With retailers demanding faster inventory replenishment, adidas Group wanted to ensure it reaches 83 percent of customers in its largest U.S. markets within three days by ground shipping.
To meet this challenge, adidas Group consolidated its U.S. distribution network to expand and improve service levels while also:
- Handling daily volume growth
- Lowering operating costs and gaining efficiencies by utilising automation
- Preparing for future changes in customer behaviour as well as e-commerce growth
The world’s second-largest clothing and consumer goods manufacturer selected a greenfield site, where the company invested in two distribution centres covering more than 186,000 square metres (2,000,000 square feet).
Honeywell engineers two efficient and fast solutions
To support adidas Group, Honeywell designed two high-volume throughput solutions:
- Waterfall induction for shirts, shorts, sweatshirts, pants and other clothing
- Domino induction for shoeboxes
Apparel is picked from individual storage and full cases and bulk-dumped into gaylords, which are then sent onto a collection conveyor. This process is more efficient and faster than manual methods. Honeywell also created a system of belt transportation conveyors to move products from the ground floor to induction stations overhead.
To eliminate the manual handling of shoeboxes, Honeywell designed a V-belt driven roller conveyor. Stacks of four to eight shoeboxes can be deposited vertically onto the conveyor. Employees load multiple items in one motion, rather than one or two shoeboxes at a time. The conveyor catches the end of each box and topples or dominoes it onto the conveyor.
Productivity goals and cost savings achieved
adidas Group meets current demand and is ready to handle future e-commerce growth. With Honeywell’s extensive knowledge and value engineering experience, adidas Group:
- Brought both of its U.S. distribution centres online on time and within budget
- Achieved its goals for productivity and cost savings
- Improved service levels
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