More than 99p saved

A budget retailer controls costs when moving to larger premises with the help of an intelligent battery solution from Hoppecke

When budget retailer 99p Stores decided to move to a larger warehouse and distribution centre, it was determined not to significantly increase its material handling costs. Technology offered by Hoppecke Industrial Batteries helped it make the most of its fleet, and is set to help the retailer save a significant sum over the length of the five-year contract.

Since it was founded in 2001, 99p Stores has enjoyed considerable growth, boasting 135 stores across the UK. During the recession it has thrived and the firm plans to open more outlets before the end of 2010. This growth meant that the company needed to expand into new premises at its central distribution centre in Northampton.

Operations director, Hussein Lalani says: "At around 37,000 square metres, the new warehouse at Pineham Industrial Estate, Northampton is more than twice the size of the old facility.

However, we needed to avoid doubling our handling costs when it came to moving products on and off the site." At peak times of the year, in the run up to Christmas for example, the distribution centre sees around 30,000 pallet movements per week and operates around the clock, seven days a week. A more typical week sees around 15,000 pallet movements so any MH solution needed to be able to cope with peaks in activity without compromising on efficiency.

"We operate a fleet of 42 Linde low-level order pickers and 14 articulated trucks but realised significant savings could be made by choosing the right batteries and charging system," adds Lalani.

The company was then introduced to Hoppecke and the battery systems specialist identified a number of issues that needed to be addressed if 99p Stores was to achieve its aim of improving efficiency while increasing the scale of its operations.

Hoppecke sales director, Gus Whyte, explains: "The warehouse was a very demanding environment and batteries were being charged inefficiently throughout the eight hour shift pattern.

This was leading to unnecessary downtime and excessive wear on the batteries.

"Furthermore a lot of damage was being done to the charger plugs, with drivers accidentally knocking into them." Hoppecke installed a new charger system that was clear of the floor to help avoid accidental damage. The Trak Air High Frequency charger system is capable of charging 32 batteries at any one time and incorporates a 'call forward' function that signals to operators which battery is to be used next.

"It also benefits from a downloadable information system that allows managers to effectively monitor performance and to identify any problems or issues," adds Whyte.

The high frequency charger is said to be around 30 per cent more energy efficient than traditional systems.

In addition to the charger, Hoppecke supplied 82 Track Air batteries and the company will also provide ongoing technical and maintenance support.

Lalani says: "The complete system was only installed in May 2010 but we are already on target to save around £50,000 this year. Over the length of the contract we expect to save around £250,000 in electricity costs alone. On top of this further savings will be made through reduced wear and tear on our trucks, reductions in downtime and the fact we will no longer need to bring in extra trucks to cope with peaks in demand.

"Equally important to us is the overall service we have received from Hoppecke. The core products were delivered ahead of time, on budget and the system was installed in less than a week, a tight timescale for such a complex project. Gus also took the time to work with staff to develop new working practices that have helped us to gain maximum benefit from the new system and reduce the risks of accidents and damage to equipment.

"He has always been on hand to share best practice while offering practical help and advice. He really knew what the issues were on the shopfloor and looked at the whole operating environment rather than just concentrating on the product.

"What impressed us most is the fact that Hoppecke does not just sell batteries and chargers, it offers a complete service that has enabled us to gain maximum benefit from its products."