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TGW helps Chinese e-commerce business prepare for growth

Automated warehouse solutions provider TGW is providing an automated material handling system for growing Chinese e-commerce company CNSS Co. Ltd.

With e-commerce booming in China, CNSS is preparing for substantial growth and is implementing a new logistics centre in Danyang, 200 kilometres from Shanghai.

"The new central warehouse for CNSS will be bigger, more modern and automated in many areas for the first time," explains Erich Schlenkrich, TGW Market Development Manager for East and South Asia. "Creating new solutions for the logistics operations were the logical consequence of our customer’s strong growth.

"Our system permits CNSS to increase the process quality as well as performance, which is reflected in the highly increased pick rates."

The material flow controller as well as the entire controls equipment is supplied by TGW. About 800,000 SKUs including textile goods, food, shoes, beauty care products and accessories will be stored and handled on five levels with a total footprint of 51,800 square metres.

For the design of the system, TGW paid special attention to the typical e-commerce aspects. "Small order volumes and the high amount of orders are of particular importance here. One interesting aspect, however, is that the returns handling has a notably lower significance in China than in Europe or the US,’ adds Erich Schlenkrich.

Automation begins in the goods receiving area with goods inspections and quality checks. About seven kilometres of conveyors will wind through the four-level manual picking warehouse, including several order picking stations that are operated following the person-to-goods principle. Order picking is done in two steps. First, batches are picked using mobile data terminals then the goods are sent to the 70 double workstations for fine picking where 140 workers combine the single orders by means of a Pick-to-Light system. Afterwards, the picked orders are sent to separate packing workstations where 280 packers get the goods ready for shipping. In addition to the automated order picking workstations and the conveyor equipment, TGW will also install two Natrix sorters in CNSS’ new logistics centre. The system will go live in spring 2014.

Julie Sun, Managing Director of TGW China adds: "For now the new system is designed to handle the despatch of about 100,000 packages per day. However there are plans to go beyond that for when CNSS needs additional capabilities."

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