DC Velocity - August 2011

Company managers determined that automation was the key to attaining these goals. Supervalu had already completed a highly successful automation project with Witron Integrated Logistics at a facility near company headquarters in Hopkins, Minn. This system, installed in the Hopkins facility in 2006, features Witron’s OPM (order picking machinery), a highly automated system for picking and palletizing cartons. The success of the Minnesota operation convinced Supervalu management that Witron’s design and integration services, along with its OPM, would be an ideal fit for Lancaster as well.

“We have a great partner with Witron,” says Jeff Fritz, sen-
ior director of operations in Lancaster. “They have logistics
knowledge, not just systems knowledge.”
Installation of the system began in the fall of 2008, and
the automation went live in early 2009. The OPM system
serves as the heart of the Lancaster operation. It consists of
a large case and tote automated storage and retrieval system
(AS/RS), connecting carton conveyors, automated palletiz-
ers, pallet conveyors, stretch wrappers, and more—all of
which perform without human intervention. This complex
system fits in the space that had previously been occupied
by a labor-intensive pick-to-belt operation. The design also
incorporated a 10-aisle pallet AS/RS, which feeds the OPM.
This was the only structural addition made to the building
for the project. The pallet AS/RS occupies a footprint of just
175,000 square feet, yet it holds more than 53,000 pallets in

double-deep storage.

Together, the new automated systems have enabled the Lancaster DC to process some 1. 1 million cases a week, feeding nearly 400 stores in the Mid-Atlantic region as well as some markets in the Northeast.

“We were able to more than double the number of stores serviced and increase our outbound volume by 100 percent in grocery without adding more shipping space to the facility,” says Kroutch.

NO-HANDS HANDLING

Products arrive at the facility at six receiving lanes. Lift trucks then take the loads to six induction stations, where they are placed onto a pallet conveyor supplied by Binder. Once deposited on the conveyor, products are not touched again until they’re loaded onto outbound trucks.

The pallet conveyor transports the loads to the newly built high-bay warehouse that holds the AS/RS. This area serves as reserve storage at the Lancaster facility. The AS/RS consists of 10 70-foot tall aisles accessed by 10 storage/retrieval cranes supplied by Daubach. Over 90 percent of all products in the DC pass through the system. The exceptions are items that are not suitable for automation, such as bags of dog food and flour that can easily break and spill. Currently, about 19,000 SKUs can be stored within the technology.

Upon arrival at the AS/RS, each load is transferred from its shipping pallet to a system pallet that provides the uniformity needed for automation. This is important, as shipping pallets are not typically made from the best materials and may have broken stringers and deck boards that could jam the automated systems. Once the goods are loaded onto a system pallet, fixed scanners check each load to assure that it meets the tolerance for the automated system (ensuring that no part of the load overhangs the pallet, for instance). The facility’s management software works with the AS/RS to determine storage locations for the various SKUs, with attention paid to placing faster-moving SKUs closer to the pickup and delivery stations. Storage decisions are also made with an eye toward seeing that SKUs are located in more than one aisle to cover times when a crane is down for service.

Witron’s warehouse management software triggers release of products from the AS/RS to replenish the tray AS/RS system that’s used for order filling. The software selects SKUs based on sophisticated algorithms that consider SKU velocity, order history, forecast data, and upcoming sales promotions. This assures that ample product will be available in the tray AS/RS to fill the day’s orders.