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MegaGroup doubles productivity with a unique zone picking system

06.03.2013

MegaGroup Trade is building a new European distribution centre of 11,000 square metres in Veghel.

The technical wholesale trade company dealing in components and parts for piping systems now has access to an innovative, semi-automatic order picking system from Consafe Logistics, MAAS Internal LogistiX and Kardex Remstar. This system essentially consists of roll over racks, pick-to-light and platform lifts, all controlled by a WMS. MegaGroup Trade anticipates that this system will double productivity.

MegaGroup Trade is building a new European distribution centre to be able to supply its customers with increased reliability and higher speed. "We choose to invest in these economically challenging times. Our customers have to fight for their position every day, and we would very much like to help them by improving our services", explains Anton van Daalwijk, CEO of the technical wholesaler.

The new, 11,000 square metre distribution centre will replace the seven existing warehouses in the Netherlands, Belgium, Germany, France and the UK. By centralising stocks, MegaGroup Trade will be able to offer its customers a wider product range and better services. "Detailed calculations showed that our geographical centre was very close to Veghel. As this is where we are based, there was no longer any discussion where our new business location should be", says Kurt van Osta, Supply Chain Manager at MegaGroup Trade.

1,000 order lines an hour

The key to the new distribution centre is a semi-automatic order picking system that can process 1,000 order lines an hour with exact efficiency. The innovative system consists of a conveyer that combines a total of eight zones with each other. The first four zones consist of eight platform lifts; the last four consist of roll over racks with pick-to-light. Van Osta expects that the paperless system will allow operations to be a lot more accurate than in the seven existing warehouses. "I anticipate that this system will double productivity at the least", comments Van Osta.

The design is the result of close cooperation between three parties: Consafe Logistics, MAAS Internal LogistiX and Kardex Remstar. It was developed following extensive data analysis and, among other things, a workshop with the people at MegaGroup Trade. Van Osta is very pleased with the cooperation with the three companies, and with Consafe Logistics as the principal contractor. "All three parties are very practical, they work on our wavelength and quickly provide solutions to any issues that arise. I have every confidence that the project will be a success", says the Supply Chain Manager at MegaGroup Trade, who is coordinating the new building.

Dynamic batch picking

Every order begins with picking the right shipping box as specified by Astro WMS, the WMS from Consafe Logistics, which precisely calculates what size box will be most appropriate. The shipping box is placed onto a tray and sent to the zone containing the ordered articles via the MAAS Material Flow Control system (MAAS MFC). Having passed through all the zones, the shipping boxes are prepared for dispatch on one of the two packing tables, strapped and directed towards the docks via a sorter from MAAS Internal LogistiX with six exits.

The order picking concept in the four zones with the eight platform lifts from Kardex Remstar is unique in the Netherlands. To optimise the use of these platform lifts, eight locations per zone are created for trays with shipping boxes. An innovative combination of dynamic batch picking and put-to-light ensures that order picking productivity is twice as high as in conventional batch picking solutions for similar storage systems. For an extra fast working speed, the platform lifts themselves are equipped with a lift that can serve two platforms at once. A laser pointer is integrated into each Kardex location and indicates the exact box the requested articles are in.

Control and process management

MAAS Internal LogistiX is providing the conveyors, roll over racks and pick-to-light system as well as the responsibility for the control of these components with the aid of MAAS MFC. The platform lifts are being supplied by Kardex Remstar, who also suggested the innovative order picking concept for this part of the warehouse. Consafe Logistics is supplying the warehouse management system to control the whole process, contributing its expertise to the project and in charge of project management.

The platform lifts are expected to have space for between 16,000 and 18,000 articles, while the roll over racks will cater for 696 picking locations. They are intended for use with "fast runners", which represent 40 percent of the order lines. Besides the semi-automatic order picking system, there will be a reach truck warehouse with space for 18,000 pallets. In addition, a covered outside area of 3,300 square meters will contain more racking.

Best-of-breed WMS

To manage the entire order picking process, Astro WMS communicates directly with the software from Kardex and with MAAS MFC, the system controlling the conveyors and the pick-to-light system. In addition, Astro WMS is linked to Transsmart, a system which selects the most appropriate carrier for each shipment, registers it and generates the correct shipping label. "We recently implemented a new ERP system, but the WMS module of this system is not equipped to deal with the level of automation on the warehouse floor. We were therefore looking for a best-of-breed WMS and came upon Consafe Logistics", says Van Osta.

The new distribution centre, will be completed in October 2013 and MegaGroup Trade expects to begin using it a month later. "We currently process around 6,000 order lines a day in our existing seven warehouses. However, due to our plans to launch a webshop, we are expecting our order profile to change and to start supplying our customers more frequently. By working from two platforms, we aim to increase our order lines up to 16,000 a day", says Van Osta.



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