In the following case study, Luxembourg-based food retailer Auchan Retail demonstrates how deploying the right warehouse automation can revolutionise e-commerce operations.

Present in Luxembourg since 1996, Auchan Retail offers various formats of food retail with three hypermarkets, seven Auchan Drive pick-up points, countrywide delivery via Auchan Drive, 16 MyAuchan convenience stores in partnership with Aral, and 3 Mondial Relay lockers. Today, it employs over 1,200 staff.

Auchan Retail operates in 13 countries. To build a competitive and modern retail experience, Auchan Retail places its customers at the heart of all its decisions: discount prices, a wide and diverse product range, quality service, and adaptation to local markets.

The challenge

Since 2006, Auchan Luxembourg has relied on a “master” warehouse in Dudelange, in the south of the country, to prepare and distribute its e-commerce drive-through and home orders; the company also aims to develop in-company delivery. Stocked in four different temperature zones – dry, fresh, frozen and fruit & vegetables – products of all sizes are stored and prepared here, before being dispatched to the various order distribution points.

Automating the Dudelange warehouse is the final building block in a wide-ranging overhaul of Auchan Luxembourg’s e-commerce processes and tools, following a new website, a new ERP a and new WMS (MAGISTOR). The project aimed to densify storage, rationalise preparation and dispatch operations, and reduce hard, repetitive manual work for employees.

After a period of consultation with various companies, Auchan Luxembourg turned to Exotec, attracted by the “all-inclusive” aspect of Exotec’s Skypod system (including the modularity of the system, integration of specific software and machines, and integrated maintenance). 

“We benefited from a 100% turnkey service”, explained Martin Delattre, Logistics Operations Manager at Auchan Retail Luxembourg.

Exotec’s proven experience with other major retail companies, and its ability to understand the business issues at stake in pre-sales, deployment and maintenance, and to provide solutions to the specific problems encountered by Auchan Luxembourg, was also important. 

“Right from the pre-sales phase, we were dealing with people who not only had a perfect grasp of the system, but also of our problems, having encountered them at other customers in the sector. This made the workshops very productive”, added Delattre.

The solution

Exotec’s Skypod installation included:

• 37 robots
• 3 picking stations
• 2x 15,300 bins
• 915 bins per hour
• 749 m² floor area.

The results

1. Performance improvement

• Capacity to handle up to 915 bins per hour, optimising order-picking times.
• Centralised picking and restocking operations, reducing inventory errors and improving stock accuracy.
• Flexibility of stations, allowing preparation and reception to be carried out on the same workstations, increasing operator versatility.

2. Reducing hard, repetitive manual work

• Automation eliminates repetitive manual tasks and physical constraints.
• Improved working conditions: pickers no longer have to handle heavy products or work in uncomfortable positions.
• Reduced internal travel for preparation staff, increasing efficiency and reducing fatigue.

3. Turnkey solution

• Complete integration of system, machines and software, ensuring uninterrupted operational continuity.
• Maintenance included, with options such as system cleaning, allowing Auchan to concentrate on its core business.
• Team support and training by Exotec, facilitating rapid adoption of the new system.

4. Storage densification

• Optimisation of available space, enabling an increase in the number of references stored.
• A flexible, scalable system, designed to absorb future stock increases and manage seasonal or promotional variations.
• Use of specific Auchan bins for preparation and delivery, maximising logistical efficiency.

5. Efficient returns management

• Simplified management of customer returns with a multi-reference storage system.
• Automatic prioritisation of returned items for rapid reintegration into active stock.
• Reduce inventory errors and optimise receiving productivity.

Delattre summarised: “Exotec’s turnkey system, coupled with a keen understanding of our specific needs, simplified our transition to automation.”

exotec.com