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Case Studies > Using Automated Storage to Optimize Costs and Improve Quality

Using Automated Storage to Optimize Costs and Improve Quality

Technology Category
  • Functional Applications - Warehouse Management Systems (WMS)
  • Automation & Control - Automation & Process Control Systems
  • Analytics & Modeling - Predictive Analytics
Applicable Industries
  • Food & Beverage
  • Consumer Goods
Applicable Functions
  • Warehouse & Inventory Management
  • Logistics & Transportation
Use Cases
  • Warehouse Automation
  • Inventory Management
  • Predictive Maintenance
Services
  • System Integration
  • Software Design & Engineering Services
  • Training
The Challenge
In 2013, Trinchero Family Estates decided to centralize its bottling and distribution with its production in a new facility that would leverage automation. The facility had to support seamless product movement between production and distribution as well as accommodate products received from co-manufacturers and other TFE bottling sites. The primary challenge was achieving the throughput and speed desired. The goal was to run 3-4 bottling lines while also bringing in product from co-manufacturers and bottling sites in Napa Valley. They needed to move product into storage fast and ship fast. Other challenges included consolidating inventory from two distribution centers into one high-density location and providing visibility and control of product as it moved through bottling and distribution.
About The Customer
Trinchero Family Estates is a worldwide leader in the wine industry, with more than 45 acclaimed wine and spirits brands and a global presence in nearly 50 countries. The family-owned business has been passed through three generations of Trincheros since it was founded in 1947, expanding steadily as it grew sales and added brands. The Sutter Home brand alone has grown into one of the top wine brands in the U.S. with sales of more than 10 million cases annually. However, while the company was growing its portfolio and reach, inefficiencies crept into the supply chain. Bottling and distribution were spread across two facilities in Napa Valley, physically removed from the company’s largest wine production facility in Lodi, California. That required bulk wine to be shipped across the Napa Valley to be bottled and distributed from various facilities that relied upon classic manual storage and distribution operations.
The Solution
Trinchero engaged with Swisslog Warehouse and Distribution Solutions to develop an automated distribution system that could be integrated with bottling in a new facility in Lodi, California. They chose the Swisslog PowerStore system, a robotic storage and retrieval system designed for deep lane storage of palletized loads. The solution featured a four-module Swisslog PowerStore system and more than 3,500 feet of Swisslog ProMove conveyors connecting bottling and receiving with the PowerStore system. The PowerStore system provides high-density storage in nine vertical layers and intelligently manages inventory to optimize compaction and support first-in first-out management. The system can store more than 72,000 pallets—over 4 million cases—in just 190,000 square feet, with throughputs of up to 249 pallets per hour. Integration of Trinchero’s SAP system with the new Swisslog WMS allows for continuous communication, maintaining visibility and control over products as they transition from production and receiving into the automated storage system and through shipping.
Operational Impact
  • After consolidating inventory in the new integrated bottling and distribution facility, Trinchero has been able to reach its goal of moving 249 pallets per hour in and out of storage while maintaining complete control over inventory.
  • The new system has eliminated the need to ship product from wine production to bottling and minimized handling within the warehouse, saving transportation costs and minimizing product damage.
  • The system has also reduced warehouse forklift traffic, saving energy and enhancing warehouse safety.
Quantitative Benefit
  • The system can store more than 72,000 pallets—over 4 million cases—in just 190,000 square feet.
  • The company is achieving a compaction rate of 89 percent.
  • The automation system and software integration have improved inventory accuracy to 99.998 percent.

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