Case Studies > A Modern Central Distribution Center to Facilitate Growth for Major Retailer

A Modern Central Distribution Center to Facilitate Growth for Major Retailer

Customer Company Size
Large Corporate
Region
  • Europe
Country
  • Sweden
Product
  • Swisslog Material Flow Control System (MFCS)
  • Swisslog Stacker Cranes
  • Swisslog Conveyor System
Tech Stack
  • Automation
  • High-Bay Warehouse
  • Energy Recycling System
Implementation Scale
  • Enterprise-wide Deployment
Impact Metrics
  • Cost Savings
  • Productivity Improvements
  • Energy Saving
Technology Category
  • Functional Applications - Warehouse Management Systems (WMS)
  • Analytics & Modeling - Predictive Analytics
  • Automation & Control - Automation & Process Control Systems
Applicable Industries
  • Retail
Applicable Functions
  • Warehouse & Inventory Management
  • Logistics & Transportation
Use Cases
  • Warehouse Automation
  • Inventory Management
  • Supply Chain Visibility
Services
  • System Integration
  • Training
About The Customer
Rusta AB is a major retailer in Sweden, founded in 1986 by Anders Forsgren and Bengt-Olov Forssell. The company has grown rapidly, with 100 stores across Sweden and Norway. Rusta sources 60% of its products from European suppliers and 40% from Asian suppliers, maintaining control over its supply chain by functioning as an importer, wholesaler, distributor, and retailer. The company offers a wide range of products, including home decoration, seasonal items, DIY products, and consumables. Rusta's business model focuses on simple procurement processes with minimal intermediaries, ensuring quality and cost-efficiency.
The Challenge
Rusta AB, a rapidly expanding retailer, faced the challenge of managing its supply chain efficiently amidst its rapid growth. With annual growth rates between 15-20%, Rusta needed a modern, centralized warehouse and distribution center to replace its eleven smaller facilities, including two main warehouses. The goal was to enhance flexibility, control over the supply chain, and support future growth. Efficient logistics were critical to handle large volumes, seasonal variations, and to maintain low prices. The new facility needed to be strategically located to ensure short transport distances to stores in Sweden and Norway.
The Solution
Rusta partnered with Swisslog to design and integrate a high-bay warehouse in Åby, north of Norrköping. The facility spans 65,500 square meters and includes a fully-automated high-bay warehouse for pallet goods. Swisslog provided a standard high-bay solution, nine stacker cranes, a conveyor system, and 20 ergonomically designed pick stations. The automation system is optimized with an energy recycling system to reduce energy consumption. Swisslog's Material Flow Control System (MFCS) manages the high-bay warehouse, ensuring stable and continuous operation. The central warehouse is strategically located near the Norrköping harbor and main roads, facilitating efficient access and future expansion.
Operational Impact
  • The new central warehouse has centralized Rusta's supply chain operations, providing significant time and cost savings.
  • The facility employs about 300 Rusta employees, reflecting the company's culture of maintaining control over its value chain.
  • The high-bay warehouse has improved productivity, accuracy, and cost-efficiency in material handling and order fulfillment.
  • The warehouse's strategic location ensures short transport distances to stores in Sweden and Norway, supporting rapid growth in the Nordic region.
  • Swisslog's service and support agreement ensures stable and continuous operation of the automated systems.
Quantitative Benefit
  • The central warehouse spans 65,500 square meters, with preparations for expansion to 120,000 square meters.
  • More than 3,000 pallets arrive daily, with up to 30 containers unloaded from Asia.
  • Approximately 1,600 pallets of goods are picked daily, with around 400 e-commerce orders completed for home delivery.

Case Study missing?

Start adding your own!

Register with your work email and create a new case study profile for your business.

Add New Record

Related Case Studies.

Contact us

Let's talk!
* Required
* Required
* Required
* Invalid email address
By submitting this form, you agree that IoT ONE may contact you with insights and marketing messaging.
No thanks, I don't want to receive any marketing emails from IoT ONE.
Submit

Thank you for your message!
We will contact you soon.