Case Study
Arvato
Arvato Boosts Efficiency, Throughput, and Density with AutoStore
Country
USA
Industry
3PL
Partner
Swisslog
Learn more about the benefits of AutoStore for Arvato, a global third-party logistics (3PL) provider that operates 10 AutoStore systems throughout the world on behalf of customers from multiple industries.
Arvato is an innovative and leading international service provider in the field of supply chain management and e-commerce. By combining deep industry expertise with the right technologies, the company develops innovative supply chain management solutions for its clients, focusing on the consumer products, tech, healthcare, automotive, and publishing industries at over 100 locations worldwide. When the company was asked by one of its healthcare clients to take over a fully manual warehouse in Memphis, the expectation was that they use state-of-the-art automation technologies.
The 3PL provider did exactly that by implementing an AutoStore system with Swisslog’s SynQ software, a solution designed to meet the client’s demanding inventory control requirements while increasing efficiency, density, and throughput at the site.
Arvato today operates 10 AutoStore Grids, 7 integrated by Swisslog. Nine are located in the Europe.
Given the success of their global partnership with Swisslog, Arvato decided to continue the relationship with the Memphis project.
“We’ve had a really good partnership with Swisslog that works for us and our clients,” said Derek Toledo Director of Business Development at Arvato. “We felt confident they were the right partner for this project.”
The Memphis facility first had to be expanded to accommodate automation, but severe weather events created construction delays that put the project behind schedule before the automation team could get on site.
“Once the Swisslog team was able to get started, the implementation went very smoothly and we were able to make up for lost time,” said Justin McDougal, Senior Planning Manager for Arvato. “Swisslog was on point throughout the implementation and helped to minimize further delays.”
One of the keys to the success of the implementation was the seamless integration between the Swisslog SynQ software that controls the AutoStore and Arvato’s SAP system. That integration was put to the test from day one.
“We had planned a controlled ramp up but had a very large volume of urgent orders the first day we went live and that forced a quicker ramp up,” said McDougal. “If there were any issues, they would have surfaced that day. But we were able to handle the unexpected demand smoothly and the Swisslog solution has continued to perform very well since then.”
The successful implementation has enabled Arvato to expand storage capacity at the facility, improve operating efficiency and maintain precise control over inventory.
“Our client’s customers order product based on specific production lots or batches, so we have to account for that in our inventory management and order fulfillment,” said McDougal. “SynQ receives that information from our SAP system and controls the retrieval of product based on the batch and quantity we need.”
SynQ also allows Arvato to direct orders to certain pick stations based on the workstream they have designated for that order. This enables the most complex workstreams to be directed to specific Ports for efficient processing.
“Through our years of experience supporting the AutoStore system, we’ve been able to integrate robust inventory management and control functionality into our standard software,” said Rupesh Narkar, Sales Director at Swisslog. “That allows companies like Arvato to adopt standardized solutions that can be implemented quickly without sacrificing functionality or flexibility.”
“The Swisslog SynQ software is incredibly powerful and easy to use,” said McDougal. “With SynQ and AutoStore, we’ve been able to increase picking efficiency throughout the operation.”
“The Swisslog solution has been very beneficial to my team,” said Lasondra Threatt, Inbound Manager at Arvato. “Inventory control starts at induction and the system enhances our inbound processes. If there’s an issue, you know it immediately and can resolve it before the product gets into the system. It’s also very easy for new associates to learn and helps us attract and retain a quality workforce.”
Based on over two years of successful operation, Arvato is planning to increase the percentage of inventory stored in the solution to further reduce manual picking at the site. The company is also preparing to expand the modular AutoStore Grid to support continued growth at the site.
“The support we have received from Swisslog through the implementation and continuing today has been outstanding,” McDougal said. “That gives us the confidence to shift a higher percentage of inventory into the AutoStore and add new software capabilities that will allow us to get even more out of the system. As we grow, AutoStore and SynQ are growing with us.”
Inventory Accuracy and Control
SynQ controls inventory within the system and retrieves products based on specific requirements such as batch number. Pick-to-light technology helps ensure picking accuracy.
Higher Density Storage
Automation increased overall storage capacity at the site and is enabling continued growth without further expansion of the facility.
Improved Efficiency
Induction and picking processes have been streamlined and the company can direct workstreams to specific ports for more efficient processing.
High Reliability
The automation system delivers high availability by minimizing single points of failure and the integration between SynQ and SAP provides seamless data sharing. The proven SynQ software has performed reliably and Swisslog technical services has rapidly resolved any issues that have arisen.
Increased Throughput
The ability to process orders faster using automation has enabled a significant increase in throughput at the site.
Enhanced Recruiting and Retention
The opportunity to work with a sophisticated automation solution has helped Arvato attract and retain employees in a competitive labor environment.
AutoStore can fit any warehouse or fulfillment center. Make yours the next.
