Next-Day Delivery and Innovative Logistics Solutions
“Order today. Delivered tomorrow,” promises CERATIZIT. Orders received by the cemented carbide manufacturer by 7:00 p.m. are shipped the same day—and reliably reach the customer the next business day. Next-day delivery works not only throughout Germany but also to nearly all regions of Europe, thanks to the nearby Memmingen Airport. “At 99.9 percent, the success rate of the shipping service is higher than Amazon’s,” says Dr. Jens Ludwig, Principal Consultant at io. He should know. After all, he played a key role in ensuring that CERATIZIT can keep its delivery promise.
An interdisciplinary team from io organized and oversaw the logistics planning and the setup of the warehousing and conveyor systems—including the necessary IT infrastructure—at the CERATIZIT site in Kempten. The new distribution center of the internationally sought-after manufacturer of cutting tools went into operation there in early 2022. It covers 17,000 square meters and is located not far from the aging warehouse, which could no longer be kept in operation. “It had reached its limits. Growth was no longer possible there, which is why CERATIZIT decided to build a new facility—including new technology, since it was not economically feasible to relocate the existing automated warehouse,” explains Ludwig.
The 2.7-kilometer-long conveyor system delivers approximately 4,500 packages daily to the picking and packing stations
The new logistics center ships approximately 4,500 packages daily to customers around the world. It features around 90,000 storage locations across seven aisles, twelve picking stations, and 26 packing stations. The building and facility allow for a doubling of throughput and capacity. As a result, the new central warehouse offers potential for further growth as well as the integration of additional decentralized warehouses within the CERATIZIT Group. Its order-picking technology is highly automated. It follows the “goods-to-person” principle and utilizes modern methods such as “pick-by-light” and “put-to-light.” The comprehensive package of cleverly integrated technology ensures the smooth and highly efficient transport of individual items via a conveyor system totaling 2.7 kilometers in length to the individual picking and packing stations. “For a hidden champion like CERATIZIT, that’s definitely a fitting description,” Ludwig attests.
“We literally planned the warehouse layout from a blank sheet of paper,” he continues. “Together with the decision-makers, we arranged the storage areas on the floor plan. After a careful evaluation of current inventory and order data, as well as a projection of several growth scenarios over the planning horizon, we finally arrived at the final concept. It encompasses all layout aspects of the completed logistics center, such as scalability, ergonomic workflows, and the routing of the conveyor system.” However, certain aspects required special attention to meet CERATIZIT’s requirements. “Due to the promised next-day delivery and afternoon order peaks, the facility is designed to handle more than double the average load. After all, the products must be available to reach the customer on time,” explains Ludwig. Goods are therefore still checked in directly at the warehouse by express delivery service providers, who transport the packages in Sprinters to the appropriate hubs for onward shipment. The integration of warehouse automation and processes into SAP S/4 HANA with EWM and MFS also ensures end-to-end processes and strategies on the IT side. Here, the specialists from io supported their logistics colleagues with advice and practical assistance.
The CERATIZIT facility in Kempten has approximately 90,000 storage locations
Identify weaknesses, explore borderline situations
To ensure proper operation even under extreme conditions and to identify and eliminate any potential weak points, the planned system and its subsequent expansion phase were simulated at the start of implementation.
Additional and entirely custom requirements were driven by the CERATIZIT product line itself. “We’re talking about carbide tools for metalworking. That means the alloys contain tungsten—a heavy metal that’s heavier than lead,” reports Ludwig. “The heavy weight of the items makes storage and transport challenging. It also requires special attention when it comes to the ergonomic aspects of designing the individual workstations.”
The phased go-live of the logistics center was also unique: In addition to the testing and commissioning structured by io, a logistics test day initiated by CERATIZIT was also conducted. The goal was to simulate a normal workday—including all special functions. Not to mention the overarching objective: for employees to become familiar with the entire facility and develop their own understanding of it. “We kept a close eye on things to ensure everything was 100 percent right,” said Ludwig. “The focus was on the facility. After all, everything has to run smoothly to get the warehouse staff on board.”
With the new logistics center, CERATIZIT is optimally equipped for many more successful years. And what’s more: Since the new building was designed from the outset to be easily expanded and extended, the course for the company’s future has already been set.
