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Nov 9, 2022 at 4:09 PMArvato Supply Chain Solutions, in collaboration with the client Rituals Cosmetics, has inaugurated a new logistics hall at the Hannover-Messe location during an opening ceremony. The supply chain and e-commerce service provider will handle the online business of the lifestyle brand for Germany, Austria, Switzerland, and Poland from this location.
(Gütersloh/Hannover) The new distribution center, which will be occupied by Rituals for about a quarter, has a total area of nearly 47,000 square meters and has been built right next to Arvato’s existing logistics center in the Bemerode district. The centerpiece of the automation solution for Rituals is a powerful AutoStore storage system to quickly and efficiently process the rapidly growing number of online orders.
„We have a long-standing and reliable partnership with Arvato,” explains Mark Hoppenbrouwers, Director Supply Chain at Rituals Cosmetics. “The collaboration started in 2014 with two packing stations in Venray, Netherlands, and has continuously expanded with the growth of our brand.” Arvato is now responsible for the online business of Rituals in Benelux, the UK, the USA, Hong Kong, Spain, and Portugal. “So far, we have served the D-A-CH region and Poland from our location in Gennep in the Netherlands,” says Julia Börs, President Consumer Products at Arvato Supply Chain Solutions. “However, the order volumes have developed so rapidly that we searched for alternatives and expansion options with Rituals and decided to establish another location in Hannover.”
Fast Processing Processes
Fast processing processes are promised specifically by the automation solution that Arvato Supply Chain Solutions has installed in Hannover. In the eight-meter-high AutoStore facility with a footprint of nearly 4,000 square meters, a total of 32,000 containers with Rituals products can be stacked in block-shaped rows. Up to 120 robots can be deployed on top of the AutoStore system. They operate autonomously on tracks, retrieving containers from the system as needed and transporting them to the respective work and picking stations. The system is equipped with six storage locations for goods and 13 picking ports for order fulfillment. All upstream and downstream processes are also connected to the system via conveyor technology – alongside the 18 packing stations, there are also sorting systems and automatic carton erecting and sealing machines. The AutoStore system is designed for a capacity of 20,000 to 30,000 orders per day, depending on whether it operates in two or three shifts. Julia Börs: “Overall, we employ around 650 staff at the Messe location, and with Rituals, about 50 new jobs are being added. However, we expect to need a significantly larger team during peak times. In addition, we are permanently looking for new employees in all areas in Hannover – warehouse specialists and forklift drivers as well as IT specialists, technicians, office, service, and also management personnel.”
(from left to right) Mark Hoppenbrouwers (Director Supply Chain, Rituals), Julia Börs (President Consumer Products, Arvato Supply Chain Solutions), Remco de Marie (Head of Logistics & Fulfillment, Rituals), Jan van Meerbeck (Vice President Consumer Products, Arvato Supply Chain Solutions)
Implementation of Automation Completed in Record Time
The implementation of the automation was completed in record time. After the halls were finished, the AutoStore system was implemented in just five months. Arvato Supply Chain Solutions was able to draw on the experience and know-how from numerous other projects with which the company upgrades its locations worldwide as part of its automation strategy. “However, we handle about 15 to 20 percent of the volume outside the AutoStore system,” says Jan van Meerbeck, Vice President Consumer Products at Arvato Supply Chain Solutions. “These are fast-moving items, meaning goods with very high demand throughput, or oversized items from the Rituals product range, which includes more than 2,000 different products.” An example of this is the popular Rituals Advent calendars, which do not fit into the containers due to their dimensions. In addition, numerous value-added services are provided for Rituals. Orders are packaged in gift wrap, greeting and gift cards are placed in the box, and – as in the store – personalized perfumes or shampoos can be mixed for the end customer at the specially set up Hair Temple and House of Rituals Talisman Station in the warehouse.
Another special feature of the AutoStore system in Hannover is the integrated hazardous goods storage for products such as deodorants in a special area. “We implemented this as a world first in an AutoStore facility in Gennep and have now adapted it for Hannover,” explains Jan van Meerbeck. The move to the new distribution center offers further advantages. Hannover is a central hub in Arvato’s network for direct traffic for the D-A-CH region as well as Northern, Eastern, and Southern Europe. This means not only closer market proximity but also faster throughput with later cut-off times and shorter lead times to the end customer.
Options for Further Growth
Mark Hoppenbrouwers: “In addition to expanding our D-A-CH business, we are exploring options for further growth.” Especially since the capacities of the AutoStore system can still be expanded for the growing online orders. Jan van Meerbeck: “We still have the potential to increase the volumes to up to 50,000 orders per day.”
Foto: © Arvato
