Vitacost, a leading e-commerce distributor specializing in health products, was moving to a larger facility to support its growth. The online retailer offers some 45,000 items, including dietary supplements from algae to zinc, health food, and personal and pet care products. Vitacost carries over 2,500-plus name brands and with Kroger behind Vitacost, they are poised for continued growth.
Vitacost’s operational objectives included expanding storage for more inventory, improving order processing efficiencies, while reducing operational costs. Its orders varied significantly, ranging from single-line purchases to orders with hundreds of lines, necessitating multiple shipping cartons. These orders encompassed individual units, cases, and soft package goods. A focus on reducing labor and increasing storage density was important to lower costs.
To address inventory and order management needs, ISD conducted thorough analysis and designed and developed an integrated system. Key system components such as an A-Frame for efficient high-velocity item dispensing, pick-to-light functionality in the flow racks, and multiple horizontal carousels for SKU handling were implemented. These components were seamlessly integrated with WCS software, high-speed sorters and conveyors, enabling automated order routing throughout the entire system. The downstream manifest system autonomously managed weighing, validation by weight, application of shipping labels, and sorting based on carrier and service levels, without any human intervention.
The technology suite included the ISD UltraBatch system, a dynamic batch picking system, automated document and invoice printing and inserting using the ISD UltraSert system, automated weight and dimension measurements, and automated print-and-apply (PandA) systems. The integrated system improved throughput to 8,000 orders/day with pick rates of up to 500 operator picks/hr. SKU volume capability was significantly increased with improved storage density. Labor was reduced due to the increased pick rates, while customer satisfaction increased with improved order accuracy and on-time delivery.
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