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shuttle system can hold 4,500 totes of products located on 15 levels and two aisles. With
a footprint of 3,500 square feet, the system
can easily house 40,000 to 50,000 stock-keeping units (SKUs)—although Takeoff considers the sweet spot to be around 20,000 SKUs.
In essence, the system can accommodate a
product assortment that rivals that of the
largest grocery stores but does it in a footprint that’s one-tenth the size of a traditional
supermarket.
QUICK PICKS
As for the machine itself, 30 shuttles operate
within the OSR system, one per level per
aisle. As incoming goods arrive, totes holding products are
inducted into the system and raised using two elevators,
one per aisle, to the assigned level. The shuttle for that level
then collects the tote from the elevator and transports it
horizontally along the aisle to a storage location in one of
three temperature zones: frozen, refrigerated, or ambient.
The shuttles can handle 1,200 lines per hour.
Customer orders are assembled in bulk and managed
using the Symphony EYC warehouse management system
(WMS) from Boon Software along with a proprietary
middleware system that integrates all the technologies
involved in the operation. The software works in conjunction
with Knapp’s KiSoft warehouse control system (WCS),
which operates the OSR Shuttle system and its associated
conveyors.
Based on the software’s instructions, the shuttles gather
up the totes needed for the current batch of orders and
transport them to the elevator located at the end of each
aisle. From here, they’re sent to picking stations, where
workers assemble orders into customer cartons according
to directions from a pick-to-light system. About 70 orders
can be completed hourly from the OSR Shuttle system.
Approximately three-quarters of all items can be housed
within the shuttle system. The exceptions are fast-moving
items such as bread, milk, sodas, toilet paper, and bananas,
where demand rotates too quickly for the shuttle. Non-conveyable items, such as mops, would also be stored outside the shuttle. These items can be picked using radio-frequency or voice technology.
The shuttle system used by Takeoff is a standard design,
meaning it will be easy to replicate at new sites as the rollout
progresses.
Takeoff executives say they looked at a number of auto-
mated solutions before settling on the Knapp technolo-
gy. “Our concept is about simplicity,” says José Vicente
Aguerrevere, who founded the company with Max Pedró,
whom Aguerrevere met at Harvard Business School 17
years ago. “But most of the automation out there was
just too expensive to compete with the efficiencies of the
[traditional supermarket model]. What we liked about
Knapp is that they were the inventors of the shuttle
concept and it is a proven technology. They had the per-
formance metrics we needed and the ability to replicate the
concept.”
Takeoff says it can install one of its micro-fulfillment
centers in an existing building for about a fifth the cost of
constructing the typical new full-line grocery store. The
company adds that the design is so simple and straightfor-
ward that it can be implemented in an existing facility with-
in 90 days. After the Boston launch, Takeoff is planning to
expand to other facilities in the first quarter of 2018.
WORKING WITH GROCERS
As for where it will fit into the competitive landscape, the
Takeoff model is designed to work with existing grocers and
not compete against them, as other e-grocers have done.
Takeoff executives believe partnering with existing retailers
will work to their advantage by allowing them to leverage
the grocery chains’ existing infrastructure and established
customer base.
When it comes to potential locations for the micro-fulfillment centers, the field is wide open. With their small
footprint, they could be placed within a larger grocery store
or at other retail locations, such as convenience stores, drug
stores, and gas stations. In some cases, it might even make
sense to create a dedicated standalone fulfillment facility,
Takeoff executives say. “We will locate where the demand
is. That means we have to locate near the customer,” says
Pedró. “We will help existing retailers be successful in
e-groceries. We are not trying to put them out of business.”
In addition to offering pickup at the micro-fulfillment
centers, Takeoff plans to utilize pickup points at other
high-traffic locations and to contract with Uber-type services for home or office delivery of groceries. Deliveries
would be made within two hours of order placement.
Will this model take off as the name suggests? Company
executives appear confident on that count. In fact, the
Takeoff executives say they believe it has the potential
to revolutionize the way we all get our daily bread—and
more.
