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Mercadona continues to invest in its fresh supply chain and Eroski revamps its health and beauty private label, Belle.

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Mercadona continues to invest in its fresh supply chain and Eroski revamps its health and beauty private label, Belle.

Mercadona drives supply chain efficiencies in fresh

Speaking at an Aecoc event, Mercadona’s Pedro Corraliza, who manages its logistics programme, said that the retailer was aiming to build out its integrated logistics chain for fresh produce (agricultural products, livestock and fish) with the clear intention to ‘eliminate the intermediaries’. Mercadona has been investing in its fresh supply chain to minimise wastage, maximise freshness and to take account of changing shopper trends. The new initiative will help the retailer build on these strengths and improve its margin by removing additional steps within the supply chain.

Eroski updates Belle private label make up range

Retailers in Spain have been investing in private label, such as DIA with Bonté and El Corte Inglés with ‘All Intense Beauty’, with health and beauty an increasing focus category, a development that Eroski has mirrored through an update of its Belle private label cosmetics range. The Belle range includes 100 products across all make up categories.

Mercadona’s fresh food operation at its Barcelona distribution centre (DC) is set to be automated, according to press reports.

Automated order picking

The new Abrera DC, which already has automation for its frozen operation, is to extend the capability to its fresh operation. The system, designed by technology company Witron, will automate order picking and help Mercadona supply fresh meat and dairy products to 280 stores in the Catalonia region.

In total, 18 Witron case order machines (COM) will be installed along with 18 aisles of storage space accommodating 162,000 trays and a five-aisle pallet depot.

Find out more

Mercadona has invested heavily in its distribution network. Its strategy has been to automate all the main processes in its warehouse operations. This presentation looks at Mercadona’s strategy, the automation used and the journey products take through its impressive operation at Ciempozuelos, near Madrid.

Spanish retailer, Mercadona, is to roll out an automated order picking system at its new warehouse in Gaudix, Spain, according to press reports.

Handling fresh produce

Mercadona has decided to install automation its Guadix warehouse which will be in operation at the end of 2013. The system will handle order picking for fresh produce and will be responsible for storing and retrieving of plastic crates, totes and trays. The retailer expects to benefit from increased speed and efficiency as well as higher customer satisfaction.

Island concept

Mercadona has given automation provider, Cimcorp, responsibility for the design and implementation of the system. It will feature an ‘order-processing-island’ concept. This island is designed to be self sufficient and can receipt in, store, pick and load goods onto transport units ready for store delivery. The entire material flow will be controlled by the provider’s warehouse management software.

Prior investment

This latest investment is not the first time Mercadona has opted for an automated solution for its’ warehouse operations. Read IGD’s case study which looks at Mercadona’s strategy, the automation used and the journey products take through its operation at Ciempozuelos, near Madrid.

Swiss retailer, Migros, was also able to increase its store service level through automating its case picking. Read this case study to find out the benefits Migros was able to realise through its automated system.

Presentations

25/07/2016
An essential summary of supply chain priorities, latest network developments, and other key statistics for Mercadona.
09/12/2011

The Spanish retailer Mercadona has invested heavily in its distribution network. Its strategy has been to automate all the main processes in its warehouse operations. This has dramatically reduced its dependency on manual labour, and created some of the most technically focussed operations in grocery distribution. This presentation looks at Mercadona’s strategy, the automation used and the journey products take through its impressive operation at Ciempozuelos, near Madrid.

Every quarter we review the strategic developments in the supply chains of FMCG manufacturing businesses. This quarter, we’ve seen companies innovating in the supply chain streamlining operation to increase efficiencies.

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