Element Logic Installs Micro-Fulfillment Center for Peterhans

Capacity increase and process automation through an AutoStore system from Element Logic ensure efficient storage and coordinated picking processes at the Peterhans Handwerkercenter with same-day delivery and reduced waiting times at the store’s pickup counters. The flexible, modular solution concept forms the central cornerstone for the retail company’s future-oriented investments in digitalization and logistics for further growth.

(Bad Friedrichshall/Wettingen) As part of a comprehensive realignment of intralogistics, Peterhans Handwerkercenter AG, based in Würenlos near Zurich in the Swiss canton of Aargau, has restructured and automated the logistics processes of its central warehouse and retail store for faster order processing and increased storage capacity. After comparing various automated storage and retrieval system (ASRS) technologies and solutions, the family-owned company, founded in 1952, opted for an AutoStore solution from Element Logic. “With around 500,000 items, our multichannel strategy, and our continuous growth, we wanted to invest in an automation step that offers us as error-free picking and flexibility for potential system expansions as possible,” explains Dieter Egloff, Deputy Managing Director of Peterhans Handwerkercenter AG, the main reasons for the decision. “Therefore, we evaluated various logistics systems in practical operation and visited reference systems with AutoStore solutions. When weighing all factors, it quickly became clear: The AutoStore technology is on our wish list. The simplicity of the technology, the flexibility of the storage concept, and the output convinced us from the very beginning.”

Peterhans Handwerkercenter AG sells building materials, tools, machines, fittings, fasteners, and personal protective equipment directly to craft businesses and wholesalers in the construction industry, making it one of the leading companies in this segment in Switzerland. Continuous growth and the servicing of different sales channels prompted the decision to automate intralogistics. “We continuously strengthen our business through future-oriented investments in digitalization and logistics,” says Egloff. “The automation solution allows us to handle volume increases with the same number of employees.” The contract for system planning and realization was awarded to system integrator Element Logic, the first official AutoStore integrator and the world’s most successful AutoStore distributor of 2020. With nearly 200 realized AutoStore solutions, they possess extensive experience and a competitive edge in planning, implementing, and supporting maximally efficient storage and picking systems for containerized products. On this broad foundation, the system integrator continuously develops further optimization options in the AutoStore technology environment.

Perfect Integration of a Custom-Tailored System

For Peterhans, Element Logic installed an AutoStore system with only 400 square meters of floor space for around 25,000 storage locations during ongoing operations in a two-stage project realization. “The system moves 11,650 containers, which are subdivided up to eight times,” illustrates Egloff the storage capacity. The 220 mm high containers allow a load of up to 30 kg with interior dimensions of 603 x 403 mm. “The main goals of the automation project were to improve processes and maximize storage capacity in the existing building by increasing storage density,” says Joachim Kieninger, Director Strategic Business Development Element Logic Germany. “For optimal design of the system, we analyzed the very different sales channels and considered them in terms of layout and processes.” Peterhans supplies the shelves in the retail store, orders via the online shop, deliveries with their own vehicles to fitters and craftsmen, as well as the pickup for direct collectors or orderers in the store from the central warehouse. For these goals, Peterhans and Element Logic already worked closely together in the planning phase. “The result is the perfect integration of an AutoStore system precisely tailored to our requirements into our existing building,” explains Egloff.

With the automated storage and picking solution AutoStore, the family business opted for an innovative storage concept, where the containers for small parts storage are stacked in shafts and handled by small robots, known as Robots. The system impresses with efficiency and flexibility, as well as minimal space requirements and comparatively low investment and operating costs. The container stacks are stored in a standardized aluminum grid, known as the Grid, which can be up to 5.40 meters high. The Robots operate on its surface. Depending on the container height, up to 16 or 24 containers can be stacked in one Grid. The compact overall system with integrated workstations, known as Ports, offers a 60 to 70 percent improved space utilization compared to conventional ASRS solutions. The system layout can be precisely adapted to any structural conditions and can be easily scaled with additional Robots, Ports, or shafts as performance or capacity needs grow. In this way, AutoStore systems achieve the highest storage density among available ASRS solutions. The same applies to energy efficiency: With an average energy requirement of 100 watts per Robot per hour, AutoStore systems have by far the lowest energy consumption among available ASRS solutions.

97 Percent Fill Rate, 15,000 Picks per Month

The workplace modules used in the AutoStore system are so-called Carousel Ports for higher storage throughput and Conveyor Ports for lower throughput. The Carousel Ports serve as both picking and repacking stations for loading the system containers. Of the six Ports at Peterhans, goods for store customers are retrieved through the three Conveyor Ports in the sales area. The three Ports that are not visible from the sales area are used for the retrieval of orders for shipping from the online shop and for external deliveries, such as to wholesalers and fitters in the field. “In less than two minutes, a customer’s order is at the sales counter,” Egloff proudly emphasizes. “The control system of the AutoStore system knows which container is in which place, calculates the travel paths, and then distributes the travel orders to the Robots via radio connection.” These work in coordination, quickly rearranging the containers, swiftly freeing the required containers, and filling them into the shafts for the integrated workplace modules. This automatically ensures storage according to ABC criteria: less frequently requested containers gradually move further down, while fast movers remain continuously accessible on the upper levels. “Compact, highly dense storage and fast, nearly error-free picking,” summarizes Egloff. “With a system fill rate of 97 percent, the system averages 15,000 picks per month – between 700 and 800 accesses per day.”

Investment Amortized in Five Years

In five years, according to Peterhans’ calculations, the investment in the AutoStore system will be amortized. The flexibility of the storage system supported the two-stage project realization during ongoing operations as well as future growth. “Without the AutoStore system, we would have needed more employees in logistics,” says Egloff. “With the AutoStore system, we were able to cover the constant growth and even the rapid increase in online orders, as the retail store remained closed during the pandemic, without additional resources. From the very beginning, it was an investment in the future. We can now rely on a powerful, automated small parts warehouse to meet our customers’ expectations for fast order processing. And the system is still in such good shape because we had such a good implementation partner in Element Logic. We are completely satisfied with the project execution, the collaboration, and the results.”
Photo: © Element Logic