November/December 2020 - 15

DISTRIBUTION OPERATIONS
physically demanding roles to safer,
more tech-oriented positions where
they're responsible for overseeing the
robotic systems. Notably, automation
can also make it easier to protect these
employees and support ongoing social
distancing measures, as the systems
can keep products moving out the door
while managers limit the number of
staff per shift.
Outsource to a 3PL provider
For produce processors who feel that
the need for speed is outpacing their
facilities' capabilities, outsourcing to a
third-party logistics (3PL) provider -
either partially or entirely - can
provide much-needed support. A 3PL
provider can bring in an organization's
product inventory and manage the order
fulfillment process on its behalf.
Similar to micro-fulfillment centers,
outsourcing shortens last-mile delivery
time as these 3PL providers often have
established fulfillment centers located
across multiple geographic regions,
putting products closer to stores and
consumers. There has also been a
trend toward 3PL providers adopting
automation in their own facilities
to increase order fulfillment speed,
meaning processors can enjoy all the
benefits of automation without having
to make the investment themselves.
How Spanish grocer Mercadona
stays up to speed
A great example of a company taking
an innovative approach to distribution
and order fulfillment speed is Spanish
supermarket giant Mercadona. With
product freshness being central to
the company's corporate philosophy,
Mercadona chose to invest in
automation to ensure products would
flow quickly and seamlessly through
its newly built distribution center in
Guadix, Granada.
Namely, the distribution center
was designed to handle around
6,000 SKUs with zones for different
products: one for dry produce, two
for refrigerated products, one for
frozen products, and a production
area for bread. Installed robots provide
buffer storage and order picking in one
simultaneous operation. These robots
are responsible for handling full crates
of fresh fruit, vegetables, and meat in
the refrigerated zones, where there are
around 300 different SKUs in 30,000
crates. A warehouse control system
manages the automation and overall
product flow, in addition to providing
Mercadona complete product tracking
and traceability.
Fully integrated with its surrounding
manual operations, the automated
solution allows Mercadona to meet
the very short lead times required by
its business. In fact, the system is able
to handle and prepare orders for the
company's over 1,600 supermarket
stores in just six hours, ultimately
ensuring customers enjoy the freshest
selection of products.
Time
i s
t icking in the
race
against not only time, but also the
competition. Those who take proactive
measures to accelerate order picking
and fulfillment - through microfulfillment
centers, automation,
3PL providers, or a combination of
these strategies - will stand out
in today's highly competitive food
and beverage marketplace. Driven
by innovation,
the improvements
in distribution operations can help
you get ahead with a reputation for
speed, product freshness and customer
satisfaction.
Derek Rickard is the director of sales
at Cimcorp Automation Ltd, a logistics
solutions provider. For more information,
visit www.cimcorp.com.
Performance, Packaged
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November/December 2020

Table of Contents for the Digital Edition of November/December 2020
