At the headquarters of tractor manufacturer AGCO/Fendt in Marktoberdorf, Germany, a high-performance small-parts warehouse will ensure the supply of their production line in the future. The warehouse is optimized based on the available floor space and the material flow requirements on site. To increase the efficiency, automation and robotics expert Element Logic is implementing a future-proof and highly efficient AutoStore solution.

The American company, AGCO, is one of the world’s three largest manufacturers and suppliers of tractors and agricultural machinery. The Fendt brand has belonged to the American global player since 1997. All Fendt tractors are developed and produced at the headquarters in Marktoberdorf, Germany.

In order to meet the demands from the customers, manufacturing companies today have to stock a growing range of individual parts. As a result, existing warehouse capacities need to be expanded, resulting in additional personnel costs in production supply. Short provision times with simultaneously high added value do not have to be a problem despite expanded warehouse capacities – it is simply a matter of creating a smooth and efficient transition between production supply and assembly lines.

“With traditional warehousing, it became increasingly difficult to meet the growing demands on our small parts logistics, even from an economic point of view,” says Jens Kirchner, Supply Chain Manager at Fendt Warehouse. “On our premises, the utilization of the available space is of immense value. AutoStore, with its high storage density, was clearly standing out compared to all other solutions.”

Low energy consumption

The search for an alternative intralogistics solution led AGCO/Fendt to AutoStore and Element Logic, the world’s first AutoStore partner and the market leader in Europe with more than 220 AutoStore solutions sold. Numerous references within the production segment with customers such as STIHL, SCHUNK and Continental, convinced the tractor manufacturer of Element Logic’s extensive expertise and many years of experience in implementing future-proof intralogistics solutions. Element Logic has implemented AutoStore at other AGCO Group sites – including AGCO Parts’ European spare parts center in Ennery, France.

Sustainability in production is a high priority for AGCO/Fendt, which was critical to the decision. The company focuses on reducing its own power consumption and using renewable energy – this is precisely where AutoStore systems can make an important contribution. The energy consumption of ten AutoStore robots is actually equivalent to that of a vacuum cleaner, and every time a bin is lowered or the speed on the robots are reduced, energy is returned to the battery. AutoStore’s compact design also eliminates the need for aisles, significantly reducing space that requires lighting.

In Marktoberdorf, the AutoStore system will be installed in one of the existing buildings in the immediate vicinity of the transmission production, and in the future, it will supply all production lines with materials, such as small parts and semi-finished products. The parts and products that the production lines need will be automatically picked by the AutoStore system, pre-packed and supplied to the production lines via tugger trains, which will be loaded at the AutoStore system.

On a floor space of 315 m², the AutoStore solution implemented for AGCO/Fendt offers space for a total of 12,100 bins with an external height of 330 mm each. Eleven robots will handle the bins on top of the grid. Picking and packing is carried out at three ergonomically optimized workstations. The entire process is optimized by Element Logic’s own software, eManager, which is directly integrated into the customer’s ERP system. The system was handed over to the customer at the end of April 2021.

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Colliflow is a third-party logistics company (3PL) that stores and ships goods for over 70 online stores. One year after the installation of the AutoStore solution provided by Element Logic, they are already planning an expansion of the system.

In 2020, Colliflow became one of the world’s first third-party logistics companies to automate warehouse operations with eManager and AutoStore.

“We have had a steady growth since the start in 2013, and in 2019 we reached a point where we had to choose between expanding the warehouse, or invest in a form of automation”, says Rune Wright Lia, General Manager Colliflow.

Before they decided on eManager and AutoStore from Element Logic, Colliflow conducted a thorough research of other systems and suppliers.

“Automation was a big investment for us, so it was important to have a reliable and trustworthy partner throughout the process. We found no one who was at the same level as Element Logic when it comes to service or solution”, says Lia.

Automation was a big investment for us, so it was important to have a reliable and trustworthy partner throughout the process. We found no one who was at the same level as Element Logic when it comes to service or solution.

Rune Wright Lia, General Manager Colliflow.

Software specially adapted for 3PL

Colliflow has a 10,000 m2 warehouse at the Harbour Terminal in Grenland, Norway, where the goods are owned by their customers. In total, the company sends out 300,000 orders a year, distributed among 70 customers. Having good routines are crucial to avoid incorrect picking.

“Our customers all use different packaging, attachments and have different routines for sending out the packages. Element Logic therefore adapted a system and software to automate parts of this process. In addition, the actual picking is automated where the robots pick from boxes and deliver to the warehouse employees”, Lia explains.

Key Account Manager at Element Logic Norway, Arnold Hjelm Nielsen, explains that the automation process for 3PL customers is a little different than for other customers.

Physically, AutoStore looks the same whether it is a 3PL customer or not. The difference lies in the configuration of eManager; it is more challenging to be able to handle the necessary routines for Colliflow, says Nielsen.

For Colliflow customers, it is a great advantage that they can offer storage in an AutoStore system.

“Our customers experience our automation as future-oriented. And I agree with that – there is no doubt about where the world and the industry are headed”, says Lia.

Stores several items in a smaller area

Automation is a great benefit for 3PL companies. It enables storage of considerably more goods in less space, and one does not have to manually dig out seasonal goods as the season approaches.

“When an item is out of season, it will be placed safely and dust-free at the bottom of the system. As soon as the first order for the season arrives, the AutoStore robots will automatically start the work of retrieving the goods and making them ready for dispatch. This can happen overnight as the robots work around the clock, all year round”, Nielsen explains.

Experienced super-users have given 100 percent uptime

At first glance, AutoStore may seem like a complicated system to operate. Fortunately, the job becomes considerably easier after proper training. That is why Element Logic always gives super-user courses to selected employees who get an extra introduction to eManager and AutoStore, and how to solve errors that may occur.

“From the first moment, the employees at Colliflow showed great interest, and their super-users can do a lot themselves and act quickly. It is extremely important that the company feels confident operating the system so they can act if something should happen”, Nielsen says.

Colliflow’s figures also show that they have found a formula for success. Since starting in June 2020, they have had an uptime of 100 percent – it could not be better. Element Logic customers have seen an uptime of 98 percent.

Planning a major expansion of the warehouse

“Due to the covid-19 pandemic, we have experienced artificially high growth in the last year and a half. Therefore, our new AutoStore system became too small a little too fast. We have decided to implement a major expansion in 2022 to handle the growth”, says Lia.

The expansion consists of expanding the AutoStore grid from 500 m2 to 1500 m2. Then it will be supplemented with the required number of new gates and robots, adapted to the operation of Colliflow. The expansion will have no effect on the uptime of the existing warehouse – it will be operated as normal.

If you have too few robots in relation to the number of ports, the picking speed and efficiency will be impaired. Using simulations, we find the perfect number for the specific warehouse, explains Key Account Manager Nielsen, and adds:

“When we design solutions, we always think ahead. It is cheaper and easier for the customer to buy a new port when the need arises if we have arranged for it in advance and do not have to rebuild.”

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Sustainability was at the forefront when electronics wholesaler Berggaard Amundsen (BA) built their new warehouse with the help of Element Logic.

Berggaard Amundsen’s futuristic warehouse and headquarter outside of Oslo is quite unique: Because the electronics wholesaler wanted their new 14,000 m2 building to act as a visual representation of the products they sell, they had 1,050 solar panels installed on the roof – as well as solar panels covering 50 m2 of the façade.

Even in Norway, with little sunlight and snow during the winter season, the facility generates 230.000 kilowatt hours of pure solar energy a year. The solar panels make Berggaard Amundsen (BA) self-sufficient from April to September and also provide power to 40 electrical car chargers that are available to use for the local neighborhood. As a result, BA received an «Eco-lighthouse» certification for setting up an environmentally friendly warehouse facility.

“The AutoStore robots’ energy consumption is extremely low, and they regenerate power every time they lower a bin or reduce speed – just like an electrical car. This means they are a perfect fit for sustainable warehouses. Berggaard Amundsen’s warehouse is better for the environment and also cost-efficient. It’s a win-win”, says Niklas Poulsen from System Sales at Element Logic.

The BA warehouse’s grid holds 17,000 bins, with 17 robots doing the work. Considering that ten robots use the same amount of energy as one vacuum cleaner, and 70 percent of BA’s picking is done through AutoStore, it’s evident that the overall energy consumption in the new warehouse is very low compared to other warehouses.

Enabling faster deliveries

The electronics market is highly competitive, and BA acknowledges that their part in the value chain relies on serving their customers instantly.

“We’ve grown a lot in recent years and eventually ran out of space in our old warehouse. We weren’t rigged to expand at that warehouse and did not fulfill our potential in terms of efficiency”, says Rolf Inge Danielsen, Logistics Director for Berggaard Amundsen.

BA needs their 25 service centers across Norway to have packages ready to ship the morning after they are ordered. Local electricians can also stop by the warehouse and pick up parcels just half an hour after they’ve placed an order.

“This has the potential to be the perfect warehouse for BA. It’s designed to fit their needs and support maximum efficiency, by for instance having the grid in close proximity to the goods receipt and the conveyor system from ITO in the ceiling. This allows trucks to take the shortest route. The entire warehouse is also designed for growth whenever BA is ready to scale up”, says Poulsen.

Not just another distributor

The Logistics director from Berggaard Amundsen describes Element Logic’s work as essential for making the new warehouse a success.

“Element Logic is the best at understanding the customer and have helped us design a warehouse that fits our needs the best. They have guided us when we needed guidance ­– and pushed us when we needed to be pushed”, says Danielsen.

“It felt safe having them there for every phase of the project. They attended all construction meetings, all workshops with employees, and also assisted us during the moving period. And they contributed with smart solutions every step of the way”, Danielsen adds, who also highlights Element Logic’s vast experience as significant.

“Element Logic has been our partner in planning, moving, and establishing this warehouse. They are far more than just a supplier of robots”, adds Bethina Samnøy Siristuen, Project Manager for Logistics at Berggaard Amundsen.

Utilizing AutoStore to its full potential

Although the warehouse is now up and running, Element Logic is still working closely with Berggaard Amundsen to achieve even better results.

“We had AutoStore in our previous warehouse too, but we did not utilize its full potential. Now, with Element Logic, we are investing time in learning how to use the software efficiently, having our employees take courses from Element Logic, as well as using live statistics to improve our workflow”, Samnøy Siristuen explains.

Niklas Top Aanensen, Key Account Manager for Element Logic, is responsible for providing full support to Berggaard Amundsen during day-to-day operations. He says the aftermarket work they do is all about maximizing the potential of the client’s warehouse:

“The relationship we have with our customers is ongoing. We tweak and tune as much as we can and run simulations to see where they can improve. We look at order intake, how many ports they should have open at which working hours and when its most beneficial to re-stock bins, in addition to running software updates. We’re chasing efficiency, really”, Top Aanensen concludes.

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The world’s largest third-party logistics system (3PL) is in Kolding, Denmark. The international freight forwarding company Prime Cargo recently inaugurated its new AutoStore system. With nearly 4,000 m2, 88,000 bins and 49 robots it’s the world’s largest within 3PL.

“We find that more and more companies are seeing the possibilities in robotic warehousing. In fact, you eliminate all the time spent on moving around in the warehouse and picking, which increases profitability,” says Nikolaj Bjørn Eriksen, CEO of Element Logic Denmark.

Largest investment ever

Prime Cargo’s installation is the largest investment in the company’s history. When the AutoStore system is fully operational, it will be able to process 20,000 orders a day from a warehouse with more than 500,000 articles. That makes up 50% more compared to the previous manual warehouse.

“Capacity and flexibility are the two major keywords for this installation. We have previously experienced bottlenecks during peak periods at our manual warehouse, which lowered our efficiency. With this AutoStore system, we can increase efficiency as well as capacity and at the same time make better use of the square meters”, says Morten Høilund, CEO of Prime Cargo.

Ready to be tested during Black Friday and Christmas season

Element Logic is a total supplier of the project, which in addition to the robotic AutoStore warehouse includes several other automation solutions – e.g. automatic box lifters and case closers.

“In addition to the robot warehouse itself, Prime Cargo has invested in automating the processes around the AutoStore system so that they can offer their customers a strong, comprehensive logistics solution,” says Nikolaj Bjørn Eriksen.

Initially, Prime Cargo’s facilities will be tested during this year’s Black Friday and subsequent Christmas sales.

The post Element Logic delivers AutoStore to one of the world’s largest 3PLs appeared first on Element Logic US.

With the help of Element Logic, wholesale retailer New Wave moved into a new warehouse without the customers noticing, in the same period picking up a Supplier of the Year award.

New Wave is a Norwegian textile wholesale retailer, specializing in sportswear and workwear. With a stable growth and high seasonal peaks, they acknowledged that their old warehouse was no longer doing the job.

“It was too small and could not keep up with customer demand. It was simply not efficient for us anymore,” says Morten Halvorsen, CEO of New Wave. “We knew we had to take a step into the future and automate our warehouse.”

Today, New Wave has moved into a brand-new warehouse in Østfold county. During the two years of preparing the move, Element Logic has been there every step of the way, securing a smooth transition as well as optimizing every inch of the 8 000 square meter building.

Up and running from day one

“We have worked closely with New Wave throughout the entire moving process. This enabled New Wave to acquire ownership of the technology, and us to gain valuable insight on how the system could be optimized,” says Kjell Blakseth, consultant at Element Logic.

“They have delivered all the warehouse equipment and worked together with our construction contractor for optimal warehouse performance. Everything has been delivered on time and successfully set up. We were up and running from day one,” Halvorsen continues.

With the automated AutoStore solution from Element Logic, the picking capacity has increased by 300 percent and the picking area has been reduced with 8000 m³.

“This result is just from the few months we have been here. Now that we are approaching a peak season, we will really get to see the automated warehouse in its full capacity,” says Halvorsen.

He is looking forward to the opportunities of scalability in the future.

“Our estimates show that we can double our revenue in this warehouse without having to expand the warehouse further.”

Motivated warehouse workers

Another positive consequence after moving from the old to the new warehouse, is the effect on the workforce. The implementation of AutoStore has reduced the number of forklifts by half

“An ergonomically adapted workday, with cleaner air and modern technology has had great impact on the employees,” Halvorsen explains.

Controller and warehouse worker Martin Nordahl in New Wave confirms this.

“Your body is no longer sore when you wake up in the morning, and in general I think the atmosphere in the warehouse has improved significantly. In designated warehouse zones you can now work while listening to music or podcasts, because you don’t have to worry about being run over by forklifts,”Nordahl states.

All in all, New Wave has become a much more agile and efficient company after automating their warehouse.

“In the future, we expect a healthier business with increased customer satisfaction, based on quicker deliveries with less mistakes. Simply put, we are becoming a better supplier with the help of Element Logic and AutoStore,” the CEO of New Wave concludes.

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As Europe’s largest supplier of IT accessories, the EET Group ships more than 6 000 orders a day. With an average annual growth rate of 20 percent they were searching for an automated warehouse solution to boost their efficiency and scalability.

The company’s search for an automated warehouse ended with Element Logic – investing in an AutoStore installation consisting of a total of 44 robots, 10 gates and 60 000 AutoStore bins, making it one of the two biggest AutoStore® installations in all of Denmark.

Expansion without compromising growth

“Element Logic promised us that we could launch our AutoStore within 100 days after we signed the contract, and we did! In the future we will expand our AutoStore to support our growing business. I’m looking forward to develop our AutoStore® in cooperation with Element Logic, to ensure excellent customer service and efficiency”, says Tom Kjærulf, Supply Chain Director at EET Group.

Today the installation handles more than 1 million products, and is a key factor in EET Group’s efforts to maximize customer service and efficiency.

Another decisive factor is the scalability of AutoStore®, enabling the EET Group to continuously expand the size of the warehouse without compromising growth rates.

An example is the expansion of EET Group’s AutoStore® installation, which was completed by Element Logic in just five weeks with practically zero downtime.

The EET Group expects to further expand the system in the coming years.

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