Iceland Foods Opens Warehouse

Iceland Foods has opened the doors to a 500,000sq ft warehouse in Warrington which will be operated by GXO Logistics. The £100m facility will employ more than 750 people.

Located at Omega Park, the new site is Iceland’s largest warehouse to date. It will serve as a major hub for distributing products to over 350 Iceland stores nationwide, with the potential to expand its reach to 500 locations in the future.

The warehouse, which includes ambient, chill, and frozen chambers, has been designed with future growth in mind, incorporating state-of-the-art technology to drive efficiency and ensure a resilient supply chain.

Iceland’s investment also supports a more sustainable operation, with the site partly powered by solar panels to increase green energy consumption.

Tarsem Dhaliwal OBE, Iceland Foods chief executive (pictured right), said: “We’re always looking at ways to make our business stronger, more efficient, and better for our customers. Investing in our supply chain is a huge part of that, and this new state-of-the-art warehouse is a game-changer.

“It gives us the capacity to grow, improve service, and future-proof our operations for years to come. Warrington means a lot to me personally, as the place where I grew up, and it gives me particular pleasure to have been able to make such a major investment here.

“We’re proud to be employing more than 750 people and delivering real economic benefits to the local community.”

Gavin Williams, GXO MD for the UK and Ireland (pictured left), said: “We’re proud to be delivering the next phase of our logistics partnership with Iceland as we support their long-term ambitions with a warehouse that is fit for the future.

“The new Warrington regional distribution centre is great news for the local community and for our colleagues, who will help us assist Iceland’s growth plans across the country.”

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[Podcast] Future Fulfilment: Smarter, Scalable Warehouses

Podcast: Is Micro Fulfilment the Right Fit for Grocers?

As customers demand faster and more accurate grocery deliveries, microfulfilment centres (MFCs) are becoming a key part of the solution. In our most recent episode of our podcast, Logistics Business Conversations released on Tuesday, 20th August, host Peter Macleod talks with expert Danielle Dakin of Dematic about why these centres are so important in today’s retail world.

Microfulfilment centres are small, tech-driven hubs that allow retailers to quickly process and deliver orders. During the podcast, Danielle highlights Tesco’s use of nine microfulfilment centres across the UK as a prime example of how leading retailers are adapting to meet growing customer expectations. These centres help Tesco accelerate order processing and improve delivery times, allowing them to stay competitive in a fast-paced market.

The podcast discussion also explores how these new technologies are reshaping the grocery supply chain. With businesses increasingly turning to MFCs, staying competitive means adapting to this new wave of grocery fulfillment.

If you’re curious about the future of grocery shopping, this insightful conversation is a must-hear, offering a clear look at how microfulfilment is transforming the way we get our groceries.

Click Here to Listen for Free

 

Pallet Live Storage Fills Grocery Shelves

An innovative Pallet Live Storage installation can play a key role in supporting grocery retailers as they strive for market leading growth, according to Edward Hutchison, Managing Director of BITO Storage Systems.

Providing up to 50% more storage capacity than traditional racking on the same footprint, a Pallet Live Storage (PLS) system can contribute significantly to accommodating sufficient stock to meet growing demand from a grocery retailer’s customers.

Supporting a retailer’s need to maintain customer service in tandem with achieving sales growth is one of the biggest challenges placed on a distribution centres (DC), particularly when it comes to handling the sheer volumes involved and fast turnaround required by everyday bulk stock lines, such as soft drinks.

Pressure intensifies when these lines experience peaks, such as during a hot summer – particularly in large cities or on the coast. If one store runs out of a line of soft drinks on a very hot day, there’s a good chance that others in the region will experience a similar issue. All will want more but storage limitations mean there’s a chance that not every store will get the amount they require, which will have a knock-on negative impact on the grocery retailer’s level of customer service.

The best way to ensure such situations are avoided is to maximise the amount of storage that can fit within the constraints of a DC to provide efficient order fulfilment for retail stores. The traditional storage format in grocery DCs is standard pallet racking offering ground floor and first level picking with multiple levels of bays above. It is not unusual in particularly crowded DCs to find bulk stock items that are continually fed to stores being located on the DC floor. These configurations allow a DC to carry out case picking and give it the opportunity to take a pallet and ship it directly to a store. For smaller stores with a lower turnover, they might ship a half pallet.

However, for those grocery DCs that need greater flexibility to meet a variety of demands from customers within a limited space, PLS offers an ideal solution. It provides a dense storage and order picking system that contributes to innovative, efficient and agile grocery logistics operations. On a relatively small footprint, pallets can be located ‘in the air’ on several levels of inclined roller lanes, with delivery lanes for pallet loads of bulk stock lines – such as soft drinks – on the ground floor. This provides dense storage and rapid access to orders.

There are many innovative design variations that can be added to suit specific needs. For example, instead of using pallet racking uprights, the pallet live flow lanes could be constructed above a mezzanine structure, which could itself accommodate a number of bulk delivery lanes between each column on the ground floor for easy and rapid access. Introducing a such a solid structure for the ground lane gives added protection against the powerful and heavy lift trucks used in a DC.

Reach trucks can be used to place pallets delivered from Goods In on the upper levels of the PLS. Entering the rear of the lane, the pallets move down the roller lanes to provide a continuous feed of product for the pick face on the aisle at the front of the lane. Systems can accommodate traditional pallets, Euro-pallets handled short-sided and half pallets handled long-sided.

The flexibility in such a design allows products that need to be sent immediately to stores to be picked directly from the flow lane and transported to Goods Out. If the ground floor delivery lanes are getting close to empty, then stock stored in the lanes above can be brought down and pushed through to the other side of the lane for order pickers to continue their pick. The space efficiency such a system delivers makes the investment well worth it, giving a DC the capacity to stock items in sufficient quantities to avoid running out – even during peaks.

In addition to being an efficient storage method, PLS operates on the FIFO (First In First Out) principle, ensuring the product rotation that is important for grocery store replenishment: pickers always get the first product sorted by the ‘best before’ date. Furthermore with this solution, when bulk products a hit peak, a DC will have the ability to react on customer demands quickly, delivering straightaway irrespective of the amount ordered by a store manager. Any demand in any store can be fulfilled at any time – and that is the goal of any logistics operation.

A further benefit is that the PLS can accommodate seasonal items on the flow lanes in the upper levels, allowing the grocery DC to take advantage of quiet time to get those products out to stores early. When seeking a supplier to provide a PLS system, it makes sense to find a long-established company and has proven itself over the years as being a very trustworthy partner for grocery retail operations. With solutions that are priced competitively and an experienced team of experts to create and deliver projects on time, the company should be able to work closely with the client to develop customised solutions and work around existing operations.

Polish eGrocer and TGW Deepen Partnership

By the end of 2023, TGW will have finished building a highly-automated fulfilment centre for Frisco.pl in the Polish capital of Warsaw. This is the second project in a row that the two companies have undertaken together. For the online grocery retailer, this project will lay the foundation for its planned dynamic growth in the coming years in the intensely competitive Polish market.

Frisco.pl is one of the leading eGrocery players in Poland and already supplies over 120,000 customers in Warsaw, Krakow, Poznań, Wrocław Bydgoszcz, Tricity and Silesia region with groceries and non-food items. Their customers enjoy a broad product range, high product and service quality and a delivery window of just one hour. Ordered goods are delivered right to customers’ doorsteps or offices seven days a week.

Online grocery market with high growth rates

Frisco and TGW have been working closely together for several years. Together, the intralogistics partners already implemented one fulfilment centre that has been operating in Warsaw since 2019. “The second automated warehouse will allow us to double our operations in Warsaw while keeping our logistics processes highly efficient,” says Grzegorz Bielecki, COO of Frisco.pl

A shuttle warehouse with 48,000 storage locations will constitute the high-performance heart of the new system, which will also be located in the Polish capital. The shuttle warehouse will allow direct access to each and every item and thus facilitate the shortest possible cycle times. The plans include four aisles for the ambient temperature area and two more for chilled products. Customer orders will be compiled efficiently at ergonomic PickCenter One workstations.

“This is another important step for Frisco.pl as we work towards our ambitious plan of a double digit growth rate in the upcoming years and to maintain the leading position in Warsaw while at the same time we keep the quality of our products and services at the accustomed high level,” emphasises Jacek Palec, CEO of Frisco.pl.

TGW Logistics Group is one of the leading, international suppliers of material handling solutions. For more than 50 years, the Austrian specialist has implemented automated systems for its international customers, including brands from A as in Adidas to Z as in Zalando. As systems integrator, TGW plans, produces and implements complex logistics centres, from mechatronic products and robots to control systems and software.

TGW Logistics Group has subsidiaries in Europe, China and the US and more than 4,000 employees worldwide. In the 2020/2021 business year, the company generated a total turnover of 813 million euros.

Covid Forces Retailers to Rethink Order Picking Methods

When Covid triggered the e-commerce frenzy, many grocery retail logistics operations had little choice but to rethink their order picking methodologies and, as a result there is a trend away from traditional zone picking towards wave picking B to C strategies, says John Maguire, managing director of Narrow Aisle Ltd.

The global pandemic has brought the essential role of the UK logistics industry – and the one million people employed by it – in underpinning our national economic and societal infrastructure sharply into focus. And as the world adjusts to the ‘new normal’ with social distancing and lockdowns looking increasingly likely to become a regular part of everyone’s day-to-day life for the time being at least, our reliance on supply chain efficiency will only increase.

Covid-19 – and the lockdowns introduced in an effort to restrict its spread among the population – has changed the way goods are stored, picked and moved to the consumer dramatically, with the switch to online shopping in particular forcing retailers and their logistics partners to radically rethink and quickly adapt well-established working practices. The pace of change has been breathtaking: 10 years of forecast e-commerce growth occurred in month one of the first national lockdown in 2020 and between February and October of last year online sales grew from 19.6% of retail sales value to 28.5%.

The logistics sector’s ability to scale-up and adapt its services in response to such massive and rapid changes in consumer spending patterns has been hugely impressive and without the expertise and dedication of the industry there can be little doubt that the public would find the restrictive lockdown conditions even more difficult to live with. For warehouse or distribution centre operators the need to keep pace with the shift away from bulk deliveries to retail stores towards the fulfillment of individual online orders directly to the consumer has necessitated significant adjustments across all aspects of the warehouse operation, but in many cases, it is perhaps the order picking process that has undergone the most significant overhaul.

It has long been accepted that of all the processes involved in modern warehousing, the ability to quickly and accurately collate picked goods with an efficient order picking regime has the greatest impact on a warehouse or DC’s performance, costs and ability to deliver customer satisfaction. When Covid triggered the collapse of high street shopping and the concurrent e-commerce boom, many third-party storage operations had little choice but to rethink their order picking methodologies and, as a result, there is a noticeable trend away from traditional grocery retail zone picking towards wave picking strategies.

In simple terms, zone picking involves dividing stock-keeping units (SKUs) into different product zones within the store and assigning pickers to work within each zone. Each picker is responsible for picking all SKUs located within their area of the store for each order; in this way, the roll container or pallet is loaded with similar product types to aid efficient decanting into shelves on arrival at the retail store. Also, passing through each zone within the warehouse allows any orders with SKUs in multiple zones to be filled.

The zone picking method has always been considered suitable for bigger warehouses that deal with a large number of SKUs with unique characteristics or picking requirements. And, because inventory pickers remain in their assigned zones rather than traveling around the warehouse, operative travel time between picks is significantly reduced. A further benefit of the system is that by working in a smaller zone, pickers become more familiar with the SKUs and pick locations in their area and, as a result, pick rates are faster and more accurate.

But problems can arise with zone picking – particularly in e-commerce operations ¬- because the method is often only capable of scheduling one picking period per shift, which means that any orders received after a pre-set cut-off time will not be fulfilled until the following shift takes over.

While zone picking requires workers to be dedicated to a specific section passing order totes from one zone to the next if required, with wave picking orders are grouped and picked in batches, but at specific times of each day. Picking personnel receive a consolidated pick list and workers utilise multi-tote picking carts to manage the various items picked in any particular wave. As it requires pickers to pick one order and multiple SKU’s at a time wave picking systems are often organised around factors such as commonality in the SKU location, shipping deadlines, common carriers and similar sorting or kiting processes used in the warehouse.

At sites where e-commerce or multi-channel orders are being picked and consolidated, wave picking offers a number of advantages over zone picking. For example, many SKU’s can be stored in multiple pick locations at multiple height locations across the warehouse and the picking efficiency is optimised with a fewer number of line visits required. But to achieve optimum wave picking performance it is important to deploy the most suitable materials handling equipment. The recently launched Easi-Pick from Narrow Aisle Ltd has been designed to optimise operational efficiency at sites where order picking tasks are undertaken using wave picking strategy.

Designed specifically with e-fulfillment operations in mind, the Easi-Pick is a compact ride-on electric-powered vertical order picker that delivers hugely improved productivity and increased safety for warehouse staff as they carry out a range of picking duties at both lower levels and at height within warehouse aisles. Its ability to work in very narrow aisles (VNA) means 30% more pallet and shelving locations can be designed into storage systems compared to traditional wide aisle operations.

Featuring a heavy-duty and exceptionally stable mast in combination with a spacious and ergonomically-designed working platform, the Easi-Pick allows picking tasks to be performed at heights of up to 6.5 metres, while its compact chassis design allows the unit to operate in pallet racking aisles measuring just 1.6 metres wide. To maximise productivity, the Easi-Pick travel can be controlled by the operator in the raised position, allowing diagonal lift and travel, thereby saving valuable minutes when travelling between picking locations throughout the warehouse – essential if optimum wave picking pick rates are to be achieved.

There is no doubt that the growth of e-commerce is changing the face of order picking in the warehouse. Higher throughputs, greater picking accuracy and increased emphasis on ground and first level picking are now the key goals at many sites. As a result, the type of materials handling equipment used within the modern order-picking environment is changing too and products like the Easi-Pick are in ever greater demand.

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