CASE STUDY
Fossil
EGGSTÄTT, GERMANY
Innovative logistics for multi-channel retailing
The customer and their
REQUIREMENTS
"A fusion of the best of the good old days
and the best of today is at the heart and soul
of the Fossil brand." With those words, the
American company known for vintage-style
fashion products sums up its style. Fossil is
an international company specializing in the
design and marketing of handbags, watches,
fashion and jewelry, which are sold under
its own brand as well as other licensed
trademarks. In addition, it markets fashion
accessories from brands such as Emporio
Armani, Adidas, Marc Jacobs, DKNY, Burberry
and Diesel, to name just a few. Fossil is
a growing company, whose avant-garde
approach makes it popular among all age
groups.
Today, Fossil has a presence in more than
100 countries. New products, as well as
new sales channels that give customers
easier access to its merchandise than ever
before, are the driving forces behind this
expansion. Fossil sells its products through
brick-and-mortar stores as well as online:
retail, wholesale and e-commerce thus go
design ¦ develop ¦ DELIVER
hand-in-hand. This multi-channel approach
presented Fossil with entirely new challenges,
especially in terms of logistics. Josef Otter,
CEO of Fesco GmbH, the European logistics
provider for Fossil and a wholly-owned
subsidiary headquartered in the Bavarian
town of Eggstätt, explains the situation:
"With its relentless creativity, Fossil is
currently opening up new business segments
in the market. As a result, its online business
is gaining in importance. Consequently, our
logistics operation is in a constant state of
change and faces an increasing pressure to
optimize its operations."
High sales figures with strong seasonal
fluctuations, a broad product range
with constant additions, large and small
order quantities from customers, as
well as dramatic reductions in delivery
times, characterize the nature of Fossil’s
logistical challenges. The former logistics
infrastructure could not keep pace
with this development. Fossil required
a considerable expansion of its former
warehouse and picking capacity. In addition,
the intralogistics process of the fashion
accessory provider needed to support multichannel sales.
COMPETITIVE EDGE
Highly flexible, very fast, compact
and reliable: By equipping an existing
zone-to-zone picking system with
state-of-the-art shuttle technology
from Swisslog, Fesco created a multipurpose logistics center that provides
Fossil with a clear competitive edge.
design ¦ develop ¦ DELIVER
Based on its requirements profile, Swisslog
helped create a new multi-purpose logistics
center for Fossil. It is highly flexible and very
fast, while also being compact and reliable.
The intralogistics system fits harmoniously
into Fossil‘s vision to achieve a "fusion of
the best of the good old days and the best
of today." Dr. Volker Jungbluth, Managing
Director of Swisslog in Germany adds: "We
have implemented a future-proof solution
for Fossil by combining an existing five
year-old zone-to-zone picking system with
state-of-the-art shuttle technology. In this
way, we were able to considerably improve
the performance of the overall system in
every aspect." The adaptability of the system
to constantly changing items and order
sizes is exemplary, and the flow of goods is
time-saving and efficient. Every workstation
is optimally utilized without idle time. Error
rates for picking are virtually zero. Swisslog
further highlights the benefits: "Fesco’s
logistics center is a pioneering facility for
multi-channel logistics, which has provided
Fossil with a clear competitive edge."
THE SOLUTION
The new intralogistics solution went into
operation in 2013, comprising an expanded
zone-to-zone picking system, implemented
by Swisslog in 2008 based on a pick-by-light
principle. Swisslog updated the existing
infrastructure with a state-of-the-art shuttle
facility: the SmartCarrier system.
This warehouse and transport solution for
products stored in totes or on trays, features
a highly dynamic, space-saving design
and boasts virtually unlimited scalability.
Fossil’s goal for the new logistics system
was to optimize the flow of merchandise in
addition to increasing capacity. Thanks to
the seamless integration of old and new, the
company was able to considerably improve
the warehouse and its picking process.
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case study | FOSSIL, GERMANY
Seamless integration of
old and new
"By connecting our state-of-the-art
SmartCarrier system to the existing zoneto-zone picking system, we have made the
picking process lean and seamless," explains
Swisslog’s Dr. Volker Jungbluth. "Only B
and C items are stored and picked in the
new automated system, which are slower
moving products. This prevents slowing
down the workflow in the existing zoneto-zone picking system, which now only
handles bestselling A products." This has
greatly improved efficiency; thanks to a
continuous flow of merchandise, the picking
stations in the old system are now optimally
utilized.
"We needed an adequate logistics
solution capable of supporting our
new sales channels with fast and
efficient processes."
Josef Otter,
CEO of Fesco GmbH
design ¦ develop ¦ DELIVER
Dynamic handling of
A, B and C items
In addition to handling less popular
products, the new SmartCarrier system
also performs an important warehousing
function, by providing the flexibility
that Fossil needed from its intralogistics
infrastructure. For example, the seasonal
business for fashion accessories is very
dynamic; today’s fast-moving items can
quickly become tomorrow’s slow-movers,
and vice versa. If a former B or C item
suddenly gains popularity, the SmartCarrier
system automatically adds it to the zoneto-zone picking system. Likewise, items no
longer in high demand are removed from
the zone-to-zone picking and placed in the
SmartCarrier system. The exchange between
the two systems takes place so quickly
and smoothly that Fossil can respond
immediately to any and all customer
requests.
High performance
SmartCarrier system
Aside from its B and C item handling and
its backup capability, SmartCarrier offers
impressive performance no matter how it is
used. It is a powerful logistics solution with
a throughput of more than 1 600 totes per
hour. The shuttles are designed for a speed
of up to two meters per second. Up to 6 000
totes can be stored in each aisle, and each
tote can carry a load of up to 35 kg. The
system is designed for continuous operation
and can be expanded when its capacity
limit is reached. Because of SmartCarrier’s
modular design, it is easy to increase the
number of aisles, levels and shuttles as
needed. Picking stations can also be added
to increase the number of workstations.
At Fesco in Eggstätt, the SmartCarrier
system is designed as a 6-aisle automated
case warehouse on 19 levels with
approximately 35 600 storage locations and
currently 12 picking stations. If necessary,
the number of picking stations can be
increased to a maximum of 32. The system
accommodates 5 000 items, which are
stored in totes and transported by a 2.2
km conveyor to the different workstations.
Every day the new system processes up to
40 000 order lines, which corresponds to
approximately 5 600 customer orders in the
same time period.
Accuracy and efficiency
at the picking stations
Facts and figures at a glance
FOSSIL LOGISTICS CENTER
Commissioned
2013
Components
Automated shuttle warehouse (SmartCarrier) in connection
with a zone-to-zone picking system
To prevent operator errors, Swisslog made
sure that the system is straightforward,
with easy-to-operate picking stations. The
merchandise is automatically retrieved
from the SmartCarrier warehouse and
transported to the workstations. There,
a display shows the pickers how many
items to remove and, guided by a pick-bylight system, they transfer these items to
the target totes. Each picking station can
manage up to 28 active order totes. The
picking process at the workstations is highly
efficient because it is based on order lines
rather than orders. When a source tote
arrives at a picking station, the picker first
distributes all order lines for an item to the
different target totes. Then the SmartCarrier
system returns the source tote to storage
while simultaneously delivering a different
item to the picker.
SmartCarrier Warehouse
Size
6-aisle automated case warehouse for up to 5,000 items
No. of storage locations
35 600
Load per tote
35 kg max.
No. of picking stations
12, expandable to 32
Throughput
1 630 totes/hour
Order lines
Approx. 40 000/day
Customer orders
5 600/day
design ¦ develop ¦ DELIVER
case study | Fossil, germany
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Looking head to the
future with confidence
countries throughout Europe. This includes
small and large orders, for individual
consumers as well as for company-owned
Fashion accessories provider Fossil may
stores and sales partners. The company owes
be new to the multi-channel era, but the
its ability to quickly and accurately fill these
company has already firmly established itself. orders to its new, sophisticated logistics
"We have made major investments recently,
system. Fossil concludes: "Our business
in our own retail business as well as online," is becoming more dynamic and we find
explains Fesco CEO Josef Otter: "We therefore ourselves faced with new challenges, both in
needed adequate logistics solutions capable
conventional retail as well as in e-commerce.
of supporting the new sales channels with
By implementing a scalable system such
fast and efficient processes." Up to 13 000
as SmartCarrier, we can look ahead to the
packages a day leave the new logistics
future with confidence."
center in Eggstätt, on their way to different
highlights
▪ Intelligent and future-proof logistics
solution: fast, flexible, scalable and
economical
▪ Efficient support for store and
e-commerce sales channels
▪ Accurate parallel handling of large
and small orders
▪ Optimized picking processes
▪ Highly innovative light-goods
technology that combines existing and
new features
▪ Expandable at any time to meet new
requirements
Swisslog’s SCOPE OF SERVICES
▪ Planning, engineering, simulation
and implementation of the entire
intralogistics system (plant
automation)
▪ Warehouse management and material
flow control for shuttle system,
including connection to an existing
material flow system
▪ Complete facility visualization
Swisslog AG
www.swisslog.com/references
design ¦ develop ¦ DELIVER