Dollar General Installs Dematic in 9th Automated Distribution Center

Dematic “replaced the wings on our airplane during flight” in installing solution in existing facility-without missing an order

Grand Rapids, Mich., Monday, January 8, 2008 – One of the biggest fears in replacing a mission-critical application like a distribution center’s material handling system is that the facility will not be able to ship product. That’s something no company can afford to do.

Dollar General Corporation, a leading discount retailer with 8,200 neighborhood stores,was faced with that decision when the company had to replace the supply chain automation solution at its 820,000 sq foot Indianola, Mississippi distribution center. “We were at peak capacity with the existing 10-year old equipment in the facility, and it was at the point where that system was holding us back,” said Rodney Carpenter, Director of Distribution Capital Projects, Dollar General. “We knew we had to replace it, but couldn’t afford to be unable to get product to the over 800 Dollar General stores in the south central US that the Indianola facility supplies while the old system was replaced with a new one.”

Dollar General turned to long standing partner Dematic, one of the world’s leading suppliers of logistics automation solutions, systems and service, to provide and install a new supply chain automation solution. Dematic also had to remove the old system, and do all of this within a 96-hour window of scheduled shutdown time.

The plan called for installing over 600 feet of Dematic’s new S-L300 sorter adjacent to the existing system, while the existing system was still operational. Once the new Dematic sorter was in place, Dematic’s onsite team of over 140 people coupled with over 40 Dollar General personnel spent in excess of 5,000 man-hours dismantling and removing over 125,000 tons of the old system, and installed almost 1/2 mile of Dematic conveyor. The end-result was a completely new, operational system, in place and shipping orders 3 hours ahead of schedule.

The new system installation was one of the most complex projects of that scope ever accomplished by Dematic. “This was the most demanding implementation I have ever been involved with in my over 20 years’ in the distribution industry,” said Anthony Roden, VP of Logistics at Dollar General. “It was as if Dematic replaced the wings on our airplane during flight. The dedication of the Dollar General and Dematic team was second to none. Collectively the groups executed a very complex implementation plan and a robust training program to prepare us to keep the system running long after the construction dust settled.”

Replacing an existing system presents a situation completely unlike installing a new system in a new facility. “When you have an existing system in place there are many more variables to take into account,” said Mike Cortright, VP Project Management Dematic. “Companies simply can’t afford facility down time, and through the meticulous efforts of the Dematic and Dollar General teams the new system was installed without missing an order. This illustrates the level of dedication and pride both teams have displayed from the beginning of this project.”

The Indianola distribution center is the 9th Dollar General facility to use Dematic’s supply chain automation solutions. “Dollar General has been a long-time Dematic customer, going back to their days as Rapistan,” added Dollar General’s Roden. “We look forward to future opportunities to work with Dematic on technology advancements, challenging implementations and enhanced training initiatives.”

About Dollar General - Dollar General is a leading discount retailer with over 8,200 neighborhood stores. Dollar General stores offer convenience and value to customers by offering consumable basic items that are frequently used and replenished, such as food, snacks, health and beauty aids, cleaning supplies, as well as a selection of basic apparel, housewares and seasonal items at everyday low prices. For more information, visit www.dollargeneral.com.

About Dematic Corp. - Based on a rich tradition of over 70 years of worldwide industry expertise in creating logistics results and more than 10,000 systems installed worldwide, Dematic Corp is one of the world’s leading suppliers of logistics automation solutions, systems and service.

Beginning with Rapistan’s rich history from gravity conveyors to automated, modular conveyor and sortation solutions, Dematic now offers a full range of engineered and highly configurable system solutions that optimize warehousing and distribution operations. With Dematic, companies can reduce distribution costs, maximize overall logistics efficiencies, and increase the operating speed of their supply chain.

Dematic is a global company with operations in 22 countries around the world. Its North American headquarters is located in Grand Rapids, Michigan. For genuine Rapistan conveyor system parts, or more Dematic information, visit www.dematic.us.