A DC for the Jetsons (page 3)

-- Logistics Management, 11/1/2005

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The voice-technology system speaks in English, but users can "train" the system to recognize their voice in nearly any language. The system has a number of built-in safeguards to ensure accurate item retrieval. For example, before pulling an item, a worker is prompted to speak a local "check digit," a random number placed at each pull location. The computer will relay picking instructions only if the check digit matches the number in the system.

To fill outbound orders, the AS/RS cranes remove pallets from the storage racks. They then transport the pallets to stations on the outbound shipping side of the warehouse, where forklift drivers load them directly into store-bound trailers. If the stores do not need full pallets of product, the cranes lower the pallets to floor-level bins so workers can pick items to build mixed-case pallet loads. The distribution center also stages fast-moving items right by the outbound doors, bypassing the automated storage system.

An unusual feature of the AS/RS is its pallet sorter. Stop & Shop rents pallets from several different companies, and needed a way to efficiently separate them for return to their owners. The pallet sorter automates that task, separating the blue-colored pallets owned by Chep from the red ones belonging to Peco. All other pallets are placed in a "catchall" category.

The Learning Curve

Stop & Shop began operations in Freetown in March 2004, before the entire facility was completed. The grocer began by serving 50 stores from the perishables warehouse, which had just 16 AS/RS cranes at the time. As distribution executives gained a better understanding of the equipment's capabilities, their experiences led to design modifications in the rest of the system. But even as Stop & Shop made those changes, it never ceased servicing its stores. "We never missed a delivery," De Vito says with pride.

One key change involved the P&D stations. During startup, forklift operators had a difficult time placing the pallets squarely into the slots in those stations. That created bottlenecks in the putaway area—if a pallet is out of alignment, the AS/RS can't pick it up, DeVito explains. The stations were subsequently redesigned to ensure correct pallet alignment.

Today, the dry-grocery warehouse serves 130 stores and moves an average of 700,000 cases each week. The perishables warehouse serves 160 stores and handles about 850,000 cases of vegetables, fruits, dairy, fish, and meat each week—rising to as many as 1.1 million cases per week during the holiday season. By having a complete array of temperature-controlled products under one roof, Stop & Shop now can consolidate meat, dairy, seafood, and produce into a single delivery and serve stores in less time.

People Still Count

Although the futuristic facility is reputed to be the most highly automated grocery DC in the United States, it's far from a sterile environment filled with nothing but robots and machinery. In addition to 100 supervisory and clerical employees, Stop and Shop employs nearly 600 warehouse workers there.

In fact, rather than lay-offs because of automation, Stop & Shop did the opposite: It increased its workforce. "While you would think that we should have reduced head count, we hired," says Jerry Pimental, director of warehousing at the Freetown distribution center. "The voice technology and cranes have given us a productivity increase, but we increased the volume and the number of stores we serve."

And although Stop & Shop's managers fully appreciate the benefits the company has achieved with its high-tech equipment, they haven't lost sight of the fact that employees still play a vital role in their logistics operation. Says Pimental: "It's still the people who get the job done."