This document provides an overview of logistics solutions implemented by Dematic for various customers around the world. It begins with a case study of Dematic implementing a world-first integrated robotic picking and palletizing system for Netto's fresh produce distribution center in Denmark. Other case studies and global examples include Dematic implementing an ASRS and case/tote handling system for Helukabel in Germany to improve order processing times, a smart zone routing conveyor system for Weichai Power in China, and a DC extension improving furniture handling capabilities for Ostermann in Germany. The document also provides insights on the role of R&D in optimizing systems and a case study of Dematic's voice technology solution for beverage
Bhopal Call girl service 6289102337 bhopal escort service
Dematic Automates Netto's Fresh Produce Distribution
1. DEMATIC LOGISTICS REVIEW
Issue 9
L GISTICS
REVIEW
DEMATIC INSIGHT
The role of R&D in developing solutions
VOICE TECHNOLOGY
Dematic case picking solution for beverages
GLOBAL CASE STUDIES
Smart ideas from around the world
Creating Logistics Results
NETTO, DENMARK
ROBOTIC FRESH PRODUCE
PICKING & PALLETIZING
WEICHEI POWER: CHINA
Smart zone routing
conveyor system delivers
OSTERMANN: GERMANY
DC extension improves
furniture handing capabilities
NETTO, DENMARK
ROBOTIC FRESH PRODUCE
PICKING & PALLETIZING
WEICHEI POWER: CHINA
RapidStore ASRS lifts
production support capacity
OSTERMANN: GERMANY
DC extension improves
furniture handling capabilities
2. competitively-priced goods delivered to their
door the next day completely incomprehensible.
As globalization takes hold and cross-border
competition grows, the supply chain becomes
increasingly important. And one of the most
critical factors impacting the supply chain is the
cost and availability of labor.
As baby boomers exit the workforce in western
economies and are substituted with more highly
educated and skilled Gen Ys, it’s not surprising
that finding and motivating people to work in
warehouses and distribution centers is becoming
increasingly difficult.
So what does a supply chain professional look
for when investing in logistics to provide a
strategic advantage?
The ability to react quickly, accurately and at the
lowest cost is essential to surviving in all service-
related industries.
As we know, the only future certainty is change,
and today change is occurring at a faster pace
than ever before. The Global Financial Crisis in
2008 was a catalyst. And while the recovery is
ongoing, companies and consumers alike want
more for less. Simply put, they value “value”.
Competition has changed too. And it’s coming
from the most surprising directions.
Who, for example, could imagine the power
of Google, a company that didn’t exist before
1998? Or equally impressive, Amazon’s rise to
become one of the world’s largest retailers.
Information availability has shifted the balance
of power in the supply chain, switching firstly
from manufacturers in the 1960s, to retailers in
the 1990s, and now today to the consumer.
Our grandparents would have found the idea
of people all around the world shopping online
in a virtual global marketplace and having
DEMATIC LOGISTICS REVIEW
Welcome to the 9th 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.
2
FLEXIBILITY, MODULAR
THE KEYS TO SUPPLY C
TODAY’S RAPIDLY CHAN
4-7
8-10
11-13
14-15
16-18
19-21
22-23
Contents
Cover Story: Netto, Denmark
Case Study: Helukabel, Germany
Case Study: Weichai Power, China
Insight: The role of R&D in optimizing systems
Case Study: Ostermann, Germany
Case Study: Kmart, Australia
Technology: Voice for Beverage Distribution
3. Ulf Henriksson,
President & CEO
Dematic
Seamless global networks with interconnected
logistics systems, software and smart IT are part
of the answer, with automated solutions becom-
ing increasingly important to achieve and main-
tain a competitive edge in many markets.
Innovative Dematic logistics solutions including
our world-first integrated robotic picking and
palletizing system for Netto’s fresh produce DC
in Denmark; our Australia-wide cross docking
network for discount variety retailer Kmart; and
our pre-configured voice-directed order pick-
ing system specially developed for beverage
distributors in North America, are all great ex-
amples of integrated logistics solutions created
to address the key global drivers impacting the
supply chain for the foreseeable future.
These systems address logistics professionals’
needs today and tomorrow by providing:
• Flexibility, which creates the ability to adapt to
rapidly changing SKU profiles and order cycles
• Modularity, based on cost-effective standard-
ized building blocks
• And Scalability, for greater ease in addressing
rapid expansion or seasonal peaks.
I’m also very pleased to provide you with news of
two exciting new developments in the Dematic
world.
Firstly, the imminent full scale launch of
Dematic’s next-generation software platform,
which extends beyond traditional warehouse
control systems into knowledge-based logis-
tics optimization and, secondly, I would like to
announce the acquisition of maintenance man-
agement systems and software specialist Upturn
Solutions, which underlines our drive to empha-
size the importance of all aspects of business
intelligence.
We will bring you a full feature on these exciting
initiatives in the next Dematic Logistics Review.
I trust you enjoy this issue, and hope it provides
inspiration and ideas that you can apply to im-
prove your own logistics and supply chain pro-
cesses.
DEMATIC LOGISTICS REVIEW
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.
3
RITY & SCALABILITY:
CHAIN SUCCESS IN
NGING MARKETS
5. DEMATIC LOGISTICS REVIEW 5
FRESH PRODUCE PICKING & PALLETIZING
INTEGRATED ROBOTIC PICKING & PALLETIZING
World-first robotic picking and palletizing system
Dematic has implemented a world-first integrated
system to automate the order picking and pallet-
izing of fruit and vegetables at Netto’s distribution
center in Køge, Denmark, around 20 miles south of
Copenhagen.
More than 70% of order pallets are now picked and
palletized automatically in the Danish supermarket
chain’s central fresh goods handling warehouse.
Project highlights include:
• 15 cells containing palletizing robots with new
gripper systems for fully automated pallet picking,
packing and palletizing
• Integrated conveyor systems
• A manual pick-by-voice order picking area
• Order processing times of less than 30 minutes.
Automating fresh produce distribution
In the fresh produce sector, an efficient supply chain
and one-touch handling are essential.
Netto’s integrated system incorporates complete-
ly new logistics technologies, high-performance
robots and sophisticated software, facilitating
fast one-touch handling, and minimizing the po-
tential for product damage during order assembly.
Denmark’s strict work safety regulations
A key driver for the project design is the fact that
Denmark has some of the strictest work safety
regulations in the world. These regulate, among
other things, how much weight an employee can
lift in total per shift, and up to what height goods
can be accessed. Scissor-lift tables used to raise
and lower pallets are often a typical feature in
Danish logistics centers.
Goods receipt at Netto’s Køge DC
All fresh produce is delivered to the Køge DC
on pallets stacked up to about 8 feet high. After
docking, incoming goods pallets are transferred
to a roller conveyor or for allocation to the manu-
al pick-by-voice order assembly area.
The conveyor system distributes incoming goods
pallets onto a conveyor. Four in-feed conveyors
transport the pallets to one of the 15 robot cells.
The conveyor lanes are both feed and return
paths and each lane carries single SKU pallets.
OACH
UTION
Denmark’s high wages and workplace safety regulations governing
the total weight people can lift within a period of time means the Danes
are open to innovative labor and cost-saving order assembly initiatives.
In a world-first, Dematic has integrated a robotic fresh produce picking,
palletizing and dispatch system for Danish retailer Netto.
Buffer stock for the picking cells ensures the robots never waste time waiting for stock.
6. 6 DEMATIC LOGISTICS REVIEW
NETTO
KØGE, DENMARK
Order picking and palletizing
When the stock pallets are fed into one side of
the cell, the robot picks up one or two of the han-
dling units (banana-boxes, fruit and vegetables in
open plastic crates or cartons with a base of 2 ft x
15 inches) according to the settings in the IT sys-
tem, so in one operation, it’s either a quarter or a
half pallet layer that the robot picks and places
onto order pallets with each pick.
Dematic’s Warehouse Control System (WCS)
specifies any restrictions for pallet formation in-
cluding weight and optimum volume utilization.
A separate empty pallet circulation system was
installed for the required empty pallets for or-
der assembly. This pool consists largely of the
empty incoming goods pallets, and the robots
are equipped with an integrated pallet-gripping
device for this purpose.
There are 15 robot cells in the Køge DC, each ca-
pable of picking from up to five SKUs at a time,
which means that up to 75 product groups can be
picked concurrently. Online buffer storage capac-
ity at each pallet in-feed lane means there is no
need for circulation or overflow paths for in-feed
sequencing. This means orders can be picked in
batches in the robot cells, one after the other.
Order management and control
Dematic’s WCS controls the inward goods deliv-
eries, optimizes conveyor routing and picking and
palletizing within the 15 robot cells.
Pallets are always built on the basis of a maxi-
mum of 28 different packs – in the worst case
scenario, this means a maximum of four stops
between the empty pallet and completed ship-
ping pallet to the robot cells.
With the robot’s new gripper head technology,
it’s possible to handle five SKUs on all 15 robot
cells and, by placing fast moving items on more
robot cells, Netto also has redundancy built into
the system.
Pallet stretch wrapping and dispatch
Completed order pallets in the robot cells are re-
moved automatically by the pallet stacking rack
systems via one of two roller conveyors con-
nected at multiple points in the outgoing goods
handling direction. In this process, the twin-track
conveyor line is used both for loading and unload-
ing the robot cells. Empty incoming goods pallets
are picked up by the robots and transferred to the
empty pallet conveyor line for ongoing use.
The final highlight of the innovative system design
is the outgoing goods handling system, located
on the second level. Here completed pallets are
fed to a temporary storage location in their stack-
ing racks on the roller conveyor tracks.
In an exact, predefined position underneath the
outgoing goods handling system, a lift raises
completed pallets out of their pallet stacking
racks, up onto the second level, where the pal-
let is automatically stretch wrapped before being
directed to dispatch.
Incoming pallets of stock for orders
have their profile checked before being
inducted into the robotic pallet picking
system.
7. DEMATIC LOGISTICS REVIEW 7
Innovative new technologies from Dematic
Manual pick-by-voice order assembly
Around 50 SKUs are handled in the manual Pick-
by-Voice area. Dematic provided the entire com-
munication structure, in addition to IT hardware
such as application and database servers, and
operational equipment including headsets, scan-
ners, data terminals and PCs.
Integrated IT systems and software
The complex operating processes at Netto can only
be optimized through a range of algorithms used
by Dematic’s innovative software. Dematic’s IT
system also automatically handles empty pallet
management, calculates the order processing pri-
orities and more in real-time, provides the optimum
load equalization between automated and manual
picking by order profile, and supplies printers with
the necessary label printing information.
In addition to the fast, optimized handling pro-
cesses, the system has provided Netto with ad-
ditional free space for dispatch preparation and
provides scope for further increases in incoming
goods and throughput.
Customer benefits
• Integrated, automated priority-led pallet formation
• Ergonomic design meets Danish OH&S rules
• Order pallets with fresh fruit and vegetables
automatically assembled in under 30 minutes
• Optimum weight and volume utilization through
Dematic WCS specifications for pallet formation
• Compact design provides additional space for
dispatch preparation plus options for further
improving incoming goods and dispatch
• Single source system and IT design and supply,
supported by a resident service contract.
Peter Hüttel, Dematic Product Support
Engineer (left) with a contractor and
Dematic Scandinavian BDM & Sales
Manager, Finn Biller (right).
Above: Robots can
lift one or two trays,
cartons or crates
at a time. Products
are placed into a
stacking racks,
which lower as the
pallet is being built.
Left: Pallets are
transported in their
stacking racks
until they reach
the outgoing goods
station. A lift raises
the pallet up to the
next level where it is
stretch wrapped and
staged for dispatch.
FRESH PRODUCE PICKING & PALLETIZING
INTEGRATED ROBOTIC PICKING & PALLETIZING
8. DEMATIC LOGISTICS REVIEW8
HELUKABEL
HEMMINGEN, GERMANY
ASRS UNIT & CASE/TOT
HANDLING FOR HELUK
New automated
materials handling
and integrated
order processing
techniques have
significantly
improved distribution
efficiencies for
German electrical
cable supplier,
Helukabel.
“
“
Dematic has more
than pleased us as
a customer in every
respect. The company
was well represented,
quickly delivered
solutions, and acted
very professionally.
Trial runs started after
13 months – even
sooner than we had
initially expected.
The overall cooperation
was very successful
and has provided high
value for our company.
Helmut Luksch,
Founder, Owner and
Managing Director,
Helukabel
DEMATIC LOGISTICS REVIEW
9. DEMATIC LOGISTICS REVIEW 9
Helukabel’s new DC is delivering a host of ben-
efits to its 15,000 global customers including:
• Same-day dispatch of orders received by 3 pm
• Delivery of prefabricated orders within 48 hours
• 100% inventory control, also for residual lengths
of cable that have been returned to stock.
The order-to-delivery time has been significantly
reduced, with delivery quality also improving.
Helukabel’s supply chain challenge
Many of Helukabel’s customers order cables cut
to length, along with a wide variety of accessories
like tools and cable ties.
The company services 15,000 customers world-
wide, with an annual shipment capacity of around
24,000 tons of cable.
The challenge of processing a constantly increas-
ing number of smaller, more frequent orders, with
an associated rise in manufacturing and logistics
costs per order, required a revision of the com-
pany’s existing supply chain strategy.
Strong business growth had also stretched
Helukabel’s existing distribution capacity to the
limit, resulting in a fractured approach to distribu-
tion with product storage, pallet storage, small ac-
cessories storage, order picking and prefabrica-
tion distributed over several facilities.
New centralized distribution hub
With the dual goals of faster, more efficient order
processing and a simultaneous reduction of costs
per order, Helukabel contracted Dematic to plan a
new logistics solution.
When Dematic began investigating Helukabel’s
logistics requirements, the cable specialist’s exist-
ing strategy was reviewed, including the potential
integration of its cable prefabrication operation.
Huge potential cost savings quickly became obvi-
ous during the development of a new, demand-
based strategy. Dematic devised detailed plans
and prepared the tender documentation for con-
struction and building works, as well as for the
logistics equipment.
TE
KABEL
Dematic’s
integrated ASRS
solutions for
pallets and totes
provides fast,
reliable, accurate
product storage
and retrieval
for German
cable specialist
Helukabel.
MANUFACTURING PRODUCTION SUPPORT
AUTOMATED STORAGE & RETRIEVAL
10. 8 DEMATIC LOGISTICS REVIEW10
HELUKABEL
HEMMINGEN, GERMANY
The ergonomic
design of
the new
workstations,
helps reduce
errors, and
eliminates the
potential for
damage during
handling by
forklift trucks.
MANUFACTURING PRODUCTION SUPPORT
AUTOMATED STORAGE & RETRIEVAL
Centralized distribution and production optimization
Dematic was awarded the contract to implement the
overall concept as general contractor, with the project
including a new high-bay warehouse with 16,000 pal-
let locations and seven RapidStore UL machines.
The stacker cranes replenish the bay racks for the
picking of accessories, transport larger lots on pallets
via conveyors directly to picking stations, and also re-
turn cable reels for cut-to-length orders as well as any
remaining reels to the high-bay warehouse.
In order to optimize the available high-bay warehouse
space, the cable reels are stored in an upright/flat
combination.
The production and warehouse building is spread over
two levels, with a vertical conveyor connecting the
goods-in and goods-out level with the storage and
picking level.
This permits a perfect material flow within the small-
est possible footprint. Planning for the DC also took
future expansion options into account and makes the
investment fit for further growth.
Faster, safer, easier to handle
Special handling equipment was jointly developed
with Helukabel in order to simplify and accelerate the
handling of cable reels and, above all, make the pro-
cess safer.
This equipment is used in the goods-in area, at picking
stations and in the order consolidation zone. It serves
the purpose of rotating and tilting the cable reels, and
in handling the relocation of reels and cable coils.
This also improves the ergonomic design of the work-
stations, helping reduce errors, and eliminates the
potential for damage during handling by forklift trucks.
Special pallet-top frames were designed for the trans-
port of the cable reels, which ensures safe handling,
even during high-speed transfers by the stacker
cranes.
Quicker order turnaround, and increased throughput
Due to paperless order and dispatch processing, the
entire logistics process at Helukabel, from incoming
goods to inventory, production, dispatch and invoic-
ing, is available in a single database.
The core of Helukabel’s IT system is a customized
warehouse management system (WMS), which not
only controls and manages planning, scheduling and
material provision, but also the integration of the pro-
duction environment, including the cut-to-order work-
stations.
The order-based prefabrication is automated all the
way to the selection of the cutting program.
Overall, the WMS interfaces with 40 PC and RF ter-
minals making all processes transparent, manages
31,000 items, and processes all daily orders. It also
facilitates the automatic forwarding of orders provided
by the host to the production and warehouse environ-
ment, and manages the site’s outdoor storage areas.
11. DEMATIC LOGISTICS REVIEW
WEICHAI POWER
SHANDONG WEIFANG, CHINA
When it became
apparent that compact
and reliable buffer
storage and retrieval
was essential to
enhance the efficiency
of its diesel engine,
gearbox and axle
manufacturing plant
in Shandong, Weichai
Power, one of China’s
largest manufacturers,
turned to Dematic.
CASTING A GOOD
REPUTATION IN CHINA
Weichai Power’s Shandong Weifang factory is one
of China’s largest manufacturing and assembly
centers for high-speed diesel engines used in au-
tomotive and marine engines, and power genera-
tors. Its highly advanced core-making center runs
alongside, and interfaces with, a parallel molding
line. However, the two operations do not match
perfectly due to variations in production capacity,
shift timing and different working efficiencies. This
had a detrimental effect on overall production ca-
pacity, but presented a great opportunity.
Weichai Power’s first application of ASRS
Weichai Power previously implemented a low-
cost Automated Storage and Retrieval System
(ASRS) buffer storage solution in its casting cen-
ter for core sand and molds, however, due to reli-
ability, the system did not meet expectations.
Despite this, Weichai Power recognized that us-
ing ASRS as a buffer store could improve effi-
ciency, so it decided to re-evaluate suppliers and
solutions.
MANUFACTURING PRODUCTION SUPPORT
AUTOMATED STORAGE & RETRIEVAL
Right: Integrated conveyors
transport production materials
throughout the casting factory.
11
12. DEMATIC LOGISTICS REVIEW
Management set up very clear expectations and
tangible requirements for the project covering
feasibility, efficiency, and supplier evaluation,
through to reliability of software, safety and sta-
bility of the whole system.
That is when Dematic was engaged. Dematic’s
RapidStore ASRS, manufactured in Suzhou, was
demonstrated to all top management within Wei-
chai Power and was highly praised by all who
viewed it. After a thorough evaluation of ASRS
suppliers, Dematic was chosen as the system
supplier, even though its solution was more ex-
pensive than many of its competitors.
Weichai Power’s first Dematic RapidStore ASRS
In 2010, Weichai Power decided to implement a
new ASRS buffer store in the casting center. The
project included the provision of conveyor sys-
tems and an ASRS with five RapidStore storage
and retrieval machines (SRMs) for its cylinder
block workshop and warehouse and cylinder
head workshop and warehouse respectively.
Empty pallets are transported on conveyors and
then allocated to pre-set mold working stations
in the required order. After molding is completed,
the core sand will either be conveyed to the next
working station where it is required or put-away
into the ASRS for storage until it is required again.
The ASRS is used to store both core sands and
empty pallets, and provides buffer storage for
both production lines.
Weichai Power adds extra RapidStore ASRS
The success of the project led Weichai Power to
implement two subsequent ASRS systems, us-
ing the high-performance, highly reliable Dematic
RapidStore ASRS system.
Weichai Power’s additional ASRS are used for two
cylinder body warehouses.
The new project has a higher throughput require-
ment, with six RapidStore SRMs equipped with
positioning devices to facilitate high speed auto-
mated load-on and load-off of products.
Dematic’s Planning Manager, Hu Jinbin, said:
“Within the limited area of the warehouse and the
limited number of SRMs, we were able to maxi-
mize the whole system’s throughput, with 35 dou-
ble cycles per hour per SRM.”
Using clever design, the factory’s pallet conveyor
system operates as a space-efficient closed loop.
Empty pallets are circulated continuously.
The closed loop is laid out either at one level or at
identical dual levels, halving the footprint required
for the ASRS. Empty pallets are transported on the
lower level and loaded pallets on the upper level.
Dematic has
installed two
RapidStore ASRS
at Weichai Power’s
casting factory at
Shandong Weifang.
“
“
“We appreciated
Dematic’s proven
technology and
knowledge, skilled
project management,
smart and efficient
teamwork and
effective way of
moving things
forward. We are
really impressed
with how well the
manufacturing
logistics system
integrated into real
production.”
WEICHAI POWER
SHANDONG WEIFANG, CHINA
12
13. DEMATIC LOGISTICS REVIEW 13
MANUFACTURING PRODUCTION SUPPORT
AUTOMATED STORAGE & RETRIEVAL SYSTEM
Integrated
conveyors
transport
production
materials
throughout the
casting factory.
Additional Dematic RapidStore ASRS benefits
The other highlight for ASRS in storing and han-
dling core sand is efficiency.
Only one SKU can be handled in manual opera-
tions. For other SKUs, they have to wait until the
previous operation is completed, leaving no op-
portunity for flexibility in production capacity.
Unlike normal warehouses, those equipped with
ASRS are able to adjust the speed of material
flow for in-feed to the production line. This ena-
bles increased throughput without any extra pro-
duction line investment.
ASRS also improves materials flow between up-
stream and downstream operations, significantly
improving production flexibility.
Dematic’s successful implementation of Weichai
Power’s RapidStore ASRS systems was highly-
praised highly by the customer.
In a thank-you letter, from Weichai Power the
customer stated: “We appreciated Dematic’s
proven technology and knowledge, skilled pro-
ject management, smart and efficient teamwork
and effective way of moving things forward. We
are really impressed with how well the manufac-
turing logistics system integrated into real pro-
duction.”
DEMATIC LOGISTICS REVIEW
14. DEMATIC LOGISTICS REVIEW14
INSIGHT
INTEGRATED LOGISTICS SYSTEMS
How research helps software development
Software strategies and algorithms are the foun-
dation of any optimized solution. Think of traffic
lights. The logic that controls the timing of the
lights can be pretty simple or take into account
time of day, traffic volumes, congestions in ad-
jacent roads, etc. This can make the difference
between you sitting in gridlock, or sailing through
green lights at the busiest time of the day.
The same is true with the systems that we design.
Software is typically the secret sauce that we
can’t see or touch, but is critical to the efficiency
of integrated logistics solutions. For that reason,
“Strategy Analysis” has become one of the higher
priority studies that we perform to provide our
software development team with the information
they need to develop optimized solutions.
For example, in a recent study, we set out to find
the optimal Dematic Multishuttle Flex “Dynamic
Storage Algorithm”. Deciding where to store vary-
ing size boxes in a triple-deep rack can be com-
plex and can lead to excessive fragmented and
unusable space if not done properly. We designed
a number of different storage algorithms and simu-
lated them to see which produced the best utiliza-
tion. The outcome was an algorithm that produced
double the storage density of what was presumed
to already be a pretty efficient algorithm!
A typical research project
The design of an optimum solution starts with
figuring out what specific question(s) we are try-
ing to answer. This sounds simple and yet is one
of the more difficult and most critical parts of a
THE ROLE OF R&D IN DEVELOPIN
study. Next we design a series of experiments to
help us answer these questions.
These experiments typically involve developing
computer-aided simulation models, which simu-
late a given solution under specific conditions.
Analyzing and making sense of the output data
is where the detective work comes in.
This is where we draw conclusions and form
recommendations based on hard evidence and
factual data.
How research helps new product development
Equipment performance is typically about speed
and acceleration and, to the extent that a piece
of equipment has a simple motion profile, it is
relatively easy to predict its performance.
R&D engineers have historically relied on static
calculations for this purpose with great success.
As Dematic’s solutions become more sophisti-
cated, however, these static models are no lon-
ger sufficient and we start to look at using more
advanced simulation tools and techniques.
Dematic Multishuttle, for example, is a very com-
plex product with a lot of interdependencies be-
tween the performance of shuttles, lifts, etc.
In one of our studies, we wanted to see if the Mul-
tishuttle lift should be designed to carry one, two
or three payloads.
Intuitively you may guess that a lift that can carry
three loads would give us superior results.
In fact, when we analyzed the cost, performance
and sequencing needs, a lift capable of handling
two loads outperforms the other options.
Benny Rokni,
the Director
of Dematic
Global Logistics
Solutions,
provides an
overview of
R&D Analysis vs
Project Specific
Simulation.
“
“
Software is
typically the secret
sauce that we
can’t see or touch,
but is critical to
the efficiency of
our solutions.
15. DEMATIC LOGISTICS REVIEW 15
R&D SIMULATION & ANALYTICAL RESEARCH
SUPPLY CHAIN APPLICATIONS
This is a simple example of how such analysis re-
moves guesswork and provides R&D engineers
with the information necessary to make informed
design decisions.
Establishing how products can fit into solutions
One of our main objectives is to look at prod-
ucts in the context of solutions. We want to make
sure that new products fit into an overall solu-
tion without having any detrimental effect on the
other products that they integrate with. For that
reason, we typically look at the performance of
products in the context of a total solution, rather
than measuring its performance in isolation.
Global and regional simulation teams
We all use the same simulation tools and tech-
niques, but our objectives and approach are
very different. When simulation teams evaluate
a project, they have a specific system layout and
set of conditions that they are trying to validate.
Their goal is to verify performance targets, identify
bottlenecks and examine the system’s ability to
respond to faults and anomalies. In our research,
we are mostly interested in trends and look for
specific “cause and effect” scenarios.
The importance of “cause and effect” scenarios
“Sensitivity Analysis” in which we examine the
sensitivity of a given solution to different vari-
ables is one of the typical studies we perform.
These studies are extremely valuable because
they help us understand the sweet spot of a
given solution and identify specific operating pa-
rameters that need special attention.
A simple example is the effect of aisle length
and height on the performance of Mini-Load
and Multishuttle systems. Below are two simple
color-coded charts that show how a system’s
performance changes as we vary the configura-
tion of the aisle. We can see that Mini-Load is not
sensitive to the height of the aisle, but the Multi-
shuttle lift becomes saturated at about 16 levels.
This doesn’t necessarily mean that we shouldn’t
build a Multishuttle that is taller than 16 levels,
but it is certainly a valuable design consideration.
In one of our recent studies, we looked at the Au-
tomated Mixed Case Palletizing system (AMCAP)
to see how it behaved as we varied the number
of SKUs, order size, product mix, case dimen-
sions, family grouping, order visibility, number of
aisles, and a host of software strategies.
We actually ended up with over 10,000 distinct
simulation runs that generated a sizeable amount
of data. Reviewing such a volume of data to find
cause and effects can be an overwhelming task.
It requires a methodical approach and upfront
design of experiments that help isolate the effect
of each variable on its own merit.
How customers benefit from our R&D
Our ultimate goal is to deliver the most cost-ef-
fective solutions. Part of this comes from helping
our R&D team with the data they need to develop
effective products and software. The other part
comes from providing our regional concepting
teams with application design guidelines to help
them make smart solution decisions.
As an example, a simple guideline is to include
more accumulation conveyor and bigger waves
in traditional pick and sort applications to achieve
higher pick efficiency. In contrast, data shows that
in integrated systems it is best to minimize the dis-
tance/conveyor between the Multishuttle and pick-
ing/palletizing stations. Such guidelines ultimately
help our solution concepting teams deliver more
efficient and cost-effective solutions for customers.
NG OPTIMAL SYSTEM SOLUTIONS
Analysis showed that
Multishuttles handling
two loads outperform
other options.
16. DEMATIC LOGISTICS REVIEW
With an average of 364 Euros per head spent on
furniture annually, Germans are amongst the high-
est spending furniture buyers in Europe.
Furniture and furnishing stores have developed
into massive retail paradises offering an almost
unlimited array of products.
Premium providers cater to almost every need of
customers, offering kitchen, living room, dining
room and bedroom furniture, as well as lamps,
carpets, curtains and home interior accessories.
Ostermann
Ostermann is headquartered in North Rhine-West-
phalia. Its products range from kitchen, design
and brand furniture, to popular flat-pack furniture
and all-inclusive baby equipment. An extensive
range of accessories and household equipment
rounds off the product offering.
The father of the current managers, Manfred and
Rolf Ostermann, established a small furniture
store in Witten in 1949. Since then, the company
has been consistently growing and now operates
four retail sites of 377,000 to 538,000 sqft.
Background
In 1991, Ostermann founded one of the most
modern and efficient furniture DCs in Europe.
Established in Witten, the DC is where all Oster-
mann’s retail facilities are supplied with products,
in addition to around 150,000 deliveries made di-
rectly to individual clients on an annual basis.
The DC has implemented numerous upgrades over
the years, but was running out of storage space.
The basic concept of high-rise racks remained the
same, however, with the exchange of control and
BUS systems and the introduction of a new Ware-
house Management System (WMS) in 2007/2008,
it was felt that the overall performance could be
further improved.
Since the project began until the extension-relat-
ed construction works have been launched, over
2.5 million roll-cages were handled with the use of
the high-rise racks, explained Oliver Moll, Oster-
mann’s General Logistics Manager.
To provide additional space and increase the DC’s
throughput capacity, Ostermann has added two
additional aisles of high-rise racking with the ca-
pacity of 3,744 storage locations, and enlarged
the incoming goods receiving area to increase
output by 50-60%.
16
OSTERMANN
NORTH RHINE-WESTPHALIA, GERMANY
FURNISHING EXPANSION
FOR OSTERMANN DC
Ostermann is a
family business
operating
furniture stores
and kitchen
studios in
Witten, Haan,
Bottrop and
Recklinghausen.
With ever-
growing retail
space to service,
Ostermann’s
distribution
center (DC) in
Witten faced
some major
challenges.
In order to
increase the
DC’s capacity by
more than 50%,
Ostermann
entrusted
Dematic with a
comprehensive
DC extension/
modernization
project.
Eliminating a bottleneck
The high-rise rack system is mainly used to han-
dle all goods ordered by clients and supplied by
furniture producers. On an annual basis, the DC
handles around 12,000 incoming shipments from
suppliers arriving at 25 receiving gates.
In the goods receiving area, all incoming goods
– mattresses, chairs, or cabinet parts packed in
cardboard boxes – are identified with the use of
wireless RF terminals, and then placed and se-
cured on roll-cages – called corlettes – in an order-
based manner.
Ostermann utilizes two sizes of custom-designed
corlettes – one with a base area of 3.75 x 9 ft for
large-size cargos weighing over a ton, and the
other a half-size corlette with a base area of 3.75
x 4.25 ft for goods weighing up to 0.5 ton.
“Where possible, corlettes are loaded in the goods
receiving area according to the one-client/one-
corlette principle,” said Mr Moll.
Apart from goods ordered by individual clients,
supplies are also delivered and put away in high-
rise racks for later distribution to Ostermann’s re-
tail centers and other customers.
Goods of this type are stacked in corlettes and
brought to the correct “intake” station of the au-
tomatic conveyor system.
On the way to the high-rise racks, each corlette
must pass through an identification point (i-point)
to identify and check the container.
The i-point checks whether the loads are prop-
erly distributed in the corlette, that they do not
stick out too much, or that they do not exceed
the permissible maximum weight.
Originally there was only one storage line fitted
with the i-point solution in the pre-storage area. If
any corlette was rejected, an employee had to go
to this area and attend to the goods personally, or
else the corlette had to be retrieved.
In order to eliminate this bottleneck, Dematic un-
installed the existing i-point, and fitted an addi-
tional storage line with two new i-points covering
weight and size checks, and an independent di-
verting station directly in the goods receiving area,
which was enlarged by 7000 sqft.
Dematic’s Project Manager, Gerhard Eckert, said:
“To increase the capacity of the goods receiving
area, both workstations have been removed from
17. DEMATIC LOGISTICS REVIEW 17
FURNITURE/BULKY GOODS DISTRIBUTION
AUTOMATED STORAGE & RETRIEVAL SYSTEM
the eastern part of the premises to be replaced by
two new integrated i-points.
“Another workstation was removed from the west-
ern part of the premises and was replaced with
three new stations including integrated i-points
and an alignment line with three racks,” he said.
Goods are then transferred to the high-rise rack
area via 82 or 92 ft long conveyors extending from
the east to the west of the premises via two, in-
stead of one rotary table.
Extending existing high-rise racks by two aisles
The existing 12 level four-aisle high-rise racks cre-
ated the overall storage space for about 6,400
large corlettes for single racking and 12,800
smaller corlettes for double-deep racking.
In order to make better use of the available stor-
age space, the two new aisles have 14 instead of
12 levels, providing 3,744 storage locations for
large goods.
In general, there are high-rise racks with four dif-
ferent heights. The extended high-rise rack system
including the pre-storage area is 344 ft long, 180 ft
wide and 128 ft high. The conveyor system on the
east side supplies goods to the first two aisles and
both new aisles accommodate corlettes supplied
via an in-feed conveyor on the west side.
Performance of both new SR-U1500/1 automated
storage and retrieval stacker cranes, including en-
ergy recovery, is higher than that of the previous
systems, with up to 28 double cycles per hour per
storage and retrieval system.
A single corlette lifter has been installed at the end
of the new infeed line, which transports goods
directly to the outgoing goods area, the low-rise
warehouse, or dispatch on the upper floor.
Ostermann’s Oskar Moll is very satisfied with the
storage capacity of the updated premises: “We
are now able to handle as many as 130 inbound
and outbound goods movements within one hour.
This makes 1,040 goods-in and goods-out opera-
tions per single shift,” he said.
“We now have 1170 feet of the new conveyor sys-
tems, and 20 hydraulic scissor-type lift tables for
lifting corlettes onto the transfer stations. We also
have installed two corlette lifters and brought the
new automated storage and retrieval systems in
both new aisles into service,” added Dematic’s
Gerhard Eckert.
There have been also modifications and interfaces
in the material-flow, control and visualization soft-
ware.
The new conveyor system is quieter as the drives
are fitted with frequency inverters to provide for
slower run-up and run-down of the corlettes dur-
ing braking and accelerating on ramps.
“There is also much less noise from mechanical
impact,” said Mr Eckert.
18. DEMATIC LOGISTICS REVIEW18
OSTERMANN
NORTH RHINE-WESTPHALIA, GERMANY
FURNITURE/BULKY GOODS DISTRIBUTION
AUTOMATED STORAGE & RETRIEVAL SYSTEM
Ostermann’s 1.3 million sqft logistics
center in Witten accommodates 25,000
corlettes (roll-cages). More than 180,000
products are available, with over 1,000
inbound and outbound goods handled daily.
As the noise levels exceeded admissible limits for
the adjacent office premises, the conveyor line
linked with the low-rise warehouse has not only
been renovated, but also relocated to a different
area.
500 supplies to customers on a daily basis
Retrieval of next-day deliveries starts in the morn-
ing and finishes around 2pm. Put-away of incom-
ing goods takes place until around 7pm, mainly in
the afternoon.
With customer-specific loading, the majority of
corlettes required for orders can be transferred
directly from the high-rise racks into the outgoing
goods area, without any intermediate stage in the
order-picking area.
If any goods need to be picked from a corlette
within the high-rise racks, it will be supplied via
conveyor on the upper floor directly to the order
picking system, which extends to the eastern side
of the goods receiving area.
This is where corlettes are transferred on carriages
to four multifunctional workstations, each fitted
with five buffer storage areas.
After order picking is completed, corlettes are
redirected back to the high-rise racks, and the
remaining corlettes, once all ordered goods are
unloaded, are supplied to the high-rise racks or
the low-rise warehouse.
Once an order is assigned to a specific delivery
run, all goods are transported from the appropri-
ate pick-up box to one of 100 dispatch gates ar-
ranged all around the building.
Restructuring during ongoing operation
A real challenge for Dematic was to carry out all
restructuring works during ongoing operation of
the DC.
“A lot of operations and test runs had to be per-
formed at weekends. Moreover, we had to be very
attentive throughout the whole project in order not
to interfere with the handling of incoming goods,”
said Dematic’s Gerhard Eckert.
Oskar Moll is very satisfied with the upgraded sys-
tems: “It was a very good decision to once again
rely on Dematic to address all the existing inter-
face issues and problems we have experienced.
“On average, we can now handle deliveries to as
many as 500 clients per day,” he said.
“
“
It was a very good
decision to once
again rely on Dematic
to address all the
existing interface
issues and problems
we have experienced.
Oskar Moll,
General Logistics
Manager, Ostermann
19. DEMATIC LOGISTICS REVIEW 19
KMART AUSTRALIA
MELBOURNE, AUSTRALIA
Background
When he joined the discount variety retailer about
five years ago, Kmart Managing Director Guy
Russo set about transforming the business, with
the goal of achieving the lowest end-to-end cost
– thinking which now extends throughout Kmart,
and informs customers of Kmart’s new ‘lower
prices every day’ sales strategy.
Kmart’s successful transformation project has in-
volved a complete overhaul of the retailer’s prod-
uct sourcing and supply chain processes.
KMART
CROSS-DOCKING
ITS WAY TO SUCCESS
With over 180 stores throughout Australia and New
Zealand, product sourcing offices in Hong Kong, China,
Bangladesh and India, and more than 31,000 team
members, Kmart is one of ANZ’s largest retailers.
Over the past five years, Kmart has implemented one of the
most wide-ranging business and supply chain restructuring
programs in Australasian retail history.
RETAIL DISTRIBUTION
CROSS DOCKING
KMART AUSTRALIA
MELBOURNE, AUSTRALIA
20. DEMATIC LOGISTICS REVIEW20
KMART AUSTRALIA
MELBOURNE, AUSTRALIA
Above: Goods being inducted onto Kmart’s
crossbelt sorting system, which is capable
of cross-docking 6000+ items/hour.
Left: Packages being automatically sorted
to their dispatch lanes.
Cross-docking its way to supply chain success
A key enabler in Kmart’s supply chain is its cross-
docking DC network, which utilizes Dematic
crossbelt sorting systems to automatically trans-
fer high volumes of bulk stock to individual orders.
Kmart’s first crossbelt sorting system was in-
stalled in Melbourne in 1994, with further systems
added in Sydney in 1998 and Brisbane in 2006.
When the decision was taken to consolidate
the retailer’s Melbourne distribution operations
in 2010, Kmart, in conjunction with Dematic, re-
viewed a range of system solutions, with detailed
analysis showing that crossbelt sorting was still
the best fit for Kmart’s needs over the next de-
cade and beyond.
Dematic’s Retail Industry Group Manager, Glenn
Barnes, said: “The previous crossbelt sorting sys-
tems, which were originally implemented for the
Coles Myer group, provided consistent, reliable
performance for Kmart over the past decade.”
“When we looked at Kmart’s current and projected
requirements over the next 15 years, we evalu-
ated a range of technology solutions, but the one
that kept on coming out on top of the list was the
crossbelt sorter.
“Of course, technology, controls, software and IT
systems have changed a lot over the past decade,
and these have further enhanced the performance
and reliability of crossbelt sorting systems,” add-
ed Mr Barnes.
“The crossbelt sorters also offer larger carriages
enabling a larger, heavier and more diverse range
of products to be handled,” he said.
Highlights of Kmart Australia’s supply chain transformation program
• A new sales strategy based on ‘lower prices every day’ rather than
the traditional ‘weekly specials catalogue’
• Introducing a lean supply chain strategy, which has delivered
significant supply chain cost savings
• Over 580 factories engaged with Kmart’s ethical sourcing program,
representing more than 70% of direct importer spending
• Improved shipping consolidation for better transport efficiencies
• Standardized shipping carton sizes for distribution efficiencies
• Better pick and pack methods in DCs for efficient store put-away
21. DEMATIC LOGISTICS REVIEW
Kmart Truganina, Melbourne
Kmart’s 800,000 sqft DC and container park at
Truganina in Melbourne’s western suburbs, servic-
es the apparel and general merchandise distribu-
tion requirements for stores in Victoria, Northern
Territory, Tasmania and South Australia, as well as
New Zealand. The high volume DC, which opened
three years ago, enabled Kmart to consolidate
general merchandize distribution from its previous
Hoppers Crossing, Laverton and Woodlands DCs
under the one roof, providing significant cost and
operational efficiencies.
Fast, accurate cross-docking w/crossbelt sorting
The Truganina DC is fitted with Kmart’s largest
crossbelt cross-docking system. Capable of sort-
ing more than 6,000 items per hour to individual
orders for up to 88 stores concurrently, the sys-
tem comprises 273 individual carriages, each
equipped with their own conveyor belt, enabling
them to handle and sort a diverse range of prod-
uct types and sizes.
Goods up to 3.5 ft long and weighing up to 66 lb
are loaded onto four inducts, where they are accu-
mulated and conveyed onto the crossbelt sorter.
The carriages travel around a 850 ft long loop at
speeds of up to 6.5 ft per sec, automatically sort-
ing packages to 88 sort lanes, facilitating efficient
cross-docking and store order assembly.
Kmart uses the system to sort imported and lo-
cally supplied products, both SSCC and non-SS-
CC labelled, and even uses it to automatically sort
batch-picked ‘Pick & Pack’ products to individual
orders, improving picking costs and accuracy.
When the label is scanned, Dematic’s SortDirector
software identifies which store and sortation lane
the package is destined for, tracks it until it reach-
es the relevant lane for the store, diverts it for or-
der consolidation and reports to Kmart’s host that
the package has been successfully sorted.
RETAIL DISTRIBUTION
CROSS DOCKING
21
Key features of Dematic crossbelt sorters
A key feature of Dematic crossbelt sorters com-
pared to other types of sorting systems is their
ability to handle a wide variety of goods from a
single packet of socks up to large packages
weighing up to 66 lb.
Dematic crossbelt sorters transport goods safely,
accurately and gently to their destinations, regard-
less of their shape, size and surface. Because
they can deliver products to a particular destina-
tion with pinpoint accuracy, divert points can be
concentrated at close intervals making them very
space efficient, saving valuable floor space.
Crossbelt sorters can negotiate turns, inclines and
declines, utilize carriers multiple times per circuit,
and be easily expanded with additional induction
points and sort lanes with minimum disruption to
an existing operation.
They also feature a higher level of redundancy,
without the same single critical points of failure as
a linear system.
Crossbelt sorters can handle a wide variety of
parcel sizes and shapes from small items to bulky
general merchandize, and, because each carrier
in a crossbelt sorter has a dynamically controlled
motorized belt conveyor, they can offload parcels
with a high level of precision.
Bi-directional double-deck crossbelt sorting sys-
tems are also available with throughput rates of up
to 20,000 items per hour, while quad-belt cross-
belt sorters can handle up to four separate items
per carrier, raising throughput levels to more than
50,000 items an hour.
Award-winning performance by Kmart Australia
Kmart was presented with the Storage & Handling
of Materials Award at the recent Australian Sup-
ply Chain and Logistics Awards in recognition of
the success of its wide-ranging supply chain and
logistics restructuring program.
Kmart’s Sam
Weeks, David Kirton
and Noel Harb with
Dematic’s John
Briscoe at the
recent Australian
Supply Chain and
Logistics Awards.
“
“
When we looked
at Kmart’s current
and projected
requirements
over the next
15 years, we
evaluated a range
of technology
solutions, but the
one that kept on
coming out on top
of the list was the
crossbelt sorter.
Glenn Barnes,
Retail Industry Group
Manager, Dematic ANZ
22. DEMATIC LOGISTICS REVIEW22
DEMATIC
NORTH AMERICA
Dematic case picking solution
The Beverage Pick System uses configurable
software that can be tailored to accommodate
the variations of each beverage distributor.
Operators are equipped with a wearable voice
computer, which provides verbal instructions in-
cluding description and pick quantity.
A scanner connected to the device ensures the
accuracy of each pick.
This solution is paperless. And with no pick list,
the operator’s hands are free to pick while their
eyes are focused on the task of picking and op-
erating a fork truck safely.
Each distributor’s business model and case vol-
umes determines the system’s operating mode.
Larger operations may operate a layer pick line,
and then pass partial pallets for ‘top off’ in oth-
er areas. Direct picking, checking, labeling and
loading by a single operator ensures minimal
touch order processing and minimizes staging,
freeing up valuable floor space.
Operational description
The operator starts the process by requesting an
assignment. Information is provided about the
route, SKU count, or customer name.
When the operator says ‘Ready’ the system
provides the first product description in the pick
sequence. The product description is used be-
cause the location in the warehouse may vary.
DEMATIC CASE PICKING
FOR BEVERAGE DISTRIBU
You wouldn’t think that a
business with fewer than 1,000
SKUs could be that complex.
But beverage distribution is
different.
Often there is no location
scheme in the warehouse.
Distributors routinely experience
over 20% annual SKU growth.
There are complicated sales and
delivery laws, multiple market
channels and rigid licensing and
accounting rules.
That’s why beverage distributors
that want to operate effectively
are implementing the Dematic
Beverage Pick System – a voice-
directed solution which controls
all operations from picking to
checking to loading.
23. DEMATIC LOGISTICS REVIEW 23
VOICE-DIRECTED ORDER PICKING
BEVERAGE DISTRIBUTION SYSTEM
SOLUTION
UTORS
When the operator arrives at the first pick, the
barcode on the item is scanned.
A correct scan gives the pick quantity, while an
incorrect scan prompts ‘try again” and repeats
the description.
The operator verbally confirms the pick quantity.
This process is repeated until all the picks for the
active pallet are done. When the pallet is com-
plete, the system prompts the operator for a total
case count on the pallet.
If the count is correct, it prints a manifest label.
An incorrect count sends the pallet to audit.
At the printer, the operator scans the label to
confirm it is the correct label.
Each pallet is wrapped prior to loading to ensure
load integrity while on the truck. As a final step,
the label on the pallet is scanned to confirm it is
loaded onto the appropriate route truck.
Operating the system
Specially developed Dematic software manages,
directs and monitors the entire system.
It can be configured for tablet computers and
mobile devices, so supervisors can manage
more effectively from the warehouse floor.
Operational statistics are available regarding over-
all system pick rates, pick rates by operator, per-
centage of orders complete, route complete, etc.
These reports can be shared via a web app or
exported to an Excel worksheet.
Complete solution for the warehouse
The Dematic Beverage Pick System supports
multiple functions and tasks in addition to order
consolidation.
This voice-directed solution is utilized to receive
product for cross-docking or replenishment to a
pick face.
Quality check and cycle counting tasks are in-
cluded as voice-directed activities.
Furthermore, voice-directed label printing and
shipping door loading tasks make this system a
complete solution for the beverage warehouse.
Software screens support operational flexibility
The system software directs the activity in the
warehouse. Supervisors can monitor and adjust
system parameters by using the interface screens.
Here are a few examples of the software screens:
Prioritize Routes: Routes are entered and as-
signed a pick sequence as well as a pick team.
Maintain SKUs: Maintenance table allows pho-
netic descriptions of all items to be maintained.
Picking is directed by voice, based on the de-
scription entered.
Audit Settings: Supervisor decides by route, op-
erator, or customer, percentage of orders staged
for quality audit.
Work Location: The global system overview dis-
plays line by line the current work in each zone,
as well as providing drill down capability into
specific work assignments.
Route Fill Status: As routes are in the process
of being picked, the route status screen displays
the current percent complete of the route. The
label status of each pallet in the route can also
be monitored and label re-prints generated.
Outstanding Shorts: Pallet contents as well as
the disposition of any shorted pallet picked during
the day can be viewed through the shorts screen.
Add SKUs: Supports unlimited additions of
SKUs and locations by local site staff.
Picker Performance Reports, Utilization: View
the percentage utilization of each picker.
Picker Performance Reports, Summary: Dis-
plays cumulative time spent in all activities as
pallet, unit and item statistics by operator.
Warehouse Summary Reports: For a given day
or time view, the warehouse summary report dis-
plays cumulative time spent in all activities as
pallet, unit, and item statistics.
QC Summary: For a day or time view, the QC
summary displays cumulative counts for all QC
categories as well as QC performance statistics.
Label Printing
Voice-Directed Label Printing: Internal routing
labels are used for partial pallet staging and
retrieval. Shipping labels are printed for pallets
ready for trailer loading.
Bill of Lading: Once a route is finalized a Bill of
Lading can be printed including name and address,
delivery date, order number, ship to information,
customer number and route certifier’s name.