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Woolworths packs customer orders automated with Knapp

Australian supermarket operator Woolworths has opened its first highly automated Central Fulfillment Centre (CFC) in Auburn, Western Sydney. The 22,000 square metre distribution centre is set to process up to 60,000 online grocery orders per week and covers all temperature ranges.

The automation solution for Woolworths was developed by specialist Knapp, which is based in Graz, Austria. Thanks to its high picking performance and short throughput times, the retailer expects to increase the online capacity across Western Sydney by over 50 percent. Faster and more flexible order processing should enable significantly more same-day deliveries as well.

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Sally Copland, Managing Director of Woolworth’s e-commerce division eComX, explains: “Over the last two years, we have seen over a 20 per cent increase in demand for online services. By leveraging best-in-class technology, Auburn CFC will significantly boost order picking speed and accuracy for our customers in Western Sydney.”

AI helps with single-item picking

Two so-called Pick-it-Easy robots take care of picking individual items. Their specially developed grippers use AI-based object recognition and gripping point determination to pick up a wide variety of items with pinpoint accuracy and place them precisely where they need to be. Via machine learning, the system can continuously improve operations.

The Pick-it-Easy robot can pick individual items automatically. (Photo: Knapp)

An automated storage and picking system working across all temperature zones sequences and routes items in optimal order for delivery. The Evo Shuttle serves 16 Pick-it-Easy workstations, where employees prepare orders for delivery. This process is supported by automated bagging machines that place and open paper bags in the containers. This makes it easier for an employee or a robot to fill the bags with items.

More options for the last mile

Woolworths is deploying the CFC not just for home and express deliveries. The distribution centre also offers customers 16 direct-to-boot access points, where employees load the ordered goods directly into the boot of the car.

Woolworths has been working with Knapp since 2019. The supermarket operator has already implemented six automated micro fulfilment centres with Knapp’s technology in Australia and New Zealand.

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Joachim Pinhammer

Joachim Pinhammer supports retail and technology companies with consulting and marketing expertise. He was Senior Analyst and Research Director Retail Technology at the London-based analyst group Planet Retail. Prior to that, he was the global marketing director for the retail division of Wincor Nixdorf (now Diebold Nixdorf). Joachim Pinhammer is a regular speaker at events organised by Messe Düsseldorf (EuroShop and EuroCIS), the EHI and further industry conferences. His reports are regularly published by trade magazines and online retail industry media.

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