FMCG Distributor Fulfills Orders in Under 3 Hours with AutoStore

HTG, a major FMCG distributor based in Delfzijl, Netherlands, needed a warehouse solution that could scale with their rapid growth in beauty and liquor goods distribution. As they transitioned from a traditional retail supplier to a comprehensive distribution partner serving both physical and online retailers across Europe, their traditional warehousing and fulfillment system could no longer meet demand and customer expectations.

After looking at various solutions, HTG chose AutoStore, enabled by Lalesse Logistic Solutions, as the ideal technology to address their challenges. Since implementing the AutoStore system in 2013, HTG has continuously expanded it to match increasing demand. The company can now offer its customers “an all-round service throughout the supply chain,” as Ken Lageveen, HTG Managing Director, explained. “From storage to distribution, but also labelling, packing, or creating product combinations.”

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The Challenge: Meeting Online Market Expectations

As HTG diversified into online markets, their original systems were unable to keep up with the growing demands of their customers who expected:

• Complete product availability
• 24/7 stock visibility
• Rapid order fulfillment

HTG needed to be able to support both drop-shipping operations, where they ship directly to end consumers on behalf of retailers, and the broader transition to e-commerce business models. After an initial supplier failed to support their scaling plans, HTG needed a partner who could help them implement a future-proof warehouse automation solution.

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The Solution: Automated, Scalable Infrastructure

HTG implemented the AutoStore system in 2013 and has since expanded it in three phases. Today the system features a high-density Grid traversed by Robots, which retrieve Bins and deliver them to workstations. The compact design maximizes storage capacity within a limited footprint of just 1,100 m² (11,8402 ft).

HTG uses AutoStore as the backbone of its fulfillment strategy:

• Orders are automatically retrieved from the Grid by 50 high-speed Robots
• Items are delivered to one of 20 workstations (Ports) for processing
• Conveyors transport goods to packing stations
• The AutoStore system is integrated with a 320 m (about 1,000 ft) conveyor, connected to customized packing stations, with order planning enhanced by predictive algorithms developed in-house

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Key Benefits: Flexible, Scalable Automation

The implementation of AutoStore has delivered significant and measurable improvements to HTG's operations. By combining high-density storage with robotics, HTG manages inventory more efficiently and fulfills orders faster. The company has achieved competitive advantage in multiple areas:

• Always-on availability: During peak periods, the system offers 24/7 operations.
• Rapid order processing: Orders are received and shipped in less than 2.5 hours.
• Future-ready design: The system can easily expand to accommodate business growth, without operational disruption.
• Strategic advantage: Always-available inventory and fast fulfillment gives HTG a competitive edge in serving both traditional retail and e-commerce channels.
• Doing more in less space: The system greatly optimises available space so there is no need for additional warehousing.

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Continuous Expansion Assured

HTG maintains a strategy of continuous expansion to ensure they're always prepared for growth, with a focus on combining better warehouse solutions with optimal picking strategies. Lageveen explains that since the implementation of AutoStore, “our capacity is more than adequate, but as part of our strategy we want to continue to expand so that we’re always ready for growth.”

Project Specifications

• Implementation type: Brownfield
• Robots: 50 Red Line Robots
• Workstations (Ports): 20 Ports
• Bins: 57,000 Bins
• Integrated technology: Conveyor belts, customized packing stations
• Integration partner: Lalesse Logistic Solutions