eMart

eMart case study.

Quick Facts

GOAL
Design and build an eCommerce fulfillment center with a small footprint and three temperature zones
SIZE
157,000 Sq. Ft.
THROUGHPUT
25,000 Deliveries Daily
products handled
50,000 SKUs of Household Goods
OUTCOME
75% labor reduction, 20% increase in processing capacity, shortage rate improved from 3% to 0.2%

eMart is the largest retailer in South Korea with over 160 stores across the country.

eMart is the oldest and largest discount store chain in Korea. With new store openings and acquisition of Wal-Mart Korea in 2006, eMart is enjoying its retail leadership in the discount store market.

Challenge

eMart desired an eCommerce fulfillment center with a small footprint so it could be located closer to customers in residential areas allowing them to provide same day delivery.  The facility would be required to have three different temperature zones; ambient to handle non-perishable and household goods, cold to handle fresh foods, and freezer to handle frozen foods.

Solution

Daifuku designed a five level facility to reduce eMart's footprint.  The multiple levels were ideal for isolating the three required temperature zones.

A ceiling-high shuttle with 322 shuttle units and sequencing capabilities on the fourth floor is used to store and retrieve medium turnover SKUs stored at ambient temperature. The shuttle feeds one of 14 Goods-To-Person (GTP) stations where workers verify the image and quantity on the screen and pick the product required for the order.  This process significantly increases productivity because products are delivered to the workers instead of them looking for them individually.

High turnover fresh (45°F) and frozen (32°F) picking processes in the basement utilize pick-to-light and put-to-light technologies.  Product inventory is replenished directly from the rear utilizing automated carton flow replenishment, enabling faster order processing. Completed orders are stored in a refrigerator prior to shipping.

Products that have been picked up on the 3rd and 4th floors are returned to the 1st floor where they are consolidated and temporarily stored in a buffer/sequencer shuttle until they are released for delivery in reverse route sequence. In-motion scales weigh cartons to verify actual total weight against anticipated total weight.  If the weight is off it is diverted to a lane where each item is verified by hand.  Orders are sorted on an automated sliding shoe sorter and diverted to one of 50 dock doors based on vehicle, customer, and order, sequenced by order of delivery.

Outcome

With this automated system, efficiency has been increased so that one person can do the work that previously required four people. Delivery processing capacity per vehicle improved by 50% from 30 to 45 per day; and the shortage rate of missing products has been drastically reduced from 3% to 0.2%. Delivery is completed within 3 hours and 30 minutes of ordering.

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