Doel

Hindustan Unilever aimed to shift from a distributor model to an automated distribution center that directly serves retailers. However, their distribution center could only handle cases while retailers ordered eaches. To reduce operational costs, they sought to automate the warehouse to break cases into eaches and send them directly to retailers.

 

Het project werd geconfronteerd met uitdagingen vanwege een breed scala aan producten met verschillende opslag- en verwerkingsvereisten, zoals dranken, artikelen voor persoonlijke verzorging en verpakte voedingsmiddelen met een korte houdbaarheid, wat leidde tot veroudering van de voorraad. Een robuust voorraadbeheersysteem was noodzakelijk.

 

The goal of the automated distribution center was to implement individual item picking in the automated distribution center model to fulfil approximately 4,000 to 5,500 customer orders daily, consisting of 18,000 to 25,000 cases comprising 800,000 individual items. The system had to handle up to 1.1 million individual items during peak demand days. The goal was to ensure accurate and timely delivery of orders, including overnight fulfilment, while minimizing manpower intervention to maximize operational efficiency and accuracy.

Oplossing geïmplementeerd

Addverb implemented an automated distribution center solution for their warehouse in Chennai, utilising technologies such as Carton Shuttle, Pick-to-Light, Box-It, and Warehouse Control System.

 

Six months of data analysis helped categorise the SKUs into A, B, and C classes, with a different storage mechanism proposed for each class to optimise storage and dispatch efficiency. This enabled them to fulfil orders for 28,000 Kirana stores in Chennai within 24 hours without a minimum order size requirement, improving their service levels.

 

The solution enabled pickers to achieve a rate of 9,500 picks per hour, ten times more productive than conventional paper-based picking. Fast picking and packing, dynamic load balancing, order scheduling, and finished goods scheduling reduced overall turnaround time for order fulfilment. The complete solution helped them save major costs, eliminated dependency on distribution centres, and reduced dependency on labour.

Verbetering in belangrijkste resultaten (KPI's)

The automation distribution center solution involved changing the model and handling a wide range of SKUs to supply retailers directly and quickly. The system had to be robust to fulfil demands overnight accurately and efficiently to save major operational and manpower costs.

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