Getting Arla’s dairy products onto the shop shelves

Few business sectors can rival the fresh food industry when it comes to the importance of speed and accuracy in logistics. Arla Foods Group, Europe’s second largest dairy company, is using automation – including robotic order picking – to improve its logistics performance.

Arla Foods, formed in 2000 through the merger of the Danish company MD Foods and the Swedish fi rm Arla, is an international group producing exclusively milk-based products and enjoying a turnover of more than EUR 5.1 billion. A co-operative owned by some 10,600 milk producers, its main markets are Denmark, Sweden and – following the merger of its UK subsidiary with the British firm Express Dairies in 2003 – the UK. Besides these countries, which it considers its home markets, Arla Foods has other production facilities abroad, operates subsidiaries in another 19 key markets and exports goods to more than 100 countries worldwide. Faced with increasing price pressure from the multiple grocery chains – coupled with fluctuations resulting from Common Agricultural Policy reform – Arla has, in recent years, armed itself with a range of very strong brands. Household names such as Lurpak, Rosenborg, Anchor, Cravendale and Buko are more resistant to price pressure, helping to boost Arla’s sales of milk, cream, cheese, butter, fruit juice, yoghurt, milk powder and other milk-based ingredients.

Project details

  • Robotic order picking system for fresh milk products
  • 8,000 orders and 194,000 order lines per week to some 14,000 delivery points
  • 600 SKUs, 75% of them fresh products
  • Cimcorp's gantry robots and order picking software

Read more

Getting Arla's Dairy Products Onto The Shop Shelves

”Delivering the right goods in the right quantities is vital in order to maintain customer satisfaction.”

Göran Henriksson, Logistics Manager, Arla

ARLA Food and Beverage, Cimcorp

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