Avoiding growing pains

Retailer Xenos has grown considerably over recent years. The retail chain currently has around 300 stores throughout the Netherlands and Germany, but already has ambitious plans to expand even further. The company is aiming for 400 stores by 2020, with the majority of growth coming from Germany. In order to facilitate its ambitious growth plans, Xenos decided to extend its distribution centre (DC) in Waalwijk, the Netherlands. 

“The extension was necessary for us to stay at the forefront of one of the most competitive segments within the retail sector, and also to enable us to continue offering our customers a wide and varied range of products,” states Arthur Böhmer, supply chain manager at Xenos. The product range is likewise expanding at a significant rate; by 2020 Xenos expects to be carrying 5,500 SKUs, a 37.5 percent increase on today’s range.

In addition to extra warehousing space in Waalwijk, a larger dispatch area was needed in order to handle deliveries to the growing number of stores. Furthermore, extra capacity was necessary in the receiving department so a two-shift system was introduced to maximise the use of available floor space.

Böhmer found the right system at Swisslog, who in the role of main contractor subsequently took charge of the whole project

“We wanted a shuttle system because that was most closely aligned with our processes based on our capacity and assortment,” Böhmer explains. “The Swisslog solution not only offered the required capacity but also had the sorting system we wanted. Moreover, we’d previously worked with Swisslog and we were satisfied with the service received ; in 2006, the company realised a satellite warehouse for us with three cranes, space for 20,000 pallets and a complete sorting process for received goods. We knew Swisslog to be a good sparring partner who proactively suggests solutions and provides excellent support, and we weren’t disappointed this time either.”

Swisslog completed the new high-bay warehouse in record time. With a height of 36 metres, it can hold 22,500 pallets which are stacked and retrieved quickly and efficiently using six Vectura pallet stacker cranes. The cranes are specially designed to handle a double-deep pallet storage layout.

The new operation facilitates further growth without requiring investment in extra employees, who are increasingly hard to find. Furthermore, the goods-to-man system enables Xenos to continue to pick the orders in line with the family grouping principle. “That creates savings throughout the entire supply chain. At store level it saves three to four hours per delivery and per store, and the productivity has also increased in the DC. For example, our pick performance has improved by more than 50 percent,” asserts Böhmer. With the new system, each station can perform up to 500 picks per hour. Thanks to the two weight checks, the error percentage has decreased further. “In fact, so far we’ve stayed completely error-free,” confirms the manager. As an added bonus the system has dramatically reduced the Xenos order pickers’ average walking distance, which previously used to be more than 1,000 metres per order.

Quite a catch

CatchOfTheDay is Australia’s number one eCommerce group, selling on average one item every second, 24 hours a day, seven days a week. IT has expanded rapidly and needed to implement an automated warehouse platform to enable the business to continue to grow and diversify.

After exploring the latest proven technology, Swisslog’s AutoStore solution was selected for CatchOfTheDay, making them the first company in Australia to implement this state-of-the-art storage and retrieval system.

AutoStore utilises a grid-like structure that provides high density storage and uses robots to access the goods stored in the bins beneath. The CatchOfTheDay system is made up of 25,000 bins and is served by 70 robots, allowing for high levels of activity within minimal space. Goods-to-person picking is carried out at four pick stations and there are also five multi-purpose stations that can be used for picking or receiving. The total warehouse solution also includes a light goods conveyor system and zone routing. WMS and controls are also supplied by Swisslog with WM6, AutomationManager, MFCS, SPOC and Quickbox Controls.

The solution was fitted in the existing building and was completed in less than a year.