Case Study: MidCity Foods Cuts Picking Time by 42% With Hybrid AMR-G2P Flow

Executive summary: MidCity Foods, a regional refrigerated distributor, reduced average order picking time by 42% after implementing an 18-month program that blended autonomous mobile robots (AMRs) for tote transport with a centrally located goods-to-person (G2P) picking pod. This case study documents the objectives, technical architecture, change management program, and measurable outcomes.

Company context

MidCity Foods operates a 160,000-square-foot cold storage distribution center serving grocery chains and foodservice operators. The client faced seasonal volume spikes, an aging workforce, and high overtime costs. The primary pain points were excessive traveling time for pickers on long picks and variability in temperature-sensitive handling times.

Goals

• Reduce average lines-per-hour (LPH) variability and increase throughput by 30% during peak weeks.
• Lower overtime and temp labor spend by 25%.
• Maintain or improve order accuracy and cold-chain compliance.

Solution architecture

The chosen architecture blended three technical layers:

1. AMRs for tote transport — small, agile units that moved filled totes from replenishment zones to the G2P pod, minimizing picker travel inside cold aisles.
2. G2P picking pod — a central carousel/pod where workers performed the final picks into outbound totes in a controlled ergonomic environment.
3. Integration middleware — a lightweight orchestration layer that synchronized the warehouse management system (WMS) with the AMR fleet manager and the G2P control software.

Implementation phases

Phase 1: Data and site audit (3 months). Collected pick paths, SKU profiles, and cycle times. Identified top 300 SKUs by velocity for initial pilot.

Phase 2: Pilot deployment (4 months). Deployed 12 AMRs in a 20,000 sq ft refrigerated zone and a single G2P pod. Run 8-week pilot with A/B testing of routes and pick sequencing.

Phase 3: Rollout and workforce training (6 months). Gradually scaled AMR fleet to 40 units, added another G2P pod, trained 70 staff on new SOPs, and implemented a rewards-based incentive program for adopters.

Change management and workforce strategy

MidCity established cross-functional teams including operations, HR, IT, and vendor reps. They created career paths for technicians and 'automation champions' among long-tenured pickers. Training focused on safety around AMRs, pod operation, and exception handling. A transition stipend helped older workers upskill into maintenance roles.

Results and KPIs

Within six months of full rollout, MidCity reported:

• 42% reduction in average picking time across the automated corridors.
• 28% reduction in overtime spend year-over-year.
• Order accuracy improvement from 99.2% to 99.8%.
• Energy impact negligible due to optimized charging cycles for AMRs and insulated pod usage.

Key lessons learned

• Start with velocity mapping. Target the top SKUs that deliver the most hours saved.
• Integrations must be decoupled. Use middleware so vendor upgrades don't break the WMS connection.
• Plan for exception flows. Not all picks are routable to AMRs — create clear SOPs for fragile or overweight items.
• Measure human factors. Ergonomic improvements reduced worker fatigue and led to faster adoption.

Financials

Initial project cost: $4.6M (AMRs, G2P pod, middleware, installation, training). Annualized labor savings: $1.3M (reduced overtime and temp labor). Projected payback: 3.8 years, with an internal rate of return (IRR) improved if MidCity expands the solution into adjacent facilities.

Next steps for MidCity

MidCity plans to add predictive replenishment driven by demand forecasting to reduce pod stall time and is evaluating robotic depalletizing to further lower manual handling in the inbound lane.

Conclusion

This case shows how a hybrid automation approach can deliver substantial operational gains without complete mechanization. For cold-storage environments where human judgment remains important for QC, AMRs paired with G2P deliver a balance of productivity and flexibility.