Supply-chain solutions integrator HK Systems Inc is upgrading pallet picking operations with automatic guided vehicles (AGVs) in a Canadian Tire Corp Ltd warehouse.

Privately owned HK is based in New Berlin and focuses on complex integrated systems. HK is working with Canadian Tire to largely automate certain operations in the retailer's 1.2 million sqft (108,000 sqm) AJ Billes distribution centre in Brampton, Ontario, Canada.

The AGVs are replacing aging turret forklifts in the narrow-aisle warehouse, are expected to increase pallet moves and are leading to reassignments for the displaced forklift operators.

Canadian Tire embarked on the improvement project in 2006, worked with numerous consultants and conducted trials on how to improve the movement of pallets.

Canadian Tire began working with AGV Products of Charlotte, North Carolina. In late 2006, HK acquired AGV Products, and the development work continued.

Publicly traded Canadian Tire employs about 57,000 staff, sells into the retail automotive, sports and leisure and home products markets and reported profit of CND85.4 million (USD78.9 million) on sales of CND2.45 billion (USD2.26 billion) for the third quarter ended on 3 October. Principal businesses for Canadian Tire involve the hard goods, apparel and petroleum retail segments and the financial and automotive services markets.