The US cooperative Associated Wholesale Grocers keeps 54,600 dry goods, fresh produce, and frozen food items in stock for its 1,100 members using a highly automated, full-range logistics center . The facility is designed for a daily picking capacity of more than 460,000 retail units.

55,000 items

AWG is a cooperative retail organization where 1,100 owners operate 3,400 supermarkets in 33 US states, generating over $25 billion in annual revenue. To grow need new stores and new cooperative members, and logistics has become a key factor in choosing AWG. Unlike traditional US retail chains, all retailers here are also members and therefore owners: all profits are distributed back to the members.

Lord of Things: R. Kearns

The demands placed on Richard Kearns, Executive Vice President of Distribution & Logistics, by his new warehouse in Hernando, Mississippi, and its logistics processes have been increasing for years. In addition to the growing product variety and market volatility, the ongoing shortage of skilled warehouse workers, rising transportation costs, and stricter regulations are putting particular strain on the distribution model. Under these conditions, logistics plays an "absolutely crucial" role in ensuring service levels while simultaneously keeping costs under control. Kearns:
" way around automation . "

References were convincing

Against this backdrop, AWG decided to automate and thus optimize the processes in its distribution network to the greatest extent possible. This undertaking also represented the largest investment project in AWG's nearly 100-year history. The initial evaluation began around 15 years ago, not yet as a concrete construction project, but as a long-term strategic consideration within management. Over this period, various providers of automated systems were thoroughly analyzed – and from a handful of leading international manufacturers, the choice ultimately fell on Witron from Parkstein.

Order Picking Machinery (OPM)

Key decision criteria included technical performance and reliability in real-world operation, the large number of successfully completed reference projects, the positive feedback and high level of satisfaction from Witron customers worldwide, and the question of cultural compatibility between the two companies. At the same time, AWG placed great emphasis on personal interaction.

Interfaces must work

From management to technical and service staff, interfaces and communication should function smoothly – “that is an important criterion,” explains Robert Venzl, who was responsible for the automation project in Hernando, Mississippi, as Witron project manager.

11 km of conveyor technology. All images: Witron

This led to the plan for the 81,000 square meter facility with a total of 738,000 pallet, container and tray storage locations, 92 storage and retrieval machines and eleven kilometers of conveyor technology, designed for a picking capacity of more than 460,000 units per day.

92 storage and retrieval machines

First, the detailed planning was completed and the building constructed within 12 to 18 months . Witron then installed its technology, explains Robert Venzl. "The nearly 55,000 different items are stored and picked using the OPM (Order Picking Machinery), AIO (All-in-One Order Fulfillment), and CPS (Car Picking System) solutions. These include food, cosmetics, healthcare products, cigarettes, etc."

All-in-One Order Fulfillment

Since each new cooperative member typically adds further items to the product range , a high degree of system flexibility was required. Witron technology is used in all temperature zones – dry, fresh, and frozen. Nineteen fully automated COM machines pallets, ready for store delivery, within a temperature range of +20° to -26° Celsius

Pick- by-voice support

Large-volume items are picked in various temperature zones using optimized routes and pick -by-voice support via the semi-automated logistics module CPS. With the AIO, small-volume items – both fast-moving and slow-moving – can be stored and picked compactly within the same logistics module. Efficient order consolidation between the different logistics areas and modules is automated and system-controlled – supported by the Witron warehouse management system.

R.Venzl

“This ensures a high packing density on the load carriers despite the very broad range of products ,” said the Witron project manager. “The crucial factor was timing the picking frequency of the various logistics modules and areas so that they are ready for delivery in the shipping area just-in-time at the correct loading frequency.”

50 percent fewer truck journeys

This impresses the owners and the logistics provider. "This is no longer just a warehouse – it's more like a production facility. Everything is very structured – a high-performance factory," explains Kearns. Since mid- 2023, the "factory," the new logistics center, has been operating at full capacity. The commissioning of the different temperature zones was carried out gradually according to a precisely defined ramp-up plan.

“Now that we are working with the new technology in all areas of the plant, I can confirm that our goals have been achieved – we are delivering more efficiently, faster, and more reliably,” Kearns summarizes. “All stakeholders in our organization – procurement, suppliers, sales, transport, branches, and consumers – are benefiting from this holistic, company-wide transformation project.”

738,000 pallet, container and tray storage spaces

For companies that originally came from a conventional warehouse environment, it goes without saying that professional change management – ​​for both employees and managers – was essential. "But Witron provided us with outstanding support." By consolidating three legacy locations into one facility, staffing requirements were almost halved . At the same time, the number of truck journeys was reduced by 50 percent – ​​a result of the higher pallet density and optimized route planning.

All requirements met

“Witron delivered a state-of-the-art automated system that meets all our members’ requirements across all temperature zones. At the same time, we can offer our employees attractive, ergonomic workplaces.” These are important to Kearns: “The onboarding and training time has been minimized. A safer working environment has been created. And future compelling HR recruiting tool for AWG

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