Arvato’s distribution center in Hanover, Germany, where customers from the fashion industry are served, has the most modern pouch sorting system in Europe. The Dematic Pouch System, thanks to its high degree of flexibility, is able to accommodate a wide range of different types of goods and thus contribute to the success of e-commerce systems.

The Dematic Pouch System is the flexible and scalable solution that enables retailers to manage multi-line store replenishment and e-commerce direct to consumer orders using a single solution from within the same distribution center.

E-commerce growth is fueling the rise in omnichannel fulfillment. Retailers need a solution that supports store replenishment and direct to consumer orders from a single distribution center. This solution must address the needs of an omnichannel operation and also accommodate growth, demand fluctuations, SKU proliferation and changes in order profiles. It also needs to seamlessly integrate the returns process into the fulfillment process to make the returned goods available for re-sale and picking immediately.

The Dematic Pouch System is a flexible and scalable solution that can be used to store, transport, sort and sequence individual items in support of pure e-commerce and omnichannel order fulfillment operations. The system uses pouches suspended from rollers that travel in an overhead track. Each pouch carries a single item, either placed inside the pouch or hanging from an attached hook (used for garments on hangers, such as dresses or coats). The system transports and sorts items based on order requirements and delivers them to operators for order consolidation, value-added services, and final packaging.

At Arvato’s pouch-sorting facility, up to 12,500 items per hour are picked, localized, and provided for Europe-wide shipping. Spread over four levels, the Dematic Pouch System has 25 manual and four hanging induction machines as well as 13 returns inductions, a dynamic buffer, a presorting area, numerous packing stations, and an empty pouch storage.

The pouch sorter is used to buffer returns goods and to sort customer orders. Arvato stores the returned goods in pouches directly after processing. The goods are identified and married to the pouch so that Arvato can track them at every point in the system.

In pre-sorting, 22,500 items can be processed simultaneously via three comb sorters and 92 sorting lines. The returned goods then run into a dynamic buffer, which is located upstairs. The buffer consists of long loops that hold inducted inventory and circulate continuously. There, the goods wait for new customer orders. In total, more than 153,000 bags are stored in the dynamic warehouse. The loops are fed by four sorters.

The intermediate storage for empty bags has a basic capacity of 40,000 bags. At peak business times, the dynamic buffer can also be used as an additional empty-bag storage to help keep the material flow running smoothly.

With the Dematic Pouch System, Arvato is now working much faster and increasing delivery quality.