Coop Denmark has offered new details of its success with using a solution by Dematic for improving its non-food logistics.
In 2010, Coop Denmark decided to consolidate slow-moving dry-food goods from several warehouses into a 45,000 sq. m. non-food distribution centre in Odense. The new DC had an existing automated 32,000 pallet high bay store, but a solution was required to considerably upscale the operation, expand the space by 10,000 sq. m. and radically adapt its function to manage the break-bulk distribution of both non-food and dry-food goods for the Coop’s 1,200 national retail outlets.
Dematic offered a goods-to-man automated picking system capable of breaking-bulk for slow-moving products and then assembling store orders in totes for despatch. The system went live in October 2014, and since then has dramatically increased productivity from 140 to 450 items picked per hour. The solution also improved on-shelf availability in the retail stores by preparing ‘store ready’ orders in totes, per category and packed in sequence, for faster shelf replenishment at the retail outlet – saving shop staff half an hour per pallet of totes.
Christian Flindt, Coop Denmark’s Technical Manager at the Odense Distribution Centre, notes: “The main reason to choose automation and Dematic’s solution was its footprint within the warehouse – we could then manage all these goods in one place. The Dematic system only occupies 6,500 sq. m. of the warehouse, but it takes 70% of the volume of the goods.”