EFFICIENCY AND ACCURACY WITH DEMATIC’S AUTOMATED STORAGE AND RETRIEVAL SYSTEM
PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. In 2022, the company generated more than US$86 billion in net revenue, driven by a complementary product portfolio that includes Lay’s, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker and SodaStream.
PepsiCo’s Rojana facility in Thailand is a critical regional hub that produces a variety of products. With a growing demand for its products, PepsiCo recognised the necessity to build capacity in Thailand.
“Rojana is one of our biggest plants and it also has several different product platforms. We have potato chips, we have the Stax chips, and we have Fry Pack in extruded products as well. Those products are made at Rojana and they are not only distributed nationally across Thailand, but we also send products internationally to Vietnam and other neighboring countries,” says Colin Matthews, supply chain senior director – IndoChina Foods, PepsiCo.
INTEGRATING AUTOMATION
PepsiCo turned to its global partner Dematic, a global supplier in providing automated solutions for materials handling and logistics.
“I’ve now worked with Dematic across two business units, firstly here in Indochina and also in Australia and New Zealand,” says Matthews. “I’ve seen Dematic really lean into providing a customised response based on the tailored needs of individual problems.”
The central feature of the solution is Dematic’s automated storage and retrieval system (AS/RS), designed to store pallets from both on-site production and external suppliers and manufacturing plants.
“The AS/RS aids in storing products before they are delivered to customers. This solution should achieve the highest capacity in Thailand, reaching a height of approximately 35 metres. The storage system is highly capable and efficient, even within limited space constraints,” says Phamondate Rukdee, sales manager, Dematic Thailand.
KEY BENEFITS OF THE SOLUTION
“Previously, we had a very manual solution that took a lot of time for people to go around and understand exactly what products we had in the warehouse. In contrast, the Dematic system is very intuitive. It enables our team to look across the whole of the AS/RS and understand exactly where we have the stock and they can intuitively and quickly make any adjustments they need. The AS/RS has more than doubled our capacity and provided us with an automated solution, taking us away from the very manual operation we had before. This allows us to supply goods to customers with greater efficiency, leaving them very satisfied,” says Matthews.
The Dematic solution has delivered a multitude of benefits to PepsiCo, including:
• Improved space efficiency: The AS/RS has more than doubled storage capacity, making the most of the available footprint, which is important in highly urbanised regions.
• Improved productivity: Automation streamlines processes, reducing reliance on manual labour and increasing throughput.
• Fast responsiveness: Automation allows for quick and efficient responses to customer orders and to changing demands.
• Accuracy and tracking: Precise tracking of inventory ensures accuracy in order fulfilment.
• Inventory security: Enhanced security measures inherent to the AS/RS protect valuable stock.
• Modularity and scalability for expansion: The system can grow with PepsiCo’s needs.
• Redundancy: Built-in redundancy ensures continuous operation and avoidance of costly downtime.
• Reduced facility energy consumption: Automation helps to minimise overall warehouse energy usage.
• Low maintenance, reliable, and locally supportable: Dematic provides ongoing local support for trouble-free operation.
• Life cycle value: A long-term investment that continues to provide value over time.
PepsiCo’s Rojana system has been designed in a modular way to permit future expansion and capacity in line with business growth. The design catered for PepsiCo’s forecast growth to 2028 with the added ability to install three extra AS/RS aisles for further growth.