AutoStore Becomes the ‘Heart’ of Fulfillment for American Electronics Distributor

Master Electronics, a leading electronic components distributor, faced significant operational challenges as it aimed to expand its business. With over 400,000 unique SKUs and the need to ship more than 5,000 lines a day globally, the company required an efficient solution to meet growing demands and achieve its ambitious sales goals. The implementation of the AutoStore system at its Phoenix distribution center proved to be a transformative step in enhancing operational efficiency and capacity.

Inefficient manual fulfillment

Before implementing AutoStore, Master Electronics was at a critical operational juncture. The traditional picking process was highly inefficient, with pickers walking 6 to 7 miles daily, spending 70% of their time searching for products.

"If we wanted to double our business, if we wanted a goal of Master Electronics hitting $1 billion in sales, there was no way that was going to happen with the processes we had," said Gerone Blomgren, Vice President of Global Distribution and Logistics.  

The need for a more efficient system was imperative.

AutoStore: ‘the only choice’

After a thorough due diligence process, Master Electronics chose AutoStore, an automated storage and retrieval system (AS/RS), to address their challenges. The decision was driven by the system’s scalability, reliability, and minimal disruption during expansion.

"The ability to expand the system without having to shut the whole thing down was definitely a selling point for us," said Blomgren.

AutoStore's modular design allows it to integrate seamlessly into any warehouse layout. Uptime was also a critical advantage during the evaluation.

"If a Robot goes down, the whole machine doesn't stop working," said Riad Nizam, President of Master Electronics.

This resilience and flexibility were critical for maintaining continuous operations but the list of benefits was much longer, including its ROI potential and product-agnostic integration capabilities, according to Tony Alonzo, Vice President of IT.  

“If you were to make a list of all the different things that (AutoStore) potentially can solve for you, you would have to pick three or four different products in the market today to kind of meet the needs that this one thing does. It's not that it was a good choice. I think it was probably the only choice,” said Alonzo.

Smooth implementation and integration

AutoStore was implemented in a 25,000-sf area within the 370,000-sf distribution center. The compact system houses 80,190 Bins, currently holding 30,000 to 40,000 part numbers. The system's integration with Master Electronics' ERP system facilitated efficient order allocation and prioritization.

"Our ERP system will receive an order from a customer. It does an allocation process where it determines what product is best going to fit their needs, and what product is going to be the easiest to fulfill," said Blomgren.

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Training and user experience

One of the notable benefits of AutoStore was the significant reduction in training time. "We took that training time from about two weeks down to about an hour and a half, and they could master it in that amount of time," noted Blomgren.

Swisslog’s intuitive, touchscreen-based SynQ software further enhanced user experience by providing clear product images and streamlining the picking process.

'Record-breaking' service delivered from the ‘heart’ of operations

The impact of AutoStore on Master Electronics' operations was profound and now functions as the “heart” of all fulfillment operations. The pick rate more than tripled from 8 to 9 picks per hour to over 30 picks per hour, with further improvements anticipated as the team continues to grow their competency with the system. This increased efficiency has directly contributed to the company's ability to achieve its sales goals and improve customer satisfaction.

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The successful integration of AutoStore has not only optimized Master Electronics' warehouse operations but also created a better work environment and reinforced the company's ability to deliver high-quality service to its customers worldwide.

Improved efficiency has led to historically high levels of on-time shipments and reduced customer returns.

"As of right now, our on-time shipment KPIs, (and) our customer return KPIs are all at historically good levels. We're breaking records almost every month," Blomgren said.

Overall, the implementation of the AutoStore system at Master Electronics' Phoenix distribution center was the right strategic decision that significantly enhanced operational efficiency, scalability, and user experience.

The system's flexibility and reliability allowed the company to overcome critical operational challenges and achieve substantial business growth.

As Blomgren summarized, "There was no way we were going to grow without AutoStore and Swisslog."

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