North America’s Largest Wine Cellar: The SAQ Automates with KNAPP

The Société des alcools du Québec (SAQ), the provincial state-owned enterprise responsible for selling wine and spirits in Québec, has collaborated with Austrian intralogistics specialist KNAPP to implement a highly automated solution for the former’s new distribution center. The new system aims to significantly expand the range of products on offer online at saq.com while making delivery to stores, restaurants and bars more efficient.

Next-day delivery – a quantum leap in customer service

Each year, the SAQ offers more than 40,000 different items from over 83 countries. Their online shop, SAQ.COM, plays a key role in making specialties available to the general public. Every Thursday, the SAQ adds over 250 new items to the online shop – a dynamic process that places high demands on the corporation’s logistics.

The previous distribution center had a capacity of 4,500 items and was reaching its limits. In order to increase the product range to 20,000 items and to make next-day delivery an option, the SAQ decided to undertake a comprehensive automation project. The solution will not only increase the system’s picking speed, but also reduce its error rate and improve overall process efficiency. Once complete, the new system will allow the SAQ to offer up to 20,000 items for next-day delivery, representing a milestone in online wine retail. Customers will benefit from a significantly larger selection and from faster delivery times, as the solution will allow the SAQ to process orders around the clock and to deliver within a day – a level of service that is a first for wine and spirits retail.

The KNAPP concept: flexibility meets efficiency

KNAPP developed a custom automation concept for the SAQ based on the proven Evo Shuttle system. The Evo Shuttle 2D stores and retrieves full cases, which are then sent to the Evo Shuttle 1D for single-item picking and to RUNPICK (Robotic Universal Picker) for fully automatic palletizing. The modular structure ensures a high level of flexibility and scalability – decisive factors for a growing e-commerce business. Thanks to this intelligent combination of technologies, the SAQ will soon be able to process 9 million full cases each year to replenish their stores fully automatically. Another key part of the solution is the software KiSoft Pack Master. It calculates the optimal packing pattern for each order as soon as it arrives, ensuring that pallets are stable, space-effective and store-friendly. For the calculation, the software takes both the physical characteristics of the items as well as the requirements of the target location into account. This attention to detail greatly benefits the quality and efficiency of store delivery.

RUNPICK – automated palletizing at the next level

A highlight of the new automated system is the fully automated RUNPICK solution that picks and palletizes full cases for store delivery. The units are rotated, tipped and grouped before they reach the robot, which then builds pallets fully automatically by placing multiple different items on the pallet in a single movement. This multi case picking significantly improves the system’s throughput. RUNPICK’s precise and space-effective palletization is ideal for the requirements of the SAQ’s network of stores.

“RUNPICK has allowed us to automate full case picking for our stores and take our palletizing to a new level. Being able to palletize such a large part of our processes is a game changer,” says Luc Bourdeau, Vice President Strategic Development Supply Chain for the SAQ.

Looking ahead to scalability and lasting partnership

The SAQ’s new system represents a milestone in automating wine and liquor retail. The world’s largest beverage picking facility will not only improve the shopping experience for the SAQ’s customers, but also lay the foundation for future growth.

Thanks to the custom-built KNAPP system with modular architecture, the SAQ can benefit from scalability over the long term, with the flexibility the corporation needs to respond to future market demands. The partnership between the SAQ and KNAPP shows how technology and teamwork can shape the future of retail. “KNAPP understood our requirements and created a solution that optimized our processes while being scalable and future-proof as well,” explains Bourdeau.

About the SAQ

The state-owned enterprise is responsible for selling wine and spirits in the Canadian province of Québec. They operate an extensive network of over 800 points of sale along with an online shop featuring North America’s largest virtual wine cellar. As a wholesaler, the SAQ supplies restaurants, bars and supermarkets and advocates for responsible access to alcoholic beverages in the entire province.

About KNAPP

KNAPP is the technology partner for intelligent value chains. Headquartered in Austria, the KNAPP group provides all-in-one solutions for automation and digitalization, from production and distribution to the point of sale. Excellent service and long-term collaboration make KNAPP the strong partner behind the success of their customers in the healthcare, retail, food retail, fashion, wholesale and industry sectors.