The e-grocery market and supply chains: Modula solutions for more efficient warehouse automation

19 April 2022

People’s shopping habits have changed over the years. In 2021, 70% of families said that they now do their food shopping online rather than at the supermarket. There are two options when you shop online: have the items delivered directly to your door or book a time slot and pick them up from the store. In both cases, the waiting times are reasonably short. They range from a minimum of one hour to a maximum of three days.

Or at least that’s what the customers expect. Consequently, waiting times offer the scope to get a considerable edge over the competition right now.

Online retail and e-grocery businesses are looking for ways to optimize their warehouses or distribution centres. Efficient warehouses enable orders to be dispatched more quickly and with no errors, thus fostering customer loyalty.

Automation can unquestionably cater to companies’ needs on this front and many of them have found that the ideal solution lies in automatic vertical storage systems.

Whether they are revamping existing facilities or starting from the ground up on a new warehouse, e-grocery businesses want to optimize everything: floor space, time, productivity, energy usage, product integrity and availability,” explains David Lind, Director of Business Development at ModulaOn top of that, they are seeking solutions that ensure worker safety and less stressful working conditions.

Read our in-depth discussion of “How to organize e-grocery logistics: from automatic storage systems to automated picking”  to find out all about the reasons why automatic storage systems have a crucial role to play in e-grocery logistics.

Modula automatic storage systems: e-grocery success stories

Modula provides solutions that can always be adapted to perfectly meet specific individual requirements, with no need to completely overhaul in-house intralogistics systems. Its products can be used alongside manual storage systems, helping staff to finish preparing orders more quickly and efficiently. In cases such as these, Modula systems can be used to store high-rotation goods so that they’re always within easy reach.

What’s more, once the shopping is ready it can be kept at the right storage temperatures for the fresh products before it is delivered or collected from a locker outside the store.

With Modula vertical storage systems products can be stored at heights of up to 16 metres in secure, protected units that deliver them automatically to operators.

In addition, horizontal carousels can provide ideal e-grocery storage solutions, especially in premises with low ceilings. Thanks to the easy integration of the WMS with any existing ERP or DMS system, retailers can automate their picking and placing processes. There is no need for staff to look for products on shelves because they can simply press a button to have them brought within easy reach.

In the e-grocery supply chain, you need to take into consideration many key factors”, continues Lind. “From the high expenses of grocery e-commerce fulfilment to the need to ensure that the inventory matches demand across all your channels, to the current high costs of transportation and labour. One piece of advice that I would give is to evaluate not just current needs but also potential future needs. Are you mainly using central distribution warehouses, or would you benefit from adding fully functioning micro-fulfilment centres? Do you need a buffering solution for completed orders? What are your temperature requirements? You can start small, even with just one Modula system and one robot, and expand your system as you grow. That’s what Tulips, Conad Nord Ovest and Coviran did.

Tulips: the first Italian digital native supermarket

Tulips is Italy’s first digital native supermarket, with a genuine dark store and orders available as early as three hours after they are madeAll shopping is done online, and it can either be delivered to the door or collected from the store. Quick, precise picking is essential in this field, so doing everything manually is out of the question and automation plays a key role in the warehouse.

In 2021 Tulips started operating six Modula Lifts and a picking cart so that numerous orders can be processed at the same time. That significantly reduced the shopping preparation times, which means not only that the customers are happier but also that more orders can be dispatched at the same time, thus increasing profits.

The Modula technology was integrated perfectly with software that controls every single stage, from the e-commerce platform to overall warehouse management”, reveals Enrico Martini of Tulips. “At present we only store products at room temperature in the Modula systems, but we’re planning to buy some Modula Climate Control systems in 2023 to store fresh products.”

Conad Nord Ovest: Modula storage systems aid staff ergonomics

Conad Nord Ovest is a cooperative supermarket chain based in Cagliari, Italy.

Over the years, it has bought no fewer than 15 Modula storage systems, which enabled it to:

  • Store more than 35% of its warehouse stock on 5% of the warehouse floor space
  • Handle more than 4,000 packages a day
  • Serve more than 50 stores a day.

Modula vertical systems have reduced not only the space used but also picking errors, while significantly stepping up the pace of order preparation.

The picking process is extremely simple, with no margin for error, and the flow management is connected to the WMS of the vertical storage systems,” states Logistics Manager Roberto Pau, who was the driving force behind the innovation.

With Modula our approach to goods management has changed and less physical exertion is required from the staff. Everything revolves around human ergonomics,” say the members of staff who now work on the vertical storage systems.

The most interesting aspect concerns the improvement of ergonomics and the opportunity to minimize risks for people working in warehouses, because staff well-being has become an increasingly high priority for companies. Automation is a safe, effective way of achieving this.

Coviran: a double bay to reduce idle time

Coviran is one of the biggest Spanish supermarket chains.

It uses Modula automatic vertical storage systems to distribute the following to stores:

  • Personal hygiene products
  • Food products with long shelf lives.

It has installed two Modula Lift ML50D vertical storage systems with double external bays, which significantly increase productivity while reducing idle time. The pending tray appears in front of the operator just a few seconds after the end of operations on the previous tray. The almost simultaneous tray exchange has considerably increased Coviran’s productivity.

Modula can help you to make the transition immediately or gradually with its range of vertical storage systems or horizontal carousels that can be installed to suit your needs. Download the in-depth explanation for more details.

Ideas for warehouse reorganization

Improving the organization of the warehouse does not necessarily have to be a complex operation: study the floor plans, think both horizontally and vertically, consult with your personnel. Check out some easy-to-implement tips to boost personnel satisfaction and your earnings quite quickly.
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