The Tiv Taam Group is establishing a robotic fulfillment system in the food retail sector, based on the AutoStore automation technologies from the Element Logic company. The new system is being established adjacent to the chain’s branch in Rishon Lezion, with an investment estimated at NIS 35 million. It will operate on an area of approximately 1,200 square meters, which has been used until now for manual fulfillment and packing stations. The system is expected to become the central anchor of the chain’s online operations in the center and Shfela regions, and will provide a solution for orders and deliveries from the Tel Aviv area to the Shfela area.
The move is designed to strengthen the group’s logistics, operational capabilities, and customer experience in its online operations. The new system will include two robotic AutoStore systems: A dedicated system for dry products comprising 26 robots, and a dedicated system for chilled products comprising 19 robots. The system operates on “Goods To Person” technology, within the framework of which the robots locate the products and bring the exact bin containing the order contents to the picker, instead of manual fulfillment by employees throughout the branch. This technology is designed to bring about an improvement in fulfillment speed, accuracy levels, and operational efficiency, alongside releasing the store from the congestion resulting from fulfillment from the branch shelves in order to increase online sales.
According to Alon Ashkenazi, VP of Operations and Project Manager at Tiv Taam: “The vision that led us in the project was to create a smart, high-quality, and meticulous work environment of an international standard, combining robotics, advanced technology, and a meticulous planning and design concept. We believe that a correct connection between technology, processes, and people creates quality, efficiency, and excellence – One that is built at the heart of operations and is felt throughout the supply chain and up to the customer experience.”
According to Gal Zubery, Head of the Information Systems and Technology Department at Tiv Taam: “The system relies on a broad layer of systems and interfaces developed and implemented as part of the project. We integrated the online, inventory management, and fulfillment systems with the automation environment, in order to generate a continuous and synchronized process – From order receipt to its preparation for delivery. The integration between information systems and the operational process is a central component in the system’s capability to operate with high accuracy, efficiency, and reliability.”
According to the company’s data, the central advantages of the new system include a saving of approximately 50% in the manpower required for fulfillment, a shortening of delivery times, real-time inventory management, an improvement in product availability, as well as an improvement in customer experience and service level. These changes are expected to enable the company to triple or even more its order production capacity in the central demand areas in Israel, without disrupting the regular operations of the current store.
Currently, the chain’s online fulfillment activities are carried out from six central branches: Rishon Lezion, Khuzot Hamifratz, Netanya, Ramat Hachayal in Tel Aviv, Ashdod, and Beersheba. The new system in Rishon Lezion is expected to upgrade the chain’s distribution and supply system in these demand areas.
Hagai Shalom, CEO and Owner of the Tiv Taam Group, stated: “The food market has been undergoing a technological and operational revolution in recent years, and the future belongs to chains that know how to combine a high-quality shopping experience with smart and fast logistics capabilities. The new robotic system is not only an investment in infrastructure, but an investment in our capability to grow, improve profitability, and build a long-term competitive advantage in a changing retail world. We identify a consistent growth in demand for online and are operating already today to prepare for the needs of the coming years.”
Leave a comment