Case Study: OXXO® Convenience Store Chain

Case Study: OXXO® Convenience Store Chain

Background:

Oxxo, a subsidiary of FEMSA known to be the largest public bottler of Coca-Cola products, is a convenience store chain in Mexico, and the largest convenience chain in Latin America with over 18,000 stores and headquarters in Monterrey. The first store opened in 1978, selling only a few essential products like beer, cigars, and snacks. Today, Oxxo’s popularity has enabled them to grow, including the sale of a wider variety of products, and the inclusion of Oxxo gas stations.

Challenge:

In 2005, Oxxo was looking for a faster way to secure 55lb totes packed in its distribution centers during the day that were then shipped to local stores overnight. The current method of manually applied cable ties was too slow and labor-intensive, causing costly shipping delays.

Solution:

To speed up the packing process, EAM-Mosca suggested a trial of the TR3C automatic strapping machine at its Monterrey location. This fully automatic strapping machine would apply one strap to each tote at a rate of 20 totes per minute – revolutionizing the current process. A manual version of the ROMP would strap lesser quantities of fresh and frozen items.

Results:

Following the success of the 2005 trial, Oxxo purchased several more strapping systems at ten other locations across Mexico that same year.

Updated  Solutions and Results:

In 2012, Oxxo’s continuing growth led to the purchase of more Mosca machines; this time, the new TR5C SoniXs models were the solution. The convenience store chain was able to increase product security by switching from a traditional heat seal to a more reliable and tamper-resistant ultrasonic welding seal – Mosca’s proprietary SoniXs® technology.

In 2016, Oxxo wanted to increase the tamper resistance of its products further. Each tote needed to go from being a single strap to two. The production rate had to also remain at 20 totes per minute. To achieve this, EAM-Mosca engineers designed a tandem strapping system with integrated entry and pacing conveyors and two TR6-B SoniXs fully automatic strappers. A tandem configuration places two strappers in a series, with one active and one on standby. If the active strapper faults, the standby machine automatically takes over, providing a failsafe for minimal impact on throughputs, disruptions, and cost. The tandem solution was a success!

Since the start of the first trial in 2005, EAM-Mosca has remained Oxxo’s preferred strapping system supplier. To date, the convenience store chain has a total of 84 bundlers across 18 of its Latin America locations, serving over 12,000 local stores, and approx. 9 million customers daily. Each machine reliably runs an approx. one million cycles per 100 days in most facilities.

Oxxo management acknowledges that the TR6 has generated an impressive improvement in the already respected reliability of Mosca products.

Testimonial:

 “I widely recommend EAM-Mosca de Mexico as a supplier of all of our distribution centers nationwide of bundlers, strap, spare parts, and technical service… This Company has been fully satisfactory for us (Oxxo) based on …the importance of their systems to our operations and the excellent quality of the products that they offer.” – Oxxo’s Chief Buyer, Amalia Gabriela Sepulveda Montemayor

 

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