Logistics Seven-League Boots For LLOYD – TGW Makes It Happen - TGW in the loop |03/2014 - Magazine - TGW Logistics Group
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TGW in the loop 03/2014


Logistics Seven-League Boots For LLOYD – TGW Makes It Happen



Logistics Seven-League Boots For LLOYD – TGW Makes It Happen

15 % increase in productivity with TGW logistics system
A red stripe on the heels hints at the origin of the shoe – since 1968, this stripe has been the distinguishing mark of LLOYD Shoes. Not only the shoes are distinctive in "LLOYD's World", the logistics system which supplies the stores is unique, too. TGW installed a materials handling system in Sulingen, Germany, which measures up to the company's high quality standards with an increase in productivity of 15 %.

Objectives & Requirements

  • Reorganisation of processes
  • Enhancement of storage capacities and inclusion of external storages
  • Increasing of employee productivity
  • All products available anytime
  • Eliminating waste
For more than 125 years, LLOYD has been producing quality shoes and is currently exporting them to more than 60 countries worldwide – the company follows an expansion course. Even in Australia and Hong Kong, the company enjoys great success. About 6,900 pairs of shoes are produced every day, 1,900 of them in Germany alone. With more than 1,350 employees, LLOYD generated a sales revenue of about 134 million Euros (182 million US Dollars) in 2013. LLOYD shoe collections are sold in the company's own concept stores all around the world as well as by partner companies who distribute the brand with the distinctive red stripe.

A multi-functional loop supplies all system areas

At a rate of approximately 800 cartons per hour, the cartons are stored in the automatic mini-load warehouse by TGW which is used to supply all areas of the logistics centre. As soon as they are retrieved from the warehouse, they return to the loop from where they are forwarded to one of the eight stations arranged on two levels, each with a different function. Storage as well as order picking operations are carried out on both levels. Finally, the goods are packed at ten workstations and either sent back into the mini-load warehouse for temporary storage until their shipment, or directly conveyed to the dispatch area. The solution is principally designed for the punctual supply of the retail sector and of the LLOYD stores, which is why the design also considered that single pairs as well as large orders can be handled by the system. For dispatch, the products finally proceed back to the bottom level on the TGW conveyor system. There, all required goods are conveyed on nine shipping lines and placed onto pallets to be finally transported to the assigned shops. TGW supplied about 800 metres of conveyor equipment for this order and installed a loop which delivers multi-functional operations from the storage to the dispatch process. All workstations alongside the loop have an ergonomic design. They provide for a pleasant and energy-saving work environment – the height of the packing tables can be individually adjusted to the body height of the worker. "Any type of wastefulness shall be avoided! Be it for the handling times of the goods, the walking distance of the workers or the packaging,” says Manfred Buschmeier, Head of Process Management at Lloyd.

Automatic carton warehouse with dual function

Thomas Wübbeling, Head of Logistics at LLOYD Shoes, is convinced: "The carton warehouse is simple, andeverything is combined in one system. It decides whether the incoming goods shall be stored or directly sent to the packing process." Depending on the needs, the automatic carton warehouse is used as either a goods receiving warehouse or a temporary storage buffer. The five-aisle warehouse is operated by five Mustang storage & retrieval machines with anti-pendulum drive and TGW's latest Twister load handling technology. The Twister technology allows for direct carton handling – in the case of LLOYD, the cartons are stored simultaneously in double or triple depth, depending on the dimensions and weight of the goods. The 69 meter long aisles accommodate about 50,000 cartons of different dimensions. With a 100 % filling level, for LLOYD this would mean a quantity of 500,000 pairs of shoes. "The new warehouse function combines some of our processes. It permits us to approach our peak times in a more relaxed manner. The teams can be sure that the system knows what to do. Thanks to the new cartons warehouse we made a huge step ahead from goods receiving to distribution! We have an even capacity utilization, which helps us save time," adds Thomas Wübbeling.

A huge step ahead: LLOYD is happy with the solution

Thomas Wübbeling is pleased with the new logistics centre: "To put it in figures, we have experienced an increase in productivity and efficiency of at least 15 %. We calculated everything quite well and have a good cost-performance ratio. Thanks to the high service level we have the system will have amortized already in the next couple of years.
We are entirely happy with our new logistics solution."

Individual solution with energy saving mode

The new warehouse for LLOYD's high-quality shoes combines all storage, buffering and transport operations on two levels. An individual customer calls for an individual system which takes the seasonal fluctuations of the fashion industry into consideration. Therefore, the conveyor system incorporates an automatic energy saving mode: If a conveyor line is not used for a certain period of time, the system will automatically switch to stand-by mode. This allows the operator to save energy costs at times with lower capacity utilization.

Safe and sound growth for the future

With the solution implemented at their headquarters in Sulingen, LLOYD Shoes is well prepared for the future and able to successfully pursue their strategy 2015+. It's a sustainable, ergonomic and efficient materials handling system, from consolidated shop replenishment orders to a single shoe carton. The success of the red stripe continues with logistical seven-league boots.

Customer benefits

  • Combined warehouse and buffer system for permanent availability of all goods
  • Complex conveyor loop connects all processes – no far ways for employees anymore
  • Handling of single shoe pairs or big orders – e-commerce as well as shop replenishment possible
  • Ergonomic, height-adaptable workstations for a great working environment
  • Handling of various carton sizes with the TGW Twister system
  • Combination of processes enables balanced workload – the system calms down peak times
  • Energy saving mode for seasonal variation