Arvato and KNAPP Set New Standards in Cosmetics

Reaching the Pinnacle of Modern Retail with KNAPP Technology

Arvato and KNAPP are setting new standards in the cosmetics sector with their new omnichannel automation solution for the DOUGLAS Group, demonstrating the importance of innovative technologies for success in today’s retail environment. The solution focuses on automatically processing different order structures to the greatest extent possible while handling premium beauty products gently. Consolidating six warehouses into one central warehouse was made possible by intelligently combining a number of integrated technologies. The warehouse’s 2D shuttle solution is the world’s largest in the cosmetics sector and offers maximum flexibility and storage density. After just 25 months, the cutting-edge system for the DOUGLAS Group in Hamm successfully went live.

Strong partners, innovative solutions

Arvato, a member of the Bertelsmann Group, has shared a partnership with the tech company KNAPP for over 11 years. Shared fundamental values form the foundation for the companies’ close, equable cooperation. Together, they have implemented a total of nine custom logistics solutions. As one of the leading third-party logistics providers (3PLs), Arvato uses innovative technologies to develop bespoke solutions for their B2B and B2C customers. These systems are designed for the items they handle today while also remaining flexible and adaptable so that they can fulfill new requirements in the future as well – no small task, but by no means impossible, as shown by Arvato and KNAPP’s latest collaboration: Europe’s first fully integrated distribution platform for beauty products for the DOUGLAS Group in Hamm, Germany. The DOUGLAS Group is Europe’s leading omnichannel provider of premium beauty products, with over 1,800 stores in 22 countries and several online shops. The project, on a tight schedule and with a high level of complexity, was implemented in just 25 months. “Challenging times reveal the true strength of a partnership. With Arvato and the DOUGLAS Group, we proved that even under pressure, we could get along and get the job done with great success,” reports Hannes Kracher, Head of Sales and Key Account Manager for Arvato at KNAPP.

Optimal storage density for the 3PL system

What gives the comprehensive automation solution its star power is the combination of different technologies that were intelligently integrated and interconnected during the consolidation of the original six warehouses. Along with the world’s largest shuttle solution in the cosmetics sector, the top-of-the-line system includes three cross belt sorters, 76 IT-supported work stations, devices for automatically recording master data, a number of carton erectors and closers and automatic flyer insertion machines. It provides significant support for the DOUGLAS Group’s omnichannel strategy of “one warehouse, all channels.”

The centerpiece of the system is its small parts warehouse, the Evo Shuttle 2D. The shuttle system is massive, containing 70,000 SKUs stored double-deep across 25 levels and 22 aisles. A total of 550 shuttles store and retrieve 12,500 containers each hour. After retrieval, containers are transported to the corresponding lift system, which sends them onward for further picking at goods-to-person work stations. This system flattens peaks and makes stark differences in order structure easy to manage.

Central warehouse processes

From goods-in to shipping, simple and technology-guided processes provide employees with support in fulfilling B2B and B2C orders and in reacting to extreme variations in order volume. Important data is recorded automatically at goods-in and transmitted to the WMS, forming the basis for efficient further processing of the items in the warehouse. At the decanting stations, appropriate container configurations are suggested to employees. The empty containers are provided from a buffer or from the shuttle system, which is connected to Pick-it-Easy work stations. Completed goods-in containers are transported into the shuttle system on a conveyor. After goods are retrieved from the shuttle and picked at the Pick-it-Easy work stations, cartons can be brought to the fast-mover area and/or the sample area. The manual picking stations in these areas utilize a Pick-to-Light system. Up to 15,000 samples can be picked in the sample area per day and other value-added services can be done at the value-added service stations. Furthermore, a total of nine different carton sizes are available for B2C orders. During the automated carton closing process, their height is reduced as necessary to ship as little air as possible, increasing the fill rate in trucks, thereby reducing the number of deliveries and saving costs. Large items for B2B orders are added at the manual stations for picking oversize products. After picking, both B2B and B2C orders are sent to be secured for transport and are closed, labeled and loaded over the shipping ramps.

Software excellence with KiSoft One

Arvato has opted for KNAPP’s warehouse logistics software, KiSoft One, to ensure their processes stay smart and error-free. KiSoft One regulates the workload in the entire system and controls the interaction of manual and automated areas. Furthermore, KiSoft Analytics gives an overview of all relevant system data, helping Arvato detect trends and create prognoses while providing important real-time data during the critical startup phase. “KNAPP’s KiSoft software is the brain of the system and ensures that it performs optimally,” says Pedro Duran Garcia, Director of Logistic Planning at Arvato.