BY DAVID MALONEY, SENIOR EDITOR
AUTOMATION
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DENMARK MAY SEEM LIKE A SMALL COUNtry, but from a logistics standpoint, it can be a challenge. Most of its population lives on the Jutland
peninsula, which extends northward from Germany,
or on the main islands of Zealand and Funen. But
the country also includes over 400 other islands,
some inhabited and some not. Adding to that are
denizens of distant Greenland and the Faroe Islands.
For Coop, Denmark’s largest retailer, serving that
diverse geography is not easy.
Coop is similar in scope to Wal-Mart in the
United States. It sells a mix of grocery and general
merchandise, with retail outlets varying in size from
large department stores to compact convenience
shops in the smaller towns. Overall, the chain
consists of 1,200 stores over five brands, which are
located on Denmark’s home islands, Greenland, and
the Faroe Islands.
Up until a few years ago, Coop used a regional
approach to distribution to its many stores. But it
has since consolidated seven mostly manual operations into one automated facility for distributing its
nonfood products—a move that has boosted productivity, cut costs, and reduced labor needs.
The new 51,000-square-meter (549,000-square-
foot) facility is centrally located in the city of
Odense, which is situated on the middle island of
Funen. From this strategic location, Coop can easily
reach stores in Jutland to the west and Zealand to
the east by truck. Greenland and the Faroe Islands
are served by ship.
The building that houses the new DC was previ-
ously a factory for AP Møller Maersk. It currently
handles about 9,000 stock-keeping units (SKUs) of
nonfood items, such as electronics, housewares, yard
products, textiles, shoes, and clothing. (Food prod-
ucts are distributed from other facilities.) The site
also processes all Internet-based orders for Danish
customers.
ENGINEERED FOR SPEED
To design the material handling system for the new
DC, Coop contracted with Schaefer Systems. When
it came to the project’s requirements, the retailer
wanted a fulfillment system that would allow it to
process orders more efficiently and accurately than
was possible at the former sites. It also needed a
system with the flexibility to handle a wide range of
products, large and small.
Schaefer’s solution was an automated system that
consists of a high-bay warehouse, ergonomic picking
stations, shuttle cars, and voice picking technol-
No, we’re not talking about canine
logistics, but rather, Denmark’s leading
retailer, which slashed distribution costs 9
percent by automating its operations.
Great Dane
distribution
specialreport
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