A driving force in European distribution
A new distribution center for ATU, Germany's largest auto parts distributor, brings work directly to the worker, delivering huge productivity.
By David Maloney, Senior Editor -- Modern Materials Handling, 3/1/2004
With the speed of a German autobahn, automotive parts zip through the new distribution center of Auto-Teile-Unger in Weil, Germany. ATU is Germany's largest auto parts distributor and repair shop chain with over 435 stores.
Its Weil facility is highly automated, containing three unit-load automated storage and retrieval systems (AS/RS) that store and pick tires, rims and large auto parts. The tire area alone holds 600,000 tires in over 17,000 storage locations. In addition, a mini-load AS/RS with 110,000 locations holds small auto parts.
With all four of these automated systems, product is retrieved and brought directly to DC workers. Pick-to-light systems then direct picking from source pallets or totes into large wire cages or order totes. The design is highly ergonomic and minimizes labor. Automation also maximizes the footprint of a facility, another critical factor where land is at a premium.
ATU needed the Weil DC, located in northern Germany, to pave a road for further expansion of the chain.
'We have another facility in Weiden [in Southeastern Germany] that opened in 1996 and was out of space. It would not support additional growth,' says Reiner Karl, director of logistics and information technology. 'The cost of same day ordering and delivery was expensive for distant stores in the North. We looked into designs for as many as five new DCs, but decided that one large automated facility in Weil was the best optimized solution.'
'The design of the two buildings is similar,' adds Jochen Haag, facility manager of the Weil DC. 'Weiden proved to be an excellent facility when it was built, so we did not see a need to change the basic design. We did automate the picking of the tires in Weil, however. We also designed cages that would work within the AS/RS systems.'
The two DCs now position the company for a fast expansion track with new stores in Germany and to neighboring countries, such as France, Belgium and The Netherlands. The Weil facility also creates more flexibility in distribution and reduces the transport distances to stores in Germany's North and West, which had previously been serviced from Weiden.
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High numbers, less labor
Weil picks over 32,000 order lines each day with only 110 workers. All processing is completed in just one shift. The four AS/RS minimize walking distances and maximize picking efficiencies. They also allow ATU the flexibility to ship a large number of stock keeping units (SKUs) to just a few stores or a few SKUs to many stores.
'We had positive results using AS/RS in Weiden, so it was natural to use them in Weil,' notes Karl. 'Our goals for selecting technology is to achieve accuracy, safety and flexibility. Using the cages and totes also provides store-friendly shipping.'
Two basic types of orders are filled at ATU, replenishment orders for store shelves and 24-hour orders containing parts for repairs. The vast majority of picked items fill replenishment needs with items delivered from the four AS/RS systems to workstations for picking. Pick-to-light is used to gather orders into totes or cages.
As the name implies, the 24-hour picks are designed for quick turnaround. These include parts that are needed immediately for servicing a car at one of the shops or specialized parts. Each of the main processing areas has a section reserved for 24-hour orders. As with the replenishment orders, cages (or in the case of the mini-load, totes) are automatically delivered to the processing areas. Pick-to-light is also used to select the 24-hour items. This assures fast processing for these time-sensitive items. A portion of this area is also used to gather e-commerce orders, which is a market that ATU is just beginning to test. Right now, about 150 top SKUs are offered online.
In addition to the four AS/RS units, the Weil DC contains an order consolidation buffer that automatically accumulates totes after picking has been completed. The system works similar to an AS/RS with completed totes from various zones of the tote fulfillment module (the processing area for selecting small parts from the mini-load) automatically buffered into storage slots. They are held there until a store's orders have all been accumulated. Then they are released as a group to shipping.
Returns and recycling
Returned and recycled items are handled in an adjacent building, joined to the main DC by a pallet conveyor running within an overhead bridge. Any items returned from the stores are processed here, with items either sent back via the bridge to the main building for return to inventory or disposed of.
This building also gathers used corrugated and old parts returned from stores following repairs. The items are sent to the DC on the back-haul in vehicles used for store deliveries. The returns are in accordance with Europe's tough environmental standards. For instance, old tires removed from cars at the stores are sent here for evaluation. Some may be used to create retreads, while others are shredded and recycled.
Weil is currently feeding just over 150 stores. Initial expectations were for the DC to service about 200 stores. However, ATU quickly found that the systems are so efficient and productivity is so high that they feel that Weil can service 300 stores. The building can accommodate expansion of all four main areas that handle tires, rims and large and small parts. When that occurs, sometime within the next few years, the building is expected to provide product for about 400 stores.
'We now have facilities that are among the most advanced technologically in Germany,' adds Karl. 'From the first day that Weil opened, all of our goals were met or exceeded. I could not even imagine another solution than the automation we have.'
ATU Dossier
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Click on the icon to read more about ATU's 24-hour orders, recycling and returns. (Overnight order delivery and ATU's recycling program - web-exclusive - March 2004)
Click on the icon to see how Pep Boys provides distribution to its auto stores in the U.S. (How Pep Boys revs up orderpicking efficiencies - June 1999)
ATU
Weil, Germany
Products distributed: Auto parts, tires, rims and accessories
Began operations: March 2002
Facility size: 613,000 square feet footprint, 36.5 million cubic feet
Employees:110 in DC, 18 in recycling center – one shift
SKUS: 100,000
Order lines processed daily: 32,250
RECEIVING
Products are received at docks close to their automatic storage areas. Tires (1) are removed by hand from stacks in arriving trailers and loaded into wire racks. The racks are loaded onto a conveyor using a walkie-rider truck. The racks are then raised by a vertical lift up two levels to the conveyor system (2), where they are transferred into the automated storage and retrieval system (AS/RS) that handles tires. (3)
Wheel rims arrive at docks (4) on one-way Euro pallets. Each pallet and its load are lifted onto a slave pallet so that it can be handled by the automation. These are then loaded onto a pallet conveyor that transports them to the lift and the third level where they enter the AS/RS (5) where rims are stored.
LARGE & SMALL PARTS
The remaining docks (6) receive all other products, including large and small parts, hazardous goods and bulky items.
Most large parts arrive in cartons on Euro pallets. Some also arrive in metal boxes that have the same footprint as a Euro pallet. Half of all large part receipts are a single stock keeping unit (SKU) and are given a license plate that is scanned into the warehouse management (WMS) system. The other half of received pallets are mixed SKUs that must be re-palletized by hand to create loads with only one SKU. The pallets then follow the same route to the upper floor as rims and wheels, except that these items are placed into the large parts AS/RS. (7)
Small parts pallets are placed on conveyors upon arrival and sent to a repack area (8). Here items are removed from supplier cartons and placed into two sizes of plastic totes designed to work with the automated systems. Completed totes are then conveyed to the mini-load AS/RS (9) that holds these small parts.
Hazardous materials handling is not automated. Instead, these receipts are taken by lift truck or walkie-rider to pallet racks (10) as directed by on-board radio frequency (RF) terminals.
Likewise, bulky items too large to ride the conveyors are taken by lift truck to floor level storage (11) . Some of these items are also deposited into wire cages that can be stacked to optimize space within this storage area.
PICKING
Picking is performed in waves, with items for 20 stores gathered within each wave.
Cages holding tires are removed automatically from the AS/RS as directed by the WMS. These are delivered to picking stations on the second level (12). Twenty product cages arrive on one side of the picking platform and contain the first 20 SKUs of products for the 20 stores in the wave. Pick-to-light is used to direct the number of tires to be removed from each cage. These are then placed into the assigned order cages staged on the opposite side of the platform. Once all tires from the product cages have been removed, the cage is automatically released and returned to the AS/RS. Another cage is then brought to take its place. Picking continues until all tires for a store have been gathered, at which point the order cage is released and conveyed to shipping. (13)
RIMS & LARGE PARTS PICKING
Pick-to-light is also used to gather items for orders in the rim pick area (14), while large parts are picked in its own processing area (15) . Each of these areas follows the same picking procedures as employed in the tire pick area.
SMALL PARTS PICKING
Small parts totes holding product are removed automatically from the mini-load and directed to picking stations (16) . Each station has 20 totes, one for each store in the wave, staged along the two sides of the work area.
There are 10 of these workstations utilizing put-to-light to collect items into order totes for the 20 stores in the wave. Completed and full totes are conveyed to an order consolidation buffer (17) on the second floor. This unit, which is similar to a small mini-load in its design, accumulates all of the totes required for each individual store. Once gathered, the totes are released together and conveyed to the third level where they are automatically palletized and then transferred to shipping (13) .
HAZARDOUS & BULKY ITEM PICKS
Hazardous and bulky items are picked using pallet jacks or walkie-riders for their respective areas (10) & (11). Picking here is paper-based from tickets. Items are gathered onto order pallets in the hazardous area, while bulky items are also collected. Items from both areas are taken by lift unit to shipping (13) .
SHIPPING
The facility has 21 shipping doors (13) , 20 of which are used to load items for the stores in the currently running wave. Three conveyor lanes per door are used to accumulate items delivered from each of the picking areas. These are gathered by walkie-rider trucks and loaded onto tandem trailers, with tires loaded first. Each store normally receives a trailer, with the exception of larger stores, which are sent both of the trailers in the tandem. ATU uses its own fleet for deliveries.
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