Osem Investments, Israel

Osem, one of Israel’s largest food producers and Nestlé subsidiary has optimized its strategic position in the Israeli market by consolidating its five warehouse locations. The objective was to set the company up for future growth.

Far-reaching process in automation was intended to simplify the warehousing and distribution procedures, increase synergies and improve the quality of order processing. The central distribution and logistics center of the food producer was constructed in the Modi’in industrial park around 25 kilometers North-West of Jerusalem. 

The Dematic Solution

SAP LES controls the material flow from high-bay warehouse to AGVs and Picking. The solution provided by Dematic consists of a four-aisle, 40 meter high and around 180 meter long high bay pallet racking system with: 

  • 15,300 pallet storage locations 
  • stacker cranes 
  • and continuous pallet conveyors for storage. 

The stored goods are removed using automated, driver-less transport systems (AGVs). For order processing, they are equipped with two drop delivery conveyors servicing 1,600 storage spaces in the order picking aisles on an upper story with the transferred pallets. 

Added to this is the supply of: 

  • 2,500 storage locations in a separate live storage racking system for fast-moving items, 
  • 1,440 storage spaces for slow-moving items 
  • as well as 1,900 pallet spaces in the deep-frozen area. 

All warehousing activities are controlled and monitored by the Dematic SAP-LES Warehouse Management System (WMS) and a special Material Flow Computer (MFC). The material flows, pick all processes and the incoming and outgoing goods movements are controlled via a wireless system in real-time and are managed by the MFC or the SAP-LES.


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