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Automation contract for convenience store operation

24 August 2020

Reitan Distribution A/S, a subsidIary of Rema 1000 A/S, has awarded a €50m+ automation contract to Dematic.

Reitan Distribution A/S supplies groceries to more than 900 stores throughout Denmark. Its current logistics centre at Marsalle is approximately 57,000 sq m. In recent years, the business has grown to such a degree that it has become necessary to expand in the form of new and more modern storage facilities. The extended warehouse will add a further 30,000 sq m and will include high bay pallet storage, measuring 26 metres at its highest point.

Built adjacent to the existing warehouse with a bridge between them, the new facility — purpose-designed to house Dematic’s automation solution — will run for 21 hours a day, six days a week and serve over 400 dry goods orders a day. Approximately 130,000 cases will be picked, packed and distributed every day from the new system, with robotic systems handling a significant proportion of daily operations. The automation solution will increase the delivery frequency of the 600 most popular products to the REMA 1000 grocery store franchisees and reduce overall costs by improving operational efficiency. 

Once complete, the new facility will include automated pallet storage, automated case depalletising, buffering, a picking system, as well as semi-and fully automated palletising technology. 

Dematic will deliver all of this under a new multisite WMS, which executes complex fulfilment with all the new automated equipment and orchestrates movement of inventory between the old and new facilities, as well as the delivery of all order pallets to a new dispatch area. 

This is expected to more than double the productivity of Reitan’s warehouse, while simultaneously making significant improvements to working conditions for warehouse operatives.

The new warehouse facility is expected to start operations by early 2023.

For more information, visit dematic.com