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f+h Intralogistics 4/2015

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f+h Intralogistics 4/2015

INTRALOGISTICS Specific

INTRALOGISTICS Specific solutions from Bito are a valuable asset to the entire value chain in the food industry The food industry is the fourth largest economic sector in Germany. The industry is closely integrated with global food markets through imports of agricultural raw materials and exports of processed foods. But the relevant product groups, which are increasingly being ordered via internet, also present great challenges for intralogistics. Food and beverage product groups include sensitive products with specific requirements for the value-added chain. Depending on the user, a large number of products must be stored, picked and prepared for dispatch separately from each other and at different ambient temperatures. The expiration date is a consideration with high priority. High costs of handling goods along with rising competitive pressure leave industry stakeholders with only minimal margins, making the food business a challenge. For this reason, it is all the more important to take advantage of the potential for optimizing intralogistic processes and structures throughout the value-added chain of the food and beverage industry – from raw material production over food production, distribution and retail supply to the end consumer. Bito-Lagertechnik Bittmann GmbH, headquartered in Meisenheim/Germany, implements complete solutions for companies in the food and beverage industry, from planning through production and on to start-up assistance. In response to market demands for single source solutions, the range of services also includes a comprehensive after-sales service. Winfried Schmuck, Managing Director of Bito- Lagertechnik: “We have been successfully implementing storage facility projects for more than 50 years. This experience also allows us to provide optimum support to companies in the food and beverage sector for their intralogistics requirements.” E-commerce conquers the food and beverage retail market Compared to the turnover achieved in other industries, buying food over the internet is less common. In the food sector, consumers mainly use the internet as a source of information. In 2013, food sales in Germany accounted for only 0.3% (Image 01) of the total internet turnover, which is equivalent to roughly 540 million EUR. These figures contrast with UK figures: in 2013, a turnover of 5.5 billion EUR was achieved with food and beverage sales over the internet – almost 5% of the total internet sales volume Exports forecast that food sales in Germany will rise to 10% in 2020. This means that every tenth consumer will buy food exclusively over electronic systems. The share of cross channel purchases, which cover customers buying food on the internet as well as from nonelectronic sources, is estimated to rise from currently 6% to 20% in 2020. The market share of non-electronic channels is estimated to drop to 70%. One common way of shopping for fresh food online is Drive Markets, which are especially prevalent in France and England. Customers order their product selection online on the website of a grocer and personally pick up the prepared package in the branch 18 f+h Intralogistics 4/2015

INTRALOGISTICS 6.0 % 0.3 % 175 billion € 20 % 10 % 200 billion € Cross channel sales Online single channel sales store at their location. Compared to this “Click and Collect” business model, “online shopping with delivery service” implements the convenience concept more thoroughly. However, logistics requirements are higher since a consistent strategy for storage, dispatch and handling returns is needed. The consequences of the trend towards e-commerce are obvious: Sales areas in retail outlets must be reduced, more distribution centers and decentralized warehouses must be created instead of new retail outlets. Order picking and distribution requirements will increase accordingly, and as a consequence, logistic processes will have to be adapted to meet new demands: n Compact and efficient storage of food in different temperature ranges. n Fast and efficient picking of customerrelated food orders. n Fast and reliable delivery of food orders with different temperature requirements at low additional costs. n Extension of cooling chains to consumers’ doorsteps (last mile). n Solutions to allow for delivery of goods and receipt of goods at different times. Case studies Tesco, a supermarket chain store with headquarters in Cheshunt, United Kingdom and 93.7 % 70 % 2013 2020 Brick-and-mortar single channel sales 01 Experts forecast that food sales in Germany will rise from today’s 0.3% to 10% in 2020 worldwide operations, provides a good example to illustrate how Bito focuses on customer preferences and implements solutions accordingly. Measured by profit, Tesco is the second largest retailer in the world after Walmart (USA) and number three worldwide when measured by sales, after Walmart and Carrefour (France). The product line is extensive, covering food, beverages, articles for house and garden, clothes, telephony and financial services. Tesco operates a “good, better & best” policy for its own brand products Customers can choose between upmarket products “More than 100 sales representatives throughout Europe assist our customers in planning and implementing the optimum storage solution” Winfried Schmuck (Finest), standard products and products in the low-price segment (Value). In addition to the usual shopping option in supermarkets, Tesco also offers “Home Delivery” or “Click and Collect” (Image 02) in their grocery business. Both services options allow the customer to order a wide range of products online. In the case of home delivery, customers have their products delivered directly to their door at a time that suits them. When choosing the “Click and Collect” option, customers pick up their order personally at the store at a time and place that suits them. For both services, Tesco offers the Intralogistics at Tesco A suitable storage facility for three different temperature zones must be provided at the collection points. Other requirements were better use of space and ergonomic workstations. The Solution n Carton live storage in the normal temperature areas allows for user-friendly picking. n Boltless shelving units in cool store and freezer stores. The Benefits n Individually tailored shopping options in all Tesco supermarkets. n Optimum use of space. n Better picking performance and lower damage rate due to ergonomically advantageous picking. n Faster service for customers collecting their orders. About Bito Bito-Lagertechnik is one of the leading manufacturers of warehousing and material handling products in Europe. With a staff of some 880, the Germany-based company manufactures an innovative product range meeting highest user demands of customers across diverse industries and is known as a reliable and innovative partner in planning and realizing complex storage and picking solutions. With 14 subsidiaries in Europe, a sales office in the United Arab Emirates and many partners worldwide, Bito achieved a group turnover of € 140 million. f+h Intralogistics 4/2015 19

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