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Dematic world-frst delivers

record productivity for Coca-Cola


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