Achieving ROI in Just 12 Months: The Hut Group’s success story

Achieving ROI in Just 12 Months: The Hut Group’s success story

THG black logo

AutoStore successfully met THG’s primary requirements, delivering a fast ROI. The impressive ROI time for the site exceeded expectations, with the initial investment cost recovered in under a year.

The Hut Group (THG) is a world-renowned, vertically integrated e-commerce technology group based in the UK. Its flagship e-commerce software, Ingenuity, provides brands with comprehensive end-to-end solutions, empowering them to effectively tap into a vast global consumer base and thrive in the world of e-commerce.

The expansion journey

With a vast global fulfilment network consisting of 16 strategically located warehouses, THG enables shipping to over 190 destinations worldwide. In addition to its expansive shipping capabilities, the company goes above and beyond by offering support for over 300 localized websites, ensuring effective reach and exceptional service to diverse markets.

The Hut Group, having recently established a fulfilment center in Manchester, recognized the importance of implementing a warehouse automation solution that is both flexible and user-friendly, ensuring a rapid return on investment (ROI). With operations of such magnitude, requiring the handling of one million units daily, automation was the only viable solution. By prioritizing efficiency and adaptability, THG aimed to optimize operations and maximize the benefits of its new facility.

The automation investment

The Hut Group made the strategic decision to invest in an AutoStore system and enlist the expertise of Element Logic for its installation. Element Logic completed the full installation of the AutoStore warehouse system within just three months – seamlessly integrating 256 robots, 13 conveyer ports and 56 carousel ports, as well as over 300,000 inventory bins. As a result, six weeks after installation, the grid system contained 10 million units.

In response to the increasing demands of its growing business, THG decided to incorporate an additional 124 robots into its AutoStore warehouse system, bringing the total number of robots to an impressive 380.  With an expanded robotic workforce and optimized warehouse system, THG is positioned to meet the challenges of its growing business with unmatched efficiency and productivity.

THG Element Logic system

Reaping the rewards

The implementation of an AutoStore system yielded immediate and significant results, greatly improving warehouse operations for THG.

Here are some of the results:

  • Increased productivity: The adoption of AutoStore immediately boosted productivity, with a remarkable increase in order picking rates and significant improvement in picking accuracy. The system’s exceptional performance has virtually eliminated picking errors, resulting in a substantial reduction in labor requirements.
  • Enhanced customer experience: The enhanced picking accuracy resulted in reduced errors and faster processing times, leading to improved customer order fulfilment and better overall customer experience. Consequently, this has positively impacted on repeat orders and customer retention rates.
  • Reduced labor costs: Not only have THG reduced labor costs, but the company has also enabled employees to transition to more stimulating, value-adding roles. Moreover, with fewer staff members on the warehouse floor, the overall safety of the operation has increased, contributing to improved staff wellbeing.
  • Return on investment: AutoStore successfully met THG’s primary requirements, delivering a fast ROI. The impressive ROI time for the site exceeded expectations, with the initial investment cost recovered in under a year.

“The implementation of AutoStore at our Manchester fulfilment center has had a significant effect on customer satisfaction,” John Gallemore, Executive Director and Chief Operating Officer at The Hut Group said.

“We take pride in our partnership with THG to implement the transformative AutoStore system. The remarkable boost in productivity, enhanced customer experience, reduced labor costs, and rapid return on investment highlights the immense power of automation in optimizing warehouse efficiency,” Jeremy Clouston-Jones, Managing Director at Element Logic said.

Key stats:

  • 300,000 bins
  • Delivering over 10,000 bins per hour
  • 56 carousel ports
  • 13 conveyer ports
  • Installation in just three months during Covid-19 pandemic
  • 10 million units installed in the grid system in six weeks

Fun Facts

  • Workhorses – AutoStore robots will drive 16,000 km in an average day, the distance from Manchester to Melbourne, and present over 7000 bins per hour.
  • Green line – To operate continuously, AutoStore requires 38,595W – less electricity than 24 electric wall heaters or 48 toasters.
  • Compact storage – Stack 300,000 AutoStore bins on top of each other and the pile will reach 99,000m above the earth’s surface – technically outer space!
  • Storage volume – Approximately 360 million pieces of lipstick will fit in AutoStore’s 300,000 bins – representing 22,500 m3 of storage volume.

October 17, 2023 0

Boozt has become one of the world’s largest AutoStore installations

boozt logo

First, the e-commerce company Boozt installed warehouse automation through the AutoStore system from Element Logic. Then they expanded last year, and are now making another big expansion to meet the increased demand, and to be able to broaden the range for their customers.

People’s work schedules have undoubtedly changed since the pandemic, which also resulted in an e-commerce boom. During this time period, Boozt saw a rather large increase in their traffic. The e-commerce company with its headquarters in Malmö, Sweden, has had an incredible growth journey over the past few years. It is common for companies to continue to expand their AutoStore solution because the system comes with a high scalability factor. Change in customers’ buying patterns meant that Boozt now needed to prepare for upcoming peaks – especially before Black Friday and Christmas.

Boozt, once again, among the world’s largest AutoStore warehouses

The newest expansion of the system includes as many as 180 robots, 210,000 bins, and 43 ports for picking and delivery flow. With this installation, Boozt once again becomes the world’s largest AutoStore installation.

Here is a video of Boozt processing orders in just 49 seconds!

The total solution includes an impressive 1,243 robots, 1,245,000 bins, and 301 ports.

The installation will not interrupt the daily operations, and Boozt can have full operation throughout the expansion process – and thus keep its customer promises.

– To always be one step ahead and be able to ensure continued strong growth and a continued good customer experience, even during growth peaks, Boozt and Element Logic are constantly discussing expansions of their AutoStore solutions.

With our growth and our customer promise of delivery within 1-2 days, it is extremely beneficial for us that the process is both fast, and can be scaled up during ongoing operations,” said Jimmy Duholm, the Warehouse Director at Boozt​.

Picture of Marcus Rasmusson

Boozt is doing great, and it is exciting and gratifying to see how they grow and adapt. Together, we work closely with an open dialogue, where we plan long-term to be able to make the right extensions at the right time,”  said Marcus Rasmusson Aftermarket Director at Element Logic Sweden.

Read more from Boozt’s warehouse

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September 20, 2023 0

AutoStore projects with SDI Element Logic – from A-Z

With a wide range of expertise, user-friendly software, and more than 35 years of intralogistics experience, Element Logic will find the optimal solution for you and your future growth,” Niklas Poulsen, Sales Manager in Element Logic, explains.

When investing in automation, there are a lot of things you must consider. Here is an insight on how our process as AutoStore specialists looks like.

In 2020, electronics wholesaler CBK chose AutoStore by Element Logic to optimize its warehouse. See the entire process from A-Z in this video:

Establish the partnership

The first step towards automation is to contact the specialists at Element Logic. With their extensive knowledge and experience in implementing warehouse automation and AutoStore systems in warehouses, they take the lead in making ROI calculations and payback analyses to find a custom solution for your current and future needs.

The team calculates all aspects of your operations. Some calculations are straightforward, such as how many employees you will need to operate. But we also calculate how much you will save on reducing human errors in picking goods and how much customer satisfaction will increase when they experience faster and safer deliveries.

“Finally, we estimate the budget and time frame for you,” Poulsen says.

Tailor-made solution: the solution is never the same, and each customer has its own needs
TAILOR-MADE SOLUTION: The solution is never the same, and each customer has their own needs.

Designing a tailor-made warehouse for your specific needs

After mapping your needs and preferences, our team of system designers work closely with the sales team and Project Manager using their experience and creativity to design a customized solution for your warehouse. No solution is ever the same.

“We spend a lot of time analyzing and calculating numbers to understand your needs,” Lasse Vik, Product Manager AutoStore explains. Vik designs systems for all kinds of customers, regardless of size, shape, and challenges.

Picture of Lasse Vik, Product Manager AutoStore

We spend a lot of time analyzing and calculating numbers to understand your needs," Lasse Wik, Product Manager at AutoStore explained. Vik designs systems for all kinds of customers, regardless of size, shape, and challenges.

Once you sign a contract with us, we assign you a Project Manager that will work as a coordinator in all phases, and as the bridge between you and the team designing and building the solution. This way, you have one central point of contact – making it easier for you to keep track of what is happening.

“It is essential to have an open and honest dialogue about all details with the customer. This way, both sides feel confident and secure about the process,” Nils Grille, Project Manager at Element Logic, explains.

SUCCESS FACTOR: Project Manager Nils Grille coordinates and quality checks the entire process – ensuring a smooth and precise process for you.
SUCCESS FACTOR: Project Manager Nils Grille coordinates and quality checks the entire process – ensuring a smooth and precise process for you.

To make sure we end up with the best possible solution, the design team makes several 3D models and run simulations. These simulations will give you an idea of what you can expect from the end-result regarding capacity and efficiency.

“When we have established a draft plan based on your needs and your available space, we present this to you, and together we agree on how we execute the installation,” Grille says.

Element Logic specialist using laptop and two monitors
FOR ALL WAREHOUSES: Every building has its advantages and disadvantages, and the specialists from Element Logic work hard to find the perfect solution for your available space.

Delivery and construction

You can compare AutoStore to an advanced Lego-kit. Your Project Manager is in the lead of coordinating resources and deliveries to ensure a smooth construction phase.

“As your project manager, I make sure all the deliveries arrive at the right time. After more than 35 years in operations, Element Logic has not had any significant delays in delivering a project. Our customers highly value this accountability in a time of change,” Project Manager Grille explains.

“We spend a lot of time analyzing and calculating numbers to understand your needs,” Lasse Vik, Product Manager AutoStore explains. Vik designs systems for all kinds of customers, regardless of size, shape, and challenges.

Picture of Project Manager Nils Grille

Once the materials arrive, the construction team works on the time-consuming task of measuring out the grid and installing the first aluminum columns. Each stage of the construction is handled carefully and accurately to avoid mistakes that could affect the later stages of construction.

Close up shot of person using ruler to measure AutoStore grid
DETAIL-ORIENTED: One small deviation in the foundation jeopardizes the end-result.

“When the foundation is complete, the rest of the grid is quickly built row after row by our experienced construction teams,” Grille explains.

Your entire AutoStore solution is custom-built to fit your space, needs and requests. The custom solution includes not only the grid itself but also the service mezzanine, ports, and everything else within in your unique solution. Our goal is to utilize your space in the most efficient and space-saving way.

For customers in need of a total warehouse solution, we have the competence and can support our customers with different kinds of systems and technology in addition to AutoStore.

The final step of the construction process is to place the robots on the grid.

ADVANCED WAREHOUSE LEGO: When the foundation is in place, the grid gets put together like an advanced Lego-kit.
ADVANCED WAREHOUSE LEGO: When the foundation is in place, the grid gets put together like an advanced Lego-kit.

Testing capacity and efficiency

Once the robots are on top of the grid, the commissioning team executes extensive testing and simulations on scenarios. This way, you can be confident the AutoStore-system capacity matches the estimated figures from the sales process before you go live.

Our software eManager enables you to maximize efficiency and reduce operational cost. This software implements warehouse execution, management, and control systems in one optimized, user-friendly interface.

“I test the system with the customer and guide them into production. I also prepare servers for installation to make sure our software eManager is compatible with the customers’ existing systems,” Theresa Marin Tantillo, Solutions Architect at Element Logic, explains.

Photo of laptop being used in warehouse with AutoStore robots
USER-FRIENDLY: Our software, eManager, is easy to use and you can navigate it easily after training with Element Academy.

eManager comes with built-in operator assistance for completing AutoStore tasks, an operational dashboard, and a service portal. eManager is also used to locate and control products and inventory and can integrate with ERP/WMS, and a variety of warehouse management systems.

 

“I would say we are the World Champions of integrating AutoStore. eManager is the brain of AutoStore- making it efficient and enabling all components to communicate with each other for an optimized workflow,” Tantillo says.

Picture of Theresa Marin Tantillo

"eManager is the brain of AutoStore- making it efficient and enabling all components to communicate with each other for an optimized workflow," Theresa Tantillo said.

Become a superuser

When we train you in your new system, we recommend a selected few to become superusers.

“To onboard you, we invite you to superuser training with practical and theoretical tasks. The focus is on operations, safety and solving different issues that could occur,” Børre Skogvold, Training Team at Element Logic, says.

The training lasts for a couple of days, and you are encouraged to work on technical and software issues with your colleagues while we are present.

Team of warehouse workers gathered around two monitors
SUPERUSERS: Motivated and eager superuser employees are often the key to success for our customers.

Support and customer care after the installation

When the solution is ready to go live, the Element Logic support division is ready to help you in your daily operations and work with you to get the most out of your automated warehouse.

“In support, we help our customers with any issues they might face with their solution,” Wenche Schellhorn, Senior Systems Consultant at Element Logic, explains.

After completing the superuser training, you and the support division can understand each other as you can speak the same technical language and can work out the issues together.

The support team is always ready to help you with ad-hoc tasks, but they also continuously work to optimize your operations and to investigate where and how they can help you grow.

Woman on headset phone.
SERVICE-MINDED SUPPORT: It is normal to have more frequent contact with support in the first months of operations. Our team is happy to guide you during the early months of operation – and for the years to come.

“During the construction phase, we are in the information loop and are familiar with the customer’s AutoStore-solution when they start using it and might need our help,” Arnold Nielsen, Key Account Manager at Element Logic, explains.

You can receive an SLA-report each month with detailed status on your AutoStore-solution, including downtime and completed tasks.

Seamless transition to automation

After decades of experience with AutoStore and intralogistics, we are experts in transitioning our customers from manual to automatic warehouses. Our success factor is the agility and solution-minded service team surrounding each customer – you can be confident that your solution is tailored specifically to your needs.

From the account manager, project manager, designers, constructors, commissioning team, system architects, superuser trainers and the experts in the support division, the transition to an automatic warehouse is seamless and comfortable. While simultaneously preparing your company for future growth.

The time frame from the initial meetings to an operational warehouse varies heavily. It depends on the decision-making process and your needs.

“A standard process is usually around three months from order to delivery and a few additional months of construction,” Sales Manager Niklas Poulsen states.

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August 21, 2023 0

Element Logic delivers AutoStore to one of the world’s largest 3PLs

DSV Prime Cargo logo

The world’s largest third-party logistics system (3PL) is in Kolding, Denmark. The international freight forwarding company Prime Cargo recently inaugurated its new AutoStore system. With over 43,000 sq. ft., 88,000 bins, and 49 robots, it is the world’s largest within the 3PL industry.

“We find that more and more companies are seeing the possibilities in robotic warehousing. In fact, you eliminate all the time spent on moving around in the warehouse and picking, which increases profitability,” said Nikolaj Bjørn Eriksen, CEO of Element Logic Denmark.

Largest investment ever

Prime Cargo’s installation is one of the largest investments in the company’s history. When the AutoStore system is fully operational, it will be able to process 20,000 orders a day from a warehouse with more than 500,000 articles. That makes up 50% more compared to the previous manual warehouse.

“Capacity and flexibility are the two major keywords for this installation. We have previously experienced bottlenecks during peak periods at our manual warehouse, which lowered our efficiency. With this AutoStore system, we can increase efficiency as well as capacity and at the same time make better use of the square meters”, said Morten Høilund, CEO of Prime Cargo.

Ready to be Tested during Black Friday and Christmas season

Element Logic is a total supplier of the project, which in addition to the robotic AutoStore warehouse includes several other automation solutions – e.g. automatic box lifters and case closers.

“In addition to the robot warehouse itself, Prime Cargo has invested in automating the processes around the AutoStore system so that they can offer their customers a strong, comprehensive logistics solution,” said Nikolaj Bjørn Eriksen.

Initially, Prime Cargo’s facilities will be tested during this year’s Black Friday and subsequent Christmas sales.

Facts and figures:

  • Holds a total of 88,000, 16 stories high
  • The goods are handled via 49 robots
  • 9 conveyor ports for inbound
  • 8 carousel ports for picking

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THE WORLD’S FIRST AND LARGEST AUTOSTORE DISTRIBUTOR

July 17, 2023 0

Soccer kit supplier scores big with warehouse automation

Soccer kit supplier scores big with warehouse automation

Direct Soccer

The UK’s leading football teamwear supplier saves over $256,000 on floorspace, manpower, and labor in its first year of using an AutoStore solution from Element Logic.

A series of firsts

Based in Dundee, Scotland, Direct Soccer is a family-run business and one of the UK’s leading soccer teamwear suppliers that offers in-house personalized printing and embroidery. By switching to online trading as early as 2002, it became the first company in Britain to take fully personalized orders on mobile devices.

Direct Soccer achieved another first nearly 20 years later – they became the first AutoStore user in Scotland and the second in the UK, placing them at the forefront of advanced warehousing. In its first year of using AutoStore, the company has saved approximately $256,000 in floor space, manpower and energy savings.

The sportswear business’s growing customer base prompted its owners, husband-and-wife team Bryce and Joyce Gibson, to triple the floor size of the company’s warehouse in 2019.

While our manual racking system worked well up to that point, we knew we had to find a warehouse solution to optimize the floor space fully and improve the overall efficiency of our operations" explained Bryce.

Joyce continued: “Our online business caters for both clubs and individuals, so when the taps got turned off on the club side during the initial Covid-19 lockdown, we shifted our marketing focus to the individual. Using the mantra ‘stay safe, stay home, keep training’, we started supplying more leisurewear to this market through Express Football Kits, the sister site of Direct Soccer. The site offers next-day delivery with limited personalization and grew quickly.”

Bryce added that they initially considered a mezzanine system for the additional warehouse space, “but the number of floors made it impractical for our needs at the time.”

The road to automation via YouTube

Bryce and Joyce discovered Element Logic after searching for warehouse automation solutions on YouTube.

“We contacted the UK sales team, who came through the very next day,” says Bryce. “They assessed our needs and setup, and a week or two later, we went to Norway to see their specialized AutoStore solution in action. We were thoroughly impressed with how straightforward the system was and how it could integrate with our current warehouse management system.”

Element Logic customer Bryce Gibson holding up Direct Soccer T-shirt

“We contacted the UK sales team, who came through the very next day,” says Bryce. “They assessed our needs and setup, and a week or two later, we went to Norway to see the AutoStore solution they specialize in, in action. We were thoroughly impressed with how straightforward the system was and how it could integrate with our current warehouse management system.”

– Bryce Gibson, Owner at Direct Soccer

Element Logic’s proposed solution appealed to Direct Soccer in several ways. The AutoStore system could utilize both height and floor space, and it would meet the company’s objectives of reducing lead times and increasing throughput. The system design also allowed for easy scaling in terms of performance and capacity.

Direct Soccer and Element Logic signed the contract in July 2020, and 16 weeks later, the system went live with seven robots and 8,000 bins, just in time for Christmas.

“The implementation process was well organized and took the concern out of what was a massive investment for us. The implications of it going wrong were immense, but we had complete trust in the Element Logic team from the start,” Joyce emphasized.

The team were knowledgeable, transparent, and quick to make and act upon their decisions. We couldn’t have asked for a better partner. The implementation took place in the extended section of the warehouse, so there was no interruption to existing operations.

With an entirely manual operation, Direct Soccer needed to use approximately 3,717 sq. ft. of floor space, but with an AutoStore solution just shy of 690 sq. ft. – or less than a quarter of the existing space – is required. The company plans to expand the system to 16,000 bins in the future, which will be made easier due to the floor space savings.

Direct Soccer employee operates an AutoStore unit
With an AutoStore solution, Direct Soccer is able to use less than a quarter of its existing floorspace.

High productivity and ease of use

“A major plus point of the system is its ease of use,” added Bryce. “We currently have 40 staff and regularly increase headcount – training can become a major problem when you’re scaling up. However, because of the systems’ seamless integration with our WMS, there’s a short training window. Everyone knows where to go and what to pick.”

Prior to the installation of AutoStore, the Direct Soccer warehouse averaged 10 orders dispatched per hour. Now, they achieve 40 order dispatches per hour.

Apart from building a multi-skilled work team for added flexibility during peak times, Direct Soccer also has five AutoStore superusers to do fault-finding if there are any issues with the system. However, regular services and strong remote support from Element Logic’s UK team ensure high reliability, so there had been little to no need to use the superuser backup.

“The peak period for Direct Soccer is July to September when the new football season gets underway,” said Joyce. “The automated solution allows us to manage these peaks, even with added stock volumes. It also enables us to introduce more stock-keeping units (SKUs) and reduce turnaround times.

“Currently, we have two conveyor ports and one carousel port, with most of the picking done from the latter. Sometimes we pick dispatch from the carousel port and production stock from a conveyor port. This flexibility means we can do jobs simultaneously, whereas before, we could only do it back-to-back.”

Direct soccer employee operates an autostore unit
With AutoStore, Direct Soccer’s staff can despatch orders four times faster.

Enhanced customer experience

For the owners, the high throughput and ability to clear orders quickly are significant strategic benefits, since better customer service drives more sales.

“We no longer have to put several people on orders. One operator can set up the entire process. And now we’re fulfilling 100% of fulfillment of in-stock orders for next day delivery,” explained Joyce.

In fact, because Direct Soccer are shipping orders direct from the AutoStore system, it has eliminated the need for these picks to move to a dispatch area. Plus, the putaway process is significantly faster and can match the pace of online orders, eliminating a build-up of stock waiting to be put away. This has saved the business the need to hire two additional staff members.

Direct soccer employee uses AutoStore computer
With an AutoStore solution from Element Logic, Direct Soccer has saved over €235,000 in its first year.

The speed and ease of use have encouraged Bryce and Joyce to look forward to the next stage of their automation journey. Currently, they’re considering automating the bagging machines in the dispatch area.

We can now focus on other parts of the business that need improving. Every evening around five or six, I get excited when I hear the robots getting jobs ready to go out the next morning. It’s tremendously reassuring to know the operation keeps running while everyone else goes home”, Bryce concluded.

Facts and figures:

  • Installed in December 2020
  • 7 robots
  • 8,000 bins
  • $256,000 saved on floorspace, manpower and energy in the first year
  • AutoStore system uses less than a quarter of the available floorspace (690 sq. ft.)
  • Average of 40 order dispatches per hour compared to a previous target of 10 per hour
  • Saved the need to hire two additional staff members

June 29, 2023 0

Micro fulfillment center creates a unique shopping experience at Peterhans

At the Peterhans Handwerkercenter store in Switzerland, customers can watch how the AutoStore system provided by Element Logic process orders.
Peterhans logo

A combined physical store and warehouse facility is often called a micro fulfillment center which, often-times, better aligns with the ever-changing demands of customers. A micro fulfillment center provides flexibility, predictability, and fast deliveries to customers visiting the store and those who prefer to shop online.

In its micro fulfillment center, Peterhans Handerwerkercenter AG store and sell building materials, tools, machines, fittings, fastening equipment, and personal protective equipment directly to customers and wholesalers in the building trade. In addition, Peterhans specializes in the assembly and mounting of hardware for industrial and commercial customers and sells household appliances and related goods.

Due to its continuous growth, Peterhans invested in AutoStore and a micro fulfillment center empowered by Element Logic in 2018. Immediately after installation, the system made it possible to meet customer expectations of same-day delivery and a shorter waiting period at the pick-up counters inside the shop.

Increased storage capacity and streamlined picking processes

The AutoStore system, delivered by Element Logic, drastically increased the storage capacity and streamlined the picking process for Peterhans.

“We can now count on a powerful, automated small-parts warehouse to secure our customers’ expectations regarding quick order fulfillment,” Dieter Egloff, Deputy Managing Director at Peterhans Handerwerkercenter AG, explains

As the ports are located next to the sales counters, customers can watch the orders be processed on-site, enabling a unique customer experience while preparing Peterhans for the changing customer demands.

Testimonial statement from Dieter Egloff

Dieter Egloff explains the main reasons for choosing an AutoStore solution:

“We examined various logistics facilities in operation and visited reference sites with AutoStore solutions. When we weighed up all the factors, it quickly became clear: An AutoStore solution was on our wish list. The simplicity of the technology, the flexibility of the storage concept, and the output convinced us right from the start.”

The AutoStore system has also greatly benefited the employees: “AutoStore simplifies important warehouse processes and supports our employees considerably in their daily work.”

Two men from Peterhans and Element Logic partnership

GREAT PARTNERSHIP: Good cooperation between Peterhans and Element Logic (Dieter Egloff, Peterhans Handwerkercenter and Joachim Kieninger, Element Logic Germany)

“The cooperation with Element Logic was very rewarding from the start, and we benefited greatly from their knowledge. Project management was also very smooth and easy. During the building phase, the team was able to implement adjustments according to our wishes quickly. It was a true asset to have Element Logic onboard for our automation project. Our system is a testament to a great partnership,” Egloff says.

How the AutoStore solution and the micro-fulfillment center benefits Peterhans

  • Fast order fulfillment and same-day delivery are now easier than ever before.
  • The AutoStore solution has saved the company 80 percent of the available floor space, making future expansion possible.
  • The system has simplified and streamlined several warehouse processes.
  • The system supports employees in their daily work, which is now much less labor-intensive than before. The employees no longer need to walk long distances and lift heavy goods.

A micro fulfillment center is an investment in the future

“In the course of a holistic realignment of our logistics, the AutoStore system serves as the central core,” Egloff says.

“With 500,000 items, it is easy to imagine there would be some delivery errors. But with the support of the AutoStore system provided by Element Logic, we can pick items from the system with nearly zero errors.”

It has indeed been an investment for the future, Egloff concludes. “We are continuously strengthening our business through future-oriented investments in digitization and logistics, and we expect to see a return on our investment within five years. The solution also enables us to increase sales with the same number of employees.”

“With the AutoStore solution and a micro fulfillment center, we were able to meet the steady growth and even the rapid increase in online orders due to the pandemic, without additional resources. It was an investment in the future from the very beginning.”

Peterhans and Element Logic worked closely right from the planning phase.

“The main goals were to improve processes and maximize storage capacity in the existing building,” Joachim Kieninger says, Director of Strategic Business Development Element Logic Germany.

"Peterhans and Element Logic worked closely right from the planning phase. The main goals were to improve processes and maximize storage capacity in the existing building" - Joachim Kieninger

The AutoStore system at Peterhans – facts and numbers

The micro fulfillment center, now in its third year of operations, can be seen at the warehouse facility. Here is what customers visiting Peterhans can experience:

  • An AutoStore grid covering 400 square meters. At this stage, it occupies only 10 percent of the warehouse, which measures 4,000 square meters.
  • The system uses the AutoStore 220 millimeter bins and has eight levels for a total of 11,650 bins.
  • By subdividing the bins, Peterhans can increase its storage density by placing multiple product lines in one bin.
  • Six operator ports move items in and out of storage, and three picking ports are visible to customers awaiting order fulfillment. Additional ports, not visible to customers, pick online shop orders for external deliveries and collections.
  • Ten robots glide along the top of the grid. They lift bins containing the required goods, deliver the bins to the workstations, and then restack them.
  • An express order, for which there was no prior notification, takes a robot only four minutes to retrieve from the lowest bin level.
  • On average, a customer order takes less than two minutes to arrive at the sales counter.
Above view of Autostore Unit

Do you want to know more about micro fulfillment centers?
Take a look at our whitepaper about emerging trends shaping intralogistics today.

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THE WORLD’S FIRST AND LARGEST AUTOSTORE DISTRIBUTOR

April 25, 2023 0