Ferretera Centenario optimizes hardware logistics with Modula VLMs

Case Study Summary

Ferretera Centenario is a family-owned Mexican company founded in 1975 in Monterrey. Starting in a small house with no employees, today it has over 250 collaborators and has established itself as a benchmark in the hardware and construction materials sector. Managing a catalog of over 40,000 items, the company needed to modernize operations in its approximately 140,000 sq ft (13,000 sqm) warehouse. The adoption of Modula Vertical Lift Modules (VLMs) allowed them to transition from an obsolete conveyor belt system to a high-density automated solution, drastically improving speed and accuracy.

The Challenge

Before installing the Modula systems, Ferretera Centenario used an internally developed system based on conveyor belts, where operators were confined to specific zones for manual picking.
However, as volumes grew, this method reached its limits: it was no longer able to guarantee the capacity needed to process all orders on time. The process suffered from frequent picking errors and required significant physical movement from operators. The main challenge was implementing new technology capable of increasing efficiency without disrupting daily store operations, as closing down was not an option.

The Solution

Ferretera Centenario selected Modula for its flexibility and local support in Monterrey. The project began with one unit and quickly expanded to 9 Modula vertical lift modules.
To overcome the building’s height limit, they implemented a unique engineering solution:

• 5 Modula Lift were installed at the standard building height.
• For the other 4 units, they required more capacity. Instead of raising the roof, they dug a pit 26 ft (8 meters) deep. This allowed them to install massive 52 ft (16 meters) tall units: half the machine sits underground, and the other half stands above ground, doubling the storage density in the same footprint.

These 9 units now store approximately 12,000 high-turnover items (out of their 40,000 SKUs).

The Result The impact on operations was immediate. The “goods-to-person” approach eliminated the need for operators to walk the warehouse floor.

• Speed: The system now achieves up to 2 picks per minute per machine, totaling roughly 18 picks per minute across the 9 units.
• Productivity: The picking process is estimated to be 5 to 10 times faster than the previous manual method.
• Accuracy: Picking errors have been virtually eliminated (“Zero errors”).
• Training: New employees can be trained and ready to work in just 10 minutes.

Key Benefits Highlighted in the Ferretera Centenario Case Study

• Unique Space Optimization: Maximized vertical storage by digging underground to fit 52 ft towers.
• Increased Speed: Order processing is 5-10x faster.
• Zero Errors: Absolute accuracy in order fulfillment.
• Seamless Integration: Implemented without interrupting daily store operations.
• Ergonomics: Drastically reduced physical strain and movement for operators.