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TECHNOLOGY FEATURE: RAPIDPICK TM SYSTEM FASTER, SMARTER, SAFER Issue 4 L GISTICS REVIEW CEMAT 2011 OVERVIEW Exciting new products launched at CeMAT AUTOMATING SIEMENS Multishuttle in production line support role PRODUCT REVIEW News, technology and software update Creating Logistics Results TECHNOLOGY FEATURE: RAPIDPICK TM SYSTEM: FASTER, SMARTER, SAFER BARE ESCENTUALS: USA Integrated order fulfillment for cosmetics supply chain BARE ESCENTUALS: USA Integrated order fulfillment for cosmetics supply chain HALFORDS: UK Sorting out small parts order picking HALFORDS: UK Sorting out small parts order picking

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Page 1: Dematic Logistics Review #4

DEMATIC LOGISTICS REVIEW

TECHNOLOGY FEATURE:

RAPIDPICKTM SYSTEM FASTER, SMARTER, SAFER

Issue 4

L GISTICSREVIEW

CEMAT 2011 OVERVIEW Exciting new products launched at CeMAT

AUTOMATING SIEMENS Multishuttle in production line support role

PROdUCT REVIEW News, technology and software update

Creating Logistics Results

TECHNOLOGY FEATURE:

RAPIDPICKTM SYSTEM:

FASTER, SMARTER, SAFERBARE ESCENTUALS: USAIntegrated order fulfillment for cosmetics supply chain

BARE ESCENTUALS: USAIntegrated order fulfillment for cosmetics supply chain

HALFORdS: UKSorting out small parts order picking

HALFORdS: UKSorting out small parts order picking

Page 2: Dematic Logistics Review #4

DEMATIC LOGISTICS REVIEW

One consistent theme began to emerge and it pleased me a great deal.

Lowering costs and increasing service is a given. But logistics professionals need more.

In particular you need the ability to respond rapidly to change. We know that the only future certainty is change so, in my opinion, there is a strong need to address this challenge.

Smart solutions need to be designed to meet today’s needs but with tomorrow’s require-ments firmly in mind, and that means taking into account issues like growth, change in product range or new market or channel requirements.

At Dematic, we address the issue of “future-proofing” solutions, technologies and informa-tion platforms by ensuring our systems are flex-ible, scalable and modular:

Welcome to Issue 4 of Dematic Logistics Review – Your Window to World’s Best Practice Logistics.

In the last issue of DLR, we presented a new white paper “10 Strategies for Distribution Lo-gistics Success.” This hierarchical approach to eliminating non-value adding activities evalu-ated concepts designed to reduce picking cost and increase customer service.

At recent major tradeshows in Europe and North America, Dematic’s senior management and I had the opportunity to meet customers from around the world.

You told us the “10 Strategies” made very good sense, because it showed how Dematic offered solutions for businesses with differing levels of distribution logistics requirements. You also shared your experiences in dealing with real world operational issues.

2

FLEXIBLE, scaLaBLE, MODULaR LOgIstIcs

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DEMATIC LOGISTICS REVIEW

About Dematic

Dematic is one of the world’s leading suppliers of logistics automation sys-tems and solutions. As a systems integrator, Dematic delivers a full range of technologies and services, from individual products and systems to complete turnkey solutions as a general contractor, as well as complete after-sales support and service. Dematic provides automated material handling products, systems and solutions for retail and wholesale distri-bution, consumer direct, grocery, food and beverage, and manufacturing industries. Dematic’s products and services are based on a tradition of industry expertise that the company has acquired over decades of com-mitment worldwide. Globally the company employs around 4,000 people.

3

contentsCover Story: NCPC, ChinaTechnology Feature: RapidPickTM SystemCase Study: Siemens, GermanyCase Study: Bare Escentuals, USACase Study: Blackmores, AustraliaCase Study: Halfords, UKCase Study: D&H Distributing, USACeMAT 2011 ReviewNews, Product, Technology & Software

FLEXIBLE, scaLaBLE, MODULaR LOgIstIcs

4-5 6-8

9-1112-1314-1516-1718-1920-2122-23

Roar Isaksen, President & CEO, Dematic

• Flexible designs give you the ability to respond efficiently to changing demands by employing proven technology solutions for multiple ap-plications, and ensuring systems incorporate sufficient redundancy to cope with expansion

• Scalable means designing our systems so they can be upgraded easily to meet your changing requirements – you don’t need to start again. Plus, a scalable system can grow as your busi-ness needs grow, avoiding the cost and need to re-engineer a system or retrain staff

• Modular means that the components of our systems can be easily combined to drive mul-tiple functionalities. At the same time, all com-ponents are designed to interface seamlessly, providing end-to-end material flow and infor-mation management.

Dematic has been addressing these issues for years. Our newly released RapidPickTM Goods-to-Person system, Dematic MultishuttleTM Flex, RapidStore ML & UL range, our range of Modu-lar Conveyors and Sorters and our DC Director software are all designed to meet your changing needs.

In this issue we present a range of integrated lo-gistics system solutions delivered to well-known customers around the world. We also update you on new Dematic innovations, with an over-view of the latest Dematic products launched at the recent CeMAT Exhibition in Germany.

Most importantly, we present a detailed discus-sion about our innovative RapidPickTM System. Our new Goods-to-Person split-case picking solution highlights the way in which Dematic is embracing the principles of flexible, scalable and modular in all the work we do.

Roar Isaksen, President & CEO, Dematic

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DEMATIC LOGISTICS REVIEW4

Founded in 1953, North China Pharmaceutical Corporation (NCPC) has achieved constant growth to the point where it is now a leader in the pharmaceutical industry in China. Dematic has recently assisted NCPC with the construction of a new DC at Shijiazhuang in Hebei Province.

COVER STORY NORTH CHINA PHARMACEUTICAL CORPORATION (NCPC) Hebei Province, cHinA

NEW Dc thE pREscRIptION FOR Ncpc

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DEMATIC LOGISTICS REVIEW 5

They are a reliable, stable and safe partner. We are lucky to have Dematic working with us and Dematic helped lead us into great achievements on the project,” said Distribution Center Manager Mr Yang Baiyue.

Optimizing Space Utilization with Mezzanine

With space at a premium, Dematic utilized a mez-zanine to house a low-noise MCS (modular con-veyor system), which connects the production line to high speed pop-up belt sorters.

As goods are produced, they are merged onto a single accumulation MCS before being present-ed to the high speed sorter. The sorter organizes products in SKUs and batches prior to palletizing. A walking robotic palletizing system is then fed by a 26 lane high speed sorter capable of achieving rates of 700 cartons per hour.

Integrated Finished Goods Handling and Stor-age

The fully integrated system uses two robots, shuttle cars and pallet conveyors to send the completed pallets to the ASRS system for stor-age. The mezzanine frees up sufficient space on the first floor for pallet and carton dispatch, as well as infeed and outfeed of raw materials and consumer materials.

Batch management has been strictly imple-mented in NCPC in line with Chinese legislation. All products are double scanned, first at sort-ing and again at palletizing. If scanning fails, the goods will be sent to an end-of-line chute for manual scanning. The double scanning meth-odology ensures batch integrity from storage through to distribution to individuals.

AUTOMATING PROdUCTION rAw MAteriAls & FinisHed Goods storAGe

North China Pharmaceutical Corporation (NCPC), a leading pharmaceutical manufacturer in China, produces over 430 kinds of antibiotics, semi-synthetic antibiotics, pharmaceutical interme-diates, vitamins, biotechnology products, vet-erinary and neutraceuticals, both in bulk and in finished products.

When NCPC decided to invest in a new plant to produce and handle cephalosporin-based an-tibiotics, it turned to Dematic. The new plant is expected to generate annual sales revenue of up to RMB 12 billion, which will help NCPC form a complete industrial chain and a rich line-up of ce-phalosporin antibiotics.

Auto checking, tracking and QC for Risk Free DC

At the heart of the NCPC’s system is a 10,000 pallet ASRS for storage of raw materials and fin-ished goods. The ASRS is located adjacent to a two-level building where production of a wide range of cephalosporin antibiotics occurs.

The ASRS is integrated with the production lines at both ends of the system, feeding raw materials in at one end and receiving finished goods after they have been palletized.

When developing the new facility, NCPC wanted a risk-free system that would increase utiliza-tion and reliability. They also required automatic checking, tracking and quality control throughout the process.

Dematic completed systems installation and commissioning in just 14 weeks meeting NCPC’s high expectations. “Dematic works profession-ally, efficiently and in a customer-friendly manner.

Yang Baiyue, Distribution center Manager, Ncpc Dc

Dematic works professionally, efficiently and in a customer-

friendly manner ... and have helped lead us into great

achievements on the project.

Yang Baiyue, Distribution

Center Manager, NCPC

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DEMATIC LOGISTICS REVIEW6

In today’s modern world an old fashioned idea has been reborn due to technology advances and changing business needs. Goods-to-Person (GTP) picking has been around in many forms for years, but there has been a paradigm shift in thinking.It is no longer sufficient to lower costs, increase productivity or deliver a short ROI. These traditional drivers are taken as a given. The difference today is a new global attitude involving safe and ergonomic work practices, the expanding e-tailing sector, is staying ahead of rapid economic and regulatory change.

TECHNOLOGY FEATURE rAPidPicktM systeM

DEMatIc RapIDpIcktM sYstEM

sMaRtER, FastER, saFER

Dematic RapidpicktM system Ergonomic 1:1 picking station

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DEMATIC LOGISTICS REVIEW 7

GOOdS-TO-PERSON erGonoMic sPlit cAse PickinG

In recognition of these dynamics Dematic has developed an end-to-end solution for split case picking that, until recently, was simply not possi-ble. Today, greater computing power, advanced software and dramatic innovations in materials handling technology have combined to make GTP the new standard in order fulfillment.

Dematic RapidPickTM System

Dematic RapidPick System is a high perfor-mance order fulfillment solution, which takes full advantage of the benefits of GTP making split case picking smarter, faster, and safer. En-gineered with modular components, the Rapid-Pick System can be scaled up and expanded as business requirements change. The RapidPick System seamlessly integrates hardware and software to efficiently stage and transfer stock and orders quickly and accurately. This enables the order picker to work highly productively in a comfortable work environment.

Smarter

The time wasted travelling between picks in nor-mal distribution is eliminated with the operator staying in one place, while items are delivered to them in the precise sequence required for assem-bly. Heavy items first, fragile items last, by family group or in whatever sequence needs dictate.

The RapidPick System allows ultra high pick ac-curacy as only one SKU is presented to the op-erator at a time. Modular pick station configura-tions include one-to-one stations where a single order tote and SKU tote are presented to an op-erator. One-to-multiple stations can also be used depending on throughput requirements. In these applications a single stock tote is used to fulfill multiple orders at the same time.

Configurations may include any arrangement from 1:1 up to 1:24 or more, depending on order volumes and the type of products being handled.

Modular buffer and sequencing systems such as the Dematic Multishuttle (above) and Rapidstore Mini-Load (below) arrange stock in the precise order required to enable high speed goods-to-person picking.

Faster

With the stock for orders delivered directly to the operator, who only has to place the required quantity of goods to the relevant orders, very high productivity rates can be achieved.

It is engineered to pick at rates up to 1000 or-der lines per operator per hour. Also, with a one second tote exchange time, the operator does not have to wait for the next item to be picked. Product flows into the workstation smoothly and consistently ensuring high staff utilization.

The high rate of inventory flow into the pick sta-tion is made possible by automated inventory staging buffers like the Dematic MultishuttleTM or Dematic RapidStore Mini-Load system.

These “storage engines” are integrated using sequencing algorithms to ensure that stock and orders arrive at the pick stations in the correct sequence, exactly when they are needed.

More Ergonomic

RapidPick workstations are designed for sus-tained productivity and employee comfort. The operator picks only in the “golden zone” and does not need to move hands above the shoul-der or extend arms beyond a comfortable reach. The work platform is adjustable in order to ac-commodate different height operators.

Operator screens adjust for height and angle to minimize neck strain. Loads are automatically delivered to and removed from the workstation eliminating the need for operators to lift or push cartons and totes.

The ergonomic design and simple, icon-driven operator touch screen allows the pick station to meet Universal Access guidelines.

BUFFER STORE Multishuttle/rapidstore Ml

Bulk Stock Empty Order Cartons/Totes

Ergonomic Pick Stations rapidPick

supply delayered/ decanted stock

supply empty cartons/totes

completed orders dispatch

supply sequenced stock

return Unused stock

Dematic Rapidpick system

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DEMATIC LOGISTICS REVIEW

Dematic has developed an end-

to-end solution for split case picking that, until recently,

was simply not possible.

Today, greater computing

power, advanced software and

dramatic innovations in

materials handling technology have

combined to make GTP the

new standard in order fulfillment.

8

TECHNOLOGY FEATURE rAPidPicktM systeM

GOOdS-TO-PERSON erGonoMic sPlit cAse PickinG

More Compact

The RapidPick System fits into a compact foot-print, typically 30 to 50 percent smaller than conventional solutions. Both Multishuttle and Mini-Load enable high cube utilization in a high density storage configuration.

Dematic buffering and sequencing technology is made up of modular components with the rack, the shuttles, load handling devices and software fully integrated to ensure optimum performance. Shuttles and Mini-Load cranes can access loads on both sides of an aisle, single or double deep.

High Uptime and Redundancy

Dematic Multishuttle technology has many advan-tages. The simple design is engineered for high uptime with built-in redundancy. Each Multishuttle operates using a low voltage electrical system, so it’s also more energy efficient. There are no batter-ies, chargers, or onboard computers. It’s simple to use and control.

Easy Replenishment

There are a variety of options for replenishing the buffer engine. Depending on throughput, bulk stock can be automatically delayered and de-canted into totes and supplied to different buffer zones using one of our wide range of sorting op-tions. Replenishment is optimized and put away is automated.

Operational Flexibility

Staff can work in parallel, unaffected by each other’s pace. Pick stations can be opened and closed according to business volume on a partic-ular shift. There is redundancy in this configura-tion since items can be processed at any location as the workstations are completely decoupled.

Suitable for Changing Order Profiles

As new products are introduced and market demands change, so too do order profiles. The RapidPick system easily accommodates chang-es. Single item and multi item orders are accom-modated with equal efficiency. This means devel-oping trends like smaller, more frequent orders do not compromise the productivity of the Rapid-Pick System.

Flexibility, Even at the Pick Face

With the RapidPick System, there is no dedi-cated pick face. Therefore, the labor intensive tasks associated with put-away, slotting and re-slotting the warehouse, and pick face replenish-ment are all gone, along with the complex and ongoing churn of SKU velocity analysis. Space efficiency in the warehouse is also improved with the elimination of dedicated pick faces.

Accommodates SKU Proliferation

If more SKUs are added or order volume increas-es, the RapidPick System can be easily scaled to absorb the new requirements by adding modular, space efficient Multishuttle zones and pick sta-tions. The need to invest in completely new sys-tems is eliminated, as is the high cost of training and change management.

“ productivity and throughput can be further optimized with Rapidpick system one-to-many workstations. this example shows 24 orders being picked concurrently.

Dematic Rapidpick system

Engineered for the highest pick rate and highest accuracy in an ergonomic environment, the Rapidpick system is compact and energy efficient, offers daily operational flexibility and can change or expand to accommodate your future order fulfillment needs.

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DEMATIC LOGISTICS REVIEW 9

SIEMENS AMberG, GerMAny

The flexibility of using Dematic MultishuttleTM as a storage buffer and sequencing system in manufacturing applications is clearly demonstrated by its role in automating production line supply at Siemens switchgear manufacturing plant in Amberg, Germany. The restructured material flow solution has increased productivity, provides almost 100% product availability, and its space efficiency is such that Siemens has been able to utilize 25% more floorspace for production.

MULtIshUttLEtM aUtOMatEs pRODUctION LINE FOR sIEMENs

DEMATIC LOGISTICS REVIEW

AUTOMATING PROdUCTION bUFFerinG & seQUencinG systeMs

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DEMATIC LOGISTICS REVIEW10

SIEMENS AMberG, GerMAny

More than 50,000 switchgear devices are manufactured each day on the fully automated production lines in the Siemens plant, which is equipped with precision assembly robots. “Un-der the project name ‘ARRIBA’, we developed a rough concept for fully automated material flows in addition to automation of production facilities,” said Martin Schönthaler, Project Manager for Siemens AG.

“The aim was complete process automation from incoming goods through to production. We also wanted to make better use of the space we had by restructuring internal logistics.”

“We needed an integrated, space-efficient solu-tion that could be adapted to fit existing condi-tions, and this is exactly what Dematic provided with the Multishuttle. Dematic’s product range and planning expertise were also factors in our decision,” he said.

Multifunction MultishuttleTM

Dematic’s modular Multishuttle offers the ulti-mate in design flexibility, with the system at Sie-mens being built to suit the space available over multiple building levels.

Thanks to the disconnection and parallel design of goods in/out, storage and transport processes, the system offers a scalable and redundant per-formance level in comparison to standard auto-mated small parts storage systems.

Also, Multishuttle is not restricted to convention-ally-shaped areas. Thanks to its modular design Multishuttle can be modified to fit virtually any space, and, unlike traditional storage systems, Multishuttle does not have to be installed on the ground level.

By taking advantage of Multishuttle’s flexible design and configuration options, Siemens has been able to free up about 25% extra floorspace for production.

Multishuttle carts transfer between levels using integrated lifts.

Multishuttle Production Line Buffers

This meant it was possible to easily add a space-saving second level to the 13 feet high production lines in the Siemens plant.

Two Multishuttle line buffers with three system vehicles and 540 container spaces keep com-ponents flowing for the automated production of coil winding systems, drives and contacts.

“This was an initial expansion stage as we had to implement the conversion during on-going op-erations,” said Mr Schönthaler.

“By May 2011, two additional line buffers up to 260 feet in length, with almost 1,000 storage spaces and six Multishuttle vehicles will be installed above the final assembly lines.”

Multishuttle Production Buffer Warehouse

The central component of the material flow de-sign is a further Multishuttle warehouse with 3,400 container spaces, which is sufficient to support three hours of standalone production. Supply for the production line buffers is provided by this system.

The two-aisle compact Multishuttle, with a total of four vehicles servicing eight shelving levels, was designed to suit the space available in the base-ment of the original factory. From there, the line buffers are supplied with the materials required for the current production via an integrated, el-evated conveyor system.

“Overall, there is a twice-daily complete turnover of the buffer warehouse at optimum production vol-ume”, explained Mr Schönthaler. “Thanks to the Multishuttles, we have a 98% availability level.”

The entire system logic, from warehouse manage-ment through to kanban, is controlled by Dematic DC Director software, which interfaces with the site’s SAP ERP system.

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DEMATIC LOGISTICS REVIEW 11

AUTOMATING PROdUCTION bUFFerinG & seQUencinG systeMs

Managing Material Flow

Via a connection to the central incoming goods warehouse in Amberg, which was also imple-mented by Dematic, materials required for pro-duction are placed into the Multishuttle ware-house. The components for all products are stored there. When the production lines receive an order, outward goods movement of the con-tainers is initiated in the buffer warehouse.

The system at Siemens is set up with an inward and outward goods movement volume of up to 100 containers per hour, with the system per-forming up to 200 dual movements.

The Multishuttle vehicles remove the containers from storage and transfer them to the conveyor system via Multishuttle lifts.

In total, seven lifting devices are set up; three of them ending on the production level, with the other four lifting devices primarily supporting the Multishuttle line buffers.

“All the interconnecting conveyors run under the building roof, which enabled us to achieve even better space utilization,” added Mr Schönthaler.

Multishuttle System Operation

The conveyor moves the ordered material con-tainers to transfer points for the line buffer Mul-tishuttles. Here the containers are lowered onto the same level as the line buffer and placed into storage by the shuttle vehicles.

When required, containers are moved to transfer points that are also connected to the line buff-ers. Here the individual container and tray stacks are transferred to supply the production lines. For optimum production robot access, the articles are precisely positioned within the trays so that automated handling is possible on the produc-tion line.

In parallel to the processes on the production lines, the buffer warehouse is refilled in the base-ment level. Finished goods are also removed from the production lines via the line palletizers and line buffers. Thanks to the flexible and effi-cient Multishuttle system, the Siemens plant is continually achieving high throughput and rapid, error-free order picking for production supply.

“A flawless kanban system with fully automated processes,” said Mr Schönthaler.

“The holistic solution will provide us with around 25% more production area in the final expansion stage, minimize manual transport and provide us with the transparency for modern material track-ing from component delivery to the end of the production cycle.

“The modular system design also opens up a wide range of options for our future growth,” he said.

We needed an integrated, space-efficient solution

that could be adapted to fit our

existing conditions, and this is exactly

what Dematic provided with

the Multishuttle. Dematic’s product range and planning expertise were also

factors in our decision.

Martin Schönthaler, Project Manager,

Siemens AG

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12 DEMATIC LOGISTICS REVIEW

chaNgINg thE FacE OF DIstRIBUtION at BaRE EscENtUaLs

Split-Case Picking Solution

To improve service to its customer base of retail store boutiques and spas, Bare Escentuals im-plemented an all new split-case picking system including Pick-to-Light (PTL) and a smart zone-routing conveyor network.

Today, Dematic PickDirector warehouse control software (WCS) manages and directs the entire picking process with efficiency and operational flexibility. Paper pick lists are no longer required.

PTL and Zone Skipping Lift Productivity 500%

Operators pick orders using Pick-to-Light tech-nology. A conveyor system transports shipping containers (one carton size for all orders) only to zones where picks are required. Operators stay in one zone and do not travel the entire ware-house. As a result, productivity has significantly increased with each operator capable of picking 500 pieces per hour on average.

The system fills and ships approximately 600 customer orders – about 70,000 pieces per day. Order accuracy has also improved by 50%. Fur-thermore, packing is now done by the picker, enabling separate pack stations to be eliminat-ed from the distribution process.

Smart Packing and Shipping System Cuts Costs

Additional automation was implemented to sup-port the order finishing and pack-out function. Label print and apply technology, a carton sealer, and weighscale are built into the conveyor net-work. To obtain the best parcel shipping rates, the system utilizes rate shopping software.

BARE ESCENTUALSoHio, UsA

Bare Escentuals once filled orders using paper lists and carts, which were pushed around the warehouse picking one discrete order at a time – about 85 pieces per hour, not including packing. During peak seasons, order fulfillment time became extended and more costly, expedited shipping was needed to meet delivery dates.Today, using a Voice and Pick-to-Light-enabled integrated zone-routing solution, Bare Escentuals has increased productivity to more than 500 pieces per hour.

“ 500+ pieces per picker per hour

70,000 items per day productivity up by over 500%

accuracy up by 50% packing done by picker Real-time management Reduced shipping costs

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13DEMATIC LOGISTICS REVIEW

chaNgINg thE FacE OF DIstRIBUtION at BaRE EscENtUaLsBare Escentuals once filled orders using paper lists and carts, which were pushed around the warehouse picking one discrete order at a time – about 85 pieces per hour, not including packing. During peak seasons, order fulfillment time became extended and more costly, expedited shipping was needed to meet delivery dates.Today, using a Voice and Pick-to-Light-enabled integrated zone-routing solution, Bare Escentuals has increased productivity to more than 500 pieces per hour.

of three standard carton sizes; small cube size orders are shipped in a bag. When the picking process is complete, the cartons are delivered to pack stations where each order is audited.

Improved Resource and Labor Management

PickDirector provides real-time systems and op-erations control. Using the browser-based inter-face, supervisors can monitor % orders complete, as well as verify order contents and make adjust-ments to ensure orders are shipped complete.

PickDirector maintains comprehensive statis-tics so supervisors know how many orders, lines and pieces each operator handles. Orders can be put on hold and then released to an “active” from a “pending” order pool. SKUs can be slotted in multiple locations to facilitate workload balanc-ing. The software also tracks SKU velocity and recommends appropriate slotting locations.

More Efficient Resource and Labor Management

The number of operators per shift is allocated depending on order volume. If volume is up, more operators can be assigned to the PTL zones, and more can be assigned to the voice-directed pick carts, thereby making it scalable and flexible. In addition, the system is portable so it is easy to move if the operation is relocated in the future.

The results are compelling: no more costly ex-pedited shipping, a five-fold increase in picking productivity, process improvements, real-time management and control, increased order ac-curacy, operational flexibility, annual physical inventory eliminated (using cycle count), and re-duced order processing time.

500+ pieces per picker per hour 70,000 items per day

productivity up by over 500% accuracy up by 50%

packing done by picker Real-time management Reduced shipping costs

The Dematic WCS has an interface to the parcel shipping software to provide integrated system performance from order induction to shipping. Picked orders are weighed, rate-shopped for best cost shipping, and have the carrier’s shipping la-bel applied. The entire process is automated.

A Flexible, Scalable, Modular Solution

The order fulfillment system is modular and ex pandable, and its ability to flex and expand was soon utilized. After launching the order fulfillment system for spas/boutiques, the e-tail channel ex-perienced dramatic growth. Typical order volume grew to 2,500-3,000 orders per day. During spe-cial promotions and holiday peak periods, order volume can be three to four times normal.

Voice Answers the Call for Low Volume Orders

Using the existing Dematic PickDirector software, an order fulfillment configuration was added for the e-tail channel utilizing voice-directed picking. The voice technology is ideal for e-tail channel fulfillment as high accuracy and productivity can be achieved in a moderate order volume environ-ment. More operators can be easily added dur-ing peak periods. Both e-tail and spas/boutiques order fulfillment use the same inventory from re-serve storage, about 1,000 to 1,200 SKUs.

Adding e-Tail Fulfillment to the Order

The e-tail order fulfillment system is centered around batch pick carts. Pick instructions are communicated from PickDirector to each oper-ator via wearable voice devices. Each batch pick cart accommodates approximately 20 customer orders for each trip through the picking aisles. Each order is picked into and shipped using one

pick-to-Light has increased accuracy, productivity and throughput.

SPLIT CASE PICKING voice & Ptl sUPPorted Zone roUtinG

Voice picking has helped Bare Escentuals keep up with growing e-tail orders.

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DEMATIC LOGISTICS REVIEW

Voice-directed picking keeps both hands and eyes free at all times improving productivity and safety.

BLACKMORES sydney, AUstrAliA

14

Over the past 70 years, Blackmores has become one of the most trusted brands in Australia. The company supports a customer base of more than 5000 health food stores, pharmacies, su-permarkets and health practitioners throughout the country. It has also established strong export markets in the Australasian and SE Asian regions.

Fundamental to this growth has been its commit-ment to good manufacturing practice and supply chain innovation.

The Blackmores Campus brings the company’s operations under one roof for the first time in over 15 years. Strong growth had made it necessary for Blackmores to split its manufacturing and dis-tribution operations across a number of separate facilities. Bringing these services together at the Warriewood site, together with the technology enhancements, will bring new efficiencies and cost savings to the business.

“Bringing our operations back under one roof will not only provide direct supply chain savings in excess of $1 million per annum, it will also enable us to significantly streamline our supply chain and enhance productivity across the board,” said Blackmores Director of Operations, Liz Burrows.

Flow-Through Manufacturing and Distribution

“We have taken the opportunity to install an ad-ditional production line in the new manufacturing facility, giving the business 20% increased pro-duction capacity to support future growth, and

Left: Dematic key account Manager soeren schauki with Blackmores Director of Operations Liz Burrows.

Dematic has designed our new distribution center (DC) as a flow-through facility,” said Ms Burrows.

“Raw materials feed through to production, and finished goods back through to storage and dis-tribution. Materials handling is optimized at all stages, and the DC has been equipped with the latest generation of order picking technologies including smart conveyors, Voice Picking, RF and Pick-to-Light (PTL) systems.”

“We have also been able to rationalize our distri-bution IT systems with Dematic’s new PickDirec-tor software,” she said.

Real-Time DC Management with PickDirector

In a world-first, Dematic integrated Blackmores put-away and replenishment functions within PickDirector, which seamlessly interfaces with Blackmores host computer system, JD Edwards’ Enterprise One.

Blackmores Chief Technology Officer, Lee Rich-ards, said: “A key driver when we planned our IT strategy, was to identify and eliminate potential points of failure within our IT systems.

“The broad-ranging functionality of Dematic’s Pick- Director order management and control software has enabled us to do so in the DC,” he said.

“With PickDirector providing the interface for all of our DC technologies we were able to decom-mission a number of servers, systems and inter-faces, which has allowed us to simplify the DC’s

NEW hq a tONIc FOR BLackMOREs

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DEMATIC LOGISTICS REVIEW 15

SPLIT ANd FULL CASE PICKING inteGrAted soFtwAre And systeMs

Voice picking is used in the full case and pick-to-Light in the split-case pick modules to improve accuracy, productivity and order management.“

Bringing our operations back

under one roof will not only provide

direct supply chain savings in excess of $1 million per

annum, it will also enable us to significantly streamline our

supply chain and enhance productivity

across the board.Liz Burrows,

Director of Operations, Blackmores

IT systems architecture, enhancing reliability and reducing IT systems management.”

Dematic’s Key Account Manager Soeren Schauki said: “Our integrated logistics solution gives Blackmores the tools with which it can handle, store, pick and dispatch goods faster and more accurately now, and for many years to come.”

Flexibility for the Future

“Our DC systems incorporate a lot of flexibility to ensure efficient materials handling, storage and order fulfillment, even if Blackmores distribution requirements were to change over time,” he said.

“We believed this was necessary because the company’s SKU (stock keeping unit) profile has changed considerably in recent years as a result of market growth and maturity.

“The trend towards larger pack sizes in high vol-ume products such as fish oil capsules, together with strong growth in supermarket sales and ex-port markets, means Blackmores now processes a much higher volume of full case orders than it did just a few years ago,” explained Mr Schauki.

“That’s why our DC design provides a range of efficient strategies and technologies for handling increasing quantities of full case goods, includ-ing the introduction of Voice Picking,” he said.

Integrated SKU, case and pallet order fulfillment

Blackmores processes up to 500 orders per day.All split-case products are picked from a Pick Module. Conveyors transport orders through the module, with all locations equipped with Pick-to-Light (PTL) for fast, accurate paperless picking. Fast moving full case SKUs are picked from a combination of Pallet Live Storage (PLS) and se-lective racking within the full case Pick Module. A combination of RF and Voice Picking may be used for picking full case SKUs, which are la-beled and placed directly onto a central powered take-away conveyor.

Full pallets for larger customer and export orders are also picked from bulk storage by RF or Voice Picking and transported to dispatch by forklift.

Voice Picking Doubles Case Picking Productivity

“The hands-free, eyes-free feature of Voice Pick-ing is providing both productivity and OH&S ben-efits over RF picking,” said Blackmores Supply Chain Manager, Stephen Vile.

“We are now able to pick full cases twice as quickly as before, and with only half the people! However, we will be running our existing RF sys-tem in conjunction with Voice Picking, until all of our people are familiar with the new technology.”

Australia’s leading natural health supplements supplier, Blackmores, has consolidated head office, manufacturing and distribution at its new Blackmores Campus in Sydney.

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16 DEMATIC LOGISTICS REVIEW

DEMatIc sORts OUt sMaLL paRts pIckINg at haLFORDs

To achieve highly efficient store order fulfillment Halfords’ recently consolidated two distribution centers into a single new DC in Coventry, which now holds all of the retailer’s range other than bi-cycles and serves Halfords’ entire network of 470 stores across the UK and the Republic of Ireland.

This means ultra high throughputs are required from the new DC. The key to achieving this would be creating a small parts store for picking 10,000 Stock Keeping Units (SKUs) of small products quickly and accurately into order totes, and con-solidating them for delivery to the stores.

Space Saving, Integrated Solution for Halfords

Working together with Halfords, Dematic designed a solution that located a small parts picking center on a double deck mezzanine. Running along the entire 540 feet length of the DC over the loading bay doors, the structure facilitates marshalling be-low, yet provides 70,000 sq ft of picking area in what would normally be unused space, allowing Halfords to truly optimize the warehouse cube.

Halfords’ 320,000 sq ft Coventry DC operates an innovative small parts picking system, designed and installed by Dematic, which combines conveyors, a combination of picking technologies and an automated buffer that consolidates picked totes into store orders. The system is helping the UK’s leading retailer of automotive, leisure and cycling products to send out up to 200,000 items a day in a highly efficient order fulfillment operation.

HALFORdS coventry, enGlAnd

pick-to-Light and Voice picking have improved productivity and accuracy for halfords.

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DEMATIC LOGISTICS REVIEW

DEMatIc sORts OUt sMaLL paRts pIckINg at haLFORDs

17

INTEGRATEd ORdER FULFILLMENTsMAll PArts PickinG systeM

Dematic’s cost efficient and highly productive small parts picking solution comprises a conveyor-based system with pick-to-light and pick-by-voice tech-nology. On the mezzanine’s first level, 3,600 SKUs of faster moving small parts are picked from live storage lanes using fast and accurate pick-to-light (PTL) technology. The simplicity of this system al-lows 300 lines per hour to be picked.

The upper level of the small parts store houses Hal-fords 6,000 slower moving SKUs, which are located in bins on inclined shelves for ergonomic picking.

Keeping Small Parts Picking on the Move

Dematic’s small parts picking system helps achieve the high throughputs required at the DC, while improved tote filling has halved the number of totes each store receives in a delivery to 30. The simplicity of PTL not only ensures fast and accu-rate picking, but means new pickers can achieve good pick speeds after just an hour’s training. Voice picking gives accuracy and speed benefits for slower moving products at a lower cost.

Dematic MultishuttleTM maintains higher through-put and gives greater flexibility for order con-solidation than can be achieved with sortation systems that require lanes of conveyors, which places constraints on operations.

The entire small parts picking scheme is future-proofed with room for another double deck mez-zanine along the side of the DC, which could be linked into the current system thanks to the Mul-tishuttle’s modular design, which allows more lanes to be added, without any change to the flow of Halfords’ operation.

Voice picking technology allows 200 lines per hour of these products to be picked at a much lower capital cost than PTL.

Smart Zone Picking

This high rate is helped by concentrating picks into smaller areas so that each tote only travels to one or two zones for it to be filled. Travel distanc-es for staff, who have their hands free, are also significantly reduced, improving pick efficiency.

Dematic supplied 60 voice terminals for the Cov-entry DC. 20 of these are used in the pick-to-voice system, with the remaining units used for other operations within the facility, such as bulk picking, bulk put-away and decanting. These are all con-trolled by Manhattan Associates’ WMS, which also feeds orders to Dematic’s DC Director WCS. The WCS looks after stock profiling and inte-grates the PTL and voice technologies seamless-ly to achieve the most efficient fulfillment possible.

Completed order totes are sent to the Dematic MultishuttleTM Captive Buffer, which is designed to increase speed, accuracy and throughput. The system’s intelligent controls enable complex sequencing, which contributes to the solution’s flexibility and allows Halfords to build store-friendly orders, calling out whole or part store orders as required. The Multishuttle can even en-sure that the heaviest tote is at the bottom of the stack when they get to a Halfords store.

Customer Benefits

• Improved carton fill halves case deliveries to stores

• PTL offers high throughput and accuracy

• Minimal training required for PTL and voice

• Accuracy and speed benefits with voice

• Flexibility to consolidate whole or part orders

• Optimum use of dead space over loading docks.

The design, planning and

implementation of the small

parts picking system went very well and we developed

a good working relationship with

Dematic. We asked them to

take our numbers and come back with a design

that would give the results we

were looking for.Mark Shirley,

Logistics Controller, Halfords

steve Mole, Operations Manager site services halfords, with Dematic‘s Business Development Manager Dave Bull.

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18 DEMATIC LOGISTICS REVIEW

Keeping Distribution a Step Ahead of Demand

“Our business has been growing double digits year over year for the past decade,” said D&H Director of Logistics Dennis Pardon.

“Every couple of years we found ourselves out-growing our facilities. We needed to be making an investment that was a lot more forward look-ing, and that’s when we decided to build a big box DC and put in the type of automation that would support growth for the next 10-15 years.”

d&H dISTRIBUTING AtlAntA, UsA

sMaRt zONE ROUtINg sYstEM OpItIMIzEs ORDER FULFILLMENt

The new DC’s 476,000 sq ft floorplan includes smart zone-routing conveyors for streamlined picking, and allows for expansion of up to 250,000 sq ft.

Smart Pick Zone-Routing Improves Efficiency

With 90% of what D&H ships comprising orders for split-case items, efficient piece picking is essential. Its WMS batches or-ders with others for the same or similar products to improve pick rate efficiencies.

With an annual turnover of $2 billion plus, D&H Distributing is one of the USA’s leading technology specialists, distributing an extensive range of IT, electronics, entertainment and gaming products. D&H has grown with technology it sells, distributing the first color TV, the first home PC and the first gaming system in the USA. D&H’s broad reach and breadth of products enable it to service businesses of all sizes from small independent retailers, dealers, integrators and installers to big box chains. D&H also provides fulfillment for e-commerce retailers.

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DEMATIC LOGISTICS REVIEW 19

sMaRt zONE ROUtINg sYstEM OpItIMIzEs ORDER FULFILLMENt

Orders are picked in one of two Pick Modules, with RF scanning used to ensure accuracy. Bar-code-labeled cartons are automatically routed through the integrated conveyor system and di-verted only into zones where picks are required.

When picking in a zone is complete, the carton is pushed back onto the conveyor, which transports it to the next zone where a pick is required, or di-rect to dispatch if the order has been completed.

Pick accuracy is further enhanced with the zone-routing system re-routing a carton back into a zone if it detects that a pick has been missed.

The system also has the ability to do on-the-fly processing – if an order has a short pick, it gets automatically processed to an exception loca-tion for checking.

Integrated Conveying with Real-Time Systems Monitoring and Control

Dematic SortDirector® integrates with the WMS and coordinates all product movement inside the DC. It provides real-time control and, via the DC’s WCS, state-of-the-art graphic system mon-itoring for all operations.

A Dematic sliding shoe sorter diverts orders to fill-and-tape and QA stations. A second sorter diverts completed orders to 22 shipping lanes at rates of up to 150 per minute.

Intelligent Conveyor Control System Reduces Energy Consumption and Delivers Rapid ROI

“Our company is big on green,” explained Mr Pardon, “and we implemented a lot of green ini-tiatives in the DC.”

A successful example is SortDirector’s energy management module. The conveyors monitor how long it has been since they last saw a carton. If a section hasn’t seen one for a specified period, the conveyor shuts itself down. When it senses a carton approaching, it will turn itself on, as will subsequent conveyors.

“The payback is enormous. Less than a year,” said Mr Pardon. “Less energy consumption than traditional conveyors. It is a very cool system.”

“ the payback is enormous.

Less than a year. Less energy

consumption than traditional conveyors.

Dennis Pardon, Director of Logistics,

D&H Distributing

above: D&h Director of Logistics Dennis pardon with tim Fleenor, Dc Manager.

the order fulfillment system processes 6500 orders per day with a peak capacity of 20,000 orders per day.

SPLIT ANd FULL CASE PICKING inteGrAted sortinG And Zone roUtinG

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DEMATIC LOGISTICS REVIEW20

NEWS, PROdUCTS, TECHNOLOGY& soFtwAre review

DEMatIc cELEBRatEs 111 YEaRs at cEMat

Attended by more than 58,000 visitors, the trien-nial CeMAT is the world’s largest logistics tech-nology trade fair, with over 1000 exhibitors from around 40 countries taking part this year.

In keeping with CeMAT’s theme of Sustainabil-ity in Logistics, Dematic integrated future-proof logistics solutions into a complete material flow system on its stand, demonstrating how modern logistics can be delivered in a cost-effective and environmentally-friendly way.

Amongst the innovations on display were:

• Dematic RapidStoreML – a new high speed Mini-Load ASRS system complete with ad-vanced load handling devices

• Dematic MultishuttleTM Flex– a new flexible high speed shuttle with the capability to handle totes and containers of different sizes

• Typhoon Flex load handling device for improved product handling

• New RapidPickTM System 1:1 Goods-to-Person (GTP) high-performance integrated order pick-ing stations incorporating the latest ergonomic advances to further improve productivity and workplace safety

• Modular Dematic MCS conveyors, which en-able flexible system reconfiguration

• Dematic Ecodrive control software, which is de-signed to improve energy efficiency by 10-15%.

Dematic used the event to celebrate our anniver-sary under the motto of ‘111 years of innovation,’ showcasing our extensive history in pioneering materials handling and logistics technologies, since our launch in Offenbach, Germany in 1900.

As well as our stand at CeMAT, Dematic ran a well-attended supporting program including a press conference, customer stand party and site visits to Dematic’s new Technology Center in Of-fenbach and to local customer Ferdinand Gross, which was one of the first companies in the world to implement Dematic’s Multishuttle storage and sequencing system.

The next CeMAT trade fair will be held in Han-nover, Germany from May 19-May 23, 2014.

Dematic reaffirmed its position as one of the world’s leading suppliers of innovative logistics technologies with an impressive display at the recent CeMAT exhibition in Hannover, Germany.

Dematic’s Modular conveyor system (Mcs) attracted a lot of interest with its quiet performance frequently commented on by visitors.

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DEMATIC LOGISTICS REVIEW

Right: Multishuttle Move is an exciting new concept developed in conjunction with the Fraunhofer Institute. as well as operating inside racks, Multishuttle Move has the capability of functioning as a free-path agV creating many new material flow possibilities.

above: More than 58,000 visitors attended ceMat trade fair from May 19-23, 2011.

Right: Rapidpick ergonomic workstations with elevating platforms were one of most closely inspected exhibits at ceMat.

21

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DEMATIC LOGISTICS REVIEW22

NEWS, PROdUCTS, TECHNOLOGY& soFtwAre review

Success in business today relies on prompt, effective customer service. In most operations, order fulfillment is a significant component of customer service, and is of primary importance to customers. Companies who can assemble orders quickly, accurately, and cost-effectively gain a competitive advantage.

The key to achieving this advantage is through an order fulfillment system based on paperless picking technologies.

Dematic’s PickDirector technology is a cost-effective hardware and software solution that can provide substantial improvements in productivity and picking accuracy.

PickDirector takes order information directly from your

company’s computer system and delivers it right to where it’s needed - to the picker. With no paperwork to carry, operators pick with both hands instead of just one.

Tasks such as reading, writing, and searching for stock locations are eliminated - dramatically improving productivity.

• Productivity is typically increased by 50%, and in some cases by up to 200%

• Picking errors are typically reduced by 70 to 90%

• Real-time feedback is available on order progress, zone productivity, etc.

• Total order turnaround time can be significantly reduced

• Overall system management and customer service is vastly improved

pIckDIREctOR: BOOsts pIckINg pRODUctIVItY & accURacY

FREEpIck MaXIMIzER: pIck ONE – gEt ONE FREE

With Dematic Freepick Maximizer software, simply transferring stock from a donor pallet to a put pallet can complete two picks, with the stock that remains on both pallets being the required quantity to satisfy two orders.

FreePick Maximizer, patented software developed by Dematic, makes it possible to pick goods for full case orders without ‘physically’ touching them.

How Dematic FreePick Maximizer Works

By simply transferring five cases from the Donor Pallet to the Put Pallet Order A (10 Cases) and Order B (5 Cases) are completed. This means the 10 Cases for Order A have been picked for free.

15

10

0

5

Donor Pallet: Stock for Order A (10xCases) & Order B (5xCases)

Put Pallet: Empty Pallet for Order B (5xCases)

By analyzing and cross matching customer orders, it is possible to match multiple full case orders to full pallet quantities.

Picking the stock for one or more orders leaves behind a ‘free pick’ quantity for another order. The productivity gains to be made by matching like orders and picking them in a high rate pick module are very substantial.

Dematic’s Free Pick Maximizer uses a number of complex algorithms to quickly re-sequence orders and generate the highest quantity of ‘free pick’ opportunities and the optimum order fulfillment sequence for any batch of orders. The ‘free pick maximizer’ concept can be used manually or by incorporating a robot to do the picking, and can be deployed in mixed case pallet, or mixed layer pallet picking operations.

Either way, significant productivity increases of up to 400% are achievable.

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DEMATIC LOGISTICS REVIEW 23

DEMatIc RapIDstORE ML10The RapidStore Mini-Load is the latest in a new series of high performance storage and retrieval machines (SRMs) for handling totes, cartons and cases in facilities ranging in height from 12 to 65 feet.

Offered in three standard heights (32, 46 and 65 feet), RapidStore ML10 efficiently handles a host of container types in a multi-deep and flexible width environment.

The RapidStore Mini-Load operates at a travel speed of 20 ft/s, accelerates at 13 ft/s², has lift speeds of 10 ft/s, and lift acceleration of 10 ft/s², which delivers up to 142 double cycles/hour

(based on an 26 ft crane operating in 130 ft aisle).

RapidStore Mini-Load cranes can be equipped with the new Dematic Typhoon high performance Load Handling Device (LHD). Typhoon provides the capability of handling one or two containers of fixed and varying sizes in a single, double or triple-deep configuration.

RapidStore ML uses include as a storage buffer feeding mixed case order fulfillment, pick/put/pack operations in retail, apparel and general merchandize, and as an intermediate storage buffer sequencing Goods-to-Person split-case picking.

DEMatIc FIELD sERVIcE & sUppORt

Modern materials handling systems, software and hardware are highly reliable, but time and again, experience has shown that preventive maintenance and proactive support pay for themselves by maximizing productivity, and reducing running costs and system downtime.

Keeping your system in peak condition will ensure you get the most out of it, and you can be confident that

Maximize uptime and minimize downtime with help from Dematic.

it will perform under pressure without compromising safety or efficiency.

Dematic’s software specialists and technicians are trained to spot the early signs of wear and tear before performance is affected.

They can replenish consumables as part of the inspection, and can perform maintenance on site and replace or repair parts.

Benefits of Field Services & Support

• Qualified field specialists with hardware and software knowledge

• Maintenance and upgrades scheduled to fit your operational lifecycle

• Configuration management of your software and hardware

• Comprehensive equipment/system assessments to determine the condition and performance of your system

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DEMATIC LOGISTICS REVIEW

www.dematic.com

Dematic Headquarters2-8, avenue Charles de GaulleL-1653 LuxembourgT +352 27 48 59F +352 27 48 59-99

North AmericaT +1 877 725-7500F +1 616 [email protected]

United StatesDematic Corp.507, Plymouth Avenue NEGrand Rapids, Michigan 49505USA

Dematic New Berlin2855 S. James DriveNew Berlin, WI 53151USA

CanadaDematic Limited6750 Century Avenue, Suite 302Mississauga, Ontario L5N 2V8Canada

South AmericaT: +55 11 3627-3100F: +55 11 [email protected]

BrazilDematic Sist. Equip. Mov. Mat. Ltda Av. Embaixador Macedo Soares, 107354º Andar - Vila Anastácio - São Paulo05035-000 – Brasil

EuropeT: +49 (69) 244 333-151F: +49 (69) 244 [email protected]

GermanyDematic Europe GmbHFriedrich-Ebert-Anlage 36D-60325 Frankfurt am Main

Dematic GmbHCarl-Legien-Str. 1563073 OffenbachGermany

AustriaDematic GmbH & Co. KGGraumanngasse 7, Top A5-11150 ViennaAustria

DenmarkDematic Skandinavien Skottenborg 12-148800 ViborgDanmark

FranceDematic S.A.S.6, Avenue Gutenberg77600 Bussy Saint GeorgesFrance

ItalyDematic S.r.l.Via Firenze 1120063 Cernusco sul Naviglio (MI)Italy

LithuaniaDematic KaunasRaudondvario Pl. 107LT-47186 KaunasLithuania

NetherlandsDematic Benelux Europalaan 4c5232 BC Den BoschNederland

RussiaDematic GmbHRussian Representative Officeul. Bakhrushina 32/1RU 115054 Moscow

SpainDematic Logistic Systems S.A.C/Alemania, 2-428820 Coslada, Madrid Spain

SwitzerlandDematic SwitzerlandBirmensdorfer ntr. St8902 UrdorfSwitzerland

United KingdomDematic LtdBeumont Rd, Banbury, OXONOX16 1QZ United Kingdom

Asia PacificT: +61 2 9486 5555F: +61 2 9486 [email protected]

AustraliaDematic Pty Ltd24 Narabang WayBelrose NSW 2085Australia

SingaporeDematic S.E.A. Pte. Ltd.Eunos Road 8 #09-01ASingapore Post Center Singapore

ChinaDematic Shanghai18F Tower 1, Kerry Everbright City,No. 218, West Tianmu Road,Shanghai 200070, P.R.China

MalaysiaDematic Malaysia Sdn. Bhd.12-03A, Level 12, Plaza MasalamJalan Tengku Ampuan Zabedah E 9/E Section 9, 40100 Shah Alam Selangor, Darul Ehsan, Malaysia

New ZealandDematic Pty LtdEastside - Building 7, 15 Accent DrEast Tamaki, AucklandNew Zealand