatically routed “Our company is big on green,” explained Mr
through the integrated conveyor system and di- Pardon, “and we implemented a lot of green ini-
verted only into zones where picks are required. tiatives in the DC.”
When picking in a zone is complete, the carton is A successful example is SortDirector’s energy
pushed back onto the conveyor, which transports management module. The conveyors monitor
it to the next zone where a pick is required, or di- how long it has been since they last saw a carton.
rect to dispatch if the order has been completed. If a section hasn’t seen one for a specified period,
Pick accuracy is further enhanced with the zone- the conveyor shuts itself down. When it senses
routing system re-routing a carton back into a a carton approaching, it will turn itself on, as will
zone if it detects that a pick has been missed. subsequent conveyors.
The system also has the ability to do on-the-fly “The payback is enormous. Less than a year,”
processing – if an order has a short pick, it gets said Mr Pardon. “Less energy consumption than
automatically processed to an exception loca- traditional conveyors. It is a very cool system.”
tion for checking.
Integrated Conveying with Real-Time Systems
Monitoring and Control
Dematic SortDirector® integrates with the WMS
and coordinates all product movement inside
the DC. It provides real-time control and, via the
DC’s WCS, state-of-the-art graphic system mon-
itoring for all operations.
A Dematic sliding shoe sorter diverts orders to
fill-and-tape and QA stations. A second sorter
diverts completed orders to 22 shipping lanes at
above: D&h Director rates of up to 150 per minute.
of Logistics Dennis
pardon with tim
Fleenor, Dc Manager.

“
the payback
is enormous.
Less than a year.
Less energy
consumption than
traditional conveyors.

“
Dennis Pardon,
Director of Logistics,
D&H Distributing

the order fulfillment system processes 6500 orders per day with a peak capacity of 20,000
orders per day.


NEWS, PROdUCTS, TECHNOLOGY
& soFtwAre review

DEMatIc cELEBRatEs
111 YEaRs at cEMat
Dematic reaffirmed its position as one of the world’s
leading suppliers of innovative logistics technologies
with an impressive display at the recent CeMAT
exhibition in Hannover, Germany.
Attended by more than 58,000 visitors, the trien-
nial CeMAT is the world’s largest logistics tech-
nology trade fair, with over 1000 exhibitors from
around 40 countries taking part this year.
In keeping with CeMAT’s theme of Sustainabil-
ity in Logistics, Dematic integrated future-proof
logistics solutions into a complete material flow
system on its stand, demonstrating how modern
logistics can be delivered in a cost-effective and
environmentally-friendly way.
Amongst the innovations on display were:
• Dematic RapidStoreML – a new high speed
Mini-Load ASRS system complete with ad-
vanced load handling devices
• Dematic MultishuttleTM Flex– a new flexible high
speed shuttle with the capability to handle totes
and containers of different sizes
• Typhoon Flex load handling device for improved
product handling
• New RapidPickTM System 1:1 Goods-to-Person
(GTP) high-performance integrated order pick-
ing stations incorporating the latest ergonomic
advances to further improve productivity and
workplace safety
• Modular Dematic MCS conveyors, which en-
able flexible system reconfiguration
• Dematic Ecodrive control software, which is de-
signed to improve energy efficiency by 10-15%.
Dematic used the event to celebrate our anniver-
sary under the motto of ‘111 years of innovation,’
showcasing our extensive history in pioneering
materials handling and logistics technologies,
since our launch in Offenbach, Germany in 1900.
As well as our stand at CeMAT, Dematic ran a
well-attended supporting program including a
press conference, customer stand party and site
visits to Dematic’s new Technology Center in Of-
fenbach and to local customer Ferdinand Gross, Dematic’s Modular conveyor system (Mcs) attracted a lot of interest
which was one of the first companies in the world with its quiet performance frequently commented on by visitors.
to implement Dematic’s Multishuttle storage and
sequencing system.
The next CeMAT trade fair will be held in Han-
nover, Germany from May 19-May 23, 2014.


above: More than
58,000 visitors
attended ceMat
trade fair from
May 19-23, 2011.

Right: Rapidpick
ergonomic
workstations
with elevating
platforms were
one of most
closely inspected
exhibits at ceMat.

Right: Multishuttle Move
is an exciting new concept
developed in conjunction with
the Fraunhofer Institute. as
well as operating inside racks,
Multishuttle Move has the
capability of functioning as a
free-path agV creating many
new material flow possibilities.

NEWS, PROdUCTS, TECHNOLOGY
& soFtwAre review

FREEpIck
MaXIMIzER:
pIck ONE –
gEt ONE FREE
With Dematic Freepick Maximizer software,
FreePick Maximizer, patented software developed simply transferring stock from a donor pallet
by Dematic, makes it possible to pick goods for to a put pallet can complete two picks, with
the stock that remains on both pallets being
full case orders without ‘physically’ touching them. the required quantity to satisfy two orders.

By analyzing and cross matching customer orders, it is possible to match
multiple full case orders to full pallet quantities. pIckDIREctOR:
Picking the stock for one or more orders leaves behind a ‘free pick’ quantity
for another order. The productivity gains to be made by matching like orders BOOsts pIckINg
pRODUctIVItY
and picking them in a high rate pick module are very substantial.
Dematic’s Free Pick Maximizer uses a number of complex algorithms to

& accURacY
quickly re-sequence orders and generate the highest quantity of ‘free pick’
opportunities and the optimum order fulfillment sequence for any batch
of orders. The ‘free pick maximizer’ concept can be used manually or by
incorporating a robot to do the picking, and can be deployed in mixed case Success in business company’s computer
pallet, or mixed layer pallet picking operations. today relies on system and delivers
Either way, significant productivity increases of up to 400% are achievable. prompt, effective it right to where it’s
customer service. needed - to the picker.
How Dematic FreePick Maximizer Works In most operations, With no paperwork to
order fulfillment is a carry, operators pick
significant component with both hands instead
of customer service, of just one.
and is of primary Tasks such as reading,
importance to
15 0 customers. Companies
writing, and searching
for stock locations are
who can assemble eliminated - dramatically
orders quickly, improving productivity.
accurately, and
cost-effectively gain a • Productivity is typically
competitive advantage. increased by 50%,
and in some cases by
Donor Pallet: Put Pallet: The key to achieving up to 200%
Stock for Order A (10xCases) & Order B (5xCases) Empty Pallet for Order B (5xCases) this advantage is
through an order • Picking errors are
fulfillment system typically reduced by
based on paperless 70 to 90%
picking technologies. • Real-time feedback
Dematic’s PickDirector is available on order
technology is a cost- progress, zone
10 5 effective hardware and productivity, etc.
software solution that • Total order turnaround
can provide substantial time can be
improvements in significantly reduced
productivity and
By simply transferring five cases from the Donor Pallet to the Put picking accuracy. • Overall system
Pallet Order A (10 Cases) and Order B (5 Cases) are completed. management and
This means the 10 Cases for Order A have been picked for free. PickDirector takes customer service is
order information vastly improved
22 DEMATIC LOGISTICS REVIEW directly from your

DEMatIc
RapIDstORE
ML10
The RapidStore Mini- (based on an 26 ft crane
Load is the latest in operating in 130 ft aisle).
a new series of high RapidStore Mini-
performance storage Load cranes can be
and retrieval machines equipped with the new
(SRMs) for handling totes, Dematic Typhoon high
cartons and cases in performance Load
facilities ranging in height Handling Device (LHD).
from 12 to 65 feet. Typhoon provides the
Offered in three standard capability of handling one
heights (32, 46 and 65 or two containers of fixed
feet), RapidStore ML10 and varying sizes in a
efficiently handles a host single, double or triple-
of container types in a deep configuration.
multi-deep and flexible RapidStore ML uses
width environment. include as a storage
The RapidStore Mini- buffer feeding mixed case
Load operates at a order fulfillment, pick/
travel speed of 20 ft/s, put/pack operations in
accelerates at 13 ft/s², retail, apparel and general
has lift speeds of 10 ft/s, merchandize, and as an
and lift acceleration of 10 intermediate storage buffer
ft/s², which delivers up to sequencing Goods-to-
142 double cycles/hour Person split-case picking.

DEMatIc
FIELD sERVIcE
& sUppORt
Maximize uptime and minimize Benefits of Field
downtime with help from Dematic. Services & Support
• Qualified field
Modern materials it will perform under specialists with
handling systems, pressure without hardware and
software and compromising safety software knowledge
hardware are highly or efficiency.
• Maintenance
reliable, but time and
Dematic’s software and upgrades
again, experience has
specialists and scheduled to fit your
shown that preventive
technicians are trained operational lifecycle
maintenance and
to spot the early
proactive support • Configuration
signs of wear and tear
pay for themselves management of
before performance is
by maximizing your software and
affected.
productivity, and hardware
reducing running costs They can replenish
• Comprehensive
and system downtime. consumables as part
equipment/system
of the inspection,
Keeping your system assessments to
and can perform
in peak condition will determine the
maintenance on site
ensure you get the condition and
and replace or repair
most out of it, and you performance of
parts.
can be confident that your system DEMATIC LOGISTICS REVIEW 23

www.dematic.com

Dematic Headquarters
2-8, avenue Charles de Gaulle
L-1653 Luxembourg
T +352 27 48 59
F +352 27 48 59-99

North America Europe Asia Pacific
T +1 877 725-7500 T: +49 (69) 244 333-151 T: +61 2 9486 5555
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usinfo@dematic.com info@dematic.com info.anz@dematic.com

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Dematic Corp. Dematic Europe GmbH Dematic S.r.l. Dematic Logistic Systems S.A. Dematic Pty Ltd
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Dematic GmbH
Dematic New Berlin Carl-Legien-Str. 15 Lithuania Switzerland Singapore
2855 S. James Drive 63073 Offenbach Dematic Kaunas Dematic Switzerland Dematic S.E.A. Pte. Ltd.
New Berlin, WI 53151 Germany Raudondvario Pl. 107 Birmensdorfer ntr. St Eunos Road 8
USA LT-47186 Kaunas 8902 Urdorf #09-01A
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Dematic Limited Graumanngasse 7, Top A5-1 Netherlands United Kingdom
6750 Century Avenue, Suite 302 1150 Vienna Dematic Benelux Dematic Ltd China
Mississauga, Ontario L5N 2V8 Austria Europalaan 4c Beumont Rd, Dematic Shanghai
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South America Dematic Skandinavien United Kingdom Shanghai 200070, P.R.China
T: +55 11 3627-3100 Skottenborg 12-14 Russia
F: +55 11 3627-3101 8800 Viborg Dematic GmbH Malaysia
info@dematic.com Danmark Russian Representative Office Dematic Malaysia Sdn. Bhd.
ul. Bakhrushina 32/1 12-03A, Level 12, Plaza Masalam
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Ltda Av. Embaixador Macedo 6, Avenue Gutenberg Selangor, Darul Ehsan, Malaysia
Soares, 10735 77600 Bussy Saint Georges
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05035-000 – Brasil Eastside - Building 7, 15 Accent Dr
East Tamaki, Auckland
New Zealand


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