Coordinated Processes

Newly Built Logistics Centre

03/04/2008

A new logistics centre is to form the basis of further growth of the FÖRCH Group. With the 13 million Euro investment, the company is switching to a fully automated consignment system.

Whether tools, fastening technology, pipe insulation or roof ventilation – it is imperative that the approximately 40,000 articles from Theo FÖRCH GmbH & Co. KG, Neuenstadt, satisfy the needs of the vehicle and construction trades as well as industry and plant workshops. In order for this to work, a strong and capable logistics system is necessary in addition to the broad range of products. Formerly the company managed this in a manually operated storage facility at its headquarters. But because of a strong growth in sales, it reached its capacity in terms of both operational capabilities as well as speed. This is why FÖRCH decided to set up a new logistics centre. “Following consistent two-digit growth in recent years, we were compelled to move from our former manually operated storage facilities in Neuenstadt to fully automated facilities”, explains Reinhold Kuhn, Business Manager of the FÖRCH Group. FÖRCH entrusted Vanderlande Industries with the job of general contractor for the picking systems, including warehouse administration and material flow calculator, together with the respective software.

Distribution Headquarters for 16 Countries
The new logistics centre, in which, including software, FÖRCH invested around 13 million euros, serves as distribution headquarters for currently 16 European countries, delivering directly to customers. It consists of a small parts storage area (K-storage area) with around 62,000 storing positions and a Euro half pallet high-rack storage area (V-storage area) with close to 12,000 storing positions. The K-storage area supplies four picking sites with a maximum capacity of 1500 picks per hour. High performance automatic shelf servicing machinery with four-fold load carriers provide optimum goods preparation and supply operations in twelve aisles for the picking sites. The division of a shelf in up to four storage positions in the K-storage area is possible through the combination of three different sizes of K-storage area containers. This way up to four different kinds of articles can be stored on one shelf. The V-storage area for the Euro half pallets, which may have a maximum weight of 100 kg, has an additional three picking sites with a possible total of 450 picks per hour. The six aisles, with their automated shelf servicing machinery, are equipped with dual load carriers. A matter of much importance in the new logistics centre was a clear definition of the interfaces in the software controls, so that there can be no more sprouting up of error sources. “Our own host system, as classic ERP system, is responsible for each and every warehouse process right up to the point at which the fully prepared container data is transferred to the storage administration system from Vanderlande”, explains FÖRCH Business Manager, Kuhn. “This makes it possible for us to apply extensive controls and take responsibility ourselves in respect to the system points that are critical to us.”

Pick-Pack Fully Implemented
A total of 40,000 different articles and 60,000 packaging units are stored in the 100 m long, 50 m wide and 16 m high building. The 1000 non-system articles are stored at three locations – the old storage operations at the headquarters in Neuenstadt as well as the parallel storage facilities in Neuenstadt and at the location in Zwickau. When needed, these are added to the orders manually, as was formerly the case, or if applicable, shipped separately. The order picking system combines a zone picking system with an automated small part warehouse (AKL). At the outset of an order, customer orders are divided, depending on structure, into one or more picking orders using a programme to calculate the shipping volume. After the right box size has been selected, the box is then placed on a shelf and is driven by the system to the pertinent picking stations. For the numerous sizes and weights of packages that can be found at FÖRCH, the combination of the Vanderlande-Distrisorter with zero-pressure accumulation conveying assemblies for transportation is virtually ideal. Important components here are the systems Pick-Pack, Pick-by-Light and Pick-to-Light. The articles to be picked arrive directly at the operators, according to the picking principle “Goods to the person”, from the storage areas through rotating sorting systems. Pallets are fed at three workstations to four further shelves. FÖRCH has eight available workstations for the processing of value-added services, which includes such special processing as labelling or special packaging. Just as the automated storage areas, these integrated picking workstations are also administered by the storage administration software “Vision” from Vanderlande, combined with the host system. This guarantees smooth processing of customer orders at any time.

Shorter Distances
The warehouse has been fully operational since autumn 2007. However there were several challenges to master until then – for example the move from the old to the new warehouse, which began in March 2007 and took around half a year. “The move from a manually operated to a highly automated warehouse, while shipping operations were carried on in both systems, represented a substantial challenge”, acknowledges Vanderlande Project Manager, Ditmar Paprocki. Furthermore the software had to be adapted to the FÖRCH-specific processes. “Another demanding issue was the special needs of the individual components in respect to operational capacity and availability, since highly interconnected logistics processes are involved", continues Paprocki. But the efforts paid off. “Now we have established the basis to remain competitive even into the future and to be capable of optimally meeting the needs, in terms of logistics, of the expected further growth”, says Kuhn, satisfied. Today the processes ranging from goods receipt through putaway, and picking right to shipping, are coordinated to one another right down to the tiniest detail. An important advantage: Both physical distance as well as time have been shortened considerably in comparison to the former manually operated processing. The highly automated system is now capable of processing around 5000 orders a day with roughly 25,000 items inside of twelve hours. Orders which are posted at FÖRCH by 17.00 h are shipped out to the customer on the same day. Before shipping, a separate weight check tests once more the quality of the outgoing delivery.

Double the Size Possible
With the new logistics centre, the Neuenstadt company intends to ensure its customers the best possible service and supply availability, supported by reliable service partners. With the centrally designed structure, orders from the very heterogeneous range of articles, containing more than 40,000 products, can be delivered with a level of service of more than 98 per cent, inside of 24 or 48 hours. And, in order to be equipped for the future, the new distribution centre was already conceived with possible expansions in mind. The two high rack storage systems, commissioned in 2007, also offer space for further rows of shelves. With this, capacity can be increased by a quarter at short notice. In addition, the new building can be fully duplicated and would thus double the logistics area again. Kuhn: “Because of the pronounced positive experiences we have had with the solution that has now been realized, we have already begun initial concrete plans together with Vanderlande.

The Warehouse in Figures

Level of service/delivery quota:	›98%
Number of orders:	5,000/day
Order items:	25,000/day
Number of packages:	6,000/day

Thomas Wörle/Jens Verstaen