Modernization
Economical brownfield and retrofit solutions
For a long time, retail companies primarily preferred greenfield solutions for the expansion and extension of their existing logistics infrastructure. However, there is currently a national and international trend on the market for brownfield solutions - the integration of new technology into existing buildings - to become increasingly attractive and a practical addition to the greenfield strategy. Witron's experience shows how this can be achieved.
Brownfield solutions are possible in a wide variety of forms and approaches. Specifically, they can involve both modernizations and expansions of technology and construction. As a result, it is a matter of transforming buildings that were previously used manually into automated logistics centers. True to the credo "Use your assets", there are many factors that speak in favor of making existing logistics structures fit for the future as part of a brownfield strategy and thus saving money and time. The advantages of a brownfield strategy are manifold. The following factors are indications of this:
- The existing distribution center is already in the right location and is logistically integrated into the retail network with a view to stores and suppliers, with good connections to the transport and rail network. The energy and communication connections are already in place and the majority of employees already come from the region - an enormous advantage in terms of retaining expertise, corporate culture and recruiting.
- New areas for greenfield solutions are difficult to obtain, as new building land is becoming scarce, since the sustainability strategy of many municipalities means that fewer and fewer commercial areas are being designated. In contrast, the brownfield logistics center already exists and often has additional adjacent expansion areas.
- New commercial space and new buildings are expensive. Both the acquisition of the land, its development and the actual construction work cost money - currently with constantly rising land, material and tradesman costs. In addition, any marketing of existing properties is completely eliminated.
- The construction of a new building is a time factor: a brownfield solution can be used more quickly because, among other things, there is no need to spend time looking for land, obtaining planning permission, construction planning and erecting the building.
- Implementing modern technology in an existing building is economical - whether by modernizing existing components such as racking systems, mechanics, conveyor technology or PLC and IT or by completely integrating new, innovative storage and picking solutions. This results in a further positive cost and time factor.
- In terms of a holistic sustainability strategy, the reuse of existing substance is a decisive factor in avoiding land sealing or other waste of resources - economically, ecologically and socially.
Holistic implementation concept required
In order to determine whether the existing logistics property is suitable for the future strategic orientation, a thorough analysis and a holistic implementation concept are required. This concept should include the following points:
- Checking the existing building structure and its fabric is essential. Depending on the temperature range, the floor conditions, the statics, the clear heights, the technical building equipment including the air-conditioning technology and the available building areas with possible extension areas should be checked, among other things.
- It should also be clarified to what extent existing logistics equipment can be modernized or should be replaced or supplemented by new logistics technology. This includes, for example, Order Picking Machinery (OPM), All-in-One (AIO), Automated Tote System (ATS), Goods To Person (GTP) outgoing goods buffers, highly dynamic storage and retrieval machines and conveyor technology.
- Planning the material flow processes: In addition to the optimal networking of all logistics areas and temperature zones, typical building concerns must also be taken into account. These include good accessibility for the service and maintenance teams, cleaning the system, fire protection, escape routes and how the new technology can be physically integrated into the building in the most sensible way, for example via the roof or by opening side walls.
- Finally, the actual transformation process, i.e. the question of how the commissioning should be implemented in terms of organization, scheduling and technology. This requires a holistic change strategy including the installation and modernization cycles, the dismantling phases, transition concepts with scenarios for a temporary local relocation of existing business operations, forward-looking alternative scenarios and other similar points. The most important question must be clearly addressed: In what way will the implementation of the project take place during the entire project duration - and how will the ongoing operation or delivery to stores and consumers take place in parallel? Depending on the individual case, there are different approaches to implementing this in a practical way, either at the location or in the logistics network.
Brownfield references worldwide
Witron's experts are familiar with the requirement of economically mapping brownfield solutions with automated storage and picking technology. The company has worldwide experience in the planning, implementation, maintenance and system operation of highly dynamic distribution centers. Since the company was founded more than 50 years ago, over 2,000 projects have been successfully implemented to date - including more than 100 high-performance logistics centers in Europe, North America and Australia, especially for the food retail sector. A good 30 percent of these are brownfield solutions.
At its multi-temperature distribution center in Oslo, for example, Coop Norway has increased the output of its existing dry, fresh and frozen goods facility by 30 percent during ongoing operations by installing eleven additional COM (Case Order Machine) machines, including the associated infrastructure such as additional pallet storage aisles, tray storage aisles, storage and retrieval machines, wrappers, depalletizers and conveyor technology, and now picks over 625,000 retail units per day.
New logistics system for Migros
At the Swiss retail company Migros, Witron integrated a completely new logistics system into an operational distribution center at the Neuendorf site during ongoing operations and, together with the existing system, transformed it into a fully functional omnichannel distribution center. For this purpose, a highly dynamic automated case and piece picking solution (OPM + AIO) was installed and existing logistics areas (incoming goods, outgoing goods, e-commerce area), mechanical elements (high-bay warehouse, conveyor lines), IT and material flow processes were modernized and optimized. The facility is currently designed for a daily picking capacity of 472,000 picking units and supplies 700 stores and many thousands of home shopping customers in Switzerland with a range of over 100,000 different items per year. A modern, fully automated deep-freeze warehouse with Witron OPM technology was also integrated into an existing building in Neuendorf, from which 1,400 stores are supplied daily with more than 100,000 pick units in a store-friendly manner. Picking is carried out both on pallets and on roll containers.
Migros has also replaced a purely manual convenience solution in an existing building at the Suhr site with a highly automated Witron system (OPM, DPS, ATS) to layer goods onto pallets, roll containers and into bins. This was preceded by the modernization of dry goods logistics, for which a fully automated picking system with 28 COM machines was installed on the roof of the existing distribution center as part of the "Future COM" project. This was both a technological and architectural challenge. In total, the site now supplies 600 stores and 300 stores in kiosks or petrol stations with more than 430,000 pick units every day.
At the Spanish omnichannel retailer Condis, a Witron OPM system is supplied with goods via an existing manual high-bay warehouse at the logistics center in Montcada. French food retailers such as Diapar, E.Leclerc and Intermarché also rely on Witron's brownfield experience. In North America, cost-effective solutions have been fully integrated into the existing building structure for customers such as Albertsons, Kroger and Sobeys.
This article appeared in issue 7/23













