Levi Strauss & Co. appoints TGW to design and implement European distribution center

On a footprint of 170,000 square feet, Levi Strauss & Co. is building one of Europe’s largest logistics hubs for fashion items and accessories, using systems from TGW Logistics Group, including an automated goods-to-person order fulfilment system, TGW announced today.

With go-live scheduled for November 2023,  Levi Strauss & Co. is consolidating its European fulfilment processes in a 170,000 square feet large facility in the Münsterland region in Germany. The goal is to respond to market requirements with greater speed and efficiency, shorten delivery times and accelerate growth over all sales channels, the TGW announcement stated. The new location helps Levi Strauss & Co. increase sustainability, flexibility and digitalization of the global supply chain. “We are pleased to have had the opportunity to collaborate with warehouse automation specialist TGW Logistics Group in setting up our MHE systems,” says Torsten Mueller. Mueller is responsible for Levi Strauss & Co.’s distribution and logistics processes.

At the core of the solution is TGW’s highly automated goods-to-person order fulfilment system, “FlashPick.” The system flexibly handles unpredictable and fluctuating order structures, according to TGW. In case of shifting distribution channels (stores, online and wholesale) or order structures, the system efficiently adapts to the new requirements and supports the denim brand’s growth.

On peak days, up to 350,000 units are capable of being shipped. The average lead time from order income to packaging being ready for shipment is just 10 minutes. The project is split into two phases: In the first phase – scheduled to go live by 2023 – an annual throughput of up to 33 million units per year will be reached. In the second phases of the project, the number will grow up to 55 million due to an increase in storage capacity and additional picking workstations.

The solution is based on an automatic mini-load warehouse and a five-aisles shuttle system with a total of 830,000 storage locations. Their design is based on a ‘One Source. One Target’ approach, which allows for fast and accurate order picking. All modules are connected via a 3,300 feet-long energy-efficient KingDrive conveyor network.

In order to use resources efficiently, up to 70 percent of incoming cartons will be reused for dispatch. A robotic system by TGW automatically repacks the cartons into totes. In addition, Levi Strauss & Co. avoids using plastic polybags by picking directly into cartons or paper bags instead.

“Levi Strauss & Co. is experienced in dealing with logistics,” commented Johann Steinkellner, CEO Central Europe with TGW. “We’re proud that they trust our automation expertise. FlashPick allows [users] to combine eCommerce, wholesale and retail business efficiently. This is a critical competitive advantage for companies with an omni-channel business model such as Levi Strauss & Co.”