Apparel maker Desigual's new automated picking and sorting solution may use standard components found in other systems. But there's nothing ordinary about it.
David Maloney has been a journalist for more than 35 years and is currently the group editorial director for DC Velocity and Supply Chain Quarterly magazines. In this role, he is responsible for the editorial content of both brands of Agile Business Media. Dave joined DC Velocity in April of 2004. Prior to that, he was a senior editor for Modern Materials Handling magazine. Dave also has extensive experience as a broadcast journalist. Before writing for supply chain publications, he was a journalist, television producer and director in Pittsburgh. Dave combines a background of reporting on logistics with his video production experience to bring new opportunities to DC Velocity readers, including web videos highlighting top distribution and logistics facilities, webcasts and other cross-media projects. He continues to live and work in the Pittsburgh area.
Sometimes, the line between picking and sorting gets blurred. For instance, take a system where sorters divide batches of products into individual orders, and in doing so, perform the order selection duties commonly done by pickers.
If that sounds like some kind of futuristic technology, it's not. Desigual, an apparel company founded in Barcelona, Spain, in 1984, has such a system. The automated setup is designed specifically to meet the demands of high stock-keeping unit (SKU) turnover and changing distribution cycles.
The name Desigual means unique or unequaled in Spanish. The company, whose colorful, fresh designs set fashion trends worldwide, ships some 22 million pieces of clothing annually from its distribution center in Barcelona. The items go out to more than 10,000 customer locations in 114 countries, including the company's own branded stores, Desigual sections in department stores (stores within stores), and a wholesale channel. The facility also serves several thousand e-commerce customers daily. In the United States, Desigual has its own stores in New York, San Francisco, Los Angeles, Las Vegas, Miami, and Minneapolis. Desigual fashions are also sold in many larger Macys stores.
Distributing a multichannel mix from a single facility can be a challenge. The company produces two collections each year—spring/summer and autumn/winter—each with up to 1,000 different designs, including clothing, shoes, and accessories.
For each new collection, the Barcelona facility performs two completely different types of distribution. When a new collection is ready, large shipments are sent to all outlets within a few weeks so that the collection can be introduced worldwide at about the same time. These first shipments of the collection, called "initials," represent very high volumes and are processed within a tight delivery window.
Once the collection begins to sell, the facility shifts gears and sends out "repeats" to restock products on store shelves. The repeat orders, which are a fraction of the size of the initials, are shipped more frequently to ensure stores are kept stocked.
Distributing orders as dissimilar as the initials and the repeats requires material handling systems that are extremely flexible. The systems also have to be able to track the entire inventory with precision and know how it is to be allocated to orders.
After experiencing growth of about 40 percent annually, Desigual's managers realized several years ago that the company's manual distribution processes wouldn't be able to keep up with demand much longer. In 2010, the company worked with SSI Schaefer to design a highly automated system that could handle the diverse distribution tasks required by Desigual's seasonal collections. The design took into account the fluctuating volumes, the high SKU count, and the need to balance workload.
The solution features a one-of-a-kind picking and sorting solution supported by conveyors and automated storage and retrieval systems (AS/RSs), along with sophisticated software to manage it. In combination, these systems allow the facility to select and distribute some 100,000 articles of clothing daily.
"In our old manual operation, it took 100 people to do 30,000 pieces a day," recalls Sergio Castresana, Desigual's logistics manager. "Now, we do 100,000 pieces each day with fewer people. And we have a lot of control, and our service rates are very high."
FAST FLOW-THROUGH
The facility is engineered to flow goods through the operations with minimal human intervention. Pallets holding uniform-sized cartons of products are stored in a nearby warehouse located about three miles away. The pallets are trucked to the facility and offloaded using pallet jacks. The loads are then taken to a receiving area, where boxes are removed from the pallets and placed onto plastic trays. A tray ID and a box bar code are scanned to "marry" the tray to the product it holds. A worker also opens the top of each box so that the items, which are pre-ticketed, can be easily removed later in the process.
The box is next sent through a banding machine, which places a plastic band around it to add strength and to maintain its integrity so that it won't bulge on the sides. This assures that it will be a uniform size and won't catch on anything as it passes through the conveyors and other automated systems.
Conveyors, supplied by SSI Schaefer Peem, then transport the trays to an AS/RS. This system contains six aisles and 90,000 tray storage locations. The building housing the AS/RS is rack supported and covers 9,400 square meters, or 101,180 square feet. Despite their small footprint, the racks are capable of storing 3 million articles of clothing.
A crane in each aisle gathers the boxes as they arrive and deposits them into the racking, with faster-moving items placed closer to the near ends of the aisles. When items are needed for orders, the same cranes collect the trays and their boxes and deposit them onto takeaway conveyors for transport to the main sorting system.
The boxes of products are delivered to four pick stations that act as induction points for the sorter. The source tray holding the box is automatically scanned as it arrives, and a lighted display above the station tells the worker how many items to pick from the box. Since the tops of the boxes were removed at receiving, the products, most of which are folded garments in polybags, are easily retrieved.
Workers use both hands, quickly alternating, to select items one at a time from the source box. They place each product onto an induction conveyor belt within the station that feeds the sorter. A sensor detects the motion of the worker's hands as items are pulled out of the source box, automatically counting down the remainder needed from that carton and showing that number on a lighted display. This allows for extremely fast picking, as it frees workers from having to worry about color, style, or SKU numbers. All they have to do is follow the prompts. This design makes it possible for just a few workers to select 3,600 pieces an hour from about 900 source boxes, on average.
Once the items needed for orders have been removed from the source box, the box is conveyed to one of two intermediate picking storage buffers located nearby. The two buffers have three aisles each and are served by automated cranes. This area has a total of 10,800 storage locations and can hold the boxes on their trays three deep. The boxes will be held in this buffer until the products are needed. This same buffer is also used to temporarily hold finished customer cartons until they are sequenced to shipping. The cranes serving the intermediate picking buffer can perform 1,400 moves per hour.
SORT CIRCUIT
The facility's warehouse management system, also provided by SSI Schaefer, coordinates the sorting of items so that all sizes of an SKU are packed together to make store putaway faster.
"When it arrives at the store, it is ready to put on sale," explains Castresana. "This puts the strain on the warehouse, but we would rather do that than put strain on the store, where the labor is more expensive."
Belt conveyors transport the items from the pick stations to the facility's split-tray sorter. The conveyors act as buffers to regulate the flow of goods into the sorter without slowing down the picking process preceding it. The sorter consists of 70 trays moving in a circular train. Upon approach, the items are automatically scanned so the system knows which item will be placed onto a particular sorter tray. About 87 percent of all goods in the facility can pass through the sorter, with the remainder handled manually.
The conveyor carries the product above the sorter, and at the precise moment the assigned tray passes below, the belt rolls to gently drop the product into the tray.
The sorter trays are hinged on the sides and split in the middle, similar to bomb bay doors, so they can quickly open to deliver products into 54 staging chutes located below. As the tray approaches the chute to which the order is assigned, the tray splits, gently depositing the item into the chute. Each chute will gather items from several different trays, depending on the size of the order.
Underneath the staging chutes, conveyors carry order cartons that will ship to stores and Desigual's other channel customers. The chutes act as a synchronized buffer between the sorter and order cartons, with products held within each chute until the carton destined for those goods is indexed below. At that point, split doors on the bottom of the chute open to deposit the garments into the order carton. The cartons will then continue to progress along the row of chutes, with more items added from other chutes to complete the order. In a sense, the chutes provide a secondary level of sorting.
Completed cartons are transported to an area where they are labeled and stapled closed. They are then sent either directly to the outbound docks or to the buffer AS/RS until ready to ship.
A UNIQUE COMBINATION
The combination of the ergonomic picking-induction stations, the trays for sorting, the chutes for staging and performing a secondary sort, and the movement of cartons below allows for very high sorting rates in a very limited footprint. All of these movements are coordinated with sophisticated software that enables the system to perform 9,000 sorts per hour, while managing 4,000 orders simultaneously and utilizing only the 54 physical chutes of the system.
Castresana notes that while this sorter solution uses standard components found in other systems, the components have never been put together in this exact way before. The unique combination serves the demands at Desigual well.
"The sorter is the key point," he says. "We did not intend to discover something new, but this works for us. In the end, the automation was the best solution. It gives us control, security, and the best performance for our demand."
States across the Southeast woke up today to find that the immediate weather impacts from Hurricane Helene are done, but the impacts to people, businesses, and the supply chain continue to be a major headache, according to Everstream Analytics.
The primary problem is the collection of massive power outages caused by the storm’s punishing winds and rainfall, now affecting some 2 million customers across the Southeast region of the U.S.
One organization working to rush help to affected regions since the storm hit Florida’s western coast on Thursday night is the American Logistics Aid Network (ALAN). As it does after most serious storms, the group continues to marshal donated resources from supply chain service providers in order to store, stage, and deliver help where it’s needed.
Support for recovery efforts is coming from a massive injection of federal aid, since the White House declared states of emergency last week for Alabama, Florida, Georgia, North Carolina, and South Carolina. Affected states are also supporting the rush of materials to needed zones by suspending transportation requirement such as certain licensing agreements, fuel taxes, weight restrictions, and hours of service caps, ALAN said.
E-commerce activity remains robust, but a growing number of consumers are reintegrating physical stores into their shopping journeys in 2024, emphasizing the need for retailers to focus on omnichannel business strategies. That’s according to an e-commerce study from Ryder System, Inc., released this week.
Ryder surveyed more than 1,300 consumers for its 2024 E-Commerce Consumer Study and found that 61% of consumers shop in-store “because they enjoy the experience,” a 21% increase compared to results from Ryder’s 2023 survey on the same subject. The current survey also found that 35% shop in-store because they don’t want to wait for online orders in the mail (up 4% from last year), and 15% say they shop in-store to avoid package theft (up 8% from last year).
“Retail and e-commerce continue to evolve,” Jeff Wolpov, Ryder’s senior vice president of e-commerce, said in a statement announcing the survey’s findings. “The emergence of e-commerce and growth of omnichannel fulfillment, particularly over the past four years, has altered consumer expectations and behavior dramatically and will continue to do so as time and technology allow.
“This latest study demonstrates that, while consumers maintain a robust
appetite for e-commerce, they are simultaneously embracing in-person shopping, presenting an impetus for merchants to refine their omnichannel strategies.”
Other findings include:
• Apparel and cosmetics shoppers show growing attraction to buying in-store. When purchasing apparel and cosmetics, shoppers are more inclined to make purchases in a physical location than they were last year, according to Ryder. Forty-one percent of shoppers who buy cosmetics said they prefer to do so either in a brand’s physical retail location or a department/convenience store (+9%). As for apparel shoppers, 54% said they prefer to buy clothing in those same brick-and-mortar locations (+9%).
• More customers prefer returning online purchases in physical stores. Fifty-five percent of shoppers (+15%) now say they would rather return online purchases in-store–the first time since early 2020 the preference to Buy Online Return In-Store (BORIS) has outweighed returning via mail, according to the survey. Forty percent of shoppers said they often make additional purchases when picking up or returning online purchases in-store (+2%).
• Consumers are extremely reliant on mobile devices when shopping in-store. This year’s survey reveals that 77% of consumers search for items on their mobile devices while in a store, Ryder said. Sixty-nine percent said they compare prices with items in nearby stores, 58% check availability at other stores, 31% want to learn more about a product, and 17% want to see other items frequently purchased with a product they’re considering.
Ryder said the findings also underscore the importance of investing in technology solutions that allow companies to provide customers with flexible purchasing options.
“Omnichannel strength is not a fad; it is a strategic necessity for e-commerce and retail businesses to stay competitive and achieve sustainable success in 2024 and beyond,” Wolpov also said. “The findings from this year’s study underscore what we know our customers are experiencing, which is the positive impact of integrating supply chain technology solutions across their sales channels, enabling them to provide their customers with flexible, convenient options to personalize their experience and heighten customer satisfaction.”
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
Two European companies are among the most recent firms to put autonomous last-mile delivery to the test with a project in Bern, Switzerland, that debuted this month.
Swiss transportation and logistics company Planzer has teamed up with fellow Swiss firm Loxo, which develops autonomous driving software solutions, for a two-year pilot project in which a Loxo-equipped, Planzer parcel delivery van will handle last-mile logistics in Bern’s city center.
The project coincides with Swiss regulations on autonomous driving that are expected to take effect next spring.
Referred to as “Planzer–Dynamic Micro-Hub w LOXO,” the project aims to address both sustainability issues and traffic congestion in urban areas.
The delivery vehicle, a Volkswagen ID. Buzz battery-electric minivan, will feature Loxo’s Level 4 Digital Driver navigation software, a highly automated solution that allows driverless operation. The van was retrofitted to include space for two swap boxes for parcel storage.
During the two-year pilot phase, Loxo’s Digital Driver will navigate a commercial vehicle several times a day from Planzer’s railway center to various logistics points in Bern's city center. There, the parcels will be reloaded onto small electric vehicles and delivered to end customers by Planzer’s parcel delivery staff.
Following the completion of the pilot phase, Planzer and Loxo will build on the program for rollout in other Swiss cities, the companies said.
The partners said the project addresses the increasing requirements of urban supply chains and aims to ensure the “scalability of their disruptive solution.” With largely emission-free delivery, it contributes to greater levels of sustainability for the city as a living space, they also said.
“The uniqueness of this project lies in the fact that it will have a direct impact on society,” Planzer’s CEO and Chairman Nils Planzer said in a statement announcing the project. “We didn't just want to integrate automated technology into existing systems, we wanted to develop a completely new concept and a new business model.”
As the hours tick down toward a “seemingly imminent” strike by East Coast and Gulf Coast dockworkers, experts are warning that the impacts of that move would mushroom well-beyond the actual strike locations, causing prevalent shipping delays, container ship congestion, port congestion on West coast ports, and stranded freight.
However, a strike now seems “nearly unavoidable,” as no bargaining sessions are scheduled prior to the September 30 contract expiration between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) in their negotiations over wages and automation, according to the transportation law firm Scopelitis, Garvin, Light, Hanson & Feary.
The facilities affected would include some 45,000 port workers at 36 locations, including high-volume U.S. ports from Boston, New York / New Jersey, and Norfolk, to Savannah and Charleston, and down to New Orleans and Houston. With such widespread geography, a strike would likely lead to congestion from diverted traffic, as well as knock-on effects include the potential risk of increased freight rates and costly charges such as demurrage, detention, per diem, and dwell time fees on containers that may be slowed due to the congestion, according to an analysis by another transportation and logistics sector law firm, Benesch.
The weight of those combined blows means that many companies are already planning ways to minimize damage and recover quickly from the event. According to Scopelitis’ advice, mitigation measures could include: preparing for congestion on West coast ports, taking advantage of intermodal ground transportation where possible, looking for alternatives including air transport when necessary for urgent delivery, delaying shipping from East and Gulf coast ports until after the strike, and budgeting for increased freight and container fees.
Additional advice on softening the blow of a potential coastwide strike came from John Donigian, senior director of supply chain strategy at Moody’s. In a statement, he named six supply chain strategies for companies to consider: expedite certain shipments, reallocate existing inventory strategically, lock in alternative capacity with trucking and rail providers , communicate transparently with stakeholders to set realistic expectations for delivery timelines, shift sourcing to regional suppliers if possible, and utilize drop shipping to maintain sales.