Dexion delivers FMCG automated distribution system

Three major consumer goods companies install automated storage and retrieval systems

Dexion delivers FMCG automated distribution system
Dexion delivers automated distribution systems
September 16, 2013

Three of Australia’s largest FMCG brands will be able to complete their orders faster thanks to new automated storage and retrieval systems (ASRS).

Manufacturing giants Kimberly Clark, Kellogg and Arnotts recently engaged Dexion, an international specialist in storage and materials handling products, to design and implement an ASRS solution as part of a broader Real-Time Distribution System (RDS).

According to a release by Dexion, FMCG distribution centres face a number of difficulties in completing orders for high volume, fast moving goods.

These include strict use-by-dates and fluctuating quantities, not to mention an economic climate that demands greater efficiencies at lower costs.

Now more than ever before, these networks need sophisticated systems to cope with their challenges.

An ASRS reduces order fulfilment times, improves accuracy and efficiency, while minimising labour, optimising space, reducing loss, and lowering operating costs.

The Dexion RDS is a multi-function system that controls the physical and operational aspects of a company’s distribution centre from receipt of goods through to dispatch in real time.

It bridges the gap between enterprise system and materials handling equipment to complement a company’s existing systems.

Paperless technologies such as barcode scanners and weigh scales simultaneously manage and coordinate inventory in distribution centres.

When Kimberly Clark approached Dexion back in 2006, they needed to create a buffer between production and final delivery that would produce efficiencies for both the company and its clients.

Kimberly Clark E-Supply Chain Manager Mario Carniato says the new system gives the company such detailed levels of information it is now in a position to offer clients continued and evolving benefits.

"Implementing this system allows us to be proactive and add more value to our client’s businesses," Carniato adds.

The new system comprises seven 25-metre high cranes that serve nine levels and 41,000 pallet positions.

At full speed, the system can pick 190 pallets per hour.

Kellogg turned to Dexion to revolutionise its unsustainable distribution centre, which despite accommodating 28,000 pallet positions across 27,000 square metres, operates almost entirely manually.

To meet the growing demands of its customers, Kellogg needs to reduce manual involvement and increase automation.

However, a warehousing system also has to incorporate Kellogg’s 24 x 7 manufacturing environment to minimise any disruptions.

The Dexion designed RDS system now interfaces directly with the Linfox warehouse management system, which in turn communicates with Kellogg’s ERP system.

Since installing the new system, Kellogg’s pick rate errors have dropped 10 percent while its production damage has seen an 85 percent reduction.

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