Kroger’s third automated case picking system
May 22nd 2009 In an effort to improve distribution efficiency and productivity, Kroger has once again turned to automation. A new distribution center supporting the west coast region will be the third automated case picking facility awarded to WITRON Integrated Logistics, a Chicago-based automation specialist. Kroger’s partnership with WITRON extends beyond case picking, with two automated piece picking systems already in operation.
Kroger’s automated case picking experience: More than 3 million order pallets
This fully automated warehouse will not be the first of its kind. Kroger was the world’s first implementer of automatic case picking systems from WITRON. Those systems have shipped a combined total of more than 3 million order pallets since they went live in 2004 and 2006. Unlike the first two installations which were integrated inside existing conventional warehouses, the new site will be a “greenfield” project.
Kroger felt confident embarking on a third automated case picking facility, as their existing two facilities are delivering more than 4,000 mixed order pallets to over 500 supermarkets every day using WITRON’s “OPM” (Order Picking Machinery) technology.
After engaging WITRON to improve their piece picking operations in 2003, Kroger recognized that case picking offered even more opportunities. Kroger worked extensively with WITRON to develop its OPM system. Fully automated case picking was invented using WITRON’s material flow expertise, coupled with the operational experience and grocery industry knowledge from Kroger. When first introduced, OPM technology was a revolution for the entire retail and distribution world. The first OPM system in the world was the culmination of several years of partnership and development between WITRON and Kroger. “We are very proud of the success of our two existing OPM installations, which were only made possible with the cooperation and support from the entire Kroger team” comments Karl Hoegen, COO of WITRON Integrated Logistics. “We look forward to the continuation of our successful partnership with this third fully automated case picking facility.”
The benefits of an OPM system extend beyond the DC, with a reduction in effort to fill store shelves as a result of store-friendly pallets. In addition, transportation benefits can be realized from improved order pallet density. All in all, the OPM addresses the most significant challenge facing today’s retailers: improving service levels at the lowest cost.
Those benefits are made possible through WITRON’s innovative and proprietary COM (Case Order Machine) at the heart of the OPM system. The COM allows cases to be automatically stacked atop order pallets in a store-friendly sequence, without any of the gaps around the cases that occur in most robotic pallet-building applications. WITRON’s intelligent replenishment algorithms use forecasting and historical data to ensure each COM can be supplied with the product needed to meet required store orders.
WITRON’s OPM experience: 5 years, 1,5 billion cases picked, and more than 25 million order pallets shipped
WITRON’s OPM system is having a profound impact on grocery distribution throughout the world. Like Kroger, several other retailers have recognized the benefits of the OPM system as a tool for maintaining and gaining competitive advantage. With more than 245 COMs in operation or on order, OPM certainly looks to be the wave of the future for case picking automation. WITRON’s OPM portfolio now extends over 15 projects, with systems for 5 major retailers in 4 different countries. With 5 years of field-proven experience, OPM systems have picked more than 1,5 billion cases and generated more than 25 million order pallets to date. OPM systems can be found in both dry grocery and temperature-controlled environments, with as many as 15,000 unique SKUs handled in one system.
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