Costo achieves success with leading Luxembourg service provider

In order to be able to handle the order growth for one of its retail customers now and in the future, a leading logistics service provider in Luxembourg commissioned Costo to develop and install a semi-automated system. The system takes care of receipt, storage and removal and should be fully operational in Q4 of this year.

In order to provide the best solution, extensive growth scenarios in order flows and possibilities were explored. The assortment consists mainly of sportswear, but also the marketing materials will be included in the system. Everything is stored in (standard) cardboard boxes or plastic bins; orders are shipped in cardboard, with the WMS determining which box size is required.

Improved service through increased flexibility

The service provider is satisfied with the collaboration with Costo: “The detail and design discussions were conducted in an open-mind setting and were driven by professional experience. The collaboration has led to a customized logistics solution. This enables our operation to achieve the expected future service level for our customer. This high service level will result in a higher flexibility with regard to fluctuations in volumes with the guarantee of maximum throughput. This ensures an improved and optimized just in time delivery of our customer orders”.

Expansion for Costo in Benelux

For Costo this assignment means an important expansion in the Benelux.  Hans van den Berg, Commercial Director of Costo on the project: “We are very pleased to build a complete logistics system, including Arrow WMS, for this leading logistics service provider in Luxembourg. Our advice and regular consultation with the client ensured that we were able to offer the most appropriate solution”.

Integrated voice system

The system consists of Costo conveyors that will take care of the connection between receipt, storage and removal. Costo will integrate the conveyors in a combination of roller racks (first floor) and shelf racks (on the mezzanine floors). Partner Dexion delivers, under the direction of Costo, among others the racking and the mezzanine floors.

Order picking is carried out using a voice system fully integrated by Xtend. Identification of the products is recorded in the Arrow WMS via RFID tags in the product packaging. As usual at Costo, the Xtend WMS (Arrow) takes care of controlling the entire activity.

3D, real-time visualization & voice system

New is the 3D and real-time visualization capability in the Arrow WMS. This provides an even better overview of the goods flows. At the loading bays, the products are transported directly from the truck via a telescopic conveyor to the conveyor system. After they have been scanned, the WMS determines to which storage location the products should be transported.

The flow racks on the first floor offer storage space for almost 20,000 packages. The shelf racks are divided over the first and second floor and have a total of approximately 5,000 sections. In these 3 zones, employees will carry out order picking activities using the integrated voice system.


Arrow WMS, Costo, Intralogistics, Orderpicking, Semi-automated warehousing, Voice, Warehousing, WMS

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