Eroski Improves Picking Efficiency Fivefold with AutoStore

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Eroski, one of Spain's largest food retailers, operates more than 1,600 outlets nationwide and employs over 29,000 workers. With ambitious expansion plans, the company recognized the need to improve its distribution operations to meet growing customer demands and maintain its competitive edge in the supermarket sector.

The company installed an AutoStore warehouse automation system, empowered by Smartlog, to address challenges with order fulfillment and storage space at its Son Morro grocery distribution center in Mallorca. The result is improved order accuracy, reduced delivery times, and much improved use of space, helping Eroski serve its customers more efficiently across its retail network.

The Challenge: Outgrowing Manual Operations

Eroski experienced several operational challenges that impacted efficiency and service quality:

• Growing demand and supply chain complexity: Customer expectations rose and Eroski struggled with increasing order volumes. Manual processes became inefficient and labor-intensive, leading to bottlenecks in fulfillment.
• ‍Limited storage capacity: They needed to store many grocery products, but space constraints made it difficult to accommodate inventory without costly facility expansion. ‍
• Inefficient picking and order preparation: Traditional picking methods slowed fulfillment and increased labor costs. ‍
• Reduced productivity: Staff walked long distances to retrieve items, resulting in fatigue and lower productivity. ‍
• Inaccurate packing and picking: Human errors in manual picking and packing led to mistakes in fulfillment, impacting customer satisfaction and increasing complaints. ‍‍
• ‍Delivery delays: Order turnaround times were too long, making it difficult to meet supermarket and consumer demands.

Eroski looked to AutoStore for a system that would give the company the ability to adapt to future growth and demand fluctuations without operational disruptions.

The Solution: Automated Warehouse System

The AutoStore system at Eroski uses an automated robotic Grid to streamline warehouse operations. The automated workflow ensures accuracy, speed, and efficiency in order processing. Key features include:

• A compact 900 m2 (9,688 ft2) Grid, which holds 21,275 Bins, each 330 mm (13 inch) high.
• 36 Robots for storage retrieval, moving at high speed across the Grid to collect the over 4,000 referenced products.
• Ergonomic Workstations in the form of 7 CarouselPorts: 3 for picking and 4 for replenishment. Adjustable lift tables improve operator comfort.
• Seamless Warehouse Management System (WMS) integration: Galys software provides real-time inventory management and tracking.

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Key Benefits: Faster fulfillment, better customer service

The AutoStore implementation at Eroski has delivered measurable benefits in faster, more accurate order fulfillment and better service to stores and customers.

• Streamlined order fulfillment: AutoStore brought a 400% increase in picking efficiency and precision. ‍
• Compact storage: AutoStore’s high-density storage uses 25% less space. ‍
• Precise stock visibility: AutoStore integrates with Smartlog’s Galys WMS to deliver real-time tracking for improved inventory control. ‍
• Better ergonomics: Workstations are set up to improve worker comfort and productivity. ‍
• Scalability and adaptability: The modular design allows seamless expansion whenever needed, without disrupting operations. ‍
• Satisfied customers: Faster and more accurate order fulfillment has improved service levels.

Better service at a lower cost

Eroski, the first Spanish grocery retailer to use AutoStore, shows how warehouse automation can change food distribution. The new system at Son Morro serves stores faster and more accurately while taking up less space. As Alfredo Herraez, Managing Director of Eroski Baleares, explains: “We are reducing lead times and have optimized the use of space, allowing us to handle a greater volume of products without the need to expand our facilities. This investment represents our vision and determination to transform Eroski into a more efficient, modern company focused on the needs of customers and employees.”

Project Specifications

• ‍Installation Type: Greenfield ‍
• Robots: 36 AutoStore Robots ‍
• Workstations (Ports): 7 CarousalPorts ‍
• Bins: 21,275 Bins ‍
• WMS: Galys ‍
• Integrated technology: Conveyor Ports; energy recovery systems ‍
• Implementation partner: Smartlog

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