Pierau Logistics Ltd Customer Magazine | 02/2016 | European Logistics Solutions

Logistics Support for Gerry Weber By the end of 2015, GERRY WEBER International AG expanded its new logistics centre with connected outlet store near the company’s headquarters in Halle, Westfalen (Germany) to 76,000 m² of warehouse and functional space over 5 floors with a capacity for 5.6 million items and a planned investment volume of EUR 90 million. With this important step they were ably supported by Pierau Planung, the Hamburg planning office for logistics and organisation, who dealt with the project management for logistics planning and implementation and proved once again their unrivalled competence in the field of textile, ecommerce and retail logistics.

trol over customer deliveries as well as faster and more efficient processing and logistics structures optimised both economically and environmentally.

As a vertically integrated system supplier, the GERRY WEBER group, in addition to the wholesale business, is strengthened by its retail shops and franchise-run stores. The continuous optimisation of logistics processes occupies a central position and since Spring 2014 has been high on the agenda. The existing decentralised logistics with sites in Dortmund, Ibbenbüren and Osnabrück, together with an outlet in Brockhagen was consolidated in to a new building in Halle. By merging into a central logistics centre with shared handling of hanging and flat goods, the company anticipated simpler and improved con-

Pierau Unternehmensberatung GmbH, a planning agency for the logistics and supply chain, which operates successfully throughout Europe, has assisted GERRY WEBER. With clients including Hennes & Mauritz, Klingel, Walbusch and Intersport, Pierau Planung brings many years’ experience of working with the fashion industry and has many large online retailers in its customer portfolio. The experts from Hamburg provided continuous advice and support for the logistics planning project management. The logisticians at Gerry Weber have worked together with Pierau Planung to create a largely fully-automated stor-

Fully-automated storage concept for 37 million items per year

age concept which allows for approximately 28 million consignments per year to be moved from incoming goods to being on sale as quickly as possible. The result is that on a 14.5 hectare site they have built a logistics centre with 30.000 m² floor space and a total of 76.000 m² of warehouse and functional space over five levels, providing plenty of scope for future expansion. The complex is 10m (outlet) by 30m (high-bay warehouse) high with a storage capacity designed for 5.6 million items. “In its concept development, Pierau Planung endeavours not only to pursue a purely technical approach but also to develop the ideal combination of IT, technology, organisation and personnel,“ says Lothar Hättich, Managing Director of the planning office. “We provide our customers with the optimal solution in terms of initial investment and longterm profitability and we always consider their specific requirements and objectives.“

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Contents Page 1 | Logistics support for Gerry Weber

Page 4 | 1&1 expands logistics centre

Page 7 | Give a dog a bone! Logistics concept for TRIXIE

Page 3 | Going Green in the warehouse!

Page 6 | Wellness for the Warehouse: Reorganisation Brings Increased Capacity for Villeroy & Boch

P8 | A new “partenaire” for Pierau Logistics in France

Page 4 | 55 years’ experience in stock

P8 | How and where to find us

Dear Readers, Once more we want to thank all of our international clients for their close cooperation. Thank you for an interesting time at the IMHX exhibition in September 2016. In the coming year we will begin to discover how the Brexit decision will influence economic activity — as many UK based businesses also operate in Europe and internationally. The e-commerce sector continues its strong growth and will throw up more new and technically demanding challenges for us to meet and resolve. Many suppliers for instance have and are developing new solutions for same day delivery which is resulting in new shipping concepts. Enjoy the informative read Michael Walling, Björn Brunkow, Arne Pierau

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Multi-channel, multi-line processing for B2B and B2C The new logistics concept was created on the basis of forecasts given by Gerry Weber as to volume and structural developments up to 2019 / 2020. The underlying goal of the joint concept development was to create a future-proof logistics facility that optimally supports multi-channel distribution and multi-line processing. “Centralising B2C, B2B, pre-orders and reorders together with the handling of flat goods (FG) and hanging garments (HG) on one site saves time and money,“ says Hättich. A key idea of the new concept is a common delivery of FG and HG in the same carton. This has several advantages as in addition to cost saving, delivery speed is increased leading to a greater choice of leading freight service providers. Putting them both together means that the current collection can be delivered in one go, facilitating control at both the logistics centre and on the road. As no storage space is usually available at the POS, the full collection can be put on the shelves immediately so that flat goods can be stored without delaying the arrival of hanging garments. The multi-channel approach implemented at Gerry Weber handles both the B2C and B2B deliveries with the same processes and equipment. “The site has been planned economically regardless of the distribution channel. The concept of a multi-channel system is flexible, adapting easily to structural changes, and the installed systems are uniformly utilised“ says Lothar Hättich. With nearly 1,000 stores and sales areas worldwide, over 2,800 retail spaces and about 280 franchise stores as well as branded online stores across nine countries, GERRY WEBER is one of the bestknown and most successful fashion groups in Germany. Economically picked and sequenced Gerry Weber hanging goods are fully-automatically picked. Manual intervention by an employee is only required when receiving goods into the system and when packing them for despatch. Picking of flat goods happens as a single stage process directly into the shipping box, following the goods-to-man principle. From a logistics point of view there is a distinction between A-articles on the one hand and B-/ Carticles on the other. While the B-/ C-articles are channelled directly from the shuttle warehouse to the picking station, the Aarticles, due to the significantly higher flow rate, are first fullyautomatically incorporated into the flow rack.

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The flow rack then allows for rapid, repeated access to frequently requested A-articles. Lothar Hättich declared the interim storage of A-articles in the flow rack as a simple matter of economics, “If the picking station had been served directly from the shuttle warehouse with comparable speed and reliability, there would have been a substantial increase in investment costs with the same result and at much greater demand on the performance of the shuttle warehouse. “ With a joint delivery of flat goods and hanging garments, the flat goods are picked from the flow rack for the shuttle picking station in batches, put into bags at a transfer point and then processed via fully-automated, high performance hanging garment conveyor technology. “The analysis of various processing alternatives showed that by reducing the use of conveyor technology, the dimensions of the facility could be optimised by reducing the number of package sizes. The complexity of control processes in the warehouse management system could, thereby, be kept relatively low, “ reports Hättich. The items can be sequenced together through the combined processing of hanging and flat goods. The hanging goods sorter brings the products specified by the customer orders and ensures efficient provision at the POS. A fully automated three-tiered sorting stage with eight lines per stage allows up to 8³ (i.e. 512) to be sequenced in a single sort run. Another performance mainstay of the logistics centre in the future is the processing of returns. The handling of up to 30,000 returns packages on a daily basis requires a sophisticated approach. The system responds flexibly to quantities and mixed compositions of incoming goods and establishes whether the articles form either mixed or unmixed units when processing the returns. Flat goods and hanging garments are separated and returned to their respective storage areas.

RFID potential is fully exploited Gerry Weber has played a pioneering role in the use of RFID in the textile industry. The new logistics centre will allow the company to succeed further by exploiting the potential of all aspects of this technology. The logistics technology gathers information concerning the incoming and outgoing goods at all stages of processing and this is then sewn into the products as RFID tags. “Every item of merchandise is individually identifiable right up to the time of sale, enabling a whole new dimension of accuracy and control over stock, undeliverables and returns,“ clarified Lothar Hättich.

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Going Green in the Warehouse Logistics by definition is not environmentally sustainable, yet there are both material and moral grounds for environmentally friendly logistics which modern businesses cannot afford to ignore. Social and environmental responsibility, customers’ expectations and legal regulations all demonstrate that the impetus for green thinking is multi-faceted and show that the subject is increasingly prominent in the daily life of logisticians. For example, route and transport optimisation is now a major part of road-based logistics. However, green logistics does not stop here and needs to be backed up by the relevant intralogistics in warehouses and distribution centres. In this regard, logistical facilities offer many possible solutions for eco-friendly optimisation. Starting with the site selection, as experienced logistics planners, we understand the traditional principles of all the commercial, legal and economic aspects that govern the selection of the ideal site. Environmental factors, which were barely relevant in the past, have now undergone a massive change. New issues such as, multimodal transport, alternative building materials and environmentally friendly surface sealing, have to be taken into consideration. Logisticians can use cross-sector developments in the architecture of warehouses and distribution centres. Knowledge of energy optimisation, insulation, production of renewable energy and the adoption of more sustainable building materials can be directly put in place. However, when it comes to logistics facilities inside buildings, the standard requirements of capacity, speed, economy, expandability and ergonomics need to be achieved in an equally ‘green’ way. As planners, we always rise to the challenge of the new ‘green’ perspective with both proven and innovative methods. 

Arrangement of workspaces in layout using natural resources such as sunlight and heat from solar radiation together with cooling through underground construction. Introduction of (more) efficient systems including lightweight construction, efficient and sizeappropriate drive systems, inverter technology, reduced frictional resistance and energy recovery

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Efficient processes for storing and processing – reduction of all transport, optimised IT

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Modular layout of site with standby option for low load operation

It was not for nothing that Gerhard Weber, Founder and Member of the Supervisory Board of GERRY WEBER International AG, called the new logistics centre at its ground breaking ceremony, “an outstanding concept that will set new standards in global fashion logistics.“

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Use of light and heat as needed i.e. lighting control, motion sensors, heaters, temperature zones, etc.

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Use of alternative building materials, e.g. wood in conveyor systems and in automatic small parts storage

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Selection of environmentally friendly but durable storage and shipping materials, reduction of consumables and separation of recyclables.

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Optimisation of filling levels in packages, calculating precision-fit packaging

This set of measures can be fine-tuned to individual customer requirements. Our experience also shows that employee motivation in the common goal of sustainability in logistics is extremely promising. Each member of staff can not only work in a more environmentally friendly way, such as through appropriate lighting or adapting driving behaviour in forklift trucks, but also through selfinitiated optimisation. As planners we know that it is not necessary to reinvent the wheel in order to achieve a much more sustainable inhouse logistics; but rather that ’Green Logistics’ is simply another aspect to consider in integrated logistics planning.

At the topping out ceremony in February 2015, Ralf Weber, CEO of GERRY WEBER International AG, gave a big thanks to Gerhard Weber for his great vision with regard to the project and said, “This impressive logistics centre is a symbol of the growth of Gerry Weber today and we are now more than ever geared towards the future.“

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1&1 Expands Logistics Centre Pierau Planung designs and implements an expansion of the logistics centre for the telecommunications provider. If you take out a mobile phone contract with 1&1 you can be sure that a package containing your new mobile will be sent no later than the next day. In order to make more than 4.3 million shipments per year and to provide for the future, the DSL and mobile service provider opted for a structural and logistical expansion of the existing buildings in Montabaur, Germany. Pierau Planung was commissioned with the preparation of an overall logistical concept for the expansion planning. The assignment for the Hamburg-based logistics and organisation planning company included a concept study and the detailed planning and implementation of the expansion of the logistics centre. A particular challenge was the short implementation period, which had to take place during on-going operations. In July 2015, the new logistics centre with a total floor space of around 5, 000m² was inaugurated. As a result of the steady growth in consignments, expansion was imperative. With shipments of around 20,000 letters and parcels per day (4.35 million despatches in 2014) the existing logistics centre had reached full

capacity. 1&1 now has an ultra-modern distribution centre which, in the future will be capable of processing consignments of more than 7 million mailing items per year. Pierau Planung has made this possible with the use of the very latest technologies including, amongst other things, a fully automated labelling system and paperless picking via mobile data acquisition.

“The customers’ orders enter the logistics centre within an hour and are processed immediately. By expanding our logistics centre we can not only maintain our service commitment to our customers, but constantly enhance it.“ Christina Bastron Press Officer at 1&1

Logistical development was necessary because the site had reached full capacity. The company opted for an expansion of the existing site because of its well-positioned location in close proximity to the GLS, DHL and Hermes carriers. This means that a large proportion of customers’ goods could, as a rule, be delivered the next day, even without an overnight service.

1&1 - Hosting, Domains, Websites, Internet Services.

The experts at Pierau Planung were responsible for the creation of the overall logistical concept. With the expansion plan it was necessary, amongst other things, to plan a new concourse as an extension to the current building because the capacity of the existing area would not have been able to withstand future requirements. For future planning, around 7 million shipments per year are to be expected. This quantity, together with incoming goods, had to be provided for at the existing site and the new logistics building with incoming goods processing. The agreed structural and logistical concept was implemented in a second step, after completion of the concept study. Pierau Planung assisted 1&1 in, amongst other things, the concourse planning, coordination of the logistics solution with construction and engineering, together with construction of the pallet rack. The following components were installed: automatic carton erector, automatic carton sealer, automatic shipping labeller and space-saving carton conveyor technology. In addition, new concepts and material flows needed to be developed for all processes to increase deliveries and productivity. Pierau Planung has successfully helped to shape the overall logistical process from the detailed planning of the concept study to its implementation. “Especially challenging were the high numbers of shipments, up to 3,000 items per hour, and in some cases

Logistics Centre opening ceremony

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UK Edition 02/2016

these were very small boxes containing SIM cards. Another particular consideration was the short implementation time in the middle of on-going operations,“ says Andreas Beermann, project manager at Pierau Planung. “We are currently in the middle of the critical stage of the initial operation. We are delighted to be able to collaborate with 1&1 from the outset of this ambitious logistical expansion project.“ In addition to the delivery of smart phones, SIM cards and other products, together with their corresponding contracts, play a major role at 1&1 as a phone and Internet provider. “It is vital that they are integrated into the logistics process. Customer shipments, product allocation and contracts must all be coordinated

in the packing area where, due to the type of articles involved, they are manually packed“, describes Beermann on the complexities of the handling processes. The logistics centre currently has 100 employees. 1&1 Internet SE is a leading DSL and mobile service provider in Germany, offering international hosting products in ten countries. 1&1 employs approximately 7,000 employees worldwide. The company was founded in 1988 in Montabaur, (Germany) which is still the seat of its headquarters today.

Pierau Planung has 55 Years’ Experience in Stock Founded in 1961 by Ehrhardt Pierau and now in its second generation, we are a truly well established company. This year we will be celebrating our 55th anniversary and we have an almost equally long relationship with some of our clients. Our customers know that our approach is always ‘best practice’ and that we will always find the optimal solution for their individual requirements – this is what has made us so successful. “We look forward to many more successful years in which we can assist small start-ups as well as medium-sized and large global players with their logistics, distribution and supply chain current needs and future developments," says Arne Pierau.

services to bring our clients’ logistics in line with the very latest trends and to keep them fit for the future. We have also been expanding in Europe and now have key partners in countries including Russia, England, Austria, Italy, France, Turkey and Poland where we have established good bases to provided resident customers with our expertise in their native language.

A holiday in the Winter of 1960 sparked the start of our company’s history. A simple ski lift was the source of inspiration for the groundbreaking idea of an overhead conveyor system. It was our founder, Ehrhardt Pierau, who had this ’Eureka!’ moment and it has been onwards and upwards ever since. Our logistics highlights include the first carton high bay warehouse (1970), direct carton picking (1980), returns processing systems and single stage PbL systems (1990), automatic hanging garment systems (2000) and dynamic dispatch and return systems (2010). We have achieved a lot since our 50th birthday five years ago and we continue to set the tone, always constantly evolving. The ’Industry and Production’ customer segment has returned to the spotlight at Pierau Planung. Drawing on past experience from our extensive portfolio we are able to advise on a course of action for a strong manufacturing industry with efficient and economical logistics. In addition, we have expanded our range of

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Wellness for the Warehouse: Reorganisation Brings Increased Capacity Pierau Logistics restructures picking in Villeroy & Boch’s ’Bathroom & Wellness’ business segment Increased demands are placed on a company’s logistics with a growing national and international business. It is for this reason that Villeroy & Boch AG, with support from Pierau Unternehmensberatung GmbH, has identified, and subsequently implemented, the potential for site optimisation at the logistics centre in Losheim (Germany).

Starting Point The optimisation analysis started in 2015 with a demonstration of short and mediumterm optimisation potentials. Running in parallel to this, Pierau Planung drafted requirements for the warehouse management system that would support the implementation of these measures. The task at hand involved a minimal alteration of the existing warehouse structure. Consideration also had to be given to the very high shipment volumes at Villeroy & Boch due to products such as WCs and basins. It quickly became apparent that certain products have an immense pallet volume in the

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© Villeroy & Boch

warehouse. Even with small amounts of products, a great many pallets were coming into the warehouse. "It was important for us to achieve greater efficiency in processing the shipment volume. This was accomplished with the help of an improved warehouse management system and by optimising the flow of materials within the established structures of our logistics centre," says Detlef Tasarek, Global Head Supply Chain Management.

The Optimisation Analysis The team, led by CEO Arne Pierau, noted that the two existing separate halls negatively influenced the material flow. The capacity in the halls could be best characterised by the fact that forklift trucks ran incessantly back and forth come rain or shine in the truck yard. Analysis of the warehouse organisation revealed that employees had to travel quite long distances for picking. “Following the report of our analysis in which a potential saving of more than 30 per cent was identified, the new warehouse organisation was simulated. This potential

was confirmed in the simulation,” explains Arne Pierau, Managing Partner with Pierau Planung.

The Solution The proposed solutions based on the analysis are comprehensive. They include the creation of a spacious connecting building between two halls together with optimum loading and unloading. In addition to improved material flow, the connecting structure serves a purpose as well, which is to centralise goods issue and outgoing goods. The logistics experts also reorganised the use of space in the halls. For example, the existing incoming goods area was redefined as a future semi-automatic pallet shuttle warehouse. Thus, the space in this section of the building can now be used to an optimal height of around 7m. In future, as Villeroy & Boch essentially deals with bulky items, these will predominantly be picked to order. Cproducts are precommissioned in batches and then placed in a temporary storage area in the vicinity of packing. During commissioning of A- and Bproducts, which are carried out with industrial trucks, Citems are picked to order from temporary buffers on the way to packing. During commission-

ing of A- and B-products, which are carried out with industrial trucks, C-items are picked to order from temporary buffers on the way to packing. As Pierau explains, “We have constructed a threedimensional picking trolley with which the transport volume, compared to the current model, can be significantly increased. Consequently, the distances involved in picking can be reduced even further. "

Villeroy & Boch are synonymous with quality products in the branches tablewares, tiles for flooring and revetments, and fine plumbing fixtures. They operate successfully in 125 countries worldwide. The ’Bathroom and Wellness’ division includes ceramic bathroom collections, high quality bathroom furniture, fittings and accessories. Products are shipped from the logistics centre at Losheim am See across Europe. At the same time, the logistics centre is the central hub for goods arriving from different international production centres.

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Give a dog a bone - An Ambitious Logistics Concept for Trixie The logistics experts at Pierau Planung in Hamburg have developed a modernisation concept for this high profile wholesaler, which will increase the existing warehouse capacity. “The biggest challenge we faced with this project was that the entire warehouse expansion, together with process optimisation, had to be implemented during ongoing operations,“ said project manager Andreas Beermann. In the meantime, modernisation has been successfully completed and the new warehouse shuttles and lifts are running at full tilt.

Perfect Planning: Make way for a smooth operation! Pierau’s specialists performed an in-depth analysis of the relevant processes, which resulted in them designing suitable measures to increase capacity and make the entire process more efficient. After close collaboration between Trixie and Pierau, the proposed concept was agreed and, following tendering out on individual jobs, work on the actual optimisation measures was able to start. All this was done during the busiest periods. For instance, Pierau and Trixie faced an enormous challenge in increasing the picking capacity, which was already severely limited.

Following modernisation, Trixie is now even better equipped to meet the requirements of wholesale trading. Increased productivity and higher profitability are just two of the positive benefits and another example is the improved workstation ergonomics. “Upon acceptance of the project, we were very pleased to note that all our wishes and ideas put forward in the constructive collaboration have been implemented. The optimisation was a complete success,” said Jan Petersen, Head of Warehouse Logistics at Trixie. Highly motivated employees are one of the key factors for a successful business. Performance-related bonuses, based on paying employees for their hard work and not for their presence, provide greater incentive and thereby increase employee productivity. Pierau Planung is currently supporting a mail order company by designing a tailor-made bonus payment system and integrating it in the logistics processes.

“Workflows in the warehouse had to be restructured so as to allow for the dismantling of racking systems without affecting the packing or shipping processes, for example,“ Andreas Beermann explained with reference to the specific requirements of the project.

Pierau Planung Performs Paperless Picking! Optimisation measures included, among other things, the installation of a shuttle system with around 19,000 storage locations together with a direct connection to different work zones via the use of conveyor technology. Consequently, Trixie now has completely paperless picking, which greatly simplifies the running of all the different logistics processes in the warehouse. TRIXIE Heimtierbedarf GmbH & Co. KG supplies around 7,000 regular customers worldwide with items for dogs, cats, birds, small mammals, fish and reptiles from a range of more than 6,500 products. The company employs in excess of 300 permanent staff with over 70 temporary workers.

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A New „Partenaire“ for Pierau Logistics in France Our international expansion strategy widens with our new subsidiary, ALPHA PIERAU FRANCE. Based in Bordeaux, France, we can provide all aspects of logistics consulting and planning from under one roof. “This is a great opportunity for us to successfully position ourselves with our comprehensive portfolio of services, which focusses on e-commerce, retail and fashion,“ says Björn Brunkow, Managing Director at Pierau Planung.

Trade at the Bordeaux School of Management. He worked for 15 years in the aviation industry and has supported both SMEs and large enterprises in supply chain management and organisation.

The three most import ecommerce markets in Europe are the UK, Germany and France, representing 61 per cent of the entire European turnover. In France, around 90 per cent of Internet-users shop online – making that approximately 33.8 million people and of these, half are shopping for clothing. “Following our launch in England, this was reason enough to open a branch in the land of fine wines and haute couture,“ states Björn Brunkow categorically.

“With a native speaker based in France we are able to reach potential customers much

With our long-standing, bestpractice experience in the areas of logistics and supply chain, we are an expert partner for the many different sales and distribution channels such as e-Commerce, retail, multi and omni channel. ALPHA PIERAU FRANCE

will be managed by Björn Brunkow from Pierau Planung and Renaud Fontaine, CEO of Alpha Logistics Consulting, who has many years’ extensive experience in the logistics sector.

more easily than from our Hamburg headquarters. Working together, with our international experience and expertise, we are well positioned to achieve the objective of establishing ourselves for the long-term in the French market,” says Björn Brunkow.

Working side by side the logistics experts will create and implement analyses and concepts for increasing efficiency, new buildings and reorganisations of logistics centres and supply chains for both B2B and B2C. “The focus is on innovative, effective and economical ideas,“ said Fontaine with regard to ALPHA PIERAU FRANCE’s philosophy. Fontaine received his Master’s at the prestigious École Nationale des Ponts et Chaussées as well as a Master’s in International

ABOUT Contact in the UK Copyright © 2016 by Pierau Unternehmensberatung GmbH All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of Pierau Unternehmensberatung GmbH.

Wishing you Happy Holidays and a New Year filled with good health, prosperity and success!

Pierau Logistics Ltd The Innovation Centre Mewburn Road, Banbury, OX16 9PA Mr Mike Walling | [email protected] Fon: +44 (0)1295 817661 | www.pierau-logistics.co.uk This customer magazine is published by Pierau Unternehmensberatung GmbH Grotenbleken 33 | 22399 Hamburg | Germany E-Mail: [email protected] Project Inquiries: Arne Pierau | [email protected] Marketing: Nicole Morganti | [email protected]

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