Conrad Electronics doubles order capacity

Case study

Executive Summary

Conrad Electronics, a leading electronics retailer, faced operational bottlenecks as its distribution center in Wernberg struggled to meet increased demand. To address challenges in storage and order processing, TGW implemented a state-of-the-art logistics system, including an automated shuttle system and enhanced picking capabilities.

Utz supplied EUROTEC stackable plastic containers, designed specifically to integrate seamlessly with the automated intralogistics system. These containers ensured optimal performance and efficiency across the process.

The result? Conrad doubled its daily order capacity, significantly increased storage capacity, and enhanced customer service efficiency – future-proofing its logistics for sustainable growth.

The Wernberg distribution center, at the heart of Conrad’s logistics operations

The Client

Founded in 1923 and headquartered in Hirschau, Germany, Conrad Electronics has been synonymous with innovation and quality in the electronics market for decades.

Active internationally in 16 European countries, this family-run company is well-known for its wide product range catering to both B2C and B2B markets.

With an impressive catalog of over 700,000 items, Conrad sets itself apart with outstanding service. However, years of growth began to strain its existing intralogistics system, pushing it to its limits.

The challenge

The Wernberg distribution center, at the heart of Conrad’s logistics operations, could no longer keep up with rising demand. Several limiting factors hampered day-to-day operations, including capacity constraints and inefficient use of space. Specifically, the intralogistics system was unable to support the company’s ambitious growth strategy or the demands of omnichannel retail.

To meet customer expectations for fast, reliable service while building logistics capabilities for the future, Conrad required a comprehensive overhaul of its central warehouse. The primary goals included increasing order capacity, significantly enhancing process efficiency, and improving order fulfillment to maintain its leading position in the electronics retail sector.

The Solution

Conrad partnered with TGW and Utz to execute a cutting-edge intralogistics transformation at its Wernberg distribution center.

The solution was meticulously designed to address Conrad’s specific challenges and enhance performance across all touch points. Key features of the implementation included:

Storage and repacking

TGW revolutionized Conrad’s warehouse logistics by introducing 30 sequenced workstations within the facility.

Through multi-order picking capabilities, each workstation achieved a rate of 300 picks per hour, enabling faster and more accurate order processing.

Automated shuttle system

At the core of the new system was an automated shuttle operation spanning 15 aisles and 46 levels. Powered by TGW’s Stingray shuttles, this fast and space-efficient system offered seamless management of storage and retrieval.

This significantly reduced the time between order intake and fulfillment, enabling a more dynamic order flow.

High-quality, durable plastic containers

An essential component of Conrad’s optimized logistics system was the use of EUROTEC containers from Utz. These containers, designed for automated systems, ensured efficiency and reliability.

Their robust design minimized replacements and reduced disruptions. With their long life cycle, EUROTEC containers proved to be a cost-efficient solution for demanding environments.

Optimized packaging and shipping

This comprehensive logistics upgrade allowed Conrad to manage its diverse sales channels (including B2C and B2B) from a single, centralized distribution center.

Stingray shuttle system in Conrad's warehouse

Results

The collaboration between Conrad, TGW, and Utz resulted in measurable, transformative outcomes that positioned Conrad as a leader in logistics efficiency in its industry.

Doubled order capacity - Thanks to the upgrades, Conrad could handle 100,000 customer shipments daily – a significant leap from its previous capacity.

Expanded storage capacity - The solution not only addressed Conrad’s immediate storage challenges but also supported the addition of a wider product range, enabling the company to expand its offerings.
Scalability for growth - Equipped with the flexibility to handle increasing volumes, Conrad is now better positioned to pursue its long-term growth strategies without interruptions.

Conclusion

Through its partnership with TGW and Utz, Conrad Electronics transformed its distribution center into a cutting-edge logistics hub capable of meeting both current demands and accommodating future growth. With doubled order capacity, improved inventory management, and enhanced customer service reliability, Conrad is well-equipped to maintain its leadership in the competitive electronics market. Utz played a pivotal role in optimizing supply chain processes, streamlining operations, and ensuring seamless inventory management.

15000

container movements per hour

100000

shipments per day

700000

items

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