Tag: automation|logistics|warehouse automation

Sitma, a specialist in designing and producing solutions for automation in the logistics industry, has been chosen as a case study for the book Essentials of Modern Marketing by Philip Kotler together with Weevo, which looked at more than 30 examples of outstanding Italian companies in different fields of production.

Philip Kotler, the father of modern marketing, chose to focus his study on such criteria as the propensity to innovate and the ability to respond to the needs of the market in a sustainable way.

The book was previewed on 26th November and contains over 30 case studies of exceptional Italian companies, making it the world’s first publication about marketing to focus on success stories in a specific country.

The SME Journal described the work as “the bible of modern marketing”, while the Daily Times defined it “the 21st century book about business, marketing and management”.

The book will be on sale on Amazon, but to avoid wasted paper and long-haul deliveries the printed version will only be available on request, for collection as near as possible to the shipping address. The presentation of the book took place at the H-Farm campus in Treviso, home to many successful companies, and among those present were Orsola Cavina and Denise Gibbin from Sitma’s Marketing department.

They offered the following comments: “Sitma was both honoured and delighted to play a role in Philip’s project. It’s a major recognition of the strategies the company has implemented in recent years. We’re convinced that Sitma’s opportunities for business are only just beginning, and that we’ll have a revolutionary and very considerable impact on the logistics market.”

Sitma says the reasons for its success (and so for its inclusion in Philip Kotler’s project) go far beyond just figures. Sitma’s main accolades have come from the market, which has recognised its inherent capacity to innovate over the years.

The company’s great strength has been its ability to reposition itself in just a few years, achieving excellent results in a totally new and constantly changing market: the field of e-commerce and logistics. It has also managed to find an effective way of relating to the various sectors in which it operates, anticipating trends and constantly supporting its customers, indeed becoming their real partner.

Sitma’s move into the world of logistics began in 2016 when it became the official supplier for Viapost, then went on to be a supplier for Poste Italiane in 2018. Sitma is now is a leading brand in the logistics sector, supplying flexible packaging and sorting systems to the world’s main e-commerce companies, 3PLs, logistics operators, and many national post offices in both Europe and North America.

People and ideas

The changes made by the company did not only concern its approach to the market. First and foremost, Sitma took a good look at itself. The business changed from an entrepreneurial to a managerial structure, introducing new job titles and new company departments, including the Operations Management team, the Marketing Department and the Project Management Department.

A new brand identity was gradually created alongside the process of company renewal, with the recruitment of new young professionals, keen to be part of the transformations in the market and in the company itself.

Sitma is actively pursuing its goal of becoming an increasingly green company. It has introduced processes for calculating its carbon footprint, updating them regularly in line with the latest regulations. The company has introduced improvements and reduced its CO2 emissions, and has also offset emissions by financing well-organised and accredited sustainability projects.

While Witron Logistik + Informatik GmbH celebrates its 50th anniversary this year, its UK subsidiary is also celebrating its 25th company anniversary. Founded in July 1996, the site in Stoke-on-Trent has developed from a one-person sales office into a strong team with now almost 70 employees who secure deals with new customers and serve existing customers in the UK. The subsidiary is continuously growing and is seeking many new specialists.

“It all started with a project for Universal Office Supplies”, says Jack Kuypers, Witron Senior Vice President North West Europe. “Additional cross-industry customers such as Pirelli Tyres, the Princes Group, Computacenter, Woolworth, Northern Foods, and Cepac followed soon.

“We also implemented several automated or manual logistics systems for customers such as food retailer Sainsbury’s, Bosch Siemens Hausgeräte, Tetrapak, and corrugated cardboard manufacturer DS Smith.”

For more than four years, Duncan Pointon has been responsible for the sale of automated logistics and picking systems as well as the customer support in the UK. “While the general contractor for logistics Witron was initially responsible for the design and implementation of the projects exclusively, the service portfolio has been successively expanded over the years.

“Thus, for customers such as the automotive parts distributor FEBI, the health and beauty retailer Boots, and the food retailer TJ Morris, in addition to the holistic material flow design, all IT and control components, as well as the conveyor system, the ramp-up, and individual remote and OnSite service models optimally tailored to the customers’ needs, were delivered by Witron”, explains the experienced engineer.

“Our cost-efficient, flexible, and ergonomic omni-channel solutions now have a unique selling point in the logistics world. Moreover, our customers – and we are particularly proud of this – rely on the values and culture that make Witron so unique: Rolling up one’s sleeves, keeping promises, being reliable and predictable, staying down to earth”, says Pointon, highlighting the strengths of the internationally operating family company.

Case and piece picking solutions

Witron considers itself as one of the pioneers in the UK, especially in food retail logistics and in the drugstore sector. For example, the two Sainsbury’s sites in Hoddesdon and Stoke-on-Trent continue to operate in a highly available, efficient, economical, and ergonomic manner even after more than 20 years of operation.

The Boots Store Service Centre (SSC) in Nottingham – in operation since 2007 – is one of the most dynamic logistics facilities in Europe and supplies more than 2,300 stores. On a peak day, almost 3 million pick units are picked there. The Covid-19 pandemic in particular demonstrated the enormous flexibility of the integrated Witron systems, which were modified from a pure store delivery process to a highly efficient omni-channel system within a very short time, and the warehouse now also supports Boots’ home shopping business.

In 2024, Witron will commission a new logistics centre for TJ Morris, the retailer headquartered in Liverpool. Its new client is one of the fastest-growing and best-rated UK retailers throughout Europe. While the family business currently operates around 550 shops under the “Home Bargains” brand, it is expected to be close to 1,000 in just a few years as a new store is added almost every week.

TJ Morris distributes a wide range of food, household goods, and general merchandise products. The mechanised system is designed for a daily picking capacity of 646,000 cases.

“Retailers in the UK are eager to learn about our intelligent omni-channel solutions such as the Order Picking Machinery (OPM) palletising robotics solution or the All-in-One Order Fulfilment System (AIO),“ Duncan Pointon announces.

“In the future, retailers in the UK will have to cope with a wide variety of challenges such as the availability of logistics staff, increasing cost pressure and higher logistics demands in a heterogeneous omni-channel environment. Witron’s solutions perfectly fulfil these tasks. They have been successfully implemented and utilized by market-leading retailers worldwide.”

Maximum delivery performance

High business demand, as well as the permanently growing service business, are reasons why the current office space in Stoke-on-Trent is no longer sufficient and requires a relocation within the city. That is why this year, the company will move into a state-of-the-art office on the premises of the renowned Keely University.

The move is being organised by Craig Goulding who has been working for Witron as a service and maintenance expert for almost 20 years. “Our customers can concentrate on their core business and we ensure continuously high availability of all software and mechanical components with our service teams based on a wide range of services. Thus, the logistics centres can supply many thousands of customers with goods via stores, repair departments, or online stores largely error-free every day.”

Colleagues wanted

Due to the high number of projects that Witron currently has in the sales pipeline in the UK, the company naturally requires a lot of new skilled workers. Well-trained craftspeople – electricians, mechatronics engineers, or metalworkers, as well as programmers and engineers from various specialised areas.

“And where is the best place to find them? – Right on the University campus”, says Craig Goulding. In addition to an interest in working with innovative technology and ongoing training, the ability to work in a team is a key factor. “We need team players, not lone wolves,” soccer fan Goulding sums up. “We are looking for colleagues who make the customers’ challenges their personal challenge – and are eager to solve it.”

In addition to a wide-ranging work environment in a crisis-proof and leading-edge industry, Witron is equally convincing with state-of-the-art workstations, an attractive salary, and a wide range of social benefits.

Looking ahead

A lot has happened at Witron in recent years – not only in the UK but worldwide. The Witron group is continuously growing. While Witron currently employs some 4,500 people and shows an annual revenue of €710m. Soon it will employ over 7,000 employees and sales will exceed the €1bn mark.

A new 120,000 sq m production facility for conveyor system components and control cabinets is currently put into operation at the company’s headquarters in Parkstein, a €200m investment which will more than double the company’s floor space.

“That’s why we are not only proud to look back,” Duncan Pointon and Craig Goulding agree, “but are also proud to look to the next 25 successful years. And as an attractive employer facing high demand for Witron solutions, we are sure that we can look forward to many future successes with numerous new customers and many new colleagues.”

Mercadona has ordered automated intralogistics systems from Cimcorp for four of its distribution centers – Zaragoza, San Isidro, Huévarand Sagunto – and now the first one, in Zaragoza, is up and running.

Installation and commissioning at the Zaragoza distribution centre was finalised just before Easter, which is always the busiest time of the year for Mercadona. One might assume that Spain’s leading grocery retailer would want the installation team to stay on site – in case of any issues – but trust in Cimcorp’s automation is so high that the Mercadona team has decided to fly solo.

Javier Blasco (pictured), Warehouse Purchasing Coordinator for Mercadona, says: “Our goal is to serve the orders of our stores with the highest-possible quality, and we must know how to do it on our own. We had the confidence do to it this way, because the robustness and reliability of this solution had been verified during assembly and commissioning, and our staff are trained to use it. The simplicity of the automation makes it easy to use and there is no need for a big team.”

Mercadona has ordered the same automation for four of its distribution centres. All four of the new logistics facilities will have different climate zones for packed meat products and for fruit and vegetables.

Using the same independent automation modules and scaling the amount of modules to meet the capacity needs of each individual logistics centre, Mercadona gets many benefits.

“Having modular solutions has advantages, such as all personnel knowing the installation regardless of which city it is in. Additionally, the solutions can be scaled up and the processes standardized more easily,” says Blasco. “The best part has been the sturdiness of the application; we haven’t had operational surprises with real orders and we’ve been able to provide a guaranteed service to our stores.”

Lifetime learning leads to partnerships

Last year provided many obstacles, but professional project management ensured the installation was ready on schedule and, most of all, respected the safety regulations. Jarkko Hakkarainen, General Manager of Cimcorp Iberia, says: “It is important that we are able to keep things in order even if things are not proceeding as planned. In these situations, quick response time and good adaptability are essential skills.”

Even though Covid-19 created some challenges and limitations, the installation was ready on schedule, and it was completed while respecting everyone’s health and safety. Blasco says: “The installation has really been made in the expected manner.”

Cimcorp supplied automation to Mercadona back in 2013, when it implemented a fully automated order picking system for fresh produce at the retailer’s DC in Guadix, near Granada. However the now finalised installation in the Zaragoza distribution centre is the first time that Cimcorp has acted as system integrator for the leading Spanish company.

Hakkarainen says: “Designing optimal handling and control systems is only the first step in implementing intralogistics automation. Project management is a hugely important element in the successful delivery of robotic solutions, but also in developing long-term partnerships.”

Automation secures employee and food safety

In Cimcorp’s fresh food solution there is no need for shelving, which reduces costs and enhances employee and product safety. “In our solution, overhead gantry robots handle food crates that are stacked on the floor. So when you need to clean the area, there’s no need to climb up ladders and check every shelf,” explains Hakkarainen. “Everything is on the floor, where it is safer and more ergonomic to clean.”

Food safety and a temperature controlled supply chain are always essential when dealing with groceries. “Mercadona always prioritises hygiene and quality in all products, whether in conventional or automated warehouses,” says Blasco.

Mercadona’s approach to the benefits of the automation is very human. The accuracy and quality of picked pallets, as well as shortened lead times are always reflected through the effect on people. “The biggest advantage is the reduction in errors to guarantee a better service for our stores and customers. The main benefit of automation is to secure employee safety and avoid excessive workload,” says Blasco.

Better service level through last-moment fulfillment

Although the total cost of ownership, purchase price and cost of operation affected the decision making while sealing the deal, Blasco wants to highlight that, for Mercadona, it is always about people – both employees and customers. “Even if the economic values are important, they’re not the first priority – we prioritize good customer service, taking care of our personnel and doing things in a sustainable way.”

To satisfy the diversity of delivery orders coming into logistics centres, grocery retailers need a fulfilment strategy capable of prioritising orders as they come in. Any last-moment requests entering the supply chain will demand a shorter shipping and fulfilment cycle.

“These orders have to be dealt with, without negatively affecting the rest of the fulfilment operations,” says Hakkarainen.

So how did Easter go? Smoothly and according to plan. “There were no major problems – as expected. Nothing remarkable happened,” Blasco says.

The Dutch food retailer Jumbo is realising one of the most modern automated fresh food logistics centres in Europe with Witron Logistik + Informatik GmbH. From the beginning of 2024, the 40,000 sq m facility in Nieuwegein will supply all stores in the Netherlands and Belgium with almost 2,900 different fresh items – dairy items, cheeses, meat products, tapas, salads, chilled beverages, and much more with a shelf life of at least eight days.

The central distribution centre (CDC) is designed for an initial peak picking performance of more than 850,000 pick units per day. A modular expansion for future growth is already part of the overall concept. Furthermore, additional COM robotics lines are being installed in the existing dry goods warehouse during ongoing operations.

“The expansion of our store business, the growth of online shopping, and the increase of our product range – both fresh food and dry goods – demand short response times and high process flexibility. This is where we benefit from innovative and automated logistics systems, which we can scale efficiently as our requirements grow,” explains Karel de Jong, Director Supply Chain at Jumbo Supermarkten.

In an ambient temperature range of +2°C, the Witron robotic solutions Order Picking Machinery (OPM), Car Picking System (CPS), and All-in-One Order Fulfillment (AIO) automate all material flow processes for all product groups, product sizes, and distribution channels. In the shipping area, the roll containers are consolidated and made available in a mechanised shipping buffer via stacker cranes and heavy-duty lanes – in line with the tour, in the correct sequence, and just-in-time for dispatch.

In addition to high cost-efficiency and flexibility, the logistics designers from Witron focused particularly on reduction of heavy physical processes. And it is precisely here that the use of leading edge picking and IT solutions provides significant relief. In the future, case picking onto roll containers will be handled by the OPM system with 24 COM robotics lines, in line with store requirements and without the need for personnel. An expansion to 30 COM robotics lines is already considered in the concept.

Thanks to the AIO solution, worker walking distances are reduced to a minimum despite highly dynamic piece picking processes, with tote supply and removal from the pick fronts being handled by stacker cranes and conveyor systems. Heavy and bulky products are loaded onto roll containers by the employees in a route-optimised manner – controlled via the CPS – in line with store requirements. Here, too, pallet replenishment in the pick aisles is controlled by automated stacker cranes.

All logistics areas are connected by an efficient, 14km-long conveyor network, which includes a total of 9,500 pallet store locations and more than 600,000 tote- and tray storage locations, as well as 138 stacker cranes.

As the general contractor, Witron is responsible for the design and realisation of all mechanical, IT, and control components. A Witron OnSite team ensures a permanently high system availability.

Things are going great at Jumbo. Thus, the second-largest Dutch food retailer was not only able to expand its market share to 21.5% in 2020, but also increase its sales by 15% to €9.68 billion. In addition to many stores in the Netherlands, the number of Jumbo stores in Belgium was also further expanded.

The high pace of expansion naturally has an impact on the logistics processes. Therefore, Witron Logistik + Informatik GmbH, the general contractor from Parkstein, Germany was also awarded the contract for the expansion of the National Distribution Centre (NDC) in Nieuwegein, which supplies all Jumbo customers with 14,000+ items from the dry goods assortment, in addition to the implementation of the new fresh food central warehouse.

The existing installation will be expanded by 12 additional COM robotics lines (making a total of 32 COM robotics lines) and enables store-friendly picking of 2.6 million cases per week onto roll containers by Mid-2022. With reference to the OPM area, this corresponds to almost 60% more throughput.

The entire conveyor system as well as the automated high bay warehouse, located in front of the COM machines, will also be expanded by 6,000 locations and the automated tray warehouse by 176,000 locations. The technology will be integrated into the existing building with a size of circa 45,000 sq m.

“The expansion of the logistics centre was already fully considered in the original concept phase,” explains Jack Kuypers, Senior Vice President North-West Europe at Witron. “Based on the strong growth of Jumbo and the rapidly measurable economic success of the already operational OPM system for the customer, we are realising the upgrade earlier than originally planned.

“The OPM, DPS, and CPS solutions installed at Jumbo ensure a very high store and customer service for all distribution channels. Therefore, we are proud that we could make an important contribution to Jumbo’s positive business development as a life-time partner.”

The Kroger Co., America’s largest grocery retailer, is working with KNAPP to expand the capacity and enhance the capabilities of its Great Lakes Distribution Centre in Delaware, Ohio.

In order to supply stores in the region efficiently and quickly with fresh food, the Great Lakes DC is currently being renovated to add state-of-the-art technology – including KNAPP’s OSR Shuttle Evo and RUNPICK systems – and is expected to be complete this summer.

Improved efficiency for store replenishment

The Great Lakes facility – which opened in 2003 and currently services 115 stores in central and northwest Ohio, southeast Michigan and the Ohio River Valley region – will be expanded by 130,000 sq ft during the renovation.

Tony Lucchino, Kroger’s Vice President of Supply Chain and Network Strategy, said of the agreement, “Kroger’s investment in KNAPP’s latest technology allows the Great Lakes Distribution Centre to improve efficiency in replenishing our stores, enabling us to quickly deliver fresh food to our customers. The expansion of the facility is part of the ongoing transformation of our supply chain network, and this project will more than double our capacity while delivering innovation and scalability that can grow with demand. This collaborative project will allow us to better serve customers in the region.”

Innovative combination of technologies

The site will feature a unique combination of two KNAPP technologies: the OSR Shuttle Evo storage and picking system and the Robotic Universal Picker (known as RUNPICK). The OSR Shuttle Evo store delivers groceries in an exact sequence to the RUNPICK picking and palletizing robot, which uses an intelligent algorithm to build mixed loads of full cases, packs and trays fully automatically. Specially designed for the food retail sector, the RUNPICK system relies on KNAPP’s KiSoft Pack Master software to ensure load stability, shop-friendly delivery sequencing and optimum packing density on the load carrier.

Within a single cycle of movement, the robot moves and deposits several items at the same time, thereby increasing performance. Together, the OSR Shuttle Evo and RUNPICK technologies will deliver next-generation efficiency and performance increases for Kroger’s supply chain network.

According to the CEO of KNAPP Inc., Josef Mentzer: “The technology investment in the Great Lakes Distribution Centre has been designed to add a new level of flexibility to the Kroger supply chain network and deliver a resilient approach to investments in automation.”

CLICK HERE to see the RUNPICK solution in action.