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Case Studies > A Modern Central Distribution Center to Facilitate Growth for Major Retailer

A Modern Central Distribution Center to Facilitate Growth for Major Retailer

Technology Category
  • Functional Applications - Warehouse Management Systems (WMS)
  • Analytics & Modeling - Predictive Analytics
  • Automation & Control - Automation & Process Control Systems
Applicable Industries
  • Retail
Applicable Functions
  • Warehouse & Inventory Management
  • Logistics & Transportation
Use Cases
  • Warehouse Automation
  • Inventory Management
  • Supply Chain Visibility
Services
  • System Integration
  • Training
The Challenge
Rusta AB, a rapidly expanding retailer, faced the challenge of managing its supply chain efficiently amidst its rapid growth. With annual growth rates between 15-20%, Rusta needed a modern, centralized warehouse and distribution center to replace its eleven smaller facilities, including two main warehouses. The goal was to enhance flexibility, control over the supply chain, and support future growth. Efficient logistics were critical to handle large volumes, seasonal variations, and to maintain low prices. The new facility needed to be strategically located to ensure short transport distances to stores in Sweden and Norway.
About The Customer
Rusta AB is a major retailer in Sweden, founded in 1986 by Anders Forsgren and Bengt-Olov Forssell. The company has grown rapidly, with 100 stores across Sweden and Norway. Rusta sources 60% of its products from European suppliers and 40% from Asian suppliers, maintaining control over its supply chain by functioning as an importer, wholesaler, distributor, and retailer. The company offers a wide range of products, including home decoration, seasonal items, DIY products, and consumables. Rusta's business model focuses on simple procurement processes with minimal intermediaries, ensuring quality and cost-efficiency.
The Solution
Rusta partnered with Swisslog to design and integrate a high-bay warehouse in Åby, north of Norrköping. The facility spans 65,500 square meters and includes a fully-automated high-bay warehouse for pallet goods. Swisslog provided a standard high-bay solution, nine stacker cranes, a conveyor system, and 20 ergonomically designed pick stations. The automation system is optimized with an energy recycling system to reduce energy consumption. Swisslog's Material Flow Control System (MFCS) manages the high-bay warehouse, ensuring stable and continuous operation. The central warehouse is strategically located near the Norrköping harbor and main roads, facilitating efficient access and future expansion.
Operational Impact
  • The new central warehouse has centralized Rusta's supply chain operations, providing significant time and cost savings.
  • The facility employs about 300 Rusta employees, reflecting the company's culture of maintaining control over its value chain.
  • The high-bay warehouse has improved productivity, accuracy, and cost-efficiency in material handling and order fulfillment.
Quantitative Benefit
  • The central warehouse spans 65,500 square meters, with preparations for expansion to 120,000 square meters.
  • More than 3,000 pallets arrive daily, with up to 30 containers unloaded from Asia.
  • Approximately 1,600 pallets of goods are picked daily, with around 400 e-commerce orders completed for home delivery.

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