Highly automated in all product ranges

If you want to grow, you need new branches and new cooperative members. Logistics has now become an important criterion for potential members to choose AWG. AWG is a cooperative retail organization in which 1,100 owners of over 3,400 supermarkets in 33 US states collectively generate more than 25 billion US dollars in annual sales. Unlike traditional US retail groups, all retailers are both members and owners. "My team's mission is to provide our members with all the tools, products and services they need to be competitive in the markets in which they operate and to provide the best possible consumer service - on time, in full, with the highest quality and at the lowest possible cost," explains Kearns.

Increased requirements: Automation as the answer

The demands on him and his team have been increasing for years. In addition to the increased variety of products and market volatility, the shortage of skilled workers in warehouse operations, rising transportation costs and stricter regulations are placing a particular strain on the distribution model. Under these conditions, logistics plays an "absolutely crucial" role in ensuring service levels and keeping costs under control at the same time.

With this in mind, AWG decided to automate and optimize the processes in its distribution network. This was the largest investment project in AWG's almost 100-year history. The initial evaluation began around 15 years ago as a long-term strategic consideration by management. Over this period, various suppliers of automated systems were analyzed in detail. The choice fell on Witron from Parkstein.

Convincing reference projects

The decision criteria were technical performance and reliability in real operation, the large number of successfully completed reference projects, the positive feedback and high level of satisfaction in exchanges with Witron customers and the question of cultural compatibility between the two companies. At the same time, AWG attached great importance to personal exchange: from the management to the technical and service staff, interfaces and communication should function smoothly - "that is an important criterion," explains Robert Venzl, who was responsible for the automation project as Witron project manager. The 81,000 square meter facility with a total of 738,000 pallet, container and tray storage locations, 92 storage and retrieval machines and 11 kilometers of conveyor technology is designed for a picking capacity of more than 460,000 units per day.

Around 55,000 different articles

The system is designed for a daily picking capacity of more than 460,000 retail units. The costs for manpower and transportation were significantly reduced. "Once the strategic decision had been made, a two-stage implementation phase followed. First, the detailed planning was completed and the building erected within 12 to 18 months. Witron then installed its technology," explains Witron project manager Venzl. "Almost 55,000 different items are stored and picked using the OPM (Order Picking Machinery), AIO (All-in-one Order Fulfillment) and CPS (Car Picking System) solutions. Food, cosmetics, healthcare products, cigarettes, etc. As additional items are usually added to the range with each new cooperative member, the system needs to be highly flexible."

Witron technology is used in all temperature zones: in the dry, fresh and frozen zones. In the temperature range from +20 to -26 degrees Celsius, 19 fully automatic COM machines load retail units onto pallets in line with store requirements. Large-volume items are also route-optimized and routed to different temperature zones. With the help of pick-by-voice, they are picked via the semi-automated CPS logistics module. The AIO makes it possible to store and pick small-volume items - whether fast or slow-moving - compactly in just one logistics module. Efficient order consolidation between the different logistics areas and logistics modules is automated and system-controlled. This is supported by an intelligent Witron warehouse management system. Despite the wide range of articles, a high packing density is ensured on the load carriers.

Processes optimized - in the warehouse and supply chain

"This really isn't a warehouse anymore - it's more of a production facility. It's all very structured. It's a high-performance factory," explains Richard Kearns. The factory, the new logistics center, has been running at full speed since mid-2023. The various temperature ranges were commissioned successively based on a defined ramp-up plan. "Now that we are working with the new technology in all areas of the plant, I can confirm that our goals have been achieved - we are delivering more efficiently, faster and reliably," he sums up. "Not only have the processes in the logistics center improved significantly, but also those within the entire supply chain. All shareholders in our organization - procurement, suppliers, sales, transport, stores and consumers - benefit from this holistic company-wide transformation project."

"Witron has delivered a state-of-the-art automated system that meets all of our members' requirements across all temperature zones. At the same time, we can offer our employees attractive, ergonomic workstations." These are important to Kearns: "The induction and training time has been minimized. A safer working environment has been created. And future talent is attracted to a modern workplace. The logistics center is a convincing HR recruiting argument for AWG."

The new logistics center noticeably improves delivery quality: the first delivery to the pilot store impressed with a stable order pallet that can be unloaded and put away immediately. The automatic packing pattern algorithms group similar products in layers on the pallet, which makes unloading and shelf filling in the store more structured and time-saving. Picking errors are almost completely avoided. The individual wishes of the store operators can also be taken into account.

The Hernando plant already has scope for future expansion. At the same time, those responsible are evaluating retrofit options in existing distribution centers as well as new greenfield locations for further automation projects.