Woolworths and KNAPP set a new benchmark in e-grocery fulfillment

Woolworths and KNAPP have reached a major milestone in their long-standing partnership with the launch of Woolworths’ first fully automated Central Fulfillment Centre (CFC) in Western Sydney. The site uses KNAPP’s innovative E-Grocer solution and marks a significant shift in how groceries are delivered to customers. The CFC increases the online capacity across Western Sydney by over 50 per cent, processing up to 60,000 online orders per week. Thanks to KNAPP’s Pick-it-Easy Robot stations, the Woolworths team at Auburn will be able to pick customers’ orders with increased efficiency and accuracy.

Innovative E-Commerce Fulfillment for all temperature zones

With the rapid growth of e-commerce in Western Sydney, KNAPP developed a tailored, high-performance automation solution for Woolworths.
The highly automated CFC handles all temperature ranges while delivering high picking performance, short lead times and excellent delivery quality. This increases Woolworths’ online capacity by 50 per cent across Western Sydney, and significantly enhances its same-day delivery capacity enabling faster, more flexible fulfilment and an improved online shopping experience for customers.
Woolworths’ Managing Director of eComX Sally Copland said: “Western Sydney is one of our largest and fastest growing eCommerce catchments, and we’re thrilled to be unlocking greater capacity for our customers with the opening of our first-ever automated CFC in Auburn.”

A new dimension of online fulfillment

The site spans 22,000 square meters and can process up to 60,000 online orders each week. Woolworths and KNAPP have implemented multiple innovations at the Auburn site, including

• Two Pick-it-Easy Robots for fully-automated single-item picking
• KNAPP’s Evo Shuttle covering all temperature zones, including freezer
• Automatic bagging machines for streamlined packing

At the core of the system is KNAPP’s Evo Shuttle, for all temperature zones, which stores and retrieves items in the optimal sequence for picking. Products then move to one of 16 ergonomic Pick-it-Easy workstations, where Woolworths personal shoppers assemble customer orders for delivery. Two AI-powered Pick-it-Easy robots, equipped with specially designed grippers for single-item picking, complete the setup. These robots boost throughput, accuracy and speed. Automation continues with bagging: During automatic bagging, paper bags are automatically placed in the containers and opened. Automation significantly speeds this process up. Furthermore, it makes it easier for either an employee or Pick-it-Easy robot to fill the bags with items.

Sally Copland added: “Over the last two years, we have seen over a 20 per cent increase in demand for online services. By leveraging best-in-class technology, Auburn CFC will significantly boost order picking speed and accuracy for our customers in Western Sydney.”

End-customers benefit from innovation and flexibility

The new facility represents a step change in the way Woolworths delivers groceries. Orders are sequenced and routed for optimal delivery performance, resulting in improved scheduling, greater reliability, and better overall customer experience. The CFC supports home delivery, express delivery, as well as offering 16 Direct-to-Boot bays, the largest Direct to Boot offering in Australia.

Rudolf Hansl, Vice President Food Retail Solutions at KNAPP, said:
“Together with our long-term partner Woolworths, we have implemented a highly automated and innovative concept for online grocery. Our proven technologies ensure fast and high-quality order fulfillment – a clear advantage for Woolworths’ customers that leads to a seamless shopping experience.”

Long-standing partnership

Woolworths and KNAPP have been working in partnership since 2019. As fulfilment centres of various sizes open new opportunities for online food retail, the Australian supermarket giant has also implemented 6 automated Micro Fulfillment Centers across Australia and New Zealand using KNAPP’s automated solutions for Food Retail. These systems provide Woolworths with a high degree of flexibility when it comes to managing order quantities and volumes. This optimal network across diverse sales channels supports responsiveness to changing consumer behaviors – making KNAPP a trusted partner across every link in Woolworths’ value chain.

About KNAPP Systemintegration

KNAPP Systemintegration specializes in solutions for food retail and reverse logistics, implementing solutions in the highest quality to overcome the challenges particular to food retail. The solution portfolio comprises innovative automation concepts for both online and brick and mortar food retail. Many customers including Spar, REWE, Shufersal, Kroger or Woolworths rely on customized system solutions by KNAPP Systemintegration.

About Woolworths Group

Woolworths Group is a food and everyday needs retailer united by the shared purpose of creating better experiences together for a better tomorrow. With more than 1,400 stores across its Woolworths Supermarkets, Countdown Supermarkets (New Zealand) and BIG W brands, B2B business serving wholesale and export markets, and a range of fast-growing eCommerce businesses, Woolworths Group is Australia and New Zealand’s largest retailer. A top 20 company on the Australian Securities Exchange (ASX), Woolworths Group employs more than 180,000 team members and serves more than 20 million customers a week.