Argos look to Keymas to develop warehousing systems

Tag : Distribution Frame
Argos look to Keymas to develop warehousing systems Phenomenal growth through their retail store expansion programmeand increasing Internet orders meant that Argos, part of leading UKhome and general merchandise Home Retail Group, needed to reviewregional operations in their goods supply chain. They looked tomaterials handling and logistics specialists Keymas for a solution.



In 1989, Argos installed and commissioned a completely newwarehouse in which Keymas played a major role, putting together notonly the basic concept and overall layout for the warehouse inBridgwater, Somerset, but also the specific detail that wasrequired to allow the automated conveyor system to operate. Thewhole system was conceived and designed with Argos to be moreefficient and produce better productivity than conventionalwarehousing at that time and was installed within a twelve monthwindow.



This warehousing system consisted of conventional racking andracking which allowed semi-automated cranes to place and retrievebulk pallet loads from storage. Selected pallets would betransported on the automatic conveyor system to be located in asub-system, where semi-automated cranes off-loaded pallets intopick locations for operators to order pick individual items fordespatch to various stores in the region. Over the years, Keymasundertook several modifications to enhance the system and providedfull support in terms of maintenance and service.

New warehouse system to meet Argos growth

Due to the growth and success of Argos the business required adevelopment of their Bridgwater warehouse operation; one of anetwork of nine distribution centres Argos currently utilisesacross the UK. The Bridgwater regional distribution centre (RDC) isessential to the operation of the business, supporting regionaldeliveries to 89 Argos stores in the South, South West of Englandand Wales. At the time, work was required to increase itsthroughput capacity in order to support the Distribution network.

The excellent working relationship built over 17 years betweenArgos and Keymas meant Argos felt confident in approaching Keymaswith a view of establishing some initial cost parameters.
After careful deliberation, Keymas recommended and Argos agreedthat a more conventional warehouse arrangement provided the mostcost effective and flexible warehousing solution to meet both theircurrent and future needs. This proposal utilised conventionalracking and forklift trucks for handling of pallets.

As 89 of the 700-plus UK Argos stores rely on the Bridgwater RDC toreceive customer orders, it was not possible to close down thepremises in order to facilitate the changes without disrupting itsconstant flow of operation. Keymas was charged with the task ofdramatically changing the warehouse operation  from a crane drivenstorage system to a manually operated truck storage system turning the flow through 900 whilst maintaining functionality ofthe existing warehouse and installing the new facilities.

Argos awarded Keymas the contract

With the help of several partners, Keymas put forward a proposalwhich included the removal of existing equipment and staggeredde-commissioning of cranes to enable the existing facility tocontinue to operate, whilst the new system was installed. Theproject also included for the de-commissioning of a multi-levelpick mezzanine floor area, which consisted of four individuallevels and had to be dismantled in stages.

Argos agreed to the proposed time schedules and budget costs andawarded Keymas the project contract.

Keymas chose their partners carefully, using existing engineeringsuppliers and their sister company Raxel - specialist in storageand racking solutions. As part of the project management task,Keymas had to also oversee the installation of a sprinkler systemand complete new lighting facilities.

To aid this operation, Argos reduced the amount of product movementthrough the existing warehouse to complement the phasedinstallation requirements of the new build. Keymas and partnersworked closely together with the customer's project management teamto ensure men and materials were fully co-ordinated onsite. Regularsite meetings monitored progress, reviewed health & safety issues,CDM and compliance with design regulations.

The project was to provide a complete new warehouse package whichwould facilitate and support the customer moving forward andcontribute to a functional storage and logistics system that wouldbe flexible, operate more effectively and efficiently within thedistribution arm of Argos.

Keymas Managing Director, John Barton reported, "The project wasobviously very challenging at times, but through the close workingpartnership of all those involved, this was completed with minimaldisruption to Argos operations, within budget and well within theallocated time frame".

Keymas Control & Automation specialise in providing automatedhandling and storage solutions with customised controls, to ensurefull traceability of production, sortation sequence through tostorage and despatch.

Keymas systems utilise the latest data-architecture concepts anddevices to enable intelligent decisions in auto routing, sorting,remote monitoring and control of product movements along theconveyor system.

Keymas has designed, installed and commissioned conveying systemsto handle all types of products from small packages, cartons ortotes, through to transporting of bulk pallet loads interfaced withcranes and AGV's.

Full details of Keymas services and product ranges can be seen onwww.keymas.co.uk

Argos is a unique retailer recognised for choice, value andconvenience. It sells general merchandise and products for the homefrom over 700 stores throughout the UK and Republic of Ireland,online and over the telephone. In the last financial year, Argossales grew 8% to