{"id":11135,"date":"2026-08-25T10:43:57","date_gmt":"2026-08-25T10:43:57","guid":{"rendered":"https:\/\/www.icamonline.eu\/?post_type=case-study&p=11135"},"modified":"2026-08-31T08:16:06","modified_gmt":"2026-08-31T08:16:06","slug":"megamark-warehouse-space-optimisation","status":"publish","type":"case-study","link":"https:\/\/www.icamonline.eu\/en\/case-studies\/megamark-warehouse-space-optimisation\/","title":{"rendered":"Megamark Distribution Centre: 4 SILO\u00b2 VLMs to reorganise picking and optimise warehouse space"},"content":{"rendered":"
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\n 990 SKUs corresponding to 24,000 cases managed in less than 93 m\u00b2\n <\/h2>\n \n

\n To support assortment growth without expanding its Molfetta Distribution Centre, Megamark Group launched a warehouse space optimisation project, introducing four ICAM SILO\u00b2 multi-column Vertical Lift Modules to manage slow-moving SKUs. The project freed up approximately 400 picking locations in the conventional racking area and reorganised picking and replenishment operations.\n <\/p>\n <\/header>\n \n

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\n Industry\n <\/h3>\n \n

\n Distribution and Logistics\n <\/p>\n <\/div>\n\n <\/article>\n \n

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\n Product\n <\/h3>\n \n

\n SILO\u00b2 VLM\n <\/p>\n <\/div>\n\n <\/article>\n \n

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\n Key results\n <\/h3>\n \n

\n – Up to 15 orders prepared simultaneously
\r\n– 400 picking locations freed up
\r\n– Zero picking errors\n <\/p>\n <\/div>\n\n <\/article>\n \n

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\n Key feature\n <\/h3>\n \n

\n – Integration between ICON and Linfa WMS
\r\n– FIFO and FEFO management
\r\n– Double-check using barcode scanners
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\n Megamark Group: over 110,000 cases a day from the Molfetta Distribution Centre\n <\/h2>\n \n
\n Operating under the Dok, Famila, A&O, Sole365 and Ottimo banners and a member of Selex since 1996, Megamark Group serves a network of more than 600 stores across Puglia, Basilicata, Calabria, Campania, Molise, Abruzzo and Lazio.
\r\nThe Molfetta Distribution Centre is one of the key hubs in this network. It handles more than 11,500 dry grocery and non-food SKUs and ships an average of 110,000 cases per day.
\r\nOperations run across two shifts, six days a week. During peak periods, operations are extended to a seventh day, with around 260 operators involved.\n <\/div>\n \n <\/div>\n\n
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\n The logistical challenges\n <\/h2>\n \n
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More SKUs to manage, with no additional space available: the priority was to free up capacity where it would have the greatest impact on the overall logistics flow.<\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<\/div>\n

The process analysis identified a clear area for improvement: the management of slow-moving SKUs.<\/p>\n

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Products were stored on gravity-flow racking arranged over four levels, with 9 locations per level and 36 per bay. Slow-moving SKUs were therefore taking up valuable picking locations that could otherwise be used for faster-moving products. Storing different SKUs in adjacent locations also increased the risk of picking errors.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n\n <\/div>\n <\/div>\n\n

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The process also required continuous replenishment. Reserve pallets stored on the upper levels had to be lowered so that the cases needed to replenish the picking lanes could be retrieved.<\/p>\n

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The project priorities were:<\/p>\n

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  • free up picking locations<\/strong> in the conventional racking area<\/li>\n
  • allocate more space<\/strong> to fast-moving SKUs<\/li>\n
  • reduce pallet lowering and replenishment operations<\/strong><\/li>\n
  • consolidate almost 1,000 slow-moving SKUs<\/strong> within a compact area<\/li>\n
  • integrate automation<\/strong> with existing workflows and IT systems<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<\/div>\n\n <\/div>\n <\/div>\n <\/div>\n <\/section>\n\n\n\n\n\n
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    \n With 4 SILO\u00b2 VLMs, 24,000 cases concentrated in less than 93 m\u00b2\n <\/h2>\n \n
    \n The solution uses four SILO\u00b2 multi-column Vertical Lift Modules, installed side by side in an area previously used for returns handling and repacking. They were integrated into the existing Distribution Centre layout without affecting the pallet racking aisles.
    \r\nEach SILO\u00b2 is 9 metres high, with three storage columns and two side-by-side picking\/refilling stations. A footprint of just 23.21 m\u00b2 provides more than 70 m\u00b3 of storage capacity, making full use of the building height while keeping the floor space required to a minimum.
    \r\nTogether, the four SILO\u00b2 VLMs manage 990 SKUs, equivalent to around 24,000 cases, with an average of 13 items per case. The entire system occupies less than 93 m\u00b2.\n <\/div>\n \n <\/div>\n\n
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    \n Configuring trays for space efficiency and traceability\n <\/h2>\n \n
    \n Inside the SILO\u00b2 VLMs, products are allocated according to size and single-lot logic. Each tray holds cases from the same lot, preserving lot identification throughout storage and picking. This is particularly important in Food & Beverage, where lot traceability is critical.
    \r\nTo make the best use of the available space across different case sizes, trays can be configured with one, two, three or four internal compartments. Cases remain securely stored inside the SILO\u00b2 VLMs until they are needed for picking, also reducing the risk of damage during handling.
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    \n ICON and Linfa: real-time communication between the WMS and SILO\u00b2 VLMs\n <\/h2>\n \n
    \n The four SILO\u00b2 VLMs are connected to Linfa, Megamark\u2019s WMS, via ICON, ICAM\u2019s software for managing automated storage systems.
    \r\nWhen Linfa receives orders from the stores, it automatically sends ICON the order lines for SKUs stored in the SILO\u00b2 VLMs. An identification label is generated at the same time and follows the order through to final consolidation at the loading dock. Here, cases picked from the SILO\u00b2 VLMs are combined with those prepared in other areas of the Distribution Centre.
    \r\nIf the same SKU is stored on multiple trays, ICON automatically retrieves the correct one according to FIFO or FEFO logic, ensuring that order preparation follows the warehouse\u2019s inventory management rules.\n <\/div>\n \n <\/div>\n\n
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    \n \"SILO\u00b2\n <\/div>\n <\/figure>\n <\/div>\n <\/div>\n <\/section>\n\n\n
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    \n Up to 15 orders prepared simultaneously\n <\/h2>\n \n
    \n The four ICAM SILO\u00b2 VLMs operate as a single system. Two operators per shift can prepare up to 15 orders simultaneously.
    \r\nWhen several stores require the same SKU, the tray only needs to be retrieved once. The operator picks the required cases and distributes them across the open orders within the same picking cycle. A double-check using barcode scanners verifies that each case matches the corresponding order, further reducing the risk of picking errors.
    \r\nMulti-order picking reduces tray movements and helps maintain a consistent order preparation rate even during peak periods.
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    \n \"SILO\u00b2\n <\/div>\n <\/figure>\n <\/div>\n <\/div>\n <\/section>\n\n\n
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    \n Key results
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    \n More space for fast-moving SKUs, fewer replenishment movements and the ability to pick multiple orders simultaneously.\n <\/p>\n <\/header>\n \n

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      \n 400 picking locations freed up\n <\/h3>\n \n

      \n Moving slow-moving SKUs into the SILO\u00b2 VLMs made it possible to remove 33 gravity-flow lanes, freeing up around 400 picking locations.\n <\/p>\n <\/div>\n <\/li>\n \n

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      \n Expanded product range\n <\/h3>\n \n

      \n The recovered space increased the Distribution Centre\u2019s usable capacity without expanding its footprint, making room for new SKUs in key picking locations.\n <\/p>\n <\/div>\n <\/li>\n \n

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      \n 100% picking accuracy\n <\/h3>\n \n

      \n ICON retrieves the correct tray according to FIFO or FEFO logic, ensuring the right lot is selected. Products are brought directly to the operator, while a double barcode scan verifies that each case matches the corresponding order, reducing the risk of picking errors.\n <\/p>\n <\/div>\n <\/li>\n \n

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      \n Up to 15 simultaneous orders\n <\/h3>\n \n

      \n Picking has shifted from preparing one order at a time along the aisles to handling multiple orders simultaneously within a compact area. With SILO\u00b2, two operators can prepare up to 15 orders at the same time.\n <\/p>\n <\/div>\n <\/li>\n \n

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      \n Up to 8,000 cases handled per week\n <\/h3>\n \n

      \n The SILO\u00b2 VLMs handle an average of around 5,000 cases per week, with peaks of 8,000. They perform around 1,100 cycles per day, rising to 1,500 during peak periods.\n <\/p>\n <\/div>\n <\/li>\n \n

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      \n Slow-moving pallet handling eliminated\n <\/h3>\n \n

      \n Removing the 33 gravity-flow lanes eliminated the pallet lowering and replenishment operations previously required to supply slow-moving cases to the picking area. Forklift operators can now be deployed to other operational activities within the Distribution Centre.\n <\/p>\n <\/div>\n <\/li>\n <\/ul>\n <\/div>\n <\/div>\n <\/div>\n <\/section>\n\n\n

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      \n The first thing we noticed was the extra space we gained, but it also made a real difference to our day-to-day work. We no longer have to lower and replenish pallets from the gravity-flow racking, which has reduced positioning errors and freed up our forklift operators to support other activities across the Distribution Centre.\n <\/p>\n\n