Iconic denim brand Levi Strauss & Co. appoints TGW to design and implement European distribution center
(Marchtrenk, May 10, 2021) On a footprint of 1,700,000 square feet, Levi Strauss & Co. is building one of Europe's largest logistics hubs for fashion items and accessories. The denim brand is thus consolidating its fulfillment processes at one central location. With go-live scheduled for November 2023, TGW is supplying the highly automated fulfillment solution for omni-channel operations.
Levi Strauss & Co. is consolidating its European fulfillment processes in a 1,700,000 square feet large facility. The goal is to respond to market requirements with greater speed and efficiency, shorten delivery times and accelerate growth over all sales channels. The new location helps Levi Strauss & Co. increase sustainability, flexibility and digitalization of the global supply chain. ‘We are pleased to have had the opportunity to collaborate with warehouse automation specialist TGW Logistics Group in setting up our MHE systems’, says Torsten Mueller. Mueller is responsible for Levi Strauss & Co.’s distribution and logistics processes and owner of the project.
At the core of the solution is TGW’s highly automated goods-to-person order fulfillment system ‘FlashPick®’. FlashPick® flexibly handles unpredictable and fluctuating order structures. In case of shifting distribution channels (stores, online and wholesale) or order structures, the system efficiently adapts to the new requirements and supports the denim brand’s growth.
On peak days, up to 350,000 units are being shipped. The average lead time from order income to packaging being ready for shipment is just ten minutes. The project is split into two phases: In the first phase – scheduled to go live by 2023 – an annual throughput of up to 33 million units per year will be reached. In the second phases of the project, the number will grow up to 55 million due to an increase in storage capacity and additional picking workstations.
The solution is based on an automatic mini-load warehouse and a five-aisles shuttle system with a total of 830,000 storage locations. The shuttle system replenishes ten PickCenter One workstations. Their design is based on a ‘One Source. One Target’ approach, which allows for fast and accurate order picking. All modules are connected via a 3,300 feet-long energy-efficient KingDrive® conveyor network.
The TGW Warehouse Software helps Levi Strauss & Co. make the stringent requirements of omni-channel operation manageable and is an integral part of the solution. It is responsible for planning, monitoring and optimizing all fulfillment processes.
In order to use resources efficiently, up to 70 percent of incoming cartons will be reused for dispatch. An innovative robotic system by TGW automatically repacks the cartons into totes. In addition, Levi Strauss & Co. avoids using plastic polybags by picking directly into cartons or paper bags instead.
‘Levi Strauss & Co. is experienced in dealing with logistics. We're proud that they trust our automation expertise,’ emphasizes Johann Steinkellner, CEO Central Europe with TGW. ‘FlashPick® allows to combine eCommerce, wholesale and retail business efficiently. This is a critical competitive advantage for companies with an omni-channel business model such as Levi Strauss & Co.’
