HelloFresh Transforms Fulfillment Efficiency with AutoStore

Introducing HelloFresh

HelloFresh, a globally recognized leader in meal kit delivery, brings pre-portioned ingredients and chef-inspired recipes directly to customers' doors, making home cooking easy and accessible with freshness and convenience.

With surging demand and an expanding menu, HelloFresh identified the need to elevate automation in order fulfillment to scale its operations effectively. This mission required increased capacity to ship more meals, enhanced distribution efficiency, improved order quality and accuracy, and the flexibility to grow meal choices and operations over time.

After assessing various automation solutions, HelloFresh selected AutoStore, empowered by Swisslog, to boost quality, efficiency, and scalability—key factors in meeting HelloFresh's ambitious growth and operational objectives.

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“We are extremely happy with what we have achieved through automation,” said Jason Adamchik, Senior Vice President of Automation and Engineering at HelloFresh.

“Now we are focusing on enhancements and optimizations that can take us even further than our original design vision. The solution has brought a new level of flexibility to our North American network.”

AutoStore chilled solution for fresh meals on demand

The company developed a facility plan centered around a chilled AutoStore system, which became the core of an automated assembly process.

The fulfillment process begins in a manual pick zone outside of AutoStore, where orders are inducted into the AutoStore system via conveyor to optimize throughput and maximize operator productivity.

“This is a complex process from a fulfillment standpoint that has to be executed with a high degree of precision and speed. I wasn’t aware of any other cases where AutoStore was being used the way we intended, but I believed that with the proper controls and software, it could support the throughputs we were targeting for this facility,” said Kyle DeGroot, Senior Director of Production Technology.

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Unique order processing for meal kit delivery

The HelloFresh AutoStore order processing system is uniquely tailored to the meal kit delivery model. Unlike traditional setups, HelloFresh initiates orders upstream and sequences them into the AutoStore, a process that ensures both optimal cold chain maintenance and enhanced efficiency.

"We take advantage of being able to put several items in the box first to maintain cold chain, and then also route them into the AutoStore later on downstream and take advantage of the full efficiency at that point later on," explained DeGroot, highlighting the tailored approach that suits their specific needs.

Swisslog collaborated with HelloFresh to develop the detailed mechanical layout and managed the installation of the solution and integration of SynQ with HelloFresh’s Warehouse Management System (WMS) and order management systems.

Orders are initiated in a manual pick zone where kit assembly begins with proteins and ice packs. Orders are then transported by conveyor and inducted into the AutoStore system in a controlled sequence and dynamically grouped in batches of four based on commonalities across orders.

Partial orders are then delivered to pickers working at CarouselPorts along with the ingredients from AutoStore inventory that are required to complete the order, enabling operators to pick directly to carton at the AutoStore Port. Operators can also fulfill four orders simultaneously, maximizing the number of picks they can make from each Bin. Inventory is refreshed through the 11 induction Ports to maintain freshness.

Downstream from the AutoStore, orders are conveyed to automated carton sealers and labeling equipment and sorted for shipping.

SynQ manages the entire process, including routing, all pick zones, AutoStore replenishment, sortation, and label printing. SynQ also provides centralized inventory management and visibility based on a first-expired, first-out (FEFO) strategy that helps ensure freshness.

“Achieving our vision required a warehouse execution system (WES) that could not only synchronize processes from manual picking into the AutoStore but also manage those orders and control the AutoStore in a way that maximized throughput of the entire process. Swisslog’s SynQ software was the only WES that could do that,” said DeGroot.

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High throughput and accuracy

AutoStore significantly increased HelloFresh’s throughput and accuracy. The system handles up to 380,000 order lines per day, with up to 4,000 Bin presentations per hour. This high throughput capability ensures that orders are processed quickly and accurately, enhancing customer satisfaction.

"We've seen a significant improvement in shipping the correct product to the direct customer," DeGroot commented, emphasizing the improved product accuracy.

“This is a very high-volume system processing 15-16 lines per order. We have the throughput to handle fast movers with accurate sequencing and, compared to our legacy systems, are seeing significant improvements in speed and productivity.”

Flexibility and scalability

AutoStore’s modular design provides HelloFresh with the flexibility to scale operations as needed. This adaptability is crucial for responding to customer feedback, expanding SKU counts, and meal options.

"[AutoStore] allows us to rapidly increase the SKU count based on our customers' feedback, while also maintaining the same level of efficiency no matter what we're fulfilling," said DeGroot, underscoring the system’s role in maintaining competitive advantage.

Enhanced customer experience

Ultimately, the improvements in efficiency, throughput, accuracy, and flexibility translate into a better customer experience. HelloFresh can offer a wider variety of meals, maintain high quality, and support timely and accurate deliveries.

"We stay ahead of the competition by listening to our customers and understanding their needs, and with this level of automation and fulfillment technology, we can quickly expand our SKU count in response to their feedback," remarked a team member, highlighting the customer-centric approach facilitated by AutoStore.

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Benefits

Implementing AutoStore has enabled HelloFresh to transform its fulfillment operations, ensuring greater efficiency, accuracy, and scalability to meet the demands of a growing customer base. Key benefits include:

• Enhanced Fulfillment Speed and Accuracy: With automated order processing, HelloFresh can deliver fresh meals faster and with greater precision, meeting customer expectations for timely and accurate deliveries.
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• Optimized Cold Chain Management: The chilled AutoStore system maintains ideal temperatures throughout the fulfillment process, ensuring meal kits stay fresh from warehouse to doorstep.
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• Increased Throughput and Capacity: High-throughput capabilities allow HelloFresh to scale meal kit production and manage surges in demand efficiently, supporting business growth and expanding customer choices.
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• Space-Efficient Storage: AutoStore’s vertical storage system maximizes warehouse space, making room for more SKUs without requiring additional floor space.
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• Responsive to Customer Preferences: The advanced automation allows HelloFresh to quickly adapt its SKU offerings based on customer feedback, maintaining efficiency even as the product range expands.

• Enhanced Inventory Management and Visibility. HelloFresh now has centralized visibility into all inventory and can manage inventory based on a first-expired, first-out strategy.

Project Specifications

• Type: Brownfield (Existing Site)
• Robots: 150 Robots
• Bins: 29,858 Bins
• Workstations (Ports): 18 CarouselPorts for picking, 11 ConveyorPorts for induction
• Integrated technology: AutoStore is integrated with conveyor technology, carton sealing and labeling equipment, protein pick zone with 12 pick-to-light cells, 4 carton erectors, sortation system
• WMS/WES: SynQ warehouse execution software, which manages warehouse inventory and processes, including order grouping and sequencing and AutoStore bin presentation
• Partner: Swisslog

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