Dematic wins contract to supply mechanised logistics system for Tescos new port-side distribution centre

Highly integrated storage and order picking solution will help the UKs largest retailer create a leaner and greener supply chain.

Leading logistics systems supplier Dematic has won the contract to supply the mechanised logistics system for Tescos new 910,000 sq ft distribution centre (DC) in Teesport, Middlesborough. The system, which is scheduled for completion in 2010, will provide the UKs largest retailer with a highly efficient pallet storage solution, incorporating a fully mechanised high bay warehouse, monorail and conveyor networks, and Dematics DC Director Warehouse Control System (WCS).

Dedicated to Tescos fast-growing general merchandise range, the new DC is the companys first purpose-built import centre. Located on a brownfield site next to a deep sea port and the forthcoming Northern Gateway container terminal, the new centre will eliminate the need to transport imported goods in bulk to distribution centres further inland. As a result, Tesco will realise significant cost savings on its inbound logistics operations. Furthermore, the environmental benefits include a reduction in CO2 emissions of over 700 tonnes per annum.

Commenting on the project, Simon Jones, Program Manager, Network Development for Tesco, said, The mechanised logistics system will provide high density storage and efficient handling of products within the DC. Tescos decision to award the contract to Dematic reflects the fact that the two companies already have a very good working relationship. Dematic has implemented mechanised logistics systems at other locations within our distribution network and successfully integrated their software with Tescos own IT systems.  

The Dematic system includes a total of 43 automated storage and retrieval cranes and 120,000 pallet locations. As well as supporting full pallet picking, the high bay warehouse will also replenish a low bay picking area where mixed pallets can be generated. The goods in, storage, picking and despatch areas will be linked via extensive monorail and conveyor systems. Dematics DC Director WCS will interface with Tescos existing, company-wide Warehouse Management System (WMS).