Benetton Automates Warehouse with AutoStore: Triples Storage, Doubles Efficiency

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About Benetton

United Colors of Benetton, one of Benetton Group’s flagship brands, has been a household name in fashion for over 50 years. Best known for their chain of over 4,000 boutique brick-and-mortar stores in over 80 countries around the world, Benetton also diversified its activities into e-commerce in 2012 as part of a strategy to remain competitive in a changing retail marketplace.

Until recently, traditional warehousing and logistics models were sufficient to meet Benetton’s growing online demand. But shifting purchasing preferences and a growing range of automation options convinced leadership that, to keep customers satisfied, the company would need to find a way to boost picking times and streamline logistics facility space to make their picking operations more efficient and flexible.

The Challenge: Navigating the Digital Shift

Benetton achieved success in the era before online shopping was even a reality, using strategies that made it one of the most recognizable fashion brands on the market. But, as Soldan Valentino, Benetton’s Head of Logistics, points out, “E-commerce was a fairly unknown concept until about 7-8 years ago but around that time we started to realize that online shopping should be at the heart of our retail business."

The company’s first decade of experience with e-commerce connected a new generation of customers with their products. But the shortcomings of conventional logistics methods made them “see automation as an indispensable aid to provide service, speed, punctuality, and certainty to our customers,” Valentino says.

Why Benetton Chose AutoStore

Benetton's selection of the AutoStore system for their logistics and warehousing operations was driven by key factors that have notably enhanced operational efficiency and workplace safety.

Perfect Fit for Existing Infrastructure
AutoStore was chosen for its seamless integration into Benetton's existing building. This eliminated the need for extensive modifications or relocation, making it a practical and efficient solution.

Flexibility and Scalability
‍One of the standout features of AutoStore is its flexibility. Benetton appreciated the system's ability to adapt without requiring a long-term, 10-year forecast. This meant that they could design and scale the system based on immediate and near-future needs, allowing for responsive adjustments in a rapidly changing business environment.

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Reduced Downtime and Maintenance Needs
‍AutoStore significantly lowers downtime compared to traditional automation systems. Its design allows for easy removal of robots for maintenance, ensuring continuous productivity and less operational disruption.

Adaptability to Benetton’s Unique Requirements
‍The system was customized to meet Benetton's specific operational needs, rather than being a generic off-the-shelf solution. This bespoke adaptation ensured that the system was in perfect alignment with Benetton's business model and operational strategies.

Sustainability and Future-Proofing
‍Aligning with sustainability goals, AutoStore fits within Benetton's existing structure, reducing the environmental impact of new constructions. Its scalable nature ensures adaptability to future business trends and needs, providing a sustainable solution for growth and expansion.

The choice of AutoStore by Benetton underscores a strategic move towards efficient, scalable, and safe logistics operations. The system's flexibility and adaptability, combined with reduced space and handling needs, position Benetton favorably for addressing both current and future logistical challenges effectively.

Key Benefits Achieved with AutoStore

Benetton's adoption of the AutoStore system marked a significant transformation in their logistics operations. This strategic implementation brought about numerous benefits, addressing both operational and workforce efficiency.

Exceptional Space and Operational Efficiency:

• Tripled Storage Density: The system's efficient design allowed for a threefold increase in storage capacity within their existing facility, eliminating the need to move to a larger facility.
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• Doubled Overall Operational Efficiency: AutoStore enabled a 100% increase in operational efficiency, streamlining logistics process.
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• Orders placed 1 hour before cut-off still meet same-day delivery: With AutoStore, orders placed as late as one hour before the courier cut-off are still shipped the same day.
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• Reduced Goods Handling by 50%: The system's efficiency has halved the need for physical handling of goods compared to the previous year.
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• Increased Order Accuracy: The introduction of AutoStore has led to a notable increase in order accuracy, ensuring customer satisfaction.
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• Capacity to Handle Large Order Volumes: The system can process up to 15,000 order lines per day, efficiently managing high volumes of orders.
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• 50% Reduction in Idle Times: The system has almost halved the idle times in the intralogistic flow, enhancing productivity.
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• ‍Improved Warehouse Downtime: The ability to maintain operations even during robot maintenance ensures continuous productivity.
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• Modular and Sustainable Design: AutoStore's ability to fit seamlessly into Benetton's existing infrastructure and its scalable nature aligns with the company's sustainability objectives and future growth plans.
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• Flexibility to Meet Diverse Demands: The system adeptly handles the dual demands of B2C e-commerce sales and B2B supplies for physical stores, showcasing its versatility.
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Workforce Training, Safety, and Ergonomics:

• Sustained Staff Levels: Despite the technological upgrade, Benetton maintained 100% of its existing staff levels, showcasing the system's seamless integration into the existing workforce structure.
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• ‍Shortened Training Periods: AutoStore's intuitive operation allows for quicker training of new Benetton staff, reducing the learning curve and operational downtime.
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• ‍Safe and Ergonomic Workstations: Benetton’s warehouse staff have seen firsthand benefits in the form of ergonomic workstations and increased safety, as they are no longer required to work around heavy equipment or in large storage areas.
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The adoption of AutoStore by Benetton has significantly transformed their logistics operations, achieving remarkable improvements in space utilization, operational efficiency, and accuracy in order processing. This strategic implementation has not only enhanced productivity but also upheld workforce satisfaction, as evidenced by the maintained staff levels and improved working conditions.

In the words of a Benetton spokesperson, “This system no longer sends the operator around the aisles and warehouses, to find the goods on the shelves, but simply delivers everything to him at the Port.” This succinctly highlights the essence of AutoStore's impact: streamlining processes and focusing on efficiency and worker convenience, thus setting a new standard in logistics management.

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How the system works

The automated warehouse system provided by AutoStore and put into operation at the end of 2022 consists of 53 Robots, 60,000 Bins, and 12 CarouselPorts. Ten Ports are normally used for picking and two for decanting, allowing Benetton’s logistics team to handle up to 15,000 Bins and process up to 15,000 order lines from over 60,000 SKUs within two typical shifts. The system also enables staff to decant goods for recirculation to the warehouse.

Backing the AutoStore infrastructure is warehouse management software from Dematic, offering comprehensive, system-wide visibility of both inventory and operations.

When it came online at the end of 2022, Benetton’s new AutoStore system embodied yet another innovation for a company that continues to set standards.

Project specifications

Installation type: Brownfield (Existing site)
SKUs: 60,000+
Throughput: Up to 15,000 order lines per day
Robots: 53 Robots
Ports: 12 CarouselPorts
Bins: 60,000 Bins
Partner: Dematic