A sweet solution: Swisslog automates confectionery handling for Mondelēz

Intralogistics company Swisslog has installed a new warehouse automation solution in Victoria for global snack food business Mondelēz, as part of a major $130m warehouse upgrade to handle multiple ranges of chocolate and confectionery products, including household names such as Cadbury, The Natural Confectionery Company, Pascall, OB Finest and Olina’s.

The new automated storage and retrieval system (ASRS) in Truganina (about 25 km west of the Melbourne CBD) serves 56,100 of 85,000 total pallet locations, and is the first national DC for Mondelēz in Australia.

“This project is a significant win for Swisslog, in a highly competitive tender,” said Swisslog Australia and New Zealand Managing Director Dan Ulmamei.

“Mondelēz required a solution that could handle seasonal and non-seasonal goods simultaneously, while boosting storage capacity and distribution efficiency across Victoria,” he said.

“It’s also significant because this is the biggest in-house operational automated warehouse that will be run by Mondelēz, and not through a 3PL.”

The Swisslog ASRS will allow Mondelēz to consolidate its Victorian distribution centres and off-site storage into one facility.

“This consolidation eliminates double-handling inefficiencies, and has the flexibility for future growth. The new facility is designed to handle 56,000 pallets initially in the high bay, with room to expand the ASRS up to 62,000 in the future as the business grows,” Ulmamei said.

Flexibility and space utilisation

The automation solution uses the latest generation of ASRS cranes, including 11 Vectura vertical stacker cranes, each 32 m tall, with double-deep load handling forks, and an inverted monorail circuit equipped with 22 dual-load trollies. It also features 16 dual pallet flow lanes, 490 m of pallet conveyor, 56,100 pallet locations in the high bay, and Swisslog’s SynQ software, which will be used as the warehouse execution system (WES).

The system’s designed throughput includes 218 total inbound pallets per hour, and 255 total outbound pallets per hour.

“Mondelēz International is investing in the future of our supply chain capabilities and strengthening our operations through the opening of a national distribution centre, creating efficiencies to offset rising costs, while increasing our network storage capacity and overall productivity. Swisslog was able to present the best solution for the long-term benefit of our operations,” said Wayne Angus, Mondelēz Supply Chain Vice President, Australia, New Zealand and Japan.

Wayne Angus, Mondelēz Supply Chain Vice President, Australia, New Zealand and Japan; Jens Schmale, Swisslog CEO; Dan Ulmamei, Swisslog Managing Director, Australia and New Zealand; and Anna Reid, Mondelēz Director Customer Service and Logistics, ANZ.

The double-deep ASRS solution provides a high level of flexibility in operation for both storage utilisation and selectivity. A double-deep rack design is also economical due to simpler, safer and quicker lead time to delivery and installation procedure. The system has been designed with additional throughput capability in cranes, monorails and conveyors for operational redundancy, creating a future-ready solution.

“The Swisslog ASRS also gave us a high degree of flexibility, which is important when we are working with so many product lines and responding to changes in consumer demand, as well as seasonal variations and peak periods,” Angus said.

“The automation solution also increases the safety of our operational personnel, removes our error handling, upskills our team in automation and improves our truck turnaround times, thereby further enhancing our operational efficiency.

“Aligned with our net zero carbon goals, our facility will use 100% renewable electricity and will generate approximately 1 MW of solar power, covering 30% of the overall estimated power demand. The facility also has been designed to achieve a 5 Green Star Design Rating from the Green Building Council Australia.”

SynQ software

SynQ — Swisslog’s modular warehouse management system (WMS) — is a service-oriented software platform for warehouse management that provides functionality to optimise warehouse operations. It can also provide the functionality of a WES, WCS (warehouse control system), MFS (material flow system) or ACS (automation control system), and it can interact with ERP (enterprise resource planning) and e-shop systems.

Ulmamei said Swisslog’s SynQ Independent Business Intelligence tools suite adds value by enabling warehouse operations to work smarter, not harder.

“SynQ is a single platform that uses proven industry-specific processes that optimise warehouse automation processes, backed by more than 100 years of experience, with more than 500 software experts worldwide,” he said.

“SynQ looks after both the automated and manual operations for Mondelēz, and we are delighted that such a major household name chose Swisslog for the excellent value and return on investment of their warehouse automation.”