Issue 2

L GISTICS

REVIEW

LOWER picking costs

Smarter, faster, safer order picking

BUILD MIXED PALLETs

Ergonomic mixed case pallet building

Product review

News, technology and software update

SFS unimarket: switzerland

MULTISHUTTLE &
SAP Drive 30% GAIN

Fossil: USA ZARA: SPAIN FOODSTUFFS: NZ

Multifunction Wins Best
New Zealand DC
sorting system Logistics Award delivers the goods

DEMATIC LOGISTICS REVIEW

Creating Logistics Results

WELCOME to
smarter, faster,
safer logistics
Welcome to this issue of Dematic Logistics Review Your
Window to Worlds Best Practice Logistics. In this issue, we present
product, technology and software breakthroughs which are delivering
smarter, faster, safer logistics for Dematic customers around the world.

Roar Isaksen,
President & CEO,
Dematic

As President and CEO of Dematic, I often try to

place myself in my customers shoes and reflect
upon the complex tasks you take on every day
when handling tens of thousands of orders and
product lines.

At Dematic, we have developed new methods for

aligning your logistics and business strategies.

Working closely with Dematics innovative team

of designers, developers and system engineers
has helped me gain a deeper understanding of
the challenges that drive your industries as you
meet the demanding service levels that your
customers expect.

The strategies are created from proven solutions

aimed at eliminating non-value adding activities
and addressing the business drivers that are
most important to you.

But as we all know, these days, simply lowering

costs or providing faster, more reliable delivery
is not enough. The key to sustainable logistics
results is an adaptable strategic framework that
aligns all aspects of business strategy, addresses current business drivers, creates loyalty, and
generates profits.

DEMATIC LOGISTICS REVIEW

We call these the 10 Strategies for Distribution

Logistics Success.

Intelligently applied, they bring your delivery

strategy into alignment with your business strategy and help provide a competitive edge in your
market.

Contents
Cover Story: SFS Unimarket, Switzerland
Cover Story: SAP SubDriver
Technology Feature: Mixed Case Palletizing
Case Study: adidas, United Kingdom
Case Study: JST, China
Case Study: Fossil, USA
Case Study: Zara, Spain
Case Study: Foodstuffs, New Zealand
News, Product, Technology & Software
Systems Modernization & Uptime Solutions

4-5
6
7-9
10-11
12-13
14-15
16-17
18-19
20-22
23

About Dematic
Dematic is one of the worlds leading suppliers of logistics automation systems 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 distribution, consumer direct, grocery, food and beverage, and manufacturing
industries. Dematics products and services are based on a tradition of
industry expertise that the company has acquired over decades of commitment worldwide. Globally the company employs around 4,000 people.

10 Strategies for Distribution Logistics Success

Putting the 10 Strategies into action

The strategies we use to help design the best

logistics solution for your business are:

Dematic designs and engineers smart technologies and integrates them with worlds best
practice techniques to lower costs, increase
productivity and provide greater levels of service,
accuracy and control. Concurrently we address
issues like workplace safety, skills shortages,
flexibility, modularity and government regulation.

Reducing time wasted travelling

Condense the pick face and travel faster
Moving orders to zones
Let the orders move, not your people
Batching orders and sorting them out
Pick multiple goods in one pass and sort to orders
Eliminating travel: split case
Let the orders do the moving in a tote
Eliminating travel: full case
Move cases in the best sequence to build pallets
Automating storage, buffering & sequencing
Organize your reserve stock and get it in order
Free picking
Pick one, get one for free with Negative-PUT
Automating picking
When picking is too expensive, heavy or repetitive
Wireless real-time logistics
Bring the power of your ERP system to the DC
Warehouse control solutions
Improve visibility and distribution management.

In this issue, we show how we take our strategies, technologies and techniques and working in close collaboration with global customers
like adidas, Fossil, Zara, SFS unimarket, JST
and Foodstuffs create world-leading logistics,
order fulfilment and distribution solutions.
We highlight our innovative new modular conveyor, ergonomic RapidPick stations and SAP interface. We also profile the performance improvements and cost savings that smart modernization
upgrades can deliver, and feature our responsive
service network, which is there to ensure you are
able to deliver on your promises day in, day out.
Roar Isaksen,
President & CEO, Dematic

Dematic acquires
HK Systems
I am very happy and
excited to announce
that Dematic
successfully completed
the acquisition of
HK Systems on
September 15, 2010.
HK Systems brings
great knowledge,
competence and
complementary
technology to
Dematic, and further
strengthens our
leading position in
North America and
beyond. Further
announcements
about this exciting
development will
be made soon.

DEMATIC LOGISTICS REVIEW

COVER STORY
SFS UNIMARKET Rebstein, switzerland

Multishuttle & SAP

interface secures
30% gain for SFS

DEMATIC LOGISTICS REVIEW

ELIMINATING TRAVEL: SPLIT CASE

GOODS-TO-PERSON ORDER PICKING

Dematics
David Rubie with
CCAs Major
Projects Manager
Grant McClean.

Items required for

orders are automatically
retrieved and delivered
in the correct sequence
for orders enhancing
productivity by 30%.

Peter Tobler,
Dematic (left) and
Bruno Spirig,
Logistics Manager SFS.

In addition to implementing a 32,000 container location Multishuttle,

Dematic also developed a world-first interface to SAP EWM and MFS
for SFS unimarket AG, providing machine control all the way down to
PLC level, making SAPs R/3 ERP system a true end-to-end solution.

Dematic Multishuttle: Up to 1000 cycles/hour

A key contributor to this significant improvement
is the sites integrated Dematic Multishuttle
automated storage and retrieval system (ASRS).
Five aisles incorporating 17 levels are each
serviced by three Multishuttle cars, providing a
handling capacity of up to 500 put-away and 500
retrieval cycles per hour.
The Multishuttle cars transfer between levels
using lifts located at the end of aisles.
The double-deep system provides a total storage
capacity of 32,000 container spaces. Three
container heights and compartments result in 18
different container types, enabling a large number
of SKUs to be stored space-efficiently.
In total, the Multishuttle houses close to 50,000
articles, with the typical throughput of around
4,000 items per day rising to 5,500 during peak
periods. Employing the highly efficient Goodsto-Person principle, an integrated conveyor
system delivers the containers to the appropriate
picking station.
A feature of Multishuttle compared to conventional
ASRS solutions is that it does not take up any
valuable floor space within the warehouse, being
located on the second level of the facility.
World-first SAP process control integration
SFS unimarket AG utilizes SAP EWM (Extended
Warehouse Management) and SAP MFS
(Material Flow System) to manage inventory and
warehouse operations.

As one of only a few distinguished SAP

implementation partners specializing in
warehouse logistics, Dematic was commissioned by SFS to conduct a feasibility study.
Its aim was to demonstrate whether and how
the process control system, consisting of
SAP EWM and SAP MFS, could enable direct
selection of programmable logic controls (PLC)
for the mechanical equipment and the new
warehouse processes.
This was an important conclusion for us, said
Dietmar Kabasser, Head of SAP Competence
Center WMS. Every process from deconsolidation and goods-in additions to existing
stock, through Multishuttle put-aways and
removals, as well as the supply and control
of picking bins and packaging stations, up to
material flows in the bulky goods and pallet
long-load store are managed and mapped
through dialogs in EWM and MFS, explained
Mr Kabasser Next to the connection to our
SAP ERP, the EWM and MFS configurations in
SAP standard, safeguard the systems release
capability at SAP level.
Dematic was awarded the contract as general
contractor for the system design, mechanical
equipment, PLC control technology and the
structure of the IT system everything from a
single source, explained Mr Kabasser.
We have successfully achieved our goals with
regards to increased productivity, flexibility
and a future-oriented solution. The Dematic
solution will now form the template for a rollout of standardized technology for all of our
warehouses around the world, said Mr Kabasser.
Within a couple of weeks from start-up, it was
clear that the warehouse would achieve its
target of a 30% increase in productivity. We
are very pleased with the outcome, he said.

The Dematic
solution will now
form the template
for a roll-out of
standardized
technology
for all of our
warehouses
around the world

SFS unimarket AG, a leading supplier of fasteners,

tools, architectural hardware, chemical and
technical products in Switzerland and neighboring
countries, has increased order fulfilment
productivity by 30% since commissioning a new
warehouse at Rebstein.

Dietmar Kabasser,
SFS services Manager

DEMATIC LOGISTICS REVIEW

COVER STORY
DEMATIC SAP SUBdriver

Warehouse control solutions

integrated process control

new sap interface

drives REAL-TIME
machine control
Dematic
is one to
of come
the leading implementation
Intro copy
partners of SAP regarding WMS solutions.
The SFS unimarket AG project was significant in
that this was a unique and world-first application
in which Dematic was able to directly interface
materials handling equipment and systems into
the world of SAP using SAP EWM and SAP MFS.
SAP EWM (Extended Warehouse Management)
Part of mySAP Supply Chain Management
(mySAP SCM), SAP EWM supports inventory
management and goods movements in warehouses.
The multi-tenant warehouse management solution was designed for large warehouses with
complex processes. Inventory management and
goods movements are closely integrated.
EWM solutions implemented by Dematic meet
the customers requirements to utilize standard software that has been customized to meet
their needs. Using SAPs Material Flow System,
automated warehouse processes can be driven
directly by SAP EWM.
SAP LES (Logistics Execution System)
SAP LES is part of SAP ERP, respectively SAP
R/3, and an important component of SAPs supply chain management solutions. The application scope of this component includes manual
and automated warehouses. Besides management of inventory and resources, LES supports
the complete handling of customer orders, including picking. Dematic has already carried
out many migrations to SAP LES and proven its
know-how and integration skills.

DEMATIC LOGISTICS REVIEW

Direct PLC link with SubDriver

Dematic SubDriver consists of two elements:
one part is the Material Flow Control needed
for SAP LES implementations to be connected
directly to PLC level. The second part is a hardware controller, located in electrical cabinets,
which transfers the protocol of the SAP-world
into the protocol of the PLC-world. The advantage of this solution is that middleware is no
longer applicable and a technological breach
when operating different software systems can
be avoided. The SubDriver hardware is compatible with SAP EWM and SAP LES.

TECHNOLOGY
TECHNOLOGY
mixedcase
casepalletizing
palletizing
mixed

ELIMINATING TRAVEL: Full CASE

order assembly

automated mixed
case palletizing
We preview two new Dematic technology breakthroughs that
revolutionize the speed, safety and efficiency of both manual
and automated mixed case pallet assembly.
Until recently, the only way to assemble a pallet
containing many different SKUs (stock keeping
units) was to do it manually. But as logistics professionals know, repetitive and heavy tasks are
both physically demanding and costly. And, unless mixed case pallets are carefully assembled
by experienced personnel, the resulting stacks
of goods may be unstable, risking product damage
during transport and adding to transport costs by
taking up more cubic space than necessary.
Driven by OH&S concerns and skills shortages,
there is an increasing demand for smart solutions that take mixed case palletizing in a new
and exciting direction.
New advances in software, robotics and intelligent storage, buffering and sequencing systems
have enabled the development of two innovations designed to reduce the cost and significantly improve the efficiency, productivity and
safety of building mixed case pallets ErgoPall
Ergonomic High Rate Palletizing Stations and
AMCAP (Automated Mixed Case Palletizing).

Both systems employ a combination of automated storage, buffering and sequencing systems, advanced software and automated materials handling equipment, the main difference
being that ErgoPall still uses people to build the
pallets but in an ergonomic way while AMCAP uses sophisticated robotic palletizers.
Facilitating high rate, mixed case palletizing

Advances in software,
controls and buffering
and sequencing
technologies have
taken automated
mixed case palletizing
in a new and exciting
direction.

To process and palletize mixed cases accurately

at high speeds, products need to be fed in the
correct sequence to suit pallet assembly.
Key to ErgoPall and AMCAP was the development
of storage, buffering and sequencing systems
including Dematics Miniload and Multishuttle
automated storage and retrieval systems (ASRS).
Dematics impressive storage buffer and
sequencing technology has revolutionized the
possibilities with order assembly. Manual mixed
case order assembly, in particular, can be done
more safely and with much greater efficiency,
accuracy and productivity when goods are
presented for palletizing in the correct sequence.

DEMATIC LOGISTICS REVIEW

TECHNOLOGY
mixed case palletizing

How high rate, mixed case palletizing works

The distribution centers warehouse management system (WMS) interfaces with Dematics
WCS (warehouse control system), which controls all aspects of the order assembly process
including pallet breakdown or delayering, storage, buffering, picking, sequencing, transport
and palletizing.
When the WMS releases orders, the WCS sorts
the data and sends the pallet stock information
to Dematics PalletGenDirector (PGD) software.
PGD uses different attributes of the product
(length, width, height, weight, etc.) and stacking
criteria factors including crushability, stability
factors, volume of cases per layer, number of
layers, the layer pattern, and family group rules
unique to stores, departments, aisles and aisle
sections to determine the optimum build sequence for each pallet.

Dematic ErgoPall
Ergonomic high rate palletizing stations
ErgoPall Ergonomic High Rate Palletizing Stations enable operators (one or two per station
depending on the application) to ergonomically
build mixed SKU pallets.
The ErgoPall stations are built on a mezzanine
with integrated conveyors delivering a constant
flow of mixed cases to the operator, enabling the
operator(s) to simply slide the sequenced cases
into position on the pallet.
Lifting is virtually eliminated and, as each layer of
cases is completed, the pallet automatically lowers, enabling assembly of the next layer to begin,
significantly reducing the physical effort required,
and improving the safety, speed and quality of order assembly.
As the pallet is being lowered, it is stretch wrapped
for stability. When all of the goods required for
an order have been placed on the pallet and the
stretch wrapping completed, the pallet has a label
applied to it as it exits on an outbound conveyor.

DEMATIC LOGISTICS REVIEW

automated mi
Palletizing, however, continues even while the
built pallet is being removed from the ErgoPall
station, with only a few seconds lost in the transition. After the pallet continues down through the
mezzanine, slider plates close above it to form
a solid surface upon which the ErgoPall station
operator(s) can immediately begin stacking cases
for the next pallet to be built. Concurrently a new
empty pallet is raised by the lift to the underside
of the slider plates, which open gently transferring the already picked cases to the surface of the
new pallet, as the operator(s) continue assembling the order.
Dematic has implemented 16 ErgoPall stations as
part of a sophisticated order assembly system for
Danish supermarket giant Dansk Supermarked
Gruppen (DSG).
Requiring just 28 operators, the order assembly
system will build 250 mixed case pallets per hour,
producing compact store-friendly pallets to suit
the retailers multiple store formats.
DSGs large SKU range of more than 17,000 products adds to the complexity of the order assembly challenge with up to 100 different products
needing to be consolidated on the one pallet in
a store-friendly sequence specific to each store
and departments requirements.

The ErgoPall
stations deliver
a constant flow
of mixed cases,
enabling the
operator(s) to
simply slide
the sequenced
cases into
position on
the pallet.

Pallets of stock for the orders are then automatically delayered or manually broken down and
conveyed to Dematics high-speed Miniload
or Multishuttle storage buffer and sequencing
system. When required for an order, the necessary SKUs are automatically picked and transported in the exact sequence required to facilitate pallet assembly, typically building cube
and volume-optimized pallets with a density of
90%+ compared to 70 to 80% density for handstacked pallets.

ELIMINATING TRAVEL: Full CASE

order assembly

mixed case palletizing

Dematic AMCAP
Automated mixed case palletizing
Automated palletizing is a very efficient solution
to building pallets in high volume distribution applications. However, until recently, automated
palletizers have only been capable of handling a
limited range of SKUs and packaging types.
Now advances in software, product storage, buffering, sequencing and recognition systems, and
high speed articulated robots with more versatile
product gripping tools, have enabled the development of automated palletizing systems capable of
handling a diverse range of SKUs and packaging
types including boxes of various sizes, cardboard
trays, open or closed cartons, bagged goods and
sacks.
Capable of building a higher, more dense and
more stable pallet, with improvements in system
speed, order accuracy and store-friendly flexibility, these extremely accurate, fast and reliable automated systems can handle tens-of-thousands
of SKUs.

Optimized efficiency in the work cell

Each AMCAP cell comprises two six-axis, servodriven articulated arm robots installed on a mezzanine. Two conveyors automatically deliver the
SKUs to the work cell, at which point they are
aligned, oriented and presented to the robots for
pick up, with the two robots building each pallet
cooperatively. The combined dual-robotic cycle
of feeding, grabbing and placing the SKUs enables the systems high throughput rate of greater
than 1,000 mixed SKU cases per hour.
One of the unique aspects of AMCAP is the multi-axis, end-of-arm-tool (EOAT) attached to the
robots articulated arms. This universal tool can
handle all standard types of packaging without
stopping or changing tools.
There is no use of pneumatic suction technology,
enabling it to grip virtually any type of packaging
without product damage. As per the ErgoPall solution, once stacking is complete, the pallet is automatically lowered through the mezzanine floor
by an integrated lift, stretch wrapped, labelled
and exits the system, with only a few seconds
lost in the transition from one order to the next.

A new benchmark in
mixed case palletizing
With the emergence of
high-rate, mixed case
palletizing a new level of
flexibility, efficiency and
safety above and beyond the capabilities of
conventional automated
and manual palletizing systems has been
realized.
Improved productivity at both the DC and
the store, the ability to
deliver to multiple store
formats, increased accuracy, reduced labor
and optimized transport
costs are just some of
the benefits Dematics
ErgoPall and AMCAP
systems deliver.

DEMATIC LOGISTICS REVIEW

adidas
manchester, uK

adidas
scores
supply
chain
goals
with
AUTO
DC

A powerful combination of network consolidation

and prudent investment in warehouse automation
has resulted in a high performance supply chain
for global sportswear brand adidas.

10

DEMATIC LOGISTICS REVIEW

Efficient and timely distribution of its state-of-theart sports footwear, apparel and accessories is
a critical issue for adidas, with its supply chain
having been tested in recent years by the rapid
expansion of the business.
In 2006, acquisition of the Reebok brand presented both a challenge and an opportunity to redefine and restructure its European Area North distribution operation, servicing retailers in the UK,
Eire and Benelux. Analysis of the merged companys distribution network highlighted the efficiencies that could be achieved by consolidating
inventory from five key brands adidas, Reebok,
TaylorMade, Rockport and Ashworth with logistics consolidated through a single automated distribution facility in Trafford, Manchester, replacing
four existing conventional warehouses.
The benefits that have accrued from this investment in automation is now shaping the way adidas is viewing its distribution strategy for Europe
and wider markets.
Automation allows us to handle a lot of volume in
a relatively small amount of space, which keeps
overheads down, said Tim Adams, Global Business Solutions Warehousing, adidas Group.
It also helps with labor and resource utilization
by smoothing out peaks and troughs in demand,
said Mr Adams.
However, beyond this Adams sees that in recent
years automation has become far more flexible,
enabling a range of possibilities from the picking of cartons, right down to an individual pair of
shoes. Importantly, it allows for much greater
accuracy, he said.
New picking strategies for new Trafford
The purpose built 350,000 sq ft (32,500 sqm)
DC in Manchester was kitted out within 18
months. Dematic worked with adidas to create
a dynamic, space and cost-efficient warehouse.

ELIMINATING TRAVEL: SPLIT CASE

GOODS-TO-PERSON ORDER PICKING
The high rate put stations
enable the operator to
concurrently
pick up to 24
orders at a time.

Incorporating high rate put stations, they enable

the operator to concurrently process up to 24
orders at a time. With pick rates averaging 500
units/hour, and the capacity to process up to
1500 units/hour, adidas can now pick more than
40,000 split case items a day.
Eliminating pick faces and replenishment
It soon became apparent that the system was
easily capable of coping with not only the slow
moving goods, but the vast majority of split
case goods too, enabling adidas to reduce the
area allocated to manual picking by two thirds.
With over 70,000 SKUs, the pick face for a manual operation would have been massive and, given
the seasonal nature of our business, we would
have been continually changing it automation
improves efficiency three fold, said Mr Adams.
Space efficient pallet storage
The bulk store is a 20,000 pallet location, fully
automated high-bay operation equipped with
five Dematic pallet cranes. Palletized loads leaving the high-bay are either destined for dispatch
or may move to one of four stations for carton
picking operations.
High density tote and carton storage
The fully automated Dematic Miniload store has
over 300,000 locations and is accessed by 12
cranes, each equipped with a double-deep load
handling device designed to handle four different-sized loads simultaneously. The system can
perform an impressive 800 dual cycles per hour.

Tim Adams,
Global Business
Solutions Warehousing,
adidas Group

With over
70,000 SKUs,
the pick face
for a manual
operation
would have
been massive
and, given
the seasonal
nature of our
business,
we would
have been
continually
changing it
automation
improves
efficiency
three fold.
Tim Adams,
Global Business
Solutions, adidas

The integrated design features large automated

pallet and tote automated storage and retrieval
systems (ASRS), together with a highly efficient
goods-to-person (GTP) picking system.

Automated tote picking

Cases are directed to tote decanting stations
and then on to the high rate put stations by Dematics DC Director warehouse control system.
Each of the four high rate put stations has 24
put-to locations for customer orders, enabling
up to 24 individual orders to be processed at
a time. The Miniload and integrated conveyor
system provide a smooth flow of items to the
picking operator in the precise sequence to fulfil
order requirements. As totes or cartons arrive at
the picking stations, they are elevated into position ready for the operator.
High rate put station operation
A screen provides instructions with a put-tolight system on each order location identifying
which of the 24 order totes to put the item(s).
Completed orders are pushed onto a take-away
conveyor and transported to packing stations
or, in the case of partially completed orders, are
sent to an automated buffer awaiting completion of the order.
To ensure accuracy, every split case item is
scanned before packing into a dispatch carton
at one of the DCs 22 packing stations.
Directing warehouse control
Control of the automated facility is managed by
DC Director, integrating with adidas Manhattan
Associates WMS.
DC Director is a lot simpler to use than other
systems Ive seen, said Stuart Jones, Project
Manager, Global Warehousing for adidas Group.
Dematics software team were most accommodating, easy to work with and very inventive at
getting the most out of the system.

DEMATIC LOGISTICS REVIEW

11

Jiangsu Tobacco
Xuzhou, china

integrated
Distribution
for chinas jst
Jiangsu Tobacco has built a chain of modern distribution centers (DCs)
in Jiangsu province. In this issue, we feature JSTs DC at Xuzhou,
which includes staging for receiving and dispatch, bulk and reserve
storage, full carton, split carton, and promotional/special picking areas.

12

DEMATIC LOGISTICS REVIEW

moving the orders to zones

zone routing
Dematic has developed a chain of automated
distribution centers (DCs) capable of handling
JSTs order fulfilment and distribution requirements. Each DC, located strategically within the
Jiangsu province, combines pick-to-light, zone
routing, A-frames and, in some cases, ASRS, to
provide highly efficient and accurate order picking.
Higher than expected productivity
Originally planned to distribute up to 300,000
cartons/day, the system implementation has
enabled the DC capacity to reach up to 390,000
cartons/day with a picking accuracy over 99.8%,
and the order fulfilment period reduced from an
initial ten hours to one shift.
The success of the implementation has enabled
JST to alter its distribution model, allowing it to
deliver to all shops instead of only authorized district shops.
Working together to develop a better solution
Prior to bidding for the project, Dematic worked
closely with JST to identify and collect information such as inventory statistics, customer and
order data, as well as the requirements and expectations for the distribution center.
In researching and developing its integrated materials handling solution, Dematic reviewed JSTs
current methods and procedures, warehouse
practices, order characteristics, and a host of
other factors that could influence possible solutions. During six months of close communication,
Dematic completed a comprehensive overview of
JSTs business, and the tobacco industry in China.
JST distribution
More than 8,000 orders are completed each day
with JST fulfilling a three-day order cycle to service 40,000 plus retail outlets.

There are more than 100 SKUs plus promotional

products, with just 15% of the SKUs responsible
for 70% of sales volume. JST is reviewing the
number of SKUs in an effort to improve production efficiency.
Two tier picking strategy
Picking strategy plays a key role in Dematics
design with the system including automatic
picking, for small and residual picking quantities, and manual picking for high volume multiple 5 order lines.
The result is a picking solution including an Aframe capable of picking at least 15,000 cases/
hour automatically and a highly productive and
flexible manual pick-to-light system capable of
picking at least 36,000 cases/hour. The automatic and manual pick areas are linked by an
integrated conveyor system, with tote bins transporting orders through the DC all the way to the
customer, providing a secure and recyclable carrier.
The tote bin can be inducted in either area, depending on where the picks are, and the system
tracks the bin to balance the workload in the manual pick area. Each tote bin travels automatically
to the QA area where the PickDirector system
enables order checking and positioning of the
dispatch label used for sorting the bin and delivery to the customer.
Meeting China Tobacco Board requirements
The China Tobacco Board requirement for case
coding to easily identify product at the retail outlet was integrated. Provided by third parties, laser etching is applied on the end of the cases in
the tote, prior to sorting. A pop-up wheel sorter
provides 18 sort destinations for the primary sort,
with a secondary manual sort into reverse drop
sequence within each transport route.

DEMATIC LOGISTICS REVIEW

13

FOSSIL
DALLAS, TEXAS, USA

Fossil Maximizing
Sortation flexibility
Handling 25,000 SKUs and shipping 80,000 fashion accessories daily, Fossil
knows how to get the most out of its sortation system, with the DCs cross-belt sorter
doing triple-duty orders are routed through it three times before shipping to 350+
company-owned stores throughout the USA and in over 90 countries worldwide.
Fossil: a name worth watching
Most of us know the name Fossil, those wonderfully designed watches that replicate styles reminiscent of earlier time periods.
But not all of us know that Fossil, Inc. started out
as modest watch design shop in the 1980s, and
subsequently grew into a world-leading billion
dollar global design, marketing and distribution
company specialising in consumer fashion accessories.

14

DEMATIC LOGISTICS REVIEW

Central to Fossils operation is its 517,000 sq ft

(48,000 sqm) distribution center (DC) in Dallas,
from which it distributes fashion accessories
daily to department and specialty retail stores,
watch and jewellery retailers, and direct to customers around the world. Handling more than
25,000 fashion accessory SKUs, including an extensive line of mens and womens watches, jewellery, handbags, small leather goods, belts, sunglasses, footwear and apparel, the DC also distributes products to 350+ company-owned stores.

Batching orders & sorting them out

batch pick & sort
Cross-belt sorter does triple duty
Fossils DC is using a Dematic high-rate crossbelt sorter to facilitate multiple distribution functions including picking, put-to-light and packing/
shipping.
The companys ERP (enterprise resource planning) system initiates orders into its WMS (warehouse management system). The WMS interfaces with Dematics warehouse control system
(WCS), which manages both order and material
flow achieving a high level of machine and information integration.
Sorting batch-picked goods to discrete orders
The first application for the cross-belt sorter is
when batched orders of product are picked, put
into totes and inducted to the cross-belt sorter.
The batched orders may first be sorted to the
Value Added Services (VAS) area, or they will be
sorted to one of 22 put-to-light stations, where
the batched orders are broken down to individual
order quantities.
Fossils put-to-light stations use electronic displays to instruct the operator where to put each
item.
The operator scans each product and the illuminated put-to-light displays at each location indicate which containers require that product and
how many items to put. Confirmed put results
flow back through the system in real-time to update Fossils ERP inventory levels.

The cross-belt
sorter has passed
the five-year
benchmark ...
and we fully expect
it to continue to
execute these multifunctional operations
at its high level of
performance for
many years to come.

The totes for each store/customer then go back

onto the cross-belt sorter, where they will be diverted to one of 33 pack-out stations. Once the
items are packed, the cartons are routed back
through the cross-belt sorter a third time where
they will be diverted to one of five shipping lanes.
Flexibility and functionality increases ROI
Having the cross-belt sorter perform multiple functions like this is very cost-effective, said Dematics
Joseph A. Cianfarani.

If a different sorting system was used for each of

the three functions, it would only be used part of
the time. By using the cross-belt sorter for three
different purposes, Fossil is getting the best possible utilization of the equipment and optimizing
its return on investment (ROI), he said.
We are constantly evaluating our workload and
process flows, said Fossils Craig Flournoy.
We are able to quickly shift around workloads
and staff to meet our ever changing production
needs. At any given time products from retail,
wholesale, direct-to-store and ecommerce could
be in process. The flexibility of our IT and sortation systems makes this possible, he said.
Cross-belt sorter performance
Our throughput is 80,000 units a day on average,
said Mr Flournoy.
Between 5,000 and 8,000 cartons are processed
through the DC daily. From mid-September to
the end of November, when volumes are highest,
the DC handles more than 12,000 cartons daily.
Much of the additional volume is from direct website orders which tend to be single SKUs.
The cross-belt sorter has passed the five-year
benchmark, and it is performing as expected,
said Mr Flournoy.
We fully expect it to continue to execute these
multi-functional operations at its high level of
performance for many years to come.
Cross-belt sorters usually perform a single
function, typically sorting batch-picked goods
to discrete orders for shipping. However, at its
Dallas DC, Fossil utilizes one cross-belt sorter
for three distinct functions. It sorts packages
from Fossils pick stations, then again from its
put-to-light area, and finally from its pack-out
stations. Using one sorter to perform the functions normally done by three, maximizes sorter
utilization, and optimizes Fossils ROI.

Craig Flournoy, Fossil

DEMATIC LOGISTICS REVIEW

15

Zara (INDITEX)
MADRID, spain

zara awarded
best Logistics
Project in Spain
Success in the highly dynamic fashion industry requires fast, accurate
distribution to meet tight seasonal and promotional deadlines. With the
help of Dematic, fashion icon Zara has implemented one of the most
sophisticated, automated fashion distribution systems in the world.
ZARAs new logistics platform at Meco in Madrid
was awarded Best Logistics Project by Spanish
trade publicaction Manutencin y Almacenaje
(Material Handling and Storage Magazine), in its
2009 Logistics Prizes. The jury of the Logistics
Leaders Club recognized Dematic and Inditex for
the effective use of sophisticated technologies in
the new distribution center (DC).
A fashion icon
The first ZARA store opened in La Corua, Spain
in 1975. Stores now operate in over 400 cities
throughout Europe, America, Asia and Africa,
with more than 4,400 outlets across the world.
An icon in the world of fashion, it is one of the
industrys fastest growing stars and is highly
regarded for its ability to successfully produce,
market and distribute the latest fashions at
affordable prices.

16

DEMATIC LOGISTICS REVIEW

Coping with success

Having experienced spectacular growth, ZARA
built a major new distribution center (DC) at Meco,
featuring a floorspace of 1.8 million sg ft split into
three levels, and with a capacity to process 80
million items a year in three daily shifts.
The Dematic Espaa team, in close collaboration
with Inditex Logistics Department, developed
the optimal design for an automated sortation
system matching the ZARA business model and
logistics strategy.
The high reliability and accuracy of cross-belt
sorters has seen them firmly establish their
position as the technology of choice for the
automated sortation of high volume split and full
case items.

Batching orders & sorting them out

batch pick & sort

Manuel Muoz,
CEO Dematic
Southern Europe,
recieves the award
from Blanca
Sorigu, General
Manager of SIL
(International
Logistics Fair Barcelona, Spain).

DC design

Carton conveyor system

Dematics design is based on the batch pick and

sort concept and includes a Double Deck crossbelt sorter for split case items, another cross-belt
sortation system for boxes, a special exit chute
concept for order assembly and an automated
warehouse with 15 Miniload cranes.

Complete sortation system consisting of two

cross-belt double deck sorters that are capable
of conveying and sorting any type of item
bi-directionally, using one or two of its cells
depending on product size. Operating in dual
mode, it is capable of sorting 80,000 units/hour

Dematic soon received an order to duplicate the

installation, again with a 15-month delivery date,
with both phases delivered and operational
within ZARAs deadlines.

A shipping and cross-docking cross-belt sorter

system for boxes

DC distribution systems overview

Two automated warehouses with capacity
to hold more than 450,000 boxes, with 30
Miniloads fitted with three double deep
extractors handling all incoming and outgoing
traffic

1000 chutes, 500 for each of the two sortation

systems used to pick the orders.
Utilizing this complex and extensive distribution
logistics platform, ZARA is able to fulfill its supply
chain objectives by dispatching any order originating from its European stores within 24 hours,
and 48 hours for the rest of the world.

DEMATIC LOGISTICS REVIEW

17

foodstuffs
wellington, new zealand

Foodstuffs is New Zealands largest grocery distributor, and one of the countrys largest organizations. Three regional co-operatives provide a
comprehensive range of order fulfilment and distribution services to a growing number of retail and
wholesale operations throughout the country.
Each of the regional co-operatives is owned by
its retail members, and operates independently.
Foodstuffs (Wellington) Co-operative Society Ltd
Foodstuffs supplies goods to over 170 grocery
and liquor outlets across the lower North Island.
These include 46 New World and 14 PAKnSAVE
retail supermarkets, 94 Four Square, two Shoprite and three Write Price stores, as well as a
growing number of Liquorland, Henrys Beer
Wines & Spirits and Duffy & Finns liquor outlets.
Toops Wholesale Limited fulfils the distribution
requirements of the hospitality and foodservice
trades, dairies, service stations and institutional
customers, who have the choice to shop cashn
carry or have products delivered direct.
Supply chain remodelling
Foodstuffs General Manager Operations, David
Couper, said: We started planning to consolidate our various distribution operations under the
one roof more than five years ago.
Having analyzed the labor market, population
spread, demographic changes in the region, and
other issues such as the origin of the stock that
is supplied to the DC, plus the availability of land,
we decided that Palmerston North, with its close
proximity to the state highway network, was the
ideal location for a centralized DC.
As a result of opening Roberts Line, we have
been able to close five warehouses, with further
initiatives including plans to sub-let the Silverstream warehouse in due course and install automatic milk handling machines at our Grenada
and Mihaere Drive distribution facilities later in
the year, added Mr Couper.

FOODSTUFFS
new NZ dc
delivers
the goods
18

DEMATIC LOGISTICS REVIEW

Foodstuffs (Wellington)
Co-operative Society Limiteds
new $70 million Distribution
Center (DC) at Palmerston North
incorporates the latest advances
in order fulfilment, and sets a new
standard for grocery distribution
in New Zealand. The 325,000 sq
ft DC has enabled Foodstuffs to
centralize its ambient distribution
requirements through one facility,
providing significant supply chain
benefits and cost savings.

ELIMINATING TRAVEL: SPLIT CASE

GOODS-TO-PERSON ORDER PICKING
Fast start up
The DC commenced operations in February 2010
with throughput ramping up to the official opening on April 6, 2010.
Housing more than 15,000 SKUs, the DC provides storage capacity for more than 30,000
pallets. Stock is stored in a variety of rack configurations, with separate storage areas provided
for aerosols and dangerous goods, and a further
caged area for secure product storage.
Voice & RF case, layer and pallet picking
Orders for full cases, layers and pallets are processed using a combination of RF and voice-directed picking, with the DCs workforce equipped
with an all-electric fleet of 80 forklifts, stockpickers, reach and pallet trucks.
NZs first GTP split case picking solution
However, it is Foodstuffs innovative approach to
split case order fulfilment at the Roberts Line DC
that breaks new ground in New Zealand.
While split case orders may only represent
around 15% of throughput in terms of volume,
processing the orders has traditionally been one
of the most labor intensive and time-consuming
aspects of distribution for Foodstuffs.

Dematics
automated
picking system
has more
than doubled
productivity,
with operators
capable of
picking over
1,200 items
per hour.

As the totes arrive at the workstations,

they are automatically tilted to make it
easier for the operator to access and
handle the SKUs inside.

David Couper,
GM Operations,
Foodstuffs

Foodstuffs solution to the costly problem has

been to implement New Zealands first Goodsto-Person (GTP) picking system to handle the
bulk of split case orders.
Housing 33,000 totes in a footprint measuring
just 132' x 280', the 33' tall Dematic Miniload
ASRS is the storage engine that drives Foodstuffs new split case picking solution.
Totes containing split case items required for orders are automatically retrieved by the Miniload
and delivered by integrated conveyors to a series
of six ergonomic RapidPick workstations.
Each of the workstations is configured to enable batches of up to 21 discrete orders to be
processed concurrently, making it possible for
Foodstuffs to process up to 126 orders at a time.
Directed by Pick-to-Light (PTL) displays on each
order location, operators simply transfer stock
from the totes containing the SKUs to the order
shippers in a Pick and Put process.
When a shipper is full or the order has been completed, the operator prints and applies a label to
the shipper. The shipper is then pushed down
the flow lane to the rear of the workstation where
it will be collected and consolidated with other
goods for the customer, before being transferred
to dispatch.
Dematics automated picking system has more
than doubled productivity, with operators capable
of picking over 1,200 items/hour, said Mr Couper.

DEMATIC LOGISTICS REVIEW

19

NEWS, PRODUCT,
PRODUCT,
TECHNOLOGY
TECHNOLOGY
& Software Review

new techcenter
opens
Dematic opened a new TechCenter in Offenbach, Germany in 2010,
that replaced an existing center. Dematic also has a TechCenter
located in Grand Rapids, Michigan, and Salt Lake City, Utah
The TechCenter is dedicated to research and
development, and is designed to show industry
examples of best practice and innovation in
logistics systems technology, showcasing
some of the latest technologies and techniques
available from Dematic including:
AMCAP: an automated system for assembling
mixed case pallet loads
ErgoPall: an ergonomic manual system for
assembling mixed case pallet loads
DC Director: new warehouse control software
RapidPick: a new ergonomic workstation used
in increasingly popular Goods-to-Person order
picking solutions
Multishuttle : an automated system for storing,
buffering and sequencing goods, and a new
Multishuttle Move prototype, which utilizes
Multishuttle carts as automated guided vehicles.

20

DEMATIC LOGISTICS REVIEW

The TechCenter has been set up so that

continuous material flows from goods storage
via sequenced picking, price marking, order
consolidation and buffering, right through to
optional fully or semi-automated palletizing and
dispatch consolidation, are possible using items
such as bins, trays, cardboard boxes or pallets.
The opening of the TechCenter was incorporated
into a logistics congress with speakers from the
scientific and business sectors. Guests seized
the opportunity of learning first-hand about
current trends and requirements in intralogistics
from specialists including Prof. Dr. ten Hompel
from Germanys Fraunhofer Institute.

goods to
person (GTP)
order Picking
how it works
Totes containing SKUs for
orders are retrieved from an
ASRS and transported by
conveyor to the workstations
in the correct sequence for
efficient order assembly.
The totes are scanned as
they enter the workstation.
A monitor at the workstation
indicates the pick quantity for
the tote and order.

Rapidpick
erGonomic
Picking stations

For picking stations capable of

processing batches of up to 24
orders at a time, Pick-to-Light
(PTL) displays indicate the
location and quantity of SKUs
required for each of the orders
being processed concurrently.

Outstanding picking rates of up to 1,800 items per hour

are made possible through the innovative configuration of
the picking stations, which can be fully tailored to match
operators individual requirements.
Operator platforms and work tables are height
adjustable and the picking stations also feature
optimal workplace lighting, large and comfortable
operating controls and acknowledge buttons.
Height and angle adjustable display screens
provide visual management of the pick processes.
Its multicolor, high-resolution screen displays
simple, easily understood symbols for article

The workstation operator picks

the indicated quantity and puts
the quantity into the relevant
shippers.

volumes, photos of the products to be picked,

and a 3D description of the positioning of the
picks in the order carton. All these features
contribute to fast, accurate and safe order
picking without errors. Check weighing can
also be integrated to further improve accuracy.
The result: highly flexible, non-fatiguing
working conditions, with reliably high picking
rates.

When the required quantity

of SKUs has been removed
from the tote, the operator is
informed that picking for the
SKU is complete. The operator
releases the tote, which will
be transported to the next
workstation requiring that SKU,
or be returned to the ASRS if
no further SKUs are required.

DEMATIC LOGISTICS REVIEW

21

NEWS, PRODUCT, TECHNOLOGY

& Software Review

modular
conveyor
system MCS

Dematics new Modular Conveyor System (MCS)

expands the scope of conveying applications,
with a new and interconnecting product range
providing optimal scalability, flexibility and energy
efficiency in a modular and cost-effective package.
We designed MCS
from the ground
up to increase
operational flexibility.
As business changes,
users can make
changes to their
conveyor system
and not have to start
over with an all new
conveyor network.
MCS gives you
the ability to drop
in new conveyor
modules or change
configurations.
MCS conveyor
utilizes a universal
side channel as the
backbone for all the
conveyor models

22

DEMATIC LOGISTICS REVIEW

(there are over 30

different models).
Modular conveyor
sections available
to build your system
include: roller or belted
sections, curves,
inclines/declines,
right angle transfers,
steerable wheel
diverters, gapping units,
etc. MCS uses many
common components,
therefore simplifying
maintenance support
and reducing the spare
parts inventory.
MCS can be configured
with motorized rollers
and standard AC drives.

Carton control
is optimized with
the segmented
belt conveyor with
automatic tracking
and tensioning belts.
Controls can be
mounted onboard
and are connected
using CAN Bus.
Parameters such
as conveyor speed,
accumulation mode,
and sleep mode can
be adjusted using
local or central
controls.

logistics modernization
New technology developments and advances
in software, IT and controls make it possible for
older logistics and materials handling systems
to be cost-effectively updated to deliver high
productivity, accuracy, safety and service levels.
Change is the
only sure bet in
business. New
market opportunities,
mergers, acquisitions,
expansions: they
can all have a huge
impact on the number
and type of orders
you process.
If your logistics
and materials
handling systems
are struggling to

keep up to the task, a

tailored modernization
program could
breathe new life
into your operations,
transforming
performance,
improving reliability,
and reducing costs.
Modernization also
provides the flexibility
to reconfigure
operations to respond
efficiently to inevitable

changing market
forces and demands.
Modernization and
upgrades are often
quicker and less
expensive than new
installations. Updated
controls, software,
IT and mechanical
components may be
all thats needed to
increase operating
efficiency to meet your
current requirements.

Dematic modernization
& lifecycle support
uptime solutions
With our ongoing service and support you can
be confident you will continue to get the best
out of your investment. That means Maximizing
uptime, minimizing downtime, and knowing that
when you need to push the system hard during
peak periods, you can rely on it.
Central to this promise
is our customized
service solutions,
which provide you with
specialist, professional
support throughout
the life of your system.
We are proud of our
record of customer
support and strive to
achieve best practice.
Our technicians
are trained industry
specialists who share
their knowledge by
offering support to
your operational staff
to get the most out of
your system.

As your business
changes we also keep
an eye on the future,
continuing to work in
partnership with you
to anticipate and meet
your ongoing system
and training needs.
Comprehensive service
plans offer the level of
support you need.
No two systems are
the same and your
requirements will
be unique to your
business. Thats why
we will combine any of
our service options to
create a tailored plan
to suit your individual
business needs.

DEMATIC LOGISTICS REVIEW

23

www.dematic.com
1 877 725 7500
usinfo@dematic.com
Dematic Headquarters - United States
507 Plymouth Avenue NE
Grand Rapids, Michigan 49505

Dematic Headquarters - Global

2-8, avenue Charles de Gaulle
L-1653 Luxembourg

Offices In 20 Countries
Australia
Austria
Brazil
Canada
China
Denmark
France
Germany
Italy
Lithuania
Luxembourg
Malaysia
Netherlands
New Zealand
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Spain
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United Kingdom
United States

DEMATIC LOGISTICS REVIEW