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.

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.

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.'

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)