Innovative Automation Drives FAGE’s U.S. Expansion

Overview

FAGE USA Dairy’s entry into the US market was highlighted by the launch of its first yogurt manufacturing plant in Johnstown, NY. In collaboration with Westfalia Technologies, FAGE implemented a sophisticated high-density automated storage and retrieval system (AS/RS) and the Savanna.NET® Warehouse Execution System (WES). This advanced system not only optimized storage and picking operations but also supported the plant’s sustainability goals with energy-efficient practices, setting a strong foundation for scalable and efficient operations.

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Designing for Growth in a New Market

Challenge

FAGE faced the significant challenge of establishing a high-performance storage and picking infrastructure for their first U.S. yogurt manufacturing plant. The warehouse, designed with a 33’ height, needed to accommodate a diverse range of products and various order types. To meet these needs, FAGE required an advanced AS/RS solution capable of managing buffer product storage, full pallet movements, and outbound order fulfillment with a case-picking system. The system also needed to allow for the assembly of mixed-SKU customer order pallets.

Additionally, the system design required upfront planning to incorporate future expansion options, aligning with FAGE’s anticipated growth in the U.S. market. This forward-thinking approach was essential for handling the complexity of their product range and supporting their entry into the competitive American market.

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High-Density Automation for Seamless Operations

Solution

To address FAGE’s complex storage and outbound order-fulfillment requirements, Westfalia designed and implemented a state-of-the-art solution featuring a high-density AS/RS system within a 1,600-pallet free-standing rack warehouse. This advanced setup initially included one Storage/Retrieval Machine (S/RM), a complete pallet conveying system, gravity flow pick lanes, barcode scanners, stretch wrappers, and the Savanna.NET WES. These components worked in unison to create an efficient and seamless product flow within the facility.

The system was designed to handle FAGE’s diverse product range, including buffer product storage, full pallet movements, and outbound order fulfillment with a case-picking system. The design also considered future growth, allowing for the addition of a second Storage/Retrieval Machine and an expansion of storage capacity to 10,124 pallets. This adaptability ensured that the system could accommodate evolving SKU demands and maximize space and resource utilization, providing a scalable solution for FAGE’s rapid growth and success in the U.S. market.

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Specifications

System Features

Table Description
Specification
Description
Size

AS/RS Footprint: 56,500 sq. ft.

Capacity

Initial Capacity: 1,600 pallets, serviced by (1) S/RM

Expanded Capacity: 10,124 pallets, serviced by (2) S/RMs.

Storage: 5-deep and 11-deep storage lanes x 4-levels high.

Gravity Flow Lanes: Located at floor level to support case-picking operations.

Interesting Fact

Pallets are not stretch-wrapped as they are conveyed, stored & retrieved within the AS/RS, allowing efficient cooling and case-picking operations, while eliminating waste.

Technology

AS/RS directly tied to palletizing

2 Satellite Storage/Retrieval Machines (S/RMs) in 1 aisle, 4 levels high

Pallet Conveying System

Gravity Flow Pick Lanes

Accumulation Conveyor System

Software

Savanna.NET® Warehouse Execution System (WES): Modular WES controlling product flow, order picking, and pallet tracking.

Enhanced Efficiency and Sustainability Achieved

Results

The implementation of Westfalia’s high-density AS/RS and Savanna.NET® WMS brought significant benefits to FAGE USA Dairy, including a 40% increase in storage capacity and a 30% reduction in energy costs, showcasing remarkable operational efficiency and sustainability. The system enhanced picking efficiency, automated the replenishment of picking lanes, and improved product tracking, contributing to increased productivity and reduced waste. As FAGE continues to expand in the US market, this scalable and adaptable infrastructure provides a strong foundation for ongoing success and growth.

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Significant Gains in Capacity and Savings

Benefits

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Expanded Storage Capacity: Achieved a 40% increase in storage capacity, optimizing space utilization.

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Energy Cost Reduction: Implemented energy-efficient practices, leading to a 30% reduction in energy costs.

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Improved Picking Efficiency: Enhanced order fulfillment processes, reducing waste and boosting productivity.

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Scalable Infrastructure: Designed for future growth, allowing for seamless expansion and adaptation.

The Westfalia Difference

Triple Rail System

Protect your pallets from deflection and breakage with the only proven triple-rail system on the market, exclusively engineered by Westfalia for unmatched stability, increased load capacity, and efficient movement.

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