SMEs Also Benefit from Process Optimization in Intralogistics

With process automation in intralogistics, SMEs benefit from cost reductions, increased efficiency, reduced space requirements, faster order processing, as well as enhanced transparency and flexibility. Solutions from Element Logic have sustainably improved operational metrics across all industries and company sizes for a variety of customers. The payback periods for AutoStore solutions from Element Logic start at less than 24 months.

(Bad Friedrichshall) Warehouse automation pays off. “The sensible structuring of the warehouse has already created sustainable value,” explains Joachim Kieninger, Director of Strategic Business Development at Element Logic Germany. “However, without automation, the costs for adapting the warehouse to changing ABC structures and handling incorrect deliveries due to picking errors and lack of control quickly add up.”

Kieninger’s judgment reflects Element Logic’s 40 years of experience with manual and automated warehouse solutions. For 20 years, Element Logic has made a significant contribution to the automation of intralogistics with its AutoStore solutions for large and retail customers, industrial clients, and logistics service providers (3PL), unlocking significant advantages in process efficiency, inventory management, and space utilization for customers. Element Logic has supported process automation and thus digitalization in nearly all industries and companies of various sizes.

One of the smallest AutoStore solutions was installed at Greendonkey, a German multi-channel company in the bicycle industry. Nearly 2,300 containers, six robots, and three carousel ports ensure warehouse densification, process security, and fast order processing. Other compact systems have been installed at Jotron, a Norwegian provider of communication systems for professional use, and the Finnish fishing lure manufacturer Rapala. At Jotron, a system with 1,500 containers, three robots, and two workstations has led to significant performance gains. At Rapala, an AutoStore system with 3,000 containers, four robots, and two carousel ports contributes significantly to business success.

In parallel, Element Logic has planned and delivered solutions worldwide with hundreds of thousands of containers, hundreds of robots, and port workstations. The world’s largest AutoStore solution at Boozt, the largest online provider in Scandinavia, includes 1,150 robots, more than 1 million containers, and 300 AutoStore workstations by the end of 2022. The system design achieves throughput where an order is ready for distribution just 49 seconds after being received.

Transparency, Security, and Better Space Utilization through Warehouse Automation

Companies from various industries that deliver and produce high-quality solutions and products often have inventories of high value. This means that inventory control is particularly important. This is already evidenced by the operation of the small AutoStore system at Jotron. By implementing Element Logic’s automated solution, warehouse operations have become a technological focus within the company. Jotron produces and sells high-priced components. “The closed AutoStore system, in conjunction with the warehouse management software, provides high transparency over the inventory and additionally security against unauthorized access,” says Kieninger. “The same storage capacity housed in shelving systems would have required five times more space.” Accordingly, Geir Ødegaard, Logistics Manager at Jotron, is also very satisfied: “Our experiences with warehouse automation through Element Logic are consistently positive. It gives us good control and efficient handling in picking and storage. Our employees are very pleased with the goods-to-person picking principle, where walking around as part of the picking process is no longer necessary…”

Increased Efficiency and Space Utilization

As part of a necessary capacity expansion for storage, Viktoria AS, a Norwegian provider of personal protective equipment, work, and professional clothing, purchased an adjacent workshop to better connect production and storage. After gutting, the building was used as a warehouse, and Element Logic was commissioned to install a compact AutoStore solution to achieve maximum storage capacity with 3,200 containers in a tight space. “We managed to set up a highly efficient warehouse operation in a very short time,” says Kieninger.

Smart, efficient processes were the goal for the new logistics center that the Czech consumer electronics retailer Alza.cz built for more than 40 million euros in Chrášťany near Prague. It is the largest investment in the company’s history. In addition to expanding the existing area by another 15,000 square meters, the implementation of an AutoStore system from Element Logic ensures increased efficiency and shorter delivery times. “With these innovations, we can offer our customers express deliveries and pick, pack, and ship orders within minutes,” says Thomas Havryluk, Deputy Chairman of Alza.

More Flexibility and Faster Goods Flow

High throughput and faster goods flow are the main reasons for automation projects at logistics service providers (3PL). For AssistCo, producer of the private label Assist and distributor for the Norwegian sports trade brands Hummel, CEP, and Ball Launcher, Element Logic created an AutoStore solution with nearly 7,700 containers. “AssistCo is not one of our smallest customers, but it is still considered a small AutoStore system,” says Joachim Kieninger. A special feature: The system was designed to be visible from all parts of the building. “It’s cool that they can also watch the robots working from the offices,” says Kieninger. “But above all, it is functional. The building was well suited for an AutoStore solution. AssistCo has significantly increased its capacities, both in terms of the number of goods it can store in a given space and the speed at which goods can be shipped from the warehouse.” In addition to capacity growth and efficiency increases, flexibility is especially important for customers when deciding on AutoStore technology. If the space is large enough, the solution can be expanded as needed or moved to a new location if space is lacking. “Regardless of how large a company’s growth is, we can support customers in optimally adapting warehouse automation,” summarizes Kieninger.

Profitability with Warehouse Automation

“The best time to invest in warehouse automation from Element Logic is before it is needed,” says Joachim Kieninger. Often, companies believe they are too small for an investment in warehouse automation and that it would not pay off. “This always changes when they see the ROI analysis,” says Kieninger. The payback calculation is shaped by three factors:

• Number of employees
• Rental costs
• Growth

Since the founding of Element Logic in 1985, the shortest payback period for an automated warehouse has been less than a year, and the longest about six years.

Photos: © Element Logic