Kesko and Dematic Begin Work on Pilot Installation to Automate Grocery Order Fulfilment
April 11, 2022
OXFORD, UK – Intelligent automation specialist Dematic has started their pilot installation for Kesko, the second largest grocery retailer in Finland. Dematic has begun work at the K-Citymarket Ruoholahti hypermarket site to install and implement an automated order fulfillment system.
Dematic’s solution will be the first automation-assisted order fulfillment solution in Finland to be built onsite at a grocery store. It is based on a micro-fulfillment concept and will be implemented right next to the store premises. The system consists of store picking zone, two picking zones with pallets and shelves for fast moving goods, two AutoStore subsystems (one for ambient products and another for chilled), and comprehensive warehouse management software.
The installation will meet growing demand with a four-fold improvement in efficiency and provide Kesko with greater flexibility in fulfilling orders. During the pandemic, Kesko has seen demand for online grocery shopping grow exponentially. The K-Citymarket Ruoholahti location was chosen for the pilot installation because it is among the busiest K Group stores for online grocery orders with its urban location in Helsinki.
Steffen Thierfelder, VP & Market Leader – UK/Ireland at Dematic, says, “We are pleased that this project is now underway and will soon be helping Kesko grow their market share. As a strategic partner, our mission is to support and guide Kesko as they navigate their automation roadmap.”
Pekka Tala, Development Director at Kesko, adds, “This project is a pioneering one for Finnish online grocery fulfillment. The Dematic solution will allow us to scale as we grow, providing us greater flexibility for fulfilling online orders. It will also enhance the shopping experience for our instore customers by removing the majority of online order picking from customer areas.”
The pilot installation is part of a multimillion-euro investment in automation technology by Kesko, which anticipates deploying additional automation-assisted order fulfillment solutions across its operations in the coming years.
Dematic designs, builds, and supports intelligent automated solutions empowering and sustaining the future of commerce for its customers in manufacturing, warehousing, and distribution. With research and development engineering centers, manufacturing facilities, and service centers located in more than 35 countries, the Dematic global network of over 11,000 employees has helped achieve approximately 8,000 worldwide customer installations for some of the world’s leading brands. Headquartered in Atlanta, Dematic is a member of KION Group, one of the world’s leading suppliers of industrial trucks and supply chain solutions.
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