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					TGW   LOGISTICS              GROUP          GMBH                       PRESS          RELEASE




  TGW Reinvents Apparel Logistics Solutions

  Successful apparel distribution centres based on carton direct handling

  Austrian material handling solution provider TGW has successfully
  implemented apparel distribution centres for leading retailers. Each
  solution is based on TGW’s specific know-how and technology in carton
  direct handling, but tailored to the individual retailer’s needs. The results
  are streamlined processes, optimized customer service and reduced
  logistics costs.

  The apparel distribution is a fast moving industry with ever increasing
  requirements in logistics operations. Fashion retailers have to deal with
  frequent new arrivals and quick replenishment in their shops as well as
  reduced logistics efforts at shop level. “Our customers in the global fashion
  retail have been relying on centralized distribution centre strategies to be able
  to fulfil these high requirements,” explains Rudolf Hansl, Managing Director of
  TGW Logistics Group. Today big apparel distribution centres service several
  hundred shops, handle up to 50,000 cartons per day and ship millions of
  garments per week to their outlets and consumers. Hansl says that these
  central warehousing and picking facilities offer big advantages in terms of
  sharing resources, reducing stock volumes and increasing logistics service
  quality for the shops.

  Logistics for shop replenishment and e-commerce

  But consumers no longer buy only in the shops. More and more order their
  fashion online from home. These e-commerce activities are characterised by
  extremely small order volumes, short response and delivery times, and high
  returns rates. The logistics process differs from the shop replenishment
  operations in many aspects but still the integration into a centralised
  distribution centre might be the best option. “During the systems design phase
  we take all these aspects into account and intensively discuss the different
  solutions with our customer. One big advantage of a distribution centre for

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  both business models is that both operations can be replenished from the
  same stock,” says Rudolf Hansl.

  Traditional manual distribution centres are no longer able to efficiently handle
  the volumes in the speed and quality a fashion chain like H&M needs. H&M is
  one of several leading fashion retailers who decided for an automated solution
  provided by TGW. “Since 2009 we have used our new distribution centre in
  Hamburg including an automated carton warehouse and material handling
  system,” says André Heyden from H&M Logistik. “We are very happy with this
  solution and have enjoyed the cooperation with TGW.”

  TGW eliminates unneeded processes – ROI: 2.5 – 3 years

  TGW’s basic concept for apparel distribution centres is to directly handle the
  individual cartons throughout the installation, from goods receiving to dispatch,
  and to reduce the walking or driving distances for the workers drastically. “We
  take the incoming cartons onto our conveyor system, identify and check them,
  and buffer them in a fully automated carton warehouse,” explains Rudolf
  Hansl. Compared to most other solutions this concept avoids the now
  unneeded palletizing process at goods receiving and manual handling of these
  pallets in a large block storage. In contrast the very cost effective carton
  warehouse in TGW’s solution replenishes the subsequent picking, sorting, or
  dispatch process fully automatically and always just in time.

  The cartons in the warehouse are stored and retrieved by highly dynamic
  TGW mini-load stacker cranes with Twister load handling devices. These
  handling devices are capable of storing cartons up to four-deep in shelving
  racks, while providing access to each individual carton and ensuring stock
  integrity. The vast range of carton dimensions that can be handled is
  impressive, with a dimension range of between 200 and 800 mm in length and
  150 to 650 mm in width. Due to this innovative multi-deep storage technology
  the investment is only 10 – 15 % higher than a pallet warehouse but results in
  big operational cost advantages and a ROI in 2.5 – 3 years.



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  Solution 1 – manual picking process

  One of TGW’s solutions is for a leading fashion retail chain in Europe that
  supplies 500 shops and uses the carton warehouse for the automated
  replenishment of the two different manual picking processes. New products for
  the stores are picked from carton flow racks. These flow racks are replenished
  by the automated warehouse. The shipping cartons arrive at the picking
  station with their picking list and are packed with the appropriate quantity of
  garment from each flow rack channel by the picking personnel. As soon as the
  carton is finished it is conveyed to the right area for shipping.

  The second picking process handles the shop replenishment. Here the
  cartons provided by the automated warehouse are sorted into a manual
  racking system. Workers walk through the rack aisles with picking lists for
  each shop and take the right articles in the right quantity from the cartons.
  Picked items are packed into shipping cartons and again conveyed to the
  appropriate shipping lane.

  High density warehouse with redundant handling capacity

  One of the most important restrictions for this solution was the footprint
  minimization of the warehouse at a very high throughput performance. “We
  had to guarantee a throughput of up to 3,000 cartons per hour and to handle a
  variety of carton sized from 250 x 400 mm to 600 x 800 mm,” says Rudolf
  Hansl. That is why TGW decided for an 18-aisle warehouse with two Mustang
  AS/RS machines with Twister VCplus load handling device in each aisle. The
  Twister allows for maximum footprint usage as it is able to store the cartons
  double deep by just using a single deep aisle width. And the use of two
  Mustang AS/RS machines per aisle boosts performance and guarantees
  access to each individual carton, even in case of the breakdown of one
  machine.

  Solution 2 – cross docking and goods-to-man picking process




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  Another TGW solution combines a carton cross-docking system for getting
  new collections to the shop and a highly ergonomic goods-to-man picking for
  articles which the shops pull from the distribution centre. It is designed for a
  performance of up to 50,000 cartons delivered to the shops per day. 40 % of
  all cartons arriving at this distribution centre are cross-docked, as they already
  contain a pre-defined assortment for the shops. It takes less than five minutes
  to automatically transport the individual carton from goods receiving to the
  right palletizing station in the shipping area.

  Picking for the pull process is done at highly ergonomic and flexible work
  stations. In the middle of the workstation the picker is provided with goods
  cartons coming from the automated warehouse in an optimized picking
  position and the picking information on a screen. The open order cartons are
  positioned to the picker’s left and right, where lights indicate where to put the
  picked items. Finished cartons are pushed back onto a conveyor line and
  conveyed to the shipping area. High flexibility is secured by having two of
  these picking stations facing each other, so one employee can handle both
  stations in times of low throughput or each station is staffed with one person in
  peak times.

  The warehouse for this installation offers a capacity of 500,000 cartons in 22
  aisles. Each aisle is serviced by a highly dynamic TGW Magito AS/RS
  machine with triple deep Twister load handling device. These triple deep
  handling devices enable very fast storage of single SKU channels while giving
  access to each individual carton for retrieval.

  Solution 3 – automated sorter picking

  A third solution is based on picking the shop orders by a high speed sorter
  solution. In this solution the cartons coming from the automated warehouse
  are delivered to manual in-feed stations. There the workers open the provided
  cartons and position each item on an in-feed conveyor that pushes the single
  garments onto the sorter. This high speed sorter automatically fills the order
  cartons with the appropriate quality and quantity of articles. The finished

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  cartons are pushed onto a conveyor line, sealed, labelled and conveyed to the
  right shipping lane.

  TGW installed this solution for a facility that handles 35,000 items per hour.
  The carton warehouse has a capacity of approximately 300,000 cartons in
  triple deep storage. The 15 warehouse aisles are equipped with 15 TGW
  Stratus AS/RS machines with two triple deep Twister load handling devices
  each to be able to handle the needed high warehouse throughput.

  Value added services

  Within these automated solutions it is easy to include workstations for value
  added services. Orders that have to be reworked are automatically redirected
  to these workstations where they receive their special labelling, additional
  promotional items, individual packaging or another special service. Afterwards
  these orders are reintegrated into the main material flow and conveyed to the
  dispatch area for shipping.

  Ergonomic manual or fully automated palletising

  To facilitate the handling in the shops, the cartons are stacked on pallets or
  roller containers before shipping. Depending on the individual requirements
  this palletising process can be handled by a fully automated installation, e.g.
  the TGW Autostax palletizer, or by highly ergonomic manual palletizing
  stations like the TGW Slotstax. Both solutions are designed to deliver high
  performance.

  “Each of our solutions is unique as they reflect the special requirements and
  situations of the individual customer,” says Rudolf Hansl. “But all of them are
  based on lean and standardized modules that are highly reliable and stand for
  high performance and energy efficiency.” This results in tailor made
  automated solutions delivering the fashion retailer highest distribution centre
  performance, highest picking and inventory accuracy, a massive reduction in
  operational costs and a very fast return on investment.



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  Fact Box – Automation Advantages:

  –   Highest process and picking accuracy

  –   Highest throughput and performance

  –   Reduction of distribution centre staff and operational costs

  –   Optimized distribution centre footprint

  –   Increased logistics services for shops and consumers




  www.tgw-group.com




  About TGW Logistics Group:

  The TGW Logistics Group is an integrated solution network. Since 1969 the
  company has been implementing different internal logistics solutions, from
  small material handling applications to complex logistics centres.

  The companies of the TGW Logistics Group can look back on a successful
  development. With about 1,100 employees worldwide by now, the group
  implements logistics solutions for leading companies. In the business year
  2008/09, the TGW Logistics Group generated sales revenues of 259 million
  Euros.




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  Pictures:

  Source: TGW Logistics Group GmbH
  Reprint with reference to TGW Logistics Group GmbH free of charge. Reprint
  is not permitted for promotional purposes.

  Apparel_H_IMG_0004_hq.jpg:
  Carton direct handling technologies from TGW offer new opportunities for
  fashion distribution centres.

  Apparel_H_IMG_0021_hq.jpg:
  TGW’s automated handling systems reduce operational costs drastically.

  Put-Station.jpg:
  Highly ergonomic picking workstations from TGW boost the performance.

  TGW_MD_Hansl_01.jpg:
  Rudolf Hansl is Managing Director of TGW Logistics Group.




  Contact:                                Press contact:

  TGW Logistics Group GmbH                Michael Etlinger
  A-4600 Wels, Collmannstraße 2
  T: +43.(0)7242.486-0                    T: +43.(0)7242.486-1382
  F: +43.(0)7242.486-31                   M: +43.(0)664.8187423
  e-mail: tgw@tgw-group.com               michael.etlinger@tgw-group.com




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