Transcript Mercadona Ciempozuelos

Depot profile
© IGD 2011
Mercadona – background
Banner
Total
Sales
(€m)
Format
No. of
Stores
Sales
Area
(sqm)
Av. Sales
Area
(sqm)
Mercadona
14,591.04
LL-DS
1,338
1,708,200
1,300
Mercadona
66.85
Online
n/a
n/a
n/a
• Mercadona is the leading supermarket company in Spain with a base in
Valencia. It’s name comes from mercado (market in Valencian)
and dona (women in Valencian). Mercadona employs 63,500 people, twothirds of who are women.
• Mercadona has grown from just 3 supermarkets in 1980 to over 1,300 in 2011.
A limited range discounter, it operates an EDLP strategy and has approximately
8,500 SKUs offering shoppers the promise of ‘always low prices’.
• The retailer uses a five-pillar strategy with a focus on the boss (customer), the
worker, supplier, community and capital.
• The retailer’s innovation model focuses on four areas: the concept, processes,
technology and product related innovation
Source: IGD Retail Analysis, 2011/Mercadona. Key – LL-DS = limited line discount supermarket
© IGD 2011
Mercadona – logistics strategy
• Mercadona has invested heavily in its logistics
infrastructure, and has a strategy of using a high
degree of automation in its distribution centres
• Mercadona has worked with the German
integrator Witron and uses its systems and
technology in many of its sites
• Existing sites:
– Ribarroja de Túria (Valencia), Antequra (Málaga), Sant Sadurní
d'Anoia (Barcelona), San Isidro (Alacante), Huévar (Sevilla),
Granadilla de Abona (Tenerife), Ciempozuelos (Madrid),
Ingenio (Gran Canaria).
• New sites:
– Villadangos del Páramo (León), Guadix (Granada), Abrera
(Barcelona).
• Satellites:
–
Mercapalma (Palma de Mallorca), Hospital de Órbigo (León),
Plaza (Zaragoza).
Source: IGD Research/Mercadona/Agencia Española de Seguridad Alimentaria y Nutrición/Grupotec
© IGD 2011
Mercadona – logistics strategy
• Mercadona’s rationale for using
automation is to;
–
–
–
–
–
reduce reliance on manual labour
reduce the physical stress on employees
optimise the store supply system
increase cost efficiency - cost per m3
reduce energy consumption
• Mercadona also maximises its fleet
utilisation through its “estrategia del
ocho” or strategy of eight, ensuring
vehicles are utilised in both directions
when collecting from suppliers, and
delivering to stores
• At Ciempozuelos it works closely with the
hauler Acotral
Source: Mercadona
© IGD 2011
The Ciempozuelos facility
• Ciempozuelos is located just south of Madrid and
the site runs 24 hours for 5.5 days per week
• The facility handles dry grocery, produce, chill and
frozen products and has an on site bakery
• The site employs around 700, around half of that
required by a manual site
• The operation started operating in June 2006, after
an 18 month build period
• Ciempozuelos delivers to stores in the Madrid city
and surrounding district areas
• It is a highly automated operation with;
– automated, centralised ordering process and electronic
invoicing
– pallet delayering
– storage for pallets, layers and individual cases
– store order picking
Source: IGD Research/Mercadona/Agencia Española de Seguridad Alimentaria y Nutrición/Grupotec
© IGD 2011
The automation used
• The Ciempozuelos facility uses Witron
technology throughout its operation
• Pallet Storage – Pallet storage Stacking
Machine – PS2M
• Order Picking – Order Picking Machines –
OPM comprising:
– Delayering
– Automated case picking – case order machine –
COM
– Manual picking low volume – dynamic picking
system – DPS
– Manual picking hard to handle items - module
picking system - MPS
Case order machine
Dynamic picking system
Tray and tote conveyors
Source: MaschinenMarkt/MMLogstiK/LogisticsIT/Witron/Warehouse News
© IGD 2011
Ciempozuelos - internal view
Source: Mercadona/Witron/MMLogistik
© IGD 2011
Ciempozuelos - key statistics
Range
Warehouse size
Temperature zones
Dry Goods
44,874 m²
Fresh / Frozen
43,805 m²
+12°C
+3°C
Number of SKUs
Witron systems
Number of stacker cranes
Number of COMs
Number of tray storing positions
Number of pallet storing positions
Number of tote storing positions
Number of picks (per day) cases
Picking output PS2M / per day
6,500
OPM
DPS
PS2M
106
32
383,000
40,000
16,000
OPM: 276,000
DPS: 18,000
270,000 cases
-23°C
1,700
OPM
DPS
PS2M
111
44
536,000
22,600
Integrated into OPM
OPM: 304,000
DPS: 56,000
OPM – Order Picking Machines, COM - Case Order Machine, DPS - Dynamic Picking System, PS2M –Pallet Storage Stacking Machine
Source: Mercadona/Witron/MMLogistik
© IGD 2011
The product journey
• Vehicles are unloaded manually in the receipt area
• The drivers have to resolve any pallet compliance
issues, those that cannot be are returned to the
supplier
• Pallets are placed by forklift onto infeed conveyors
• Deliveries are slaved on to captive pallet that remain
in the warehouse. This is because pallets from
suppliers may not meet the standards required to
run smoothly through the automation.
• A barcode identifier on each slave pallet is used to
the track the product while it remains in the
warehouses
• The site uses 800mm x 1200mm pallets, but also
handles ½ and ¼ pallets on the slaves
• Pallets are stored in the automated pallet stacking
and storage machine, (PS2M)
Source: IGD Research/MM LogstiK/ LogsitcsIT/Witron
Loading docks
Slaved pallet
Slaved ½ pallets
© IGD 2011
The product journey
• Products that required for case picking are
automatically moved to de layering machines
• Pallet layers are separated using lifting
vacuum heads, and then the conveyor system
divides the individual cases
• The separate cases are then placed on trays
and tote bins so they can be handled by the
automation
• Each tray and tote has a bar code, which
becomes the identity of the case it contains to
track it through the operation
• Each tray is then placed in an automated tray
store and waits to be planned into a store
order. Totes are placed in a separate tote store
Delayering
Case tray
Tray store
Source: IGD Research/MMLogistik/LogisticsIT/Witron/Boxline/Qubica
© IGD 2011
The product journey
• The totes are used for low volume picks
and orders are assembled in a dedicated
pick area, the Dynamic Picking System
(DPS) which uses pick to light
• When a store order is ready to be
assembled the individual cases are
retrieved from the tray store
• Picked pallets are assembled using the
case order machines (COM)
• The cases are lifted by “fingers” which
push through holes in the bottom of the
tray
• Pusher arms then slide the case into
position on the picked pallet, which is
lowered as more cases are added
Case order machine
Source: MM LogstiK/LogisticsIT/Witron
© IGD 2011
The product journey
• Heavier and more resilient items
go at the bottom of the order
pallet, and lighter, more fragile
products go nearer the top
• Assembled orders are built and
handled in three sided frames until
the order is stretch wrapped
• Cases which cannot be handled by
the automation are manually
assembled
• The picked pallets are then
wrapped and labelled
• Orders are despatched to store on
pallets
Assembled store order
Source: MMLogstiK/LogisticsIT/Witron
© IGD 2011
For further information
• This presentation has been produced using IGD sourced data
and readily available secondarily sourced information
• To gain further insight on the developments in Stocked Supply
Chains see the presentation here:
• For more information on the Spanish Supply Chain see our
country profile: here:
• Read IGD’s best practice case studies on supply chain
collaboration: here
• For any other information, please email Nick Downing at
[email protected] or call him on +44 (0)7730 822274
© IGD 2011