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Axfood signs Letter of Intent for highly automated hybrid logistics center

Enormous dimensions, dynamic processes: Axfood and WITRON have signed a letter of intent for the design and realization of a new Omni-Channel distribution center near Stockholm.

Picture: WITRON

The Swedish food retailer Axfood has signed a Letter of Intent with WITRON for the design and realization of a new Omni-Channel distribution center. One of the largest and most modern logistics centers in Europe will be built northwest of Stockholm. Starting in 2023 the new logistics facility will supply 1,000+ Axfood stores and all Axfood-E-Commerce customers with more than 22,000 different dry goods, fresh products, and frozen food. 

In addition to high cost-efficiency, the facility with a size of more than 100,000 square meters / 1,100,000 square feet places special emphasis on environmental friendliness and sustainability.  “We are building for the future”, says Klas Balkow, President and CEO of Axfood. “The new logistics center will generate additional competitive advantages for Axfood and at the same time create logistics synergies within the company group. We are investing in a flexible solution to meet the needs of both our stores and our E-Commerce customers.

The mechanized Case Picking Systems OPM (Order Picking Machinery) and CPS (Car Picking System), as well as the Piece-Picking Systems All-in-One Order Fulfillment (AIO), Dynamic Picking System (DPS), and Order Picking System (OPS) will be used in the new logistics center.  The dispatch management will be optimized through an automated shipping buffer. Moreover, WITRON will develop and integrate all IT, control, and mechanical components. Based on the holistic networking of all logistics areas, Axfood’s project goals - high delivery reliability, best delivery quality, and an expanded assortment - can be optimally implemented. 

“With a highly automated logistics center - for all temperature zones and all distribution channels - we will be more efficient and more flexible addressing the future developments in the food retail industry. This will also strengthen our customer offering, as we will be able to keep an expanded assortment in stock and fulfil orders faster and more sustainably”, says Nicholas Pettersson, President of Dagab, Axfood’s purchasing and logistics company.

About Axfood:
Axfood, headquartered in Solna (near Stockholm), is one of the market leaders in Swedish food retailing. The group has more than 10,000 employees and an annual revenue of nearly 50 billion SEK (approx. 4.7 billion Euros). The corporate group includes the store chains Willys and Hemköp as well as Tempo, Handlar’n, and Direkten. The Axfood family also includes, Middagsfrid, and Urban Deli, as well as the companies Apohem and Eurocash. B2B sales is handled by Axfood Snabbgross and the support company Dagab. Axfood has been listed on Nasdaq Stockholm since 1997 and the principal owner is Axel Johnson AB.