SUPERMARKET RETAILER ALBERT HEIJN,
Equipment: Order Release Module (ORM)
DLS, Denver, CO; www.nedcondls.com
When
In 1998, he was approached
by long-term Nedcon client, Albert Heijn, the Ahold-owned Dutch grocery
retailer, to help research methods of automated case picking. Nedcon had
supplied many grocery warehouses with racking, including AH, Tesco, Sainsbury,
Migros and Edeka, so Hollander was familiar with the typical challenges of food
distribution—high volume, a large variety of packaging and breakable products.
Albert Heijn did not want
to use a mini-load system because it requires standard packaging or calls for
items to be placed on trays or in totes, which AH considered double handling.
But the company did want to replenish its stores within 24 hours, reduce
out-of-stocks and cut the number of order pickers. At that time, in one DC the
retailer had 350 order pickers working two shifts, picking 140 cases per hour.
"They wanted a
complete solution that was not expensive," says Hollander. "They also
wanted 100 percent accuracy. I have a motto—invest in the process, not in the
mistakes."
So Hollander, working with
an engineer from Nedcon and a local machine builder, developed a fully
automated order pick system. He founded a company, DLS, and unveiled the
system, the Order Release Module (ORM).
The ORM is a flow rack with
automated lane replenishment and product dispensing mechanisms at the end of
each lane. The flow rack is fitted with an automatic in-feed mechanism on each
deck and an automated dispensing mechanism at the end of each lane. These
dispensers eject the cases onto a conveyor, which then takes the goods to a
packing station.
The cases can be ejected in
any sequence as specified by the warehouse management system (WMS), so store
orders can be sequenced so that heavier goods are on the bottom, for example,
or by family group and truck route. Each SKU has its own lane,
on average long enough to buffer a whole day's worth of order picking. The fast
movers may occupy more than one lane. The lanes are divided among a number of
decks.
When orders are received,
products to be picked are automatically fed from bulk storage to a
depalletizing machine. The depalletized items are then transported to one of
the multi-level input roller tracks on the DLS module. At each level, an input
trolley (a riding pusher) insures the items are placed into the correct storage
lane.
The module has a patented
friction drive system that enables long storage lanes allowing large inventory
for each product, simplifying replenishment of the storage lanes. The transport
speed is regulated equally and constant despite the variety in packaging—even
the accumulation of glass items is well controlled.
The orders are then loaded
into roll cages, which are rolled right into the truck for delivery. Typically,
once an order is placed through the WMS, it can be ready for shipment in less
than an hour.
The first ORM was installed
at AH's distribution center near
In addition to the
tremendous savings garnered by the workforce reduction, the ORM module has
virtually eliminated mispicks and product damage and significantly reduced
out-of-stocks. AH was so pleased with the ORM that it purchased a second
module, which is up and running in the facility. And, thanks to the success of
AH, another Ahold company,
With his invention an
overwhelming success, Hollander remains involved in the business, but handed
over active management to
His son, Bas, is now
running the
Source: Food Logistics Magazine, February
1st 2006,
link: http://archives.foodlogistics.com/publication/article.jsp?pubId=1&id=121