The Hut Group achieves 12 month ROI with automated system
08 February 2024
The Hut Group (THG) made the strategic decision to invest in an AutoStore system and enlisted the expertise of Element Logic for its installation.
HAVING RECENTLY established a fulfilment centre in Manchester, THG recognised the importance of implementing a warehouse automation solution that is both flexible and user-friendly. AutoStore and Element Logic successfully met THG’s primary requirements, delivering a fast ROI, with the initial investment cost recovered in under a year.
The Hut Group executive director and chief operating officer John Gallemore, says: “The implementation of AutoStore at our Manchester fulfilment centre has had a significant effect on customer satisfaction.”
Element Logic completed the full installation of the AutoStore warehouse system within three months – seamlessly integrating 256 robots, 13 conveyer ports and 56 carousel ports, as well as over 300,000 inventory bins. As a result, six weeks after installation, the grid system contained 10 million units.
In response to the increasing demands of its growing business, THG decided to incorporate an additional 124 robots into its AutoStore warehouse system, bringing the total number of robots to an impressive 380. With an expanded robotic workforce and optimized warehouse system, THG is positioned to meet the challenges of its growing business with unmatched efficiency and productivity.
The implementation of an AutoStore system yielded immediate results:
- Increased productivity: The adoption of AutoStore immediately boosted productivity, with a remarkable increase in order picking rates and significant improvement in picking accuracy. The system’s exceptional performance has virtually eliminated picking errors, resulting in a substantial reduction in labour requirements.
- Enhanced customer experience: The enhanced picking accuracy resulted in reduced errors and faster processing times, leading to improved customer order fulfilment and better overall customer experience. Consequently, this has positively impacted on repeat orders and customer retention rates.
- Reduced labour costs: Not only have THG reduced labor costs, but the company has also enabled employees to transition to more stimulating, value-adding roles. Moreover, with fewer staff members on the warehouse floor, the overall safety of the operation has increased, contributing to improved staff wellbeing.
- Return on investment: AutoStore successfully met THG’s primary requirements, delivering a fast ROI. The impressive ROI time for the site exceeded expectations, with the initial investment cost recovered in under a year.
“We take pride in our partnership with THG to implement the transformative AutoStore system. The remarkable boost in productivity, enhanced customer experience, reduced labour costs, and rapid return on investment highlight the immense power of automation in optimising warehouse efficiency,” says Jeremy Clouston-Jones, managing director, Element Logic.
For more information, visit www.elementlogic.co.uk