Fashion logistics in perfection

The Finnish department store chain Stockmann organized its "Hullut Päivät" for the thirtieth time in mid-October. Traditionally, special offers on these days attract numerous bargain hunters. 1.4 million items were sold over the Group's counters in just five days.

In order to cope with such seasonal peaks and to provide a solid foundation for further growth and expansion of the full-range retailer, Stockmann has completely overhauled its corporate logistics in recent years and geared it towards omni-channeling. At the heart of this strategy is the distribution center in Tuusula near Helsinki, which was completed in May 2016. In October, it was also used for the first time to handle traditional online bargain hunting. "An intelligent material flow concept, innovative system technology and attractive after-sales services for the reliable supply of all sales channels from a single system," says Stockmann Logistics Manager Elina Laine, explaining why SSI Schaefer was chosen as the general contractor for intralogistics. "SSI Schaefer offered us a thoroughly coherent overall package for long-term efficiency and investment security."

The company also entered the e-commerce business at the turn of the millennium and quickly developed into one of the leading online stores in Finland. "Both the sales figures and the online orders in October show the enormous importance that this sales channel now has," says Laine. "This has accelerated the restructuring of our logistics and shaped the design of our new logistics center."

All articles for all sales channels bundled at one location

Since May 2016, the new distribution center has been supplying Stockmann department stores with items as well as processing and shipping online orders. Over 100,000 different items are stored - more than 1.8 million individual items in total. "All article groups - from large products to cosmetics and decorations to textile hanging garments - are now bundled in one location for all sales channels," explains Elina Laine. "The distribution center is the central component of our omni-channel strategy."

The central element of the system concept: a shuttle warehouse with 130,500 container storage locations for double-deep storage. The warehouse is designed according to SSI Schaefer's 3D Matrix Solution. 45 lifts and 72 multi-level Navette shuttles ensure maximum process availability and efficiency.

"We were immediately impressed by SSI Schaefer's modular and scalable solution concept, as it gives us the flexibility that is so important for our business," explains Logistics Manager Laine. In addition, a pallet rack warehouse with 7,800 storage locations for replenishment and a three-level hanging garment warehouse for more than 350,000 items of clothing characterize the system design.

Space utilization concept makes technology compact

45 lifts separate the vertical from the horizontal storage movements - a characteristic feature of the 3D Matrix Solution. © SSI Schäfer

The entire warehouse complex is divided into two hall areas. One area houses the shuttle warehouse as well as the repacking and picking stations for flat-packed goods. The other area houses the pallet rack warehouse and the hanging goods warehouse. A sequencing buffer with two fully automated packing stations is set up on a platform construction between the two hall areas. The space utilization concept places the work stations in such a way that the most compact conveyor technology units possible could be installed.

For example, 27 repacking stations and nine picking stations are positioned directly in front of the shuttle warehouse. A second level was created on a platform that spans around a quarter of the picking area above the incoming and outgoing goods areas. On this level, 22 work stations have been set up for dispatching e-commerce orders. The consolidation areas for outgoing goods are located in the second hall area in front of the hanging goods warehouse.

"The material flows for the department store and e-commerce orders were consistently separated due to the different shipping packaging and transport service providers," says Rami Syrjä, Sales Manager at SSI Schaefer in Finland. "Controlling this in a coordinated manner, structuring it according to staging times and different priorities and running everything through one system in an optimal balance is a particular challenge for the design of the warehouse management system."

Stockmann opted for the Wamas logistics software from SSI Schaefer. It handles inventory management and process control for coordinated order production and offers end-to-end transparency with its visualization components. "The concept based on the 3D matrix solution offers Stockmann maximum flexibility and efficiency in warehousing with storage, buffering and sequencing in a single system," explains Syrjä. "The optimal solution for omni-channel providers."

The entire facility is currently designed for a throughput of 55,000 order items with 180,000 articles per day. The innovative concept has already proven itself: "In the new distribution center, we now work much faster and more transparently than before in order production for department stores and online orders," Stockmann Logistics Manager Laine sums up. "The consistently scalable system concept also offers us a high degree of flexibility for our changing range of articles and scope for further growth. The solution from SSI Schaefer has convinced us across the board."

www.ssi-schaefer.com

"Stockmann: The innovative omni-channel solution"