Incorporating the latest advances in order fulfilment, Wellington-based Foodstuffs wins the CILT NZ’s Implementation & Practice Award
January 13, 2011
Incorporating the latest advances in order fulfilment, Wellington-based Foodstuffs Co-operative has received the CILT NZ’s Implementation & Practice Award
In recognition of the successful start-up of its new $70 million Distribution Centre (DC) at Palmerston North, Foodstuffs was a winner at the recent Chartered Institute of Logistics and Transport New Zealand’s (CILT NZ) annual awards.
Setting a new standard for grocery distribution in New Zealand, the 32,400 sqm DC has enabled Foodstuffs to centralise its ambient distribution requirements through one facility, providing significant supply chain benefits and cost savings.
The DC commenced operations in February 2010, with throughput ramping up to the official opening on April 6, 2010.
Housing more than 15,000 SKUs, the DC provides storage capacity for more than 30,000 pallets.
Stock is stored in a variety of rack configurations, with separate storage areas provided for aerosols and dangerous goods, and a further caged area for secure product storage.
The win has been put down to Foodstuffs’ innovative approach to split-case order fulfilment at the Roberts Line DC which breaks new ground in New Zealand.
While split-case orders may only represent around 15 percent of throughput in terms of volume, processing the orders has traditionally been one of the most labour intensive and time-consuming aspects of distribution for Foodstuffs.
Foodstuffs’ solution to the costly problem has been to implement New Zealand’s first ‘Goods-to-Person’ (GTP) picking system to handle the bulk of split-case orders.
Housing 33,000 totes in a footprint measuring just 40m x 85m, the 10m tall Dematic Miniload ASRS is the storage engine that drives Foodstuffs’ new split-case picking solution.
Totes containing split-case items required for orders are automatically retrieved by the Miniload and delivered by integrated conveyors to a series of six ergonomic RapidPick workstations.
Each of the workstations is configured to enable batches of up to 21 discrete orders to be processed concurrently, making it possible for Foodstuffs to process up to 126 orders at a time.
Directed by Put-to-Light (PTL) displays on each order location, operators simply transfer stock from the totes containing the SKUs to the order shippers in a ‘Pick’ and ‘Put’ process.
When a shipper is full or the order has been completed, the operator prints and applies a label to the shipper.
The shipper is then pushed down the flow lane to the rear of the workstation where it will be collected and consolidated with other goods for the customer, before being transferred to despatch.
“Dematic’s automated picking system has more than doubled productivity, with operators capable of picking over 1,200 items/hour,” says Foodstuffs General Manager Operations, David Couper.
“As a result of opening Roberts Line, we have been able to close five warehouses, with further initiatives including plans to sub-let the Silverstream warehouse in due course and install automatic milk handling machines at our Grenada and Mihaere Drive distribution facilities later in the year.”
Orders for full cases, layers and pallets are processed using a combination of RF and voice-directed picking, with the DC’s workforce equipped with an all-electric fleet of 80 forklifts, stockpickers, reach and pallet trucks.