Manual Protein Distribution Center Transformed into a Cost-Efficient, Automated Facility
Cargill Meat Solutions Corporation is a leading producer and distributor of fresh beef, pork, and turkey products, including cooked and marinated meats. They provide various grades of boxed beef products to wholesale and retail distributors, and high-volume end users.
Cargill is the second largest beef processor in North America and processes more than 7.6 million cattle per year. The organization employs over 30,000 people in eight countries.
The challenges
- Even working 24/7, Cargill was having difficulty filling orders.
- Increasing SKU complexity — meats offered by cut, weight, grade and age.
- Inflexible distribution center had no automation, poor accuracy, high volumes of product damage/waste and poor delivery.
- Fresh beef is a short turnaround item that depends on time-based performance. Matching products to orders, managing inventory, and shipping are critical elements in order fulfillment.
- Potential injury and demanding conditions led to lack of skilled labor and high employee turnover.
Our solution
Once beef is packed in the processing center, it is conveyed through a 600-foot skyway bridge to a new 50,000 square foot distribution building adjacent to processing. The building is essentially a giant refrigerator, with temperatures at a cool 28°F.
Cases are sorted into lanes in the AS/RS. The mini-load system consists of 20 aisles where 20 cranes handle inbound and outbound cases with 78,000 storage locations.
Depending on customer needs, some cases are sent through an automated palletizer and stretch-wrapping system, while others are diverted to extendable conveyors for direct loading onto outbound trucks.
The efficient system continuously deposits products into storage while simultaneously picking cases for customer orders.
A miniload delivers the high throughput needs of the box buffer to supply the sorters and extensive box conveyor system, which spans over 1,000 lineal feet.
A custom Warehouse Management System (WMS) and material tracking/control software was developed by Dematic to track inventory and manage all processes. Product can now be easily rotated and traced, which is crucial in food production.
The software provides the distribution center real-time visibility of production, customer orders, and inventory. In addition, it allows shipping managers to optimize orders for freshness, accuracy, and profits.
The results
- Throughput capacity doubled with dramatic reductions in cost per case handled.
- Labor has been reduced by 67% with improved order accuracy well above 99%.
- Employee safety is improved with significant reduction in staff turnover.
- Work that was done 24/7 is now accomplished using two staggered shifts, 5.5 days a week.
- There has been a 50% reduction in fuel costs with more timely loading of reefer trucks.
- Visibility has been provided to all products and rapid access to any box — at any time with 100% traceability.
- The distribution center consistently achieves peak operating goals — receiving boxes from production at over 40 boxes/minute and shipping at 40 boxes/minute.