Deli Group Ninghai Intelligent Logistics Center

Project Overview

The Deli Group, one of China's largest manufacturers of stationery and office supplies, faced significant logistical challenges due to rapid business expansion. Its previous reliance on outsourced distribution operations resulted in skyrocketing labor costs and warehouse rental fees. The company realized that simply renting more warehouses and hiring more people was an unsustainable model that could not keep pace with its growth.

In response, Deli embarked on a major project to regain control and efficiency over its logistics. In 2018, the company opened the Deli Intelligent Logistics Center in Ninghai, China. This massive, 110,000 square meter facility was designed as a centralized, highly automated hub to handle the vast SKU count typical of the office supplies industry and meet the company's escalating distribution demands.

Technical Solution

Multi-System Automated Storage/Retrieval Complex

The storage backbone consists of a large AS/RS complex divided by function:

• Four Unit Load AS/RS: Three act as high-density inventory buffers, while the fourth is equipped with rack-side picking windows for direct case picking of fast-moving items.
• Mini Load AS/RS: Handles smaller load storage requirements.
• Shuttle Rack System: Dedicated to the storage and sequencing of medium-moving items. It is replenished by picking robots retrieving from the buffer AS/RS.

Key Features

The facility integrates multiple, specialized automated storage technologies (Unit Load AS/RS, Mini Load AS/RS, Shuttle Rack) into a cohesive system, each optimized for different product velocity (fast, medium, slow movers).

The solution employs a wide array of automation: AS/RS for vertical storage, STVs and AGVs/AMRs for horizontal transport, and robots for picking, creating a largely hands-off flow from receiving to shipping.

A key design principle was achieving higher throughput and greater storage capacity (130,000 pallets, 2.8 million case capacity) within a consolidated 110,000 sq m footprint, as opposed to the sprawling, inefficient network of rented warehouses it replaced.

Results & Benefits

The center processes an average of 200,000 picked cases per day, with the capacity to handle up to 400,000 at peak, dramatically increasing distribution capability.

The automation enabled the company to process more orders with a significantly smaller workforce, directly addressing the problem of burgeoning labor costs. It also eliminated the need for expensive outsourced warehouse rentals.

The intelligent, automated design allows Deli to meet its rapidly growing logistics needs from a single, efficient hub, providing the scalability that its previous conventional approach lacked.

Challenges & Solutions

Deli's core challenge was the unsustainable cost and lack of control from outsourced logistics, coupled with an inability to scale manually. The strategic solution was a fundamental shift: a major capital investment to build their own, centrally controlled Intelligent Logistics Center, automated by Daifuku. This replaced variable external costs with a fixed, efficient asset.

Operating a distribution center of this scale (130,000 pallets, hundreds of thousands of SKUs) with manual methods would be chaotic and inefficient. Daifuku's solution was an "intelligent storage design" – a comprehensive and integrated material handling system that automates the core workflows (storage, picking, sorting, transport), making the complexity manageable and efficient.

System Integrator

Daifuku was the chosen system integrator for this landmark project. Deli partnered with Daifuku specifically to establish the new Intelligent Logistics Center. Daifuku provided the complete automated material handling solution, including system design, the supply of all major equipment (AS/RS, shuttle systems, robots, AGVs, sorters), and integration services. Deli acknowledged that Daifuku provided the right solution and worked closely with them to ensure the project's success.