NA-KD expands its automated warehouse a few months after launch

Already a few months after NA-KD went live with its AutoStore solution empowered by Element Logic, they chose to expand to meet increased demand.

When NA-KD’s warehouse in Sweden, went live in July 2020, it had a storage capacity of 100,000 bins – where picking and storage was carried out with the help of 100 robots and 16 ports. In addition, Element Logic supplied NA-KD with conveyors and manual packing stations for consolidating goods from oversize. All packages are automatically sorted to different shipping suppliers with the help of a sorting system.

Ready for Black Friday

Already at the initial installation, they prepared a grid for another 25.000 bins, to be able to quickly scale up in case of increased need. After a very smooth start with the simple and flexible AutoStore solution, the design & analysis of an upcoming expansion began early. Ahead of Black Friday the same year, another 21 robots and 8 ports were installed to handle the increased growth. This is a good example of the flexibility of Element Logic’s AutoStore solutions where software, service and material flow handling solutions enable high availability, and scalability for any future expansions.

We had a chat with Fred Skantze, Head of Fulfillment at NA-KD.

Fred Skantze, Head of Fulfillment at NA-KD

In a very short time, we have managed to achieve good productivity even though the warehouse just started up

Fred Skantze, Head of Fulfillment at NA-KD.

Why did you choose to automate your warehouse?
– We wanted to optimize our warehouse space and productivity.

What is the result?
– The result has been good. In a very short time, we have managed to achieve good productivity even though the warehouse just started up approximately half a year ago. It has been relatively easy to get started and the operation has been successful.

How has Element Logic helped you before and during Black Friday?
– We got help with optimizing the system to achieve maximum productivity. Element Logic also had a technician on site during Black Week who helped us prevent problems.

How did Black Friday go compared to previous years?
– We had a very successful Black Week. Despite very large volumes, we managed to deliver all orders without any significant backlog.

How did your warehouse employees manage the new system?
– Since it is a completely new warehouse, we have had many workers who have never worked with AutoStore before. Nevertheless, it has been easy for our employees to quickly learn the system and achieve expected productivity.

Would you recommend AutoStore to other companies?
– Depending on the company’s conditions and targets, AutoStore is definitely a great warehouse solution.

Can you give a summary on your automation project?
– In a very short time, we built a completely new warehouse, implemented a completely new WMS system, IT infrastructure and installed an AutoStore system very successfully without any major disruptions. We would never have done everything we did in 7 months without very good partners.

Satisfying your customers’

 

demands has never been more

 

challenging, but

AutoStore makes it easy.

Powered by robots, our Automated Storage and Retrieval System (ASRS) ensures that your supply chain is always ready to scale with your customers’ demands.


This solution does not require light in the aisles, or aisles for that matter, as there are no people picking. The savings due to energy and space can vary but are overall high in comparison to other solutions.

September 25, 2024 0

AutoStore with eManager – perfect for handling growth

Colliflow is a third-party logistics company (3PL) that stores and ships goods for over 70 online stores. One year after the installation of the AutoStore solution provided by Element Logic, they are already planning an expansion of the system.

In 2020, Colliflow became one of the world’s first third-party logistics companies to automate warehouse operations with eManager and AutoStore.

Colliflow logo

“We have had a steady growth since the start in 2013, and in 2019 we reached a point where we had to choose between expanding the warehouse, or invest in a form of automation.” Rune Wright Lia, General Manager Colliflow said.

Before they decided on eManager and AutoStore from Element Logic, Colliflow conducted a thorough research of other systems and suppliers.

Automation was a big investment for us, so it was important to have a reliable and trustworthy partner throughout the process. We found no one who was at the same level as Element Logic when it comes to service or solution, says Lia.

Software specially adapted for 3PL

Colliflow has a 10,000 m2 warehouse at the Harbour Terminal in Grenland, Norway, where the goods are owned by their customers. In total, the company sends out 300,000 orders a year, distributed among 70 customers. Having good routines are crucial to avoid incorrect picking.

“Our customers all use different packaging, attachments and have different routines for sending out the packages.” Lia said. “Element Logic therefore adapted a system and software to automate parts of this process. In addition, the actual picking is automated where the robots pick from boxes and deliver to the warehouse employees.”

CUSTOMIZED 3PL SOLUTION: The AutoStore solution and eManager are adapted to Colliflow’s needs, and the solution from Element Logic can therefore easily be adapted to other 3PL companies.

Key Account Manager at Element Logic Norway, Arnold Hjelm Nielsen, explains that the automation process for 3PL customers is a little different than for other customers.

Physically, AutoStore looks the same whether it is a 3PL customer or not. The difference lies in the configuration of eManager; it is more challenging to be able to handle the necessary routines for Colliflow, says Nielsen.

For Colliflow customers, it is a great advantage that they can offer storage in an AutoStore system.

“Our customers experience our automation as future-oriented.” Lia said. “And I agree with that – there is no doubt about where the world and the industry are headed.”

Stores several items in a smaller area

Automation is a great benefit for 3PL companies. It enables storage of considerably more goods in less space, and one does not have to manually dig out seasonal goods as the season approaches.

“When an item is out of season, it will be placed safely and dust-free at the bottom of the system.” Nielsen explained. “As soon as the first order for the season arrives, the AutoStore robots will automatically start the work of retrieving the goods and making them ready for dispatch. This can happen overnight as the robots work around the clock, all year round.”

FLEXIBLE: Colliflow’s General Manager, Rune Lia, chooses which items are stored in the AutoStore based on the size and turnover rate of the products.
FLEXIBLE: Colliflow’s General Manager, Rune Lia, chooses which items are stored in the AutoStore based on the size and turnover rate of the products.

Experienced super-users have given 100 percent uptime

At first glance, AutoStore may seem like a complicated system to operate. Fortunately, the job becomes considerably easier after proper training. That is why Element Logic always gives super-user courses to selected employees who get an extra introduction to eManager and AutoStore, and how to solve errors that may occur.

“From the first moment, the employees at Colliflow showed great interest, and their super-users can do a lot themselves and act quickly.” Nielsen said. “It is extremely important that the company feels confident operating the system so they can act if something should happen.”

Colliflow’s figures also show that they have found a formula for success. Since starting in June 2020, they have had an uptime of 100 percent – it could not be better. Element Logic guarantees customers an uptime of 98 percent.

Planning a major expansion of the warehouse

“Due to the covid-19 pandemic, we have experienced artificially high growth in the last year and a half.” Lia explained. “Therefore, our new AutoStore system became too small a little too fast. We have decided to implement a major expansion in 2022 to handle the growth.”

The expansion consists of expanding the AutoStore grid from 500 m2 to 1500 m2. Then it will be supplemented with the required number of new gates and robots, adapted to the operation of Colliflow. The expansion will have no effect on the uptime of the existing warehouse – it will be operated as normal.

SEAMLESS INSTALLATION: Colliflow experienced the design process and installation provided by Element Logic as very straight forward. From start to finish, it took about six months.

“If you have too few robots in relation to the number of ports, the picking speed and efficiency will be impaired.” Nielsen explained. “Using simulations, we find the perfect number for the specific warehouse”

“When we design solutions, we always think ahead.” Nielsen continued. “It is cheaper and easier for the customer to buy a new port when the need arises if we have arranged for it in advance and do not have to rebuild.”

Facts and figures

  • 10 000 m2 (32 808 ft2) warehouse
  • 500 m2 (1 640 ft2) AutoStore-grid
  • 22 employees
  • 10 robots
  • 10 000 bins
  • 4 ports
  • 1500 order lines are picked on average daily from AutoStore

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August 21, 2024 0

Oslo Airport streamlines its duty-free shopping with AutoStore

Oslo Airport streamlines its duty-free shopping with AutoStore

For Travel Retail Norway (TRN), decreasing the picking time and utilizing available space was essential when choosing its next storage solution. The answer was AutoStore provided by Element Logic.

“It is impressive how much capacity Element Logic managed to create in our warehouse space,” Øivind Andersen, Logistics Coordinator for Travel Retail Norway said.

Øivind is the logistics coordinator for Travel Retail Norway, the company operating the duty-free shops at Avinor’s largest airports. The tax-free shops at Oslo Airport are very popular, and with limited storage space, TRN is dependent on smart and efficient solutions.

After automating, customers can collect duty-free goods one hour after ordering. Previously, travelers had to order at least six hours before landing.
Click & Collect Tax-Free Products with AutoStore

Element Logic upgraded the Click & Collect service from TRN with a flexible AutoStore system.

“Several customers intended to shop with Click & Collect, but they did not have time to pick up the order due to the long waiting time. That is why automation was necessary for us”, Andersen explains.

“After automating, customers can collect duty-free goods one hour after ordering. Previously, travelers had to order at least six hours before landing”

TRN stores all the duty-free bestsellers in the AutoStore bins at Oslo Airport. In addition, they offer exclusive wines only available via Click & Collect, and the plan is to expand the range of exclusive products over time.

Element Logic mock up of an autostore system.
SPACE EFFICIENT: Element Logic tailored the AutoStore solution to fit the available space, giving TRN 64 percent more storage capacity.

“AutoStore has increased our capacity, and we must use it. More Click & Collect orders equal less stress for customers and increased sales for us,” Andersen said.

A GOOD MATCH: TRN is pleased with the efficiency and capacity the AutoStore system provides in its limited storage area.

“We see great opportunities”

Despite limited air traffic during the pandemic, TRN saw opportunities. When most shops and services surrounding Oslo Airport had to close, Click & Collect made AutoStore shine, and travelers could order duty-free products and collect them outside the store.

“We were able to offer a 15-minute delivery for duty-free products because of automated Click & Collect during this period. Our customers appreciated that,” Andersen said.

AIMING FOR INCREASED SALES: Now that air traffic is slowly approaching normal, TRN aims to increase Click & Collect sales. So far, it looks very promising.

“Tax-free products and AutoStore are, without a doubt, a good match. We have several small items, and the opportunity for smart storage is worth its weight in gold”, said Andersen.

TRN is also considering using AutoStore to store products used daily for operations and maintenance for increased efficiency.

“Limited storage space is a well-known problem for airports around the world. AutoStore, with its modular and flexible solutions, is the answer to many challenges”, Øyvind Kollerud, Sales Manager, Element Logic Norway said.

"limited storage space is a well-known problem for airports around the world. AutoStore, with its modular and flexible solutions is the answer to many challenges." - oyvind kollerud

Utilized each millimeter of storage space with AutoStore

The automation of TRN’s warehouse was challenging compared to other projects. Two important reasons were strict security requirements at the airport and a storage room with an unconventional floor plan.

In the design phase, the team made ten different proposals on how to build the AutoStore grid. The final solution ended up having the operator ports located in a tunnel inside the AutoStore, opposed to the more common location outside. This placement was one of the strategies to save as much space as possible for TRN.

There is room for 163 m3 with stationary shelves in the storage area, which is equivalent to 2,178 AutoStore bins. With AutoStore, the capacity has increased by 64 percent.

“To handle the same storage volume that TRN has with AutoStore, a 66 percent larger storage area would be necessary. That is 10,215 square feet,” Kollerud from Element Logic explained.

picture of autostore's robots in use.

MEASURED MILLIMETER BY MILLIMETER: TRN’s warehouse has a lower ceiling height than most other warehouses, only 5,5 meters. The grid has just enough space for the robots and an operator

 

“We have utilized each available millimeter in the storage area. The result is impressive space utilization and a solution that allows TRN to streamline its product flow from warehouse to the customer,” Kollerud said.

In an advanced project like this, preparation is crucial. As a big part of the system differs from standard measurements, the Element Logic team had to measure all dimensions precisely. The team measured several times to be one hundred percent sure that they set up the solution correctly.

“The team from Element Logic was able to adapt to challenges that occurred. It was a good collaboration, and the team always listened to our feedback” Andersen from TRN said.

Element Logic: The warehouse automation partner

In addition to challenging floor plans and small margins, fire safety is also different in TRN’s AutoStore system.

Customers often use sprinklers as fire protection in their facilities. TRN, however, uses FireEater due to strict airport security requirements. FireEater is a technology that reduces oxygen in case of fire. 

“It is exciting to be challenged by a customer on both solution and design. It makes it even greater when the customer says he is satisfied and impressed.” Kollerud said.

“As a customer of Element Logic, you do not just buy a service but also an automation partner that invests time to create the right solution.” Kollerud continued. “We appreciate it when a customer is involved and has requirements. That is when we get the best result”.

SATISFIED: The TRN staff at Oslo Airport were positive from the beginning and shared the excitement for automation.

Facts and figures

  • 340 m2 (1115 ft2) available area
  • 318 m2 (1043 ft2)area for AutoStore
  • 10 Red Line robots
  • 6 077 bins
  • 4 carousel ports

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July 24, 2024 0

Efficiency boost after automating warehouse at Fendt

At the headquarters of tractor manufacturer AGCO/Fendt in Marktoberdorf, Germany, a high-performance small-parts warehouse will ensure the supply of their production line in the future. The warehouse is optimized based on the available floor space and the material flow requirements on site. To increase efficiency, automation, and robotics expert Element Logic is implementing a future-proof and highly efficient AutoStore solution.

Fendt Logo

The American company, AGCO, is one of the world’s three largest manufacturers and suppliers of tractors and agricultural machinery. The Fendt brand has belonged to the American global player since 1997. All Fendt tractors are developed and produced at the headquarters in Marktoberdorf, Germany.

To meet the demands from the customers, manufacturing companies today must stock a growing range of individual parts. As a result, existing warehouse capacities need to be expanded, resulting in additional personnel costs in production supply. Short provision times with simultaneously high added value do not have to be a problem despite expanded warehouse capacities – it is simply a matter of creating a smooth and efficient transition between production supply and assembly lines.

“With traditional warehousing, it became increasingly difficult to meet the growing demands on our small parts logistics, even from an economic point of view,” Jens Kirchner, Supply Chain Manager at Fendt Warehouse said. “On our premises, the utilization of the available space is of immense value. AutoStore, with its high storage density, was clearly standing out compared to all other solutions.”

Fendt tractor being assembled

Low Energy Consumption

The search for an alternative intralogistics solution led AGCO/Fendt to AutoStore and Element Logic, the world’s first AutoStore partner and the market leader in Europe with more than 220 AutoStore solutions sold. Numerous references within the production segment with customers such as STIHL, SCHUNK and Continental, convinced the tractor manufacturer of Element Logic’s extensive expertise and many years of experience in implementing future-proof intralogistics solutions. Element Logic has implemented AutoStore at other AGCO Group sites – including AGCO Parts’ European spare parts center in Ennery, France.

Sustainability in production is a high priority for AGCO/Fendt, which was critical to the decision. The company focuses on reducing its own power consumption and using renewable energy – this is precisely where AutoStore systems can make an important contribution. The energy consumption of ten AutoStore robots is equivalent to that of a vacuum cleaner, and every time a bin is lowered or the speed on the robots are reduced, energy is returned to the battery. AutoStore’s compact design also eliminates the need for aisles, significantly reducing space that requires lighting.

AutoStore mock up with a mezzanine

In Marktoberdorf, the AutoStore system will be installed in one of the existing buildings in the immediate vicinity of the transmission production, and in the future, it will supply all production lines with materials, such as small parts and semi-finished products. The parts and products that the production lines need will be automatically picked by the AutoStore system, pre-packed and supplied to the production lines via tugger trains, which will be loaded at the AutoStore system.

On a floor space of 315 m², the AutoStore solution implemented for AGCO/Fendt offers space for a total of 12,100 bins with an external height of 330 mm each. Eleven robots will handle the bins on top of the grid. Picking and packing is carried out at three ergonomically optimized workstations. The entire process is optimized by Element Logic’s own software, eManager, which is directly integrated into the customer’s ERP system. The system was handed over to the customer at the end of April 2021.

Facts and figures

Floor space needed for the AutoStore solution: 315 m²

AutoStore robots: 11

Number of bins: 12,100

Number of workstations: 3

LEARN MORE!

June 17, 2024 0

Electronics giant, Power, expands its AutoStore from Element Logic

Power logo

Power is the electronics giant of the Nordic region with almost 268 stores spread across four countries. As it takes over all Mediamarkt stores in Sweden, the company has reviewed its increased needs and is consequently expanding its automation solution from Element Logic.

At POWER, the aim is to stay ahead with well-considered, efficient solutions, keeping prices low while providing customers with the best shopping experience. Therefore, the company invested in automation early, building their current AutoStore in 2017. In 2020, they did a renovation of their storage ports for better ergonomics and in 2021, they added two more ports. After five years of successful operation, they expanded in April 2022 that doubled Power’s AutoStore.

New market demands new solutions

As Power takes over all former Mediamarkt stores, their warehouse and logistics solution needs to keep up with the new conditions in the Swedish market. The expansion is linked to an expected growth increase through the establishment in Sweden, but also an organic growth in the other countries.

Power already has an AutoStore with roughly 46,000 bins, 54 robots, and 13 ports. They are making room for an additional 40,000 bins, installing 10,000 initially, in addition to 24 new R5 robots, seven new conveyor & carousel ports, and a picking tunnel. This means they have nearly full automation, from when the order comes in until the order is dispatched, except for the manual picking process.

Development Manager at Power, Casper Ödeen, says that over the past six years, Power has invested in automation and digitization of their processes. In addition to AutoStore, peripheral equipment has also been in focus for box erecting, sealing, and labeling. A robot for pallet building has been invested in, but it would not have been possible without AutoStore’s efficiency and scalability, which allows the automation to grow with the organization, he says.

“Power is far ahead in their automation. They were early with AutoStore, and they have chosen to invest in extended automation to be efficient, secure a stronger delivery to their customers, while also achieving improved ergonomics,” says David Olsson, Account Manager at Element Logic, Sweden.

Power’s expanded AutoStore facility went live in May 2023.

Facts and figures Power

  • 10,000 new bins (making room for 40,000 new bins)
  • 24 R5 robots
  • 7 new conveyor & carousel ports
  • One new picking tunnel

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May 29, 2024 0

Maximize small business performance with automated warehouse solutions

Warehouse automation provides precise inventory management and space optimization. This article explains how Element Logic enhances operational efficiency for warehouses of every size – across industries.

“Though warehouse automation requires a notable upfront investment, the expenses related to warehouse expansion, error corrections, and loss of control can be equally taxing,” Arnold H. Nielsen, Key Account Manager at Element Logic Norway said.

With nearly four decades of experience, Element Logic has provided warehouse automation solutions to a vast and diverse range of industries, benefiting countless customers. These include retail, third-party logistics (3PL), apparel and sports, grocery, and pharmacy.

“We have catered to a variety of needs, also for small warehouses. One of our most compact solutions features approximately 1,500 bins, three AutoStore robots, and two operator stations,” Nielsen said. “On the larger scale, Element Logic has deployed solutions boasting several hundred thousand bins, hundreds of robots, and up to a hundred operator stations.”

One of the smallest solutions we have delivered consists of about 1 500 bins, three AutoStore robots, and two operator stations. In addition, Element Logic has helped small businesses worldwide in their automation journey by delivering small solutions. German company Greendonkey has a dense warehouse of just under 2,300 bins, 6 robots, and three carousel ports.

In contrast, Element Logic has delivered solutions with over a million bins, over a thousand robots, and hundreds of operator ports globally. The world’s most extensive AutoStore solution at Boozt, the largest online department store in the Nordics, contains, by the end of 2022, 1,243 robots, more than 1 million bins, and over 300 ports with the fastest time in which an order was ready for distribution after being received was 49 seconds.

Autostore graphic displaying it as a compact solution.

COMPACT WAREHOUSE SOLUTIONS: Achieve superior inventory control, boosted efficiency, and maximized space with automation.

Industry insights: Enhancing security and space efficiency

Companies manufacturing and supplying systems and components for diverse industries typically maintain high-value inventories. This means that control is extra important.

Jotron, a Norwegian company, specialized in the development and production of communication systems for professional applications in the air, on land, and at sea. Implementing an automated warehouse solution from Element Logic has made warehouse operations a distinct technological priority within the company.

“Jotron, encompassing a little over 1,500 bins, is among the smaller setups but perfectly illustrates the paramount importance of control,” Nielsen said. “Given the pricey components they produce and dispatch, an AutoStore solution ensures that specific orders are required to access any part of the inventory, adding an extra layer of security.”

“If the warehouse had consisted of small goods racks, it would have occupied roughly 4 to 5 times more space.” Geir Ødegaard, Logistics Manager at Jotron said.

“We’ve had nothing but positive experiences with our automated warehouse,” Ødegaard said. “It ensures optimal control and efficient management of storage and retrieval. Our operators appreciate that items are now delivered straight to them, removing the need to wander about looking for them.”

Learn more about our solutions and services.

Retail insights: Boosting productivity and maximizing space utilization

Space efficiency was the top priority when Viktoria, a provider of safety gear and work attire, looked to expand their warehouse in Drammen, Norway. To integrate as much of their production and storage as possible, they took an unconventional route: purchasing a car workshop neighboring their current print shop.

In the former car workshop, they have allocated a portion for an AutoStore solution from Element Logic, while the remaining space serves as a store.

AutoStore robots

SPACE MANAGEMENT: Robots are the key to maximizing areas challenging for conventional warehouse practices.

“Within this setup, we successfully incorporated 3 200 bins, establishing a streamlined warehouse operation where the AutoStore robots retrieve the items,” Nielsen said. “Efficiency and innovation were also at the forefront when Alza.cz dedicated over 40 million euros to develop its newest logistics center in Chrášťany, near Prague.”

“With this progress, we can offer express deliveries to our customers, and orders can be packed and dispatched within a few minutes,” Thomas Havryluk, Vice Chairman of the Board at Alza said.

This represents the company’s most substantial investment to date. Beyond adding an additional 15,000 m2 to their existing space, they’ve incorporated AutoStore technology facilitated by Element Logic. This integration promises to enhance warehouse operations and reduce delivery time.

Read more about Alza. cz’ automation journey here.

Third-party logistics insights: Streamlining adaptability and accelerating product dispatch

Accelerating the movement of goods is a compelling reason for third-party logistics providers to prioritize automation. AssistCo, distributes brands like Hummel, CEP, Ball Launcher, and Assist to the Norwegian sports market. They also manufacture their own brand, Assist, right at their Rjukan facility.

“With close to 7,700 bins, AssistCo may not rank among our smaller clients, yet their facility is still on the compact side,” Nielsen said. “They’ve strategically designed their AutoStore solution to be visible throughout the building. Not only does it offer a unique view of the robots in action from the office spaces, but it’s also highly functional. The structure is aptly designed for an AutoStore setup, enhancing both storage density and the speed at which products are dispatched from the warehouse.”

“Flexibility is at the core of our offerings to all clients,” Nielsen said. “Given sufficient space, our systems can easily scale or be transitioned to new locations for expanded warehousing needs. No matter the scale of a company’s expansion, we are equipped to customize warehouse automation to meet those demands.”

See how more of our clients have benefitted from automated warehouse solutions.

Boost ROI: Warehouse automation for enhanced profitability and efficiency

“Anticipating your needs by investing in Element Logic’s warehouse automation ahead of time is the strategic approach.” Niklas Poulsen, Sales Manager at Element Logic said.

“Many companies initially feel they are too small for warehouse automation to be cost-effective,” Poulsen continued. “Yet, once presented with the ROI analysis, their perspective often changes.”

Since Element Logic was established in 1985, the shortest payback period for an automated warehouse has been less than a year, and the longest has been around six years. We have discovered three key factors influencing the ROI:

  • Number of employees
  • Lower rental costs
  • Growth

Discover how warehouse automation can enhance profitability in our whitepaper.

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April 17, 2024 0

XXL’s superior competitive advantage thanks to AutoStore

XXL’s superior competitive advantage thanks to AutoStore

Only one year after the installation of AutoStore®, XXL experienced radical efficiency boost, crucial space utilization improvement, reduced lead-times to XXL stores and less picking errors. The ROI of the project was also beyond expected.

XXL Sport og Villmark is the largest and fastest growing sports chain in the Nordic Region. Continuous growth puts increasing pressure on storing and handling capacity – leading to the need for manual warehouse adjustments. The solution was Element Logic’s AutoStore and eManager warehouse execution, management, and control system.

“We are highly dependent on efficient logistics to provide our customers with famous brands at low prices. Our cooperation with Element Logic is one of the major success factors for obtaining a highly efficient and low-cost supply chain.” Geir Nielsen, Nordic Warehouse Manager XXL said.

Investment beyond expected

Phase 1 of AutoStore® with eManager was dedicated to textile assortment – the segment with the most potential saving for more effective storage and handling.

Phase 2 enabled XXL to follow their vision –” If the article fits into AutoStore – it goes into AutoStore!”, expanding the system with 4x storage capacity and 4x transaction capacity.

“The project was smooth and painless, and we’re especially satisfied with being able to use the system 100% from day one. The fact that cost reductions are better than estimated makes it even better”, Nielsen said.

An above view of AutoStore's grid

Built for future growth

In 2013 XXL built a brand-new Warehouse Distribution Center in Örebro, Sweden. The warehouse serves XXL’s strong growth in the Swedish and Finnish market, as well as upcoming new markets in Europe.

“When we decided to establish the Swedish Distribution Center, it was important for XXL to get it up and running as soon as possible.” Nielsen said. “According to our request, I think Element Logic set a new world record in putting an automated system into operation; they only spent two months from start to finish, enabling our DC to perform at its best from day one.”

“The success we experienced with eManager and AutoStore in Norway made the choice easy when we decided to establish a warehouse in Sweden. An investment in AutoStore® and eManager from Element Logic is a guarantee for our efficient and low-cost supply chain.” Nielsen said.

BENEFITS

  • No Aisles Needed
  • No Shelving Requirements
Traditional shelves vs AutoStore's compact space
  • Natural Slotting
    Fast moving Bins always reside at the top; slotting performed automatically.
  • System Flexibility
    Great for lower ceiling height facilities as well as tall; can fit any facility layout/shape.
AutoStore's collection unit
  • No Single Point of Failure
    Fully redundant system.
  • Pick and Replenish in Parallel
    No need to interrupt activities.
AutoStore grid with robots
  • Future Proof
    Size and purchase for current needs and expand as required. System extensions able to be done without shutting down current operations
AutoStore systems are scalable to different sizes
  • Green Solution
    Battery powered Robots consume 60% less energy compared to other technologies

February 29, 2024 0

Styleboom picks six times faster with AutoStore by SDI Element Logic

Styleboom picks six times faster with AutoStore by SDI Element Logic

With a compact AutoStore system and implementation of a warehouse management system, Styleboom now has throughput and maximum flexibility in their new warehouse.

Seventyseven urban street wear logo

Styleboom is located in Geldern, Germany, and sells fashion clothing online under the brand Seventy-seven urban streetwear. As part of a fundamental restructuring, Styleboom moved into new facilities in 2020, and implemented warehouse automation and picking processes that increased their efficiency, capacity and optimized their processes.

“Our previous location no longer offered any possibilities for adapting the logistics to our rapidly growing company,” Tomasz Stefanowski, Operations Manager Styleboom explains. “The customer orders were picked manually based on the article number in a multi-level shelving system. This resulted in high stress levels for employees, inefficient processes, and a high picking error rate, which was not sustainable for our quality standards,” Stefanowski sums up.

The contract for the new logistics center was signed early 2020, with an investor. In parallel, Style-boom replanned the logistics processes for the three planned warehouse segments and looked for an optimal automation solution for efficient storage and picking processes. Based on Styleboom’s needs AutoStore was the only option and Element Logic, was given the contract to implement it.

“The advantages of the system quickly convinced us. With an AutoStore solution from Element Logic, we were able to reduce the required warehouse area from 4,500 sqm of shelving to 1,300 sqm of floor space. The system was also designed exactly to the conditions of the 7.50 m high hall and can be scaled in terms of performance and capacity. The AutoStore system is the optimal solution for our requirements”, says Stafanowski.

60 to 70 percent improved space utilization

Three months after signing the contract, assembly could begin at Styleboom. The material was brought in just 5 weeks later, followed by a final testing and training phase. After a total of 25 weeks, the system was installed, linked to the newly implemented warehouse management system (WMS) and connected to their ERP system via an interface. The new site offers 8,160 m² of warehouse space, which is divided into three warehouse segments, in addition to 950 m² of office space, photo studio and social rooms.

Element Logic were able to reduce the required warehouse area from 4,500 sqm of shelving to 1,300 sqm of floor space.

Element Logic were able to reduce the required warehouse area from 4,500 sqm of shelving to 1,300 sqm of floor space.

Compared to other automated warehouse systems, this system enables a 60 to 70 percent improvement in space utilization. The loading stations are part of the storage cube and are accessed by the robots during off-peak periods.

6,000 orders shipped daily

Once picking is triggered by the WMS, employees can pick continuously. “Within three seconds, a new bin is presented in the port,” Stefanowski emphasizes with satisfaction. “The AutoStore system knows which bin is in which place, calculates the travel paths and then distributes the orders to the robots via a radio link. The robots work in a coordinated manner, quickly rearranging the bins, providing the required bin for direct access, and supplying the bins for the integrated ports for order picking.

6,000 orders are efficiently picked per day with zero errors

6,000 orders are efficiently picked per day with zero errors

The system is acting according to current ABC criteria: Less frequently requested bins are successively lowered to the lower storage levels, while fast-moving items remain on the upper levels for quick access.

The workstation modules consist of carousel ports for fast bin exchange, relay ports for ultra-fast bin exchange, e.g. order picking, and conveyor ports for slower bin changes, e.g. goods storage.

Expansion of the warehouse in mid-2021

In September 2020, Styleboom commissioned a basic system with 52,000 bins on 16 levels and 52 robots as well as seven carousel ports that can be used for goods both inbound and outbound. Due to the rapid increase in order volume and the disproportionate growth of the company of around 35 percent, the system was initially expanded by one port and four robots in the following months. Growing shipping volumes in the fashion sector generally also increased the volume of returns. In a second expansion, Styleboom increased the capacity of the warehouse in mid-2021 by integrating two extra ports and 20 robots. A total of 74 robots are now in operation in the online retailer’s logistics centre.

Statement from Tomasz Stefanowski

Picking and insertion take place at eight carousel and two conveyor ports – which enabled an increase in efficiency by a factor of 6. “With the system, 14 employees can pick the same volume of orders as 80 to 90 employees previously did with manual processes,” explains operations manager Stefanowski. “We efficiently pick 6,000 orders a day with zero errors and no back orders. This allows us to easily implement further growth without significantly increasing the number of employees.”

In addition, there is software-supported end-to-end transparency over order processing. Finally, the picking processes at the ports are virtually self-explanatory thanks to display-based menu navigation. “Within 30 minutes, new employees can be trained and pick without errors,” Stefanowski concludes.

“This means that the fully automated AutoStore system by Element Logic meets all the expectations we have associated with the automation of processes in terms of quality, increased capacity, efficiency and, managing the shortage of skilled workers. If necessary, we can also scale the system using various adjusting screws and adapt it to new requirements. We are highly satisfied with the results and the partnership with Element Logic.”

Facts about Styleboom

  • 1,300 sqm of floor space used for AutoStore
  • 52 000 bins
  • 74 robots
  • 9 ports
  • 14 employees picking 6 000 order per day

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February 27, 2024 0

Trends that Continue to Shape Intralogistics

Trends that Continue to Shape Intralogistics

The world has changed its shopping habits, characterized by unprecedented growth in eCommerce as the pandemic lockdowns accelerated the shift to online shopping. This immense growth in online sales has seen a corresponding surge in intralogistics and warehouse operations.

Moreover, the acute shortage of manual labor has made companies realize that embracing new technologies is the way forward to drive efficiencies in the warehouse and improve the customer journey. To meet both consumer demands and changing business needs, market players must continue to be flexible, scalable, and informed about trends shaping intralogistics.

Here are some of the trends that we believe will play an essential role in how the industry will evolve in the future.

eGrocery

While this had been an emerging trend for a while, the pandemic increased its acceleration. Today, eGrocery is firmly entrenched, and the challenge for retailers is to build a sustainable infrastructure that aligns with consumer demands. This comprises an intuitive online platform combined with excellent quality, competitive pricing, and fast and reliable deliveries.

The need for sustainable infrastructure emerges once companies begin shipping groceries directly to the consumer. If it’s not done smartly, it can be costly and even unprofitable for the grocer. However, companies can achieve a sustainable and profitable infrastructure by automating their warehouse operations.

Fortunately, automated intralogistics solutions – which provide speed and inventory control to win over consumers – are readily available. The following example illustrates how not relying on manual order picking can eliminate picking errors while massively speeding up the process.

Swedish eGrocer, Matsmart, which sells surplus food at a discounted rate, is one of the fastest-growing companies in the Nordics. By 2021, it had maxed out its manual labor and space capacity. It invested in an automated solution that offered three times more capacity and even more space to grow. The 149 AutoStore robots can pick an estimated 6,000 items from 88,000 storage bins per hour.

“The 149 AutoStore robots at Matsmart can pick an estimated 6’000 items from 88,000 storage bins per hour.”
AutoStore robots on top of the grid.

Automation as a Service

Not all companies can afford or want to invest in an automated intralogistics solution before they’re sure it can meet their needs profitably. An emerging trend that accommodates this desire is automation as a service (AaaS). With AaaS, young companies will be able to access automation at a much earlier stage of their development and free up funds to facilitate rapid, sustainable growth.

Subscription-based models – where the costs are spread evenly throughout the year compared to a sizeable first-time investment – are a common trend across several industries. While the solution would still be built according to the customer’s needs, the system integrator owns the solution and the equipment.

Because a solution like AutoStore is modular and flexible, it’s an ideal fit for AaaS. It can fit into any space and is easy to scale when necessary and can quickly be taken down and rebuilt in another warehouse if a customer ends the subscription.

However, AaaS would most likely be temporary since renting an automated warehouse solution will be more expensive in the long term than owning it.

Satisfying customer demands is tough … but

AutoStore makes it easy.

Powered by robots, our Automated Storage and Retrieval System (ASRS) ensures that your supply chain is always ready to scale with your customers’ demands.


This solution does not require light in the aisles, or aisles for that matter, as there are no people picking. The savings due to energy and space can vary but are overall high in comparison to other solutions.

December 18, 2023 0

Micro Fulfillment Centers – What Are They?

We believe the rise of micro fulfillment centers will be a defining trend for the intralogistics industry. But what are they – and how do they work?

Customer demand for same-day or next-day deliveries and click-and-collect options are compelling companies to adjust their omnichannel distribution strategy. To shorten the delivery time, some European retailers, notably those in the grocery market, are launching micro fulfillment centers (MFCs).

To find out more about micro fulfillment centers and the other trends shaping intralogistics, download our whitepaper: Three emerging trends shaping intralogistics.

Two men from Peterhans and Element Logic partnership
Peterhans invested in AutoStore, and a micro fulfillment center empowered by Element Logic in 2018.

Operating as small warehouses, companies can install MFCs nearly anywhere closer to customers. They can be inside a physical store, in an adjacent building or inside a ‘dark store’ where inventory and products are staged, but only employees have access. In addition to flexibility, a micro fulfillment solution provides predictability and fast deliveries to customers visiting the store and those who prefer to shop online. It also allows for better inventory control and tracking, quicker and easier returns, and lower transportation costs.

The dark store concept combined with the regular storefront where a dedicated space at the back operates as a micro fulfillment center, will shape the future of logistics. While micro fulfillment is undoubtedly an innovative trend, many companies still rely on manual labor, despite the associated drop in productivity. There’s a limit to the number of products human labor can pick per hour, and a warehouse only has a certain amount of shelf space. Automating the micro fulfillment process can drastically improve efficiency and reduce operating costs.

The most significant difference between a manually operated and an automated micro fulfillment center is storage density. Keeping hundreds or thousands of products in stock in a small space can be overwhelming and challenging to control. Investing in an automated modular solution increases storage capacity significantly. This makes the apparel sector, for example, a perfect candidate for micro fulfillment.

Automation in action

One company that achieved great success with automation is Peterhans, a Swiss-based company that supplies tools, fittings, machines, and materials to contractors in the building industry. They also specialize in the assembly and mounting of hardware for industrial and commercial customers. Using a combination of a regular storefront and an extended warehouse in the back, they invested in an AutoStore system from Element Logic in 2018.

The system uses AutoStore 220mm bins at eight levels totaling 11,650 bins. The grid covers over 4,300-square-feet, which occupies only 10 percent of the warehouse’s total floor space, making future expansion possible. The system also supports employees in their daily work, which is now much less labor-intensive since they no longer must walk long distances and lift heavy goods.

By automating, Peterhans improved storage capacity (they keep 500,000 items in their online store alone) and increased warehouse efficiency. Immediately after installation, the system made it possible to meet same-day delivery expectations and ensured a shorter waiting period at the pick-up counters inside the store. A customer order takes less than two minutes to arrive at the sales counter. Since the ports are located next to the sales counters, customers can watch their orders being processed on-site, making for a unique and rewarding customer experience.

Peterhans_AutoStore_sales-counter-focus
Helping a customer at the micro fulfillment center at Peterhans

Using micro fulfillment to increase customer satisfaction

Businesses know that an excellent customer journey is a competitive advantage. Micro fulfillment adds considerable customer value – order online and pick up locally to save on delivery fees and benefit from same day convenient collection.

Therefore, as demand for same-day delivery increases and consumers get used to the comfort of fast deliveries, more and more industries are likely to make micro fulfilment part of their omnichannel offering.

To find out more about micro fulfillment centers and the other trends shaping intralogistics, download our whitepaper: Three emerging trends shaping intralogistics.

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November 6, 2023 0