Mekonomen2Nordic-based spare parts supplier Mekonomen has signed a multi-year contract with TGW Logistics for the provision of material handling services at its newly consolidated warehouse in Strängnäs, Sweden. TGW Logistics will manage picking and consolidation across a wide range of parts.

As part of the deal TGW will provide a system based on its FlashPick application for selecting toted parts at workstations. Those parts will be consolidated using TGW’s Stingray system. According to the company the Stingray system will involve 100 shuttles roaming on 53 levels across four aisles and 108,000 locations, sourcing up to 4,500 totes per hour.

Mekonomen has consolidated two distribution centres into one with the expansion of its Strängäs facility. The company said the move reduce stock holding, overheads and labour costs from a supply chain that covers three order types: workshop replenishment, workshop customer collect and e-commerce direct delivery. The company handles spare parts for 350 stores and over 2,100 affiliated workshops. It stocks more than 67,000 spare parts at the facility.

The contract with TGW also includes a five-year lifetime service agreement, incorporating a dedicated on-site engineering team, a PLC/WCS/WMS service hotline and parts usage.

"Through this investment, we are optimising our infrastructure and are creating the industry's most efficient and effective supply chain," said Örjan Grandin, executive director supply chain, Mekonomen Group.