Centralised distribution logistics for a major grocery chain

Dirk Rossmann GmbH, based in Burgwedel near Hannover, is one of the market leaders in the grocery branch with a chain of over 650 stores in the north of Germany. With a continual increase in the number of stores and a growing product assortment the demands on the logistics grew excessivley.

The requirements

Initially viaLog was assigned to conduct an analysis of weak points:

• The three regional warehouses in Burgwedel, Landsberg and Potsdam, with their selective assortments, were the cause of complexity and resulting high costs in the working and structural organisation.

• The organisation of faster, more reliable, and more profitable distribution logistics through a higher degree of centralisation was a necessity.

The course of action

viaLog determined the optimal distribution strategy:

• The depots in Burgwedel and Landsberg were converted to regional depots with complete assortments.

• A modular concept for the expansion of the depots in Burgwedel and Landsberg will, step by step, ensure future growth through logistics.

• The third depot in Potsdam will be used solely as a buffer.

Rossmann assigned the implementation of the project to viaLog.

The implementation

Firstly the western depot in Burgwedel was expanded by 4,000m². Additionally, the depot was converted to primary order picking. The construction of an automated high-bay warehouse with space for 13.000 pallets was attached. Further expansions and capacities are defined in the framework of a master plan.

The eastern depot in Landsberg was subsequently upgraded. The following material handling apparatus were newly installed:

• Manual high-bay storage system with space for 15.000 pallets
• Pick-to-belt order picking
• High performance tilt-tray-sorter
• Pick-by-light
• 100% primary order picking
• Extensive support by warehouse management system
• Extensive conveying apparatus

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