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Witron Is Awarded Kroger's Next Distribution Project
Kroger's Third Automated Case Picking System
| Source: Witron
ARLINGTON HEIGHTS, IL--(Marketwire - April 13, 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.
WITRON and Kroger, A Partnership In Automation
Kroger's success with automation is by no means limited to case picking.
In fact, Kroger began its partnership with WITRON several years ago with a
piece picking system. Like the OPM system for case picking, WITRON's piece
picking system is both innovative and efficient. Using WITRON's Dynamic
Picking System (DPS), Kroger is able to pick nearly 1.6 million units per
day from a range of approximately 18,000 SKUs. The success of this project
has led to the award of a second DPS for piece picking, marking yet another
step in the Kroger/WITRON automation partnership.
The Kroger Company
Kroger is headquartered in Cincinnati, Ohio where it was founded in 1883.
With sales in excess of 70 billion USD and more than 320,000 employees,
Kroger is the second largest seller of groceries in the United States. In
addition to its network of more than 2,500 stores, Kroger operates 42 food
processing plants and 27 distribution centers. Kroger's stores can be
found in 44 major markets under 19 different banner names across the United
States.
WITRON Integrated Logistics Inc.
WITRON Integrated Logistics, located in Arlington Heights, IL, is a
worldwide leader in material handling automation. WITRON's core competence
is the design and implementation of innovative logistics systems. With
more than 35 years of experience in distribution center automation, WITRON
focuses on achieving the most efficient methods of order picking and
replenishment for its customers. In turn, WITRON's customers reap the
benefits of significant cost reductions from labor and footprint savings.
As a turn-key systems integrator, WITRON takes complete responsibility for
all phases of a project from design and implementation through ramp-up and
maintenance. Headquartered in Parkstein, Germany, WITRON has grown to
include subsidiaries in the USA, Great Britain, the Netherlands and Spain.