The Customer
Lianhua Supermarket, established in 1991, is one of China's largest retail enterprises, known for its diverse business formats, including hypermarkets, supermarkets, and convenience stores. With a network spanning more than 100 cities across China, Lianhua serves as a powerhouse in the retail industry, offering a wide range of products and maintaining high standards of service.
The Challenge
Lianhua faced significant challenges as its extensive store network required more efficient supply chain operations:
- Surging Demand: With over 5,000 stores to supply, Lianhua struggled to meet growing order volumes during peak periods.
- Manual Limitations: Traditional storage methods and manual processes restricted throughput and efficiency, leading to bottlenecks.
- Storage Constraints: Limited space hindered inventory management, reducing capacity for a growing number of SKUs.
- Response Time: Meeting tight delivery windows across urban areas required faster and more precise operations.
Our Solution
Lianhua implemented a flexible and automated storage and retrieval system (ASRS) within its Smart Warehouse. This solution delivered an integrated, high-performance system, incorporating the following key features:
- Pallet-to-Person Technology: The ASRS utilized pallet-to-person systems to optimize vertical storage, creating over 2,000 to 900 pallet positions and doubling storage capacity to house 80,000 SKUs.
- Batch and Zone Picking Strategies: Advanced picking methods, including batch and zone picking, were employed to maximize throughput and operational efficiency.
- Dynamic Replenishment: During idle hours, the system replenished goods from storage to picking zones based on real-time store-specific orders, ensuring peak readiness.
- Seamless Automation with ASRS Robots: The ASRS robots worked alongside manual forklifts for streamlined operations, combining human expertise with automated precision to enhance accuracy and reduce workload.
The Geekplus impact
The implementation of the automated system brought measurable benefits to Lianhua’s operations:
- Enhanced Capacity: Storage space was expanded by 100%, enabling accommodation for more SKUs.
- Improved Productivity: Picking and replenishment efficiencies significantly increased, ensuring faster order fulfillment.
- Demand Preparedness: Real-time replenishment allowed Lianhua to efficiently handle peak loads and same-day delivery expectations.
- Integrated Operations: Robots worked in tandem with forklifts, improving accuracy and reducing the workload for employees.
- Future-Readiness: By leveraging automation, Lianhua achieved a scalable logistics model that supports ongoing growth and market demands.
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