Sela Logistics is a major 3PL company in Israel, serving global brands in the home appliance and fashion sectors. Its fashion division supports clients such as Adidas, Nike, and more — all facing growing e-commerce demand. Rising order volumes and more than 80,000 active items created significant pressure on Sela’s manual warehouse. Adidas also required faster and more flexible fulfillment to support its expanding online activity.

Both companies needed a scalable and space efficient solution, which led to the adoption of the first AutoStore system in Israel, the first one in Adidas operations, and one of the largest AutoStore systems in the world.

As Adidas expanded its business — especially in e-commerce — the operation was reaching its limits. Storage capacity was constrained, and flexibility was limited, making it difficult to absorb additional inventory or respond quickly to changing demand.

More broadly, increasing order volumes and over 80,000 active SKUs were putting sustained pressure on a manual warehouse model. Adidas required faster, more flexible fulfillment to support its growing online business. Together, these demands highlighted the need for a scalable, space-efficient approach that could evolve with the operation.

Manual operations created clear constraints on efficiency and workforce productivity. Employees spent significant time walking to complete picks, reducing throughput and placing physical strain on the workforce. This limited speed and made service levels harder to sustain.

At the same time, operational complexity was increasing. Managing tens of thousands of SKUs in a fast-moving fashion environment introduced greater risk of errors and slower response times.

Peak periods further exposed these limitations. Seasonal demand and sales events drove sharp volume increases, but the existing setup could not scale efficiently without adding labor or disrupting operations. Together, these factors made it clear that incremental improvements would not be enough.

Sela Logistics reached a point where incremental improvements were no longer sufficient. The team recognized that the existing model could not sustainably support the scale, speed, and flexibility required. This led to a structured decision-making process focused on long-term operational performance rather than short-term fixes.

The first step was a clear definition of business needs. Sela identified several non-negotiable requirements:

• Significantly higher storage density within the existing footprint
• Improved picking speed, accuracy, and consistency
• The ability to handle peak volumes without scaling labor

At the same time, the solution had to support both B2B and B2C fulfillment in a fast-moving fashion environment with tens of thousands of SKUs.

AutoStore emerged as the best fit based on the operation’s requirements. Its compact, cube-based design is structured to maximize space utilization, while goods-to-person workflows are designed to improve picking efficiency and ergonomics. Its modular architecture also creates a clear pathway for future capacity expansion without disrupting daily operations.

After AutoStore was identified as the preferred technology, the focus shifted to selecting the right implementation partner. For Sela, this decision was as critical as the choice of system itself. It was looking for a partner that could understand its vision, manage a complex brownfield project, and commit to a long-term collaboration rather than a one-time installation.

Dematic emerged as the partner that best aligned with Sela’s vision. The decision was shaped not only by technical expertise, but by a consultative approach grounded in understanding the operation, its constraints, and long-term ambitions.

Equally important was the ability to integrate systems, coordinate across stakeholders, and support the operation beyond go-live — creating a foundation for ongoing performance, not just implementation.

By committing to AutoStore and Dematic, Sela Logistics made a strategic decision to build a scalable platform to support customer growth today and in the future.

The project began with a highly structured planning phase focused on understanding the full operational flow. Implementing the system within an active brownfield environment required careful coordination, detailed process design, and a system architecture that would support long-term flexibility and growth — not just initial installation.

Close collaboration was central to the outcome. Sela, Adidas, and Dematic worked as one team, aligning operational requirements with design decisions. This ensured the system reflected the realities of the operation while maintaining performance under tight timelines.

After nearly two years of planning and execution, the system went live. Following initial ramp-up, additional capacity was introduced, demonstrating how the design supports scalable growth over time.

The collaboration continues today. Sela and Dematic work together to refine performance, optimize processes, and introduce new capabilities. Implementation marked the beginning of a long-term partnership focused on continuous improvement.