Dematic with Automation Contract at Reitan Distribution

Dematic GmbH has received a major order worth 50 million euros from Reitan. The new warehouse automation system enables Reitan Distribution A/S to meet growing demand and quickly and efficiently adapt its operations. The new warehouse facility is set to be operational in early 2023.

(Heusenstamm/Oxford GB) The global intralogistics provider Dematic announced a new contract with Reitan Distribution A/S, a subsidiary of REMA 1000 Danmark A/S, in Horsens, Denmark. Reitan Distribution A/S supplies more than 900 grocery stores across Denmark, including 340 of its own REMA 1000 stores as well as several convenience stores in the chain, including 7-Eleven.

REMA 1000 is one of the largest and fastest-growing grocery discounters in Denmark and has achieved remarkable growth in recent years. Currently, around 340 of the REMA 1000 stores are supplied by the subsidiary Reitan Distribution A/S. Now, the logistics and supply chain expert Dematic has been commissioned to design a high-performance automated warehouse solution to achieve a higher delivery frequency and better service levels for the stores while also supporting Reitan’s growth strategy for the coming years.

Strong Growth Requires Expansion

Reitan’s current logistics center in Marsalle covers approximately 57,000 square meters. In recent years, the company has grown so significantly that expansion in the form of new and more modern warehouse facilities has become necessary. The expanded warehouse will provide an additional 30,000 square meters and will include a high-bay pallet warehouse. At 26 meters at its highest point, it is the largest commercial facility built in Horsens in many years.

The newly installed facility will be connected to the existing warehouse via a bridge and is specifically designed for Dematic’s automation solution. It is expected to operate six days a week for 21 hours a day and handle over 400 dry goods orders daily. Approximately 130,000 cartons are expected to be picked, packed, and distributed daily by the new system, with robotic systems taking on a significant portion of the tasks. Warehouse automation is expected to increase the delivery frequency of the 600 most popular products to the franchisees of REMA 1000 grocery stores and reduce overall costs through more efficient operations.

Warehouse Environment with Optimal Ergonomics

Reitan places great importance on the well-being of its employees. For the company, it is crucial to create a warehouse environment with optimal ergonomics to retain employees and attract new colleagues. An example of this is the ergonomic palletizing stations, which were designed in collaboration with a team of Reitan employees and an independent consultant specializing in optimal working conditions.

Ole Thomsen, Logistics Director at REMA 1000, explains: “This project is about providing better service to retailers, optimizing the customer experience, and creating ideal working conditions for employees to achieve higher efficiency. Since the beginning of the process, Dematic has shown a great understanding of all our necessary requirements. It is a company that combines innovation with quality and reliability and can draw on a long-standing global success story. Therefore, we were convinced that it was the right partner for REMA 1000.”

Scalability and Flexibility

Thorsten Beck Hansen, Director of Sales Nordics at Dematic, comments on the partnership: “REMA 1000 has achieved greater success in recent years. Like all companies in the grocery retail sector, REMA 1000 now needs to invest to stay at the forefront. We are committed to ensuring that our state-of-the-art automated warehouse provides the scalability and flexibility the company needs to achieve even greater growth in the next decade.”

Upon completion, the new facility will include an automated pallet warehouse, automatic carton depalletization, intermediate storage, a picking system, as well as semi- and fully automated palletizing technology. Dematic intends to deliver all of this as part of a new multi-site warehouse management system (WMS). This system will not only handle the complex order processing with the new automation solutions but also coordinate the warehouse movements between the old and new facilities and the delivery of all order pallets to a new shipping area. It is expected that this will more than double the productivity of Reitan’s warehouse while significantly improving the working conditions of warehouse workers.

Commissioning in 2023

Andy Blandford, Senior Vice President and Managing Director of Dematic for Northern Europe, concludes: “This collaboration marks the beginning of a long-term business relationship. We look forward to working closely with the REMA 1000 team to help them realize their full potential in an ever-evolving food industry.”

The new warehouse facility is set to be operational in early 2023.

Photo: © Dematic

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