Coca-Cola Amatil Eastern Creek, Australia Case Study A key element of Coca-Cola Amatils award winning supply chain remodelling program, Project Jupiter, was the construction of a new distribution centre (DC) at Eastern Creek to service their 14,000 Route Trade customers from Bega to Coffs Harbour. Route Trade customers range from corner stores and convenience shops through to service stations, small grocery and fresh food outlets, as well as an increasing number of bottle shops and liquor wholesalers, and account for close to half of CCAs throughput during the summer peak. Within just eight weeks of operation, CCA was achieving record- breaking productivity rates of more than 1400 picks/hour at the Eastern Creek DC thanks to a world-frst order picking methodology developed by Dematic. Introducing Dematics new Negative-PUT concept. Creating Logistics Results Negative-PUT: Killing two birds with one stone The new Negative-PUT process optimises case picking productivity by pairing suitable orders and fulflling them through ergonomically designed goods-to-the-man pick modules. It so takes advantage of a practice sometimes used by experienced pickers to reduce their workload. Smart pickers will occasionally notice that among the orders they have there are a couple with which they can kill two birds with one stone, or, in this case, complete two orders with one pick. Around 70% of the DCs orders pass through the Negative-PUT module, with about 35% of the orders complete when they exit.
Grant McClean, Major Projects Manager Coca-Cola Amatil This practice is very opportunistic, however, Dematics patented Negative-PUT software re-sequences orders to generate the highest quantity of negative pick opportunities and the optimum order fulflment sequence for any batch of orders, creating substantial productivity gains. The net effect of Negative-PUT is that around 20% of the cases for mixed pallet orders are despatched without ever being picked. Inbound Logistics: RoRo auto truck unloading More than 95% of the stock is delivered from CCAs Northmead production plant. To ensure effcient goods receiving and minimise forklift operations, the DC features three roll-on, roll-off (RO-RO) automated skate-type truck unloading docks, each capable of unloading 22 pallets in under 15 minutes, with the pallets automatically scanned, check- weighed and transported by the receiving systems integrated pallet conveyor to a pick up station near their reserve storage put-away location. Outbound Logistics: Faster, safer, truck loading The Auto Despatch System (ADS) gives CCA the ability to pre-pick, assemble and stage orders. The ADS features a Pallet Runner satellite storage system with 144 lanes, each capable of storing up to 12 pallets, the typical capacity of CCAs Route Trade delivery feet. Staging orders takes order assembly off the critical path, ensures effcient, reliable truck loading, and minimises truck turnaround time in the busy despatch area. This means the ADS can stage the orders for up to 144 truckloads at any one time, which provides a buffer of around 16 hours during peak periods.
David Rubie, Industry Logistics Manager Dematic Project Jupiter: Supply Chain Remodelling Project Jupiter has greatly simplified CCAs supply chain and logistics network. As well as improving order fulfilment efficiency and reducing distribution costs, it has eliminated the inefficient trans-shipment of stock between locations, reducing transport costs and substantially reducing greenhouse gas emissions. Prior to Project Jupiter, CCA was warehousing stock at up to six Sydney locations and two regional warehouses. Under Project Jupiter, order fulfilment now takes place at the two new Sydney DCs, with the regional warehouses simply cross- docking orders for local delivery. Together, the two new DCs provide a combined storage capacity of 90,000 pallets, with sufficient space on the Eastern Creek site to build a further 30,000 pallet capacity high-bay facility. In designing the new Eastern Creek DC, CCA and Dematic have implemented a step change in the way orders for high volume mixed case pallets are processed, setting new standards for productivity and throughput, while also creating a new generation of workplace safety. Within just eight weeks of operation, the DC was already on par with prior performance, with a consistent gain of 20% to 30% anticipated when the operation is fully bedded in. The remodelling of its supply chain, which has involved capital expenditure of $180 million, provides CCA with the ability and capacity to store and deliver forecast volumes until 2015. Summary & Customer benefits Reduced transport and distribution costs Elimination of 20% of all physical case picks Improved customer service through increased pick and invoice accuracy and pallet build quality Fewer errors, reduced returns and product damage Satisfies CCAs NSW supply chain requirements until 2015 Substantial reduction in truck mileage from old supply chain to new Automated truck unloading with integrated pallet conveyor infeed World-first order picking concept creates record-breaking productivity Innovative, ergonomically designed high rate Negative-Put module Wireless Bluetooth-enabled voice- directed computing for order picking Faster, safer, more efficient order staging and truck loading with ADS Numerous OH&S initiatives aimed at maintaining a safer workplace Seamlessly integrated IT systems including WMS, Negative-PUT and voice-directed computing interfaces Australia Dematic Pty Ltd 24 Narabang Way Belrose NSW 2085 Tel +61 2 9486 5555 Fax +61 2 9486 5511 info.anz@dematic.com www.dematic.com.au New Zealand Dematic (NZ) Ltd Eastside Building 7 15 Accent Drive East Tamaki, Auckland Tel +64 9 273 0052 Fax +64 9 273 0064 info.anz@dematic.com www.dematic.co.nz Creating Logistics Results