CASE STUDY

Improving Profitability for Grocery Chain


Challenge

A national grocery chain was using an inefficient hand-picking product order system that was causing profit-eroding challenges including time inefficiencies, high labor costs and revenue losses. The company was searching for an automated technology-based solution that could be implemented across their stores.

Solution

The retailer required a custom solution capable of providing a flexible network-enabled system to control product ordering and delivery that could be deployed across its stores. Wesco, in collaboration with Siemens, offered the versatility and customizable capabilities to meet these needs.

The solution included Siemens S7-1500 PLC’s, custom S7-1200 PLC’s and a full Wi-Fi network that communicates with bots as well as switches, controllers and receivers for a complete automated system. Wesco also provided the enclosures and associated materials helping to streamline project deployment.

Result

The stores equipped with the new system now experience higher inventory accuracy from use of track and trace technology and significantly reduced labor costs and aided in minimizing staff shortages and this resulted in an average savings of $650,000 per store. The successful outcome of this project provided the grocery chain the incentive to replace their remaining current controls with Siemens components, giving them an alternative upgrade path that allowed them to exceed their specifications while their machines ran efficiently and decreased downtime.



Savings
Summary

Results
$650,000 in product savings per store

Improved inventory accuracy

Reduced labor costs

Upgrade-ready, flexible controls system

Heavy Industry