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Organic Valley of Farms
AS/RS & Savanna.NET® WMS Case Study
In mid-2007 Westfalia Technologies, Inc. installed a high density Automated Storage & Retrieval System (AS/RS) for CROPP Cooperative/Organic Valley Family of Farms’s new 80,000 square feet distribution center in Cashton, Wisconsin. CROPP Cooperative/ Organic Valley Family of Farms is America’s largest cooperative of organic farmers, and is known for their cheese, milk, eggs, butter and meat products. To keep the refrigerated and frozen warehouse running smoothly and efficiently, Westfalia also supplied their Savanna.NET® Warehouse Management System (WMS). The new distribution center gains environmental and operational efficiencies made possible by automation and consolidating distribution under one roof, rather than multiple locations.
Due to their phenomenal growth, and projected growth, Organic Valley needed a logistics solution offering increased storage capacity and efficiency in their material handling processes. Central to Organic Valley’s core beliefs is caring for the environment and people by growing healthy organic food. Westfalia’s high density Automated Storage and Retrieval System (AS/RS) meets both these core concerns.
“The new Organic Valley Distribution Center is a symbol of our co-op’s growth and its ongoing commitment to creating sustainable communities through organic farming,” said George Siemon, CEO for Organic Valley at their grand opening event.
System Features:
- 3 Storage & Retrieval Machine (S/RMs) (2 cooler/ 1 freezer)
- Savanna.NET® Warehouse Management System with integrated order picking
- Rack supported structure will support walls and roof
- 11 levels with variable depth lane storage from single to 11 deep
- Capacity to store 12,000 loads
- Refrigerated (35-40 degrees F) and frozen (-10 degrees F) environment
Organic Valley’s tremendous growth in
the preceding decade presented them
with a distribution problem: renting
warehouse space at five separate
warehouses was a costly and inefficient
method of distribution. This,
plus the expectation of future growth
as organic foods became mainstream
foods, lead to the conclusion a new
company-owned centralized warehouse
was needed.
The location would need to be close to the co-op farmers and major highways, in order to reduce transportation costs. The facility would need to be large enough to store 10,000+ pallets of product, and be able to handle projected future storage needs. And of course, it must be financially viable.
Westfalia proposed a high density automated warehouse of 66,000 sq. ft, which is 40% smaller than the 110,000 sq. ft. conventional warehouse originally proposed. The taller, denser warehouse means less impact on the environment around the facility, in addition to lower construction costs for a smaller building footprint. The proposal benefited Organic Valley with a 30% reduction in their energy costs, as the cooler and freezer AS/RS sections utilize cooling energy much more efficiently than traditional warehouses. They gain another 10% in energy savings from other green features of the facility, such as demin insulation, white roofing, waterless urinals and automatic faucets.
After meeting with state and local officials, and appreciating their ‘can do’ attitude, Cashton, WI became the designated site. The promise of some state funding based on the “green” features of the building and the targeting to a rural location, helped the project along. A small team led by Louise Hemstead, Organic Valley’s Chief Operating Officer began investigating warehousing options and locations. They were impressed by the space maximization and cost savings offered by an Automated Storage and Retreival System (AS/RS).
They selected Westfalia’s high density
multiple deep AS/RS and WMS, according
to Louise Hemstead, as “This AS/RS
allows this facility to have a smaller footprint
than typical warehouses. We want
to use as few land resources as possible.
We also expect the system will enhance
our inventory management and virtually
eliminate product loss due to expiration
dates.”
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