Fashion & ApparelHigh-throughputRetail

INTRODUCTION 

Facing rapid growth and scalability needs, Helly Hansen, the leading manufacturer of sportswear and workwear for rugged outdoor environments, partnered with Element Logic to transform its Sumner, WA, distribution center with the AutoStore automated storage and retrieval system (ASRS). This strategic move addressed growth and efficiency challenges and streamlined operations, boosting efficiency and customer satisfaction—a key milestone in Helly Hansen’s quest for operational excellence. 

Helly Hansen & Element Logic Automate DC with AutoStore 

THE CHALLENGE 

Helly Hansen’s rapid U.S. expansion highlighted critical scalability and efficiency challenges. The brand sought a scalable solution to enhance distribution and exceed customer expectations. A partner with global reach, a strong U.S. presence, 24/7 support, and top-tier software became essential for navigating these complexities and achieving a seamless, efficient operational upgrade. 

Scaling Up in the Competitive U.S. Market 

THE SOLUTION 

A Seamless Automation Transition 

Optimizing Operations with AutoStore ASRS 

Helly Hansen partnered with Element Logic to overhaul its distribution operations using the AutoStore automated storage and retrieval system (ASRS). This implementation, featuring 50,000 bins, 36 robots, and 10 carousel ports, marked a shift towards unparalleled operational efficiency. The transition from manual, labor-intensive processes to an automated, efficient system addressed the critical challenge of Helly Hansen’s rapid growth and the need for adaptable warehouse space. 

eManager, Industry-Leading Warehouse Management Software (WCS)  

AutoStore, augmented by  Element Logic’s WCS system, eManager, redefined Helly Hansen’s order fulfillment approach. The AutoStore system not only simplifies the handling of various order types—including direct-to-consumer, e-commerce, and complex wholesale—but also integrates picking, packing, and shipping into a seamless, unified operation.  

THE IMPACT 

The Transformative Impact of AutoStore 

The deployment of AutoStore by Element Logic transformed Helly Hansen’s operations. With a more efficient system, e-commerce orders that were previously taking 2-3 days can now be completed in just half a day, enhancing customer satisfaction through quicker deliveries. Furthermore, the shift to automation improved employee well-being by reducing the physical demands of warehouse work and overtime needs during peak season. AutoStore’s modular design ensures Helly Hansen’s operation remains agile and scalable, aligning perfectly with its growth trajectory and reinforcing its commitment to operational excellence.  

PARTNER SELECTION 

Choosing Element Logic 

Helly Hansen prioritized finding a partner that could elevate its distribution efficiency.  Element Logic emerged as the optimal choice due to its global infrastructure, cutting-edge technology, and robust support.  Element Logic’s 24/7 support, factory-trained technicians, and superior warehouse management software were critical to this selection, aligning perfectly with Helly Hansen’s need for a partner to support their growth in the U.S. market. 

“The proven track record of Element Logic in exceeding Helly Hansen’s expectations in Europe established a deep trust in their capabilities,”  

– Brian Crowle, Account Executive at Element Logic.  

THE RESULTS 

 Element Logic’s implementation of the AutoStore solution has been a resounding success. Helly Hansen experienced a significant transformation in its distribution operations, marked by enhanced efficiency, scalability, and customer satisfaction.  

Success with AutoStore Solution by Element Logic 

Space Optimization 

Increased storage capacity in the existing footprint 

Speed and Efficiency 

Reduced order fulfillment times from 2-3 days to half a day 

Reliability 

Achieved exceptional uptime with minimal disruptions 

Flexibility & Scalability 

Enabled easy system expansion to match growth 

Operational Excellence 

Reduced operational costs and enhanced employee well-being 

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AutoStore successfully met THG’s primary requirements, delivering a fast ROI. The impressive ROI time for the site exceeded expectations, with the initial investment cost recovered in two years.

The Hut Group (THG) is a world-renowned, vertically integrated e-commerce technology group based in the UK. Its flagship eCommerce software, Ingenuity, provides brands with comprehensive end-to-end solutions, empowering them to effectively tap into a vast global consumer base and thrive in the world of e-commerce.

The expansion journey

With a vast global fulfilment network consisting of 16 strategically located warehouses, THG enables shipping to over 190 destinations worldwide. In addition to its expansive shipping capabilities, the company goes above and beyond by offering support for over 300 localized websites, ensuring effective reach and exceptional service to diverse markets.

The Hut Group, having recently established a fulfilment center in Manchester, recognized the importance of implementing a warehouse automation solution that is both flexible and user-friendly, ensuring a rapid return on investment (ROI). With operations of such magnitude, requiring the handling of one million units daily, automation was the only viable solution. By prioritizing efficiency and adaptability, THG aimed to optimize operations and maximize the benefits of its new facility.

Learn about the key factors which drive warehouse automation ROI

The automation investment

The Hut Group made the strategic decision to invest in an  AutoStore system and enlisted the expertise of Element Logic for its installation. Element Logic completed the full installation of the AutoStore warehouse system within just three months – seamlessly integrating 256 robots, 13 conveyer ports and 56 carousel ports, as well as over 300,000 inventory bins. As a result, six weeks after installation, the grid system contained 10 million units.

In response to the increasing demands of its growing business, THG decided to incorporate an additional 124 robots into its AutoStore warehouse system, bringing the total number of robots to an impressive 380.  With an expanded robotic workforce and optimized warehouse system, THG is positioned to meet the challenges of its growing business with unmatched efficiency and productivity.

Learn more about how AutoStore can benefit your warehouse

Reaping the rewards

The implementation of an AutoStore system yielded immediate and significant results, greatly improving warehouse operations for THG.

Here are some of the results:

• Increased productivity: The adoption of AutoStore immediately boosted productivity, with a remarkable increase in order picking rates and significant improvement in picking accuracy. The system’s exceptional performance has virtually eliminated picking errors, resulting in a substantial reduction in labor requirements.
• Enhanced customer experience: The enhanced picking accuracy resulted in reduced errors and faster processing times, leading to improved customer order fulfilment and better overall customer experience. Consequently, this has positively impacted on repeat orders and customer retention rates.
• Reduced labor costs: Not only have THG reduced labor costs, but the company has also enabled employees to transition to more stimulating, value-adding roles. Moreover, with fewer staff members on the warehouse floor, the overall safety of the operation has increased, contributing to improved staff wellbeing.
• Return on investment: AutoStore successfully met THG’s primary requirements, delivering a fast ROI. The impressive ROI time for the site exceeded expectations, with the initial investment cost recovered in two years.

“The implementation of AutoStore at our Manchester fulfilment center has had a significant effect on customer satisfaction,” says John Gallemore, Executive Director and Chief Operating Officer, The Hut Group.

“We take pride in our partnership with THG to implement the transformative AutoStore system. The remarkable boost in productivity, enhanced customer experience, reduced labor costs, and rapid return on investment highlight the immense power of automation in optimizing warehouse efficiency,” says Jeremy Clouston-Jones, Managing Director, Element Logic.

The post Achieving ROI in 24 Months: The Hut Group’s Success Story appeared first on Element Logic US.

The rapidly growing retailer Boozt sells 400 000 products to customers every month, and the number continues to increase. In order to keep up with the demands of the consumer they chose Element Logic as their system integrator for warehouse automation, with AutoStore.

“Our cooperation with Element Logic has been outstanding, and it’s only natural that we continue on this path together”, says COO in Boozt, Niels Hemmingsen.

Warehouse optimization for the future

The common goal of Boozt and Element Logic has been to enhance both companies’ competitiveness with the integration of warehouse logistics and e-commerce.

Boozt chose to implement AutoStore through Element Logic because of the practical benefits of the system, among others the possibility to integrate different systems, like ERP, WMS and WCS. The system can also be expanded on demand without shutting down ongoing operations.

Boost of efficiency

Boozt first installed an AutoStore system at their central warehouse in Ängelholm, Sweden in March 2017. Once the new AutoStore expansion is complete it will be the world’s largest AutoStore installation, featuring 500 robots and 500 000 bins.

“We’ve been operating our AutoStore since the end of March 2017, with very encouraging results. In order to keep up the good work, we’ll proceed with Element Logic in expanding our present AutoStore”, says Hemmingsen.

The integration with Boozt’s own WCS and ERP has proven to be a real booster for the online fashion distributor, improving workflow, customer satisfaction and delivery time.

Overall, the upgrade has reduced the need for storage space by a factor of four, thanks to AutoStore’s unique and compressed design.

An ever-growing business

In just seven years Boozt.com has traded for over 200 million Euros. They experienced further growth in 2018 when the warehouse was further expanded.

“Good support and dialogue are important when you automate. Our cooperation with Element Logic ensures that our robots work 24/7”, says Hemmingsen.

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Despite having become one of the largest online outdoor specialists in Europe, Bergfreunde is still looking for new peaks to climb. And with a state of the art AutoStore system from Element Logic, the German company is setting its sights on new heights.

Clothes, shoes, outdoor equipment, in addition to climbing gear and other special equipment – Bergfreunde has it all. Having started their business in 2006, they currently offer more than 150.000 items from more than 750 different brands through their successful online store, and they continue to grow. With a sales increase of roughly 30 percent per year in 2017 and 2018 respectively, the ability to scale operations has been crucial – and will be for the years to come.

“With our tremendous growth we are dependent on a flexible and efficient storage system, which is why Bergfreunde.de has chosen AutoStore. Scalability, space efficiency and high performance were decisive factors for us. All our expectations on AutoStore and Element Logic have been more than fulfilled and we never regretted our decision”, says Ronny Höhn, Managing Director at Bergfreunde.

In August 2016, the company opened a new logistics center with a total space of 10.000 m2. The focus is on the self-sufficient AutoStore system, which was originally designed for a size of 1.800 m² and since then has been extended several times.

“The friendly market environment offers sustainable growth opportunities in upcoming years. We are planning further automation of logistics to increase efficiency gains”, Höhn continues.

Sorting in a high-density warehouse

At Bergfreunde’s logistics center in Rottenburg-Ergenzingen, south of Stuttgart, currently 80 robots are racing over the 3.000 m² system, moving 94.000 bins stacked in 16 levels. A total of 21 ports are available to move items in and out of storage. Divided by two shifts, more than 100 employees handle up to 200.000 items per workweek, taking care of incoming goods, returns and shipping. Bergfreunde.de store an average of three «Stock Keeping Units» (SKUs) per box.

“We are one of the very few AutoStore users in Europe that do not store our items in a sorted way. When people hear that, they look like they’re about to get a heart attack. But I can confirm that it works well. On the other hand, we have no choice: We can`t accommodate 200.000 bins and then only store two or three items per bin”, the company’s Logistics Manager Thomas Klein explains.

The new AutoStore CarouselPort 3.0 series

At Bergfreunde’s warehouse, the new AutoStore CarouselPort 3.0 series has already been installed, which is significantly more ergonomic than the previous version.

“This reduces signs of fatigue and makes the working environment more comfortable for the employees”, says Michael Kawalier, Managing Director Sales at Element Logic Germany.

Next level carton handling

In addition to all of the AutoStore components, Element Logic has also delivered and installed other equipment in the Bergfreunde warehouse to expedite handling. This includes automatic carton erectors, automatic carton infeed and outfeed, and final shipping sortation.

More specifically, this means that the order pickers automatically get ready-erected cartons delivered to their picking station. Upon completing the order-related task a delivery note with service information is automatically printed and attached to the carton. At the same time, the package receives an ID label. Afterwards on the conveyor belt, the parcel is automatically closed, weighed, optimized in volume, labeled, and handed over to the shipping department.

“With these additional elements, we significantly accelerated the process in the warehouse and noticeably increased the performance of the picking employees”, Kawalier says.

On average Bergfreunde’s employees are now completing 175 picks per hour. Before switching from shelf storage to Element Logic’s AutoStore-based intralogistics system, they could only do 45 picks per hour in comparison.

Bergfreunde has also opted to let Element Logic be responsible for the maintenance of their intralogistics system. The Service-Level-Agreement also includes hotline service, spare parts supply, and other services. This allows the company to focus singlehandedly on their day-to-day business operations.

Reaching a new peak in logistics in 2020

With the positive growth forecasts Bergfreunde is looking at now, their directors have already identified the need for another expansion of their logistics space in the near future.

“AutoStore requires about 10 percent of air in the system to be able to work properly, and we are already below 9 percent. That means that the air is slowly but surely starting to get tight again”, says Ronny Höhn.

The solution is to build a new logistics hall in the immediate vicinity of their existing warehouse. Here, an additional 10.000 m2 of space will be added by mid-2020. The new hall will contain the inbound area and the returns handling, as well as an extension of their existing AutoStore system.

“Adding an extension to an existing AutoStore system is extremely easy. In this specific case, we can connect the two storage units directly via a grid and rail for the robots”, Kawalier ends.

With the help of Element Logic, Bergfreunde has been able to increase the picking efficiency by more than 400%. In addition, the lead time from customer order to handover to the sender has been reduced to less than 3 hours. Today, the company processes more than 15.000 orders on peak days. The investment in the warehouse automation project paid off for Bergfreunde in less than two years.

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Only one year after the installation of AutoStore®, XXL experienced radical efficiency boost, crucial space utilization improvement, reduced lead-times to XXL stores and less picking errors. The ROI of the project was also beyond expected.

XXL Sport og Villmark is the largest and fastest growing sports chain in the Nordic Region. Continuous growth put increasing pressure on storing and handling capacity – leading to the need for manual warehouse adjustments. The solution was Element Logic’s AutoStore and eManager warehouse execution, management, and control system.

“We are highly dependent on efficient logistics to provide our customers with famous brands at low prices. Our cooperation with Element Logic is one of the major success factors for obtaining a highly efficient and low-cost supply chain”, says Geir Nielsen, Nordic Warehouse Manager XXL.

Investment beyond expected

Phase 1 of AutoStore® with eManager was dedicated to textile assortment – the segment with the most potential saving for more effective storage and handling.

Phase 2 enabled XXL to follow their vision –” If the article fits into AutoStore – it goes into AutoStore!”, expanding the system with 4x storage capacity and 4x transaction capacity.

“The project was smooth and painless, and we’re especially satisfied with being able to use the system 100% from day one. The fact that cost reductions are better than estimated makes it even better”, says Nielsen.

Built for future growth

In 2013 XXL built a brand-new Warehouse Distribution Center in Örebro, Sweden. The warehouse serves XXL’s strong growth in the Swedish and Finnish market, as well as upcoming new markets in Europe.

“When we decided to establish the Swedish Distribution Center, it was important for XXL to get it up and running as soon as possible. According to our request, I think Element Logic set a new world record in putting an automated system into operation; they only spent two months from start to finish, enabling our DC to perform at its best from day one”, says Nielsen.

He continues:

“The success we experienced with eManager and AutoStore in Norway made the choice easy when we decided to establish a warehouse in Sweden. An investment in AutoStore® and eManager from Element Logic is a guarantee for our efficient and low-cost supply chain”.

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