WITRON has designed and realised the omnichannel distribution centre of Migros Verteilbetrieb AG (MVB) in Neuendorf, near Basel, Switzerland.
According to the project manager for MVB, Alexander Schweizer, the facility belongs to the "unmitigated Champions League" and is one of the most dynamic logistics centres in the world.
The main building, which houses the near- and non-food area, supplies more than 700 stores and many thousands of home-shopping customers from a range of more than 100,000 items per year.
On a peak day, WITRON’s OPM, AIO, and CPS systems pick more than 470,000 cases.
Successful Brownfield / Greenfield Installation
To ensure that everything can be handled cost-efficiently, in line with consumer needs, and ergonomically, Migros and WITRON integrated end-to-end automated and semi-automated logistics solutions, both as brownfield solutions into the existing buildings and in newly constructed logistics areas.
Schweizer explains, “It was one of the bigger challenges implementing the new automated logistics systems into the existing material flow in terms of mechanics and IT during ongoing operations. At the same time, our manual order-picking processes continued to run.
“Despite the new installation, we still had to make daily deliveries. That was the prime directive. Thus, some reconstruction activities had to be interrupted from time to time, and time schedules had to be flexible. Ongoing operations always had top priority, so that we could deliver on schedule at all times."
Before the project commenced, MVB had approximately 10 to 15 picking modules and each picking module produced its own pallet.
The pallets were then gathered in a consolidation area, and any pallet that didn't meet the required filling degree was consolidated.
This process required significant organisational and manual effort, making it quite unergonomic.
The problem was solved with the introduction of WITRON's solution, as all systems – OPM, AIO, and CPS – are fully integrated through IT and conveyor technology.
Schweizer adds, “All picking and consolidation processes both in the store and online business are now controlled by process technology and carried out automatically or semi-automatically.”
Existing building parts, storage areas, and mechanical elements have been integrated into the overall process as far as possible.
End-To-End Process For Store And Online Business
The OPM solution implemented by WITRON is a fully automated case picking system, with the only employees in the area being those who remove the stretch wrap from the pallets.
All other material flow processes are fully mechanised, and the OPM system covers around 5,000 items.
For the piece-picking system All-in-One Order Fulfillment (AIO), items are picked for both the store and online business.
Schweizer adds, “The AIO handles small-volume items, which are stored in a tote AS/RS, as well as C-items – a pink lipstick, for example, that is probably needed at carnival. The output of the AIO and OPM is roughly the same throughout the day. The big difference is that we do not have 5,000 items in the AIO, but 40,000 different items.”
High Flexibility Is The Key To Success
For Alexander Schweizer and his colleagues, the combination of OPM and AIO is the heart of their new system, and they are confident that they are well-prepared for both a changing product range and more demand from online channels.
Schweizer added, “The system is running successfully. We have achieved a remarkably high level of process flexibility, can change quickly, and adapt our logistics processes to ever-new demands. This is exactly what makes the difference!
“The merging of stationary and online business is constantly growing. Product ranges are changing very quickly. The pick performances during Christmas promotions and 'Black Fridays' are partially 10 times the quantity of a normal weekday, especially when it comes to home shopping orders. But we can manage these challenges with the WITRON system.”
Additional benefits include a reduction in logistics and transport costs, enhanced flexibility in responding to store demands for pallet design, and devising better compromises to meet the needs of both the sales and logistics departments.
Schweizer states, “The new solution has also improved ergonomics for our employees. Lifting, carrying, and awkward walking routes are almost completely eliminated – in the logistics centre and the store.”
New Frozen Food Logistics Concept As Brownfield Solution
In the frozen food logistics section, WITRON has replaced a competitor’s picking system and integrated its OPM system into the existing building.
The receiving and shipping area, as well as the pallet high bay warehouse from the previous solution, were retained.
Now, 10 COM machines are operated in the section, at -25 degrees Celsius.
“We currently supply more than 1,400 stores from a range of 2,200 items with the system and pick up to 100,000 cases onto pallets and roll containers on a peak day. We still have room for expansion, as WITRON has already considered the installation of additional COM machines in its design concept," Schweizer says and adds, “Everyone who has once played in the Champions League, wants to stay in the league.”
Next Steps: OPM Expansion At The Suhr Site
For the next project, Schweizer is moving one logistics centre further to Suhr, where Migros Verteilbetrieb AG has been working with a WITRON OPM system for its dry goods range since mid-2011, supplying over 600 stores with more than 315,000 cases daily.
At the end of 2015, an automated solution for the fresh produce and convenience area was integrated into the existing building, which is used to pick almost 120,000 cases daily.
Schweizer states, “Due to the expected growth, we need to expand our picking capacity in the dry goods range in order to guarantee our customers the usual high level of store service and to be able to continue to pick 100 percent of the items fully automatically.
“The decision was therefore made to integrate 14 additional COM machines. 28 COM machines are already operated there.”
This article was written in partnership with WITRON.
