Lotte Mart Turns To KNAPP For E-Commerce Solution

By Steve Wynne-Jones
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Lotte Mart Turns To KNAPP For E-Commerce Solution

Lotte Mart, the leading food retailer in South Korea, primarily offers food, clothing, toys and electronic articles in its hypermarkets. Founded in 1998, today, the retailer, which is part of Lotte Group, operates 117 stores in South Korea, 116 in China, 41 in Indonesia and 11 in Vietnam.

In addition to its physical store formats, Lotte Mart also runs an online food-store operation: Lotte Mart Mall, which is seeking a leading role in the fast-growing online food market. For this purpose, Lotte Mart has been establishing a number of online distribution centres in and around Seoul to provide same-day delivery of fresh goods to its online customers.

In 2016, a highly automated distribution centre was established in the city district of Gimpo, which saw the retailer turn to KNAPP to implement its E-Grocer system solution.

With the OSR ShuttleTM, KNAPP's proven goods-to-person system, customers receive their orders even faster than before, giving Lotte Mart a key competitive advantage.

The Lotte Mart warehouse exclusively processes e-commerce orders, which, when received, must arrive at the end consumer's premises on the same day. The article spectrum comprises a large variety of shelf-stable goods and fresh and frozen foods. Ensuring a consistent cool chain for the solution necessitated the creation of different temperature areas on several storeys, which are all connected by the high-performance KNAPP Streamline conveyor system.


Furthermore, all implemented technologies had to be set up in the smallest possible floor space, to minimise the extremely high property costs in Asian cities.

KNAPP's E-Grocer solution, specially developed for the online food-retail segment, has already been put into operation several times in the European region and was adapted to the specific local conditions.

Lotte Mart was particularly convinced by the tried and tested OSR ShuttleTM, used as a storage and goods-to-person picking system. The OSR ShuttleTM Sorter is also able to process a large number of delivery routes simultaneously. In comparison to conventional sorting technologies, it offers many more sorting targets at the same time with a high buffer capacity, which allows customer orders to be allocated to many small routes. Optimal ergonomic conditions in the different workstations were also a high priority for Lotte Mart.

Thanks to the efficient master concept with the implemented technologies and control mechanisms, Lotte Mart is able to guarantee its customers a very short delivery time and high quality.


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