Transforming Ecommerce Warehouse

Next day delivery is a logistical challenge that warehouses often require an upgrade to achieve. David Priestman visited such a facility in Birmingham.

BES are a plumbing, gas and heating trade supplier selling products and brands ranging from Bosch tools to Danfoss thermostats, Grohe taps to Grundfos pumps, Triton showers to Bostik glue. This inventory, in a 80,000 sq. ft. DC in central Birmingham, with 15000 SKUs and 1500 orders per day is a challenge in terms of suitable storage, picking and despatch. The company went from a paper-based operation to an automated voice and WMS solution in a project with Koerber Supply Chain.

The key benefits were: 15% reduction in total staff hours used; 43% increase in productivity; 88% reduction in training time for new staff; 50% reduction in staff needed to check orders after picking; 5 tonnes of paper saved per year (750,000 sheets) + printing costs; Pick-up times on collection orders reduced to 30 minutes

Flexible Solution Required

“We brought technology to the workplace,” Operations Manager Steve Standley told me. BES is a 45-year-old company and ecommerce took-off during covid. “Initially, for the extra orders, we just hired more staff. But that made us top-heavy for pick and pack. We needed to speed up and possibly reduce the head count,” he explained. The old system saw orders generate two copies of every despatch note. One went round the warehouse and one to the customer. There was a lot of walking involved as staff went round the facility to find and collect each item for an order. Having automated these processes considerable efficiencies have been made. BES upped staff pay and amended hours as well.

“It was a bit chicken and egg,” Standley said. “Should we introduce technology first or introduce efficient practises?” A new picking solution was required to help with the additional volumes. Installation, which commenced in March 2023 and was completed last August, needed to be done whilst order numbers continued to grow. “Testing was straightforward,” Standley recalls. “Training is easy. Showing new starters the aisle and stock locations is the main thing.”

Major customers order in big quantities. Plumbers purchase parts for regular jobs. Consumers buy items for home delivery. BES ship via DX for odd sized and large products (overnight via the DX network), DPD for regular parcels and Royal Mail for items under 2kg. The decision was made to divide the DC into four zones, accordingly, from bulk down to small, plus a VIP area. Workers now wheel a roll cage of small or medium totes to the appropriate zone to pick into up to 20 totes at a time, before returning to the loading area.

Order Prioritisation

Another challenge for the upgrade project was to reduce the time taken to pick items meant for collection by customers on-site to be halved, to just 30 minutes. Instead of printed orders being sifted through, the new picking system recognises the warehouse’s own postcode as the destination. “It then jumps to the front of the queue to pick immediately,” Standley informed. “It’s hard to get the balance between collection orders and ones for delivery. An unique balance is achieved.”

The new system includes Koerber WMS, voice tech, modules and middleware, plus the four Kardex Megamat carousels (pictured) that were already in use at the DC. The picker no longer needs to input part numbers on the carousel’s control panel. This is a no-touch solution thanks to the Koerber API ordering items in batches. Quite a lot of work was done by Koerber in achieving this interface. “We did have two staff per machine,” Standley continued, “now one person goes to it (and says ‘Ready’) when around 30 orders are ready. So they can go, pick elsewhere and come back. There’s less walking involved.”

What about fast-moving items and stock location? “We wanted accuracy. Quality was paramount.” Standley emphasised. “Phase 2 of the project will take us further, handling inbound products from suppliers and maybe having a dedicated area for fast-movers. We’re also looking at same-day delivery options.”

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Find your Warehouse Rhythm

 

 

 

Latest Automation Innovations at LogiMAT

Fives will present its complete ecosystem of smart and automated solutions at the LogiMAT tradeshow in Stuttgart, Germany (Hall 1 at Booth 1A61 & Hall 3 at Booth 3A30) from March 19 to 21st. This event will also be the opportunity to showcase its innovations designed to optimize the performance in material handling and automation.

Fives, through its Smart Automation Solutions Division, is an industry leading provider and integrator of cutting-edge, smart, scalable, and sustainable material handling solutions to increase warehouse automation. From retail and distribution to e-commerce, food, and 3PLs, as well as parcel and postal, Fives serves various business sectors, through an extensive range of technologies and software for conveying, sorting and picking the widest range of goods, worldwide.

Fives is dedicated to support its clients, providing them with comprehensive solution that increase speed, flexibility, capacity and scalability, to optimize the efficiency of their intralogistics
processes and deliver the right item, to the right place, at the right time. As a “customer-oriented company, Fives supports industrial companies throughout the entire life cycle of their facilities. From design to operations, Fives provides them with tailor-made and high-performance turnkey solutions, as well as aftermarket services ranging from spare parts, field service, maintenance programs, to retrofit solutions, anywhere in the world.

One innovation ahead

The rise of Industry 4.0 is deeply transforming the industry in various sectors. Automation innovation is key for addressing real-life challenges, such as digitally assisted remote services facilitating
AI-driven information collect and predictive maintenance. For over 60 years, Fives has been innovating, developing technologies that have become market standards. Anticipating customer needs, Fives invests in future technologies, expanding its solutions portfolio to collaboratively transform supply chain facilities with clients.

Take order picking to the next level

Speed, visibility, and reliability are essential for the success of logistics operations. To address the challenges associated with managing large order volumes while ensuring precise inventory management and efficient tracking of flows, Fives offers a warehouse automation solution based on the “Pallet-to-Robot” process, a new technological brick for automated pallet preparation.

A flexible, versatile, and scalable solution, AgileP2R ensures complete automation of order picking and adapts to the variability of logistics operations. It is designed for multi-product layer-pallets preparation and multi-product case-pallet preparation, and offers a choice of equipment, thus enabling customized adaptation possibilities.

For layer picking, Agile P2R features on one or more robots equipped with a layer gripper that can adapt to various pallet sizes. This gripper handles product-layers, up to 38 cm in height, using various technologies: suction, depression, clamping, security curtain.

For case picking, one or more robotic cells equipped with case grippers, which are adapted to all types of loads and take the fragility of the products into account, make up heterogeneous pallets. For both preparation modes, the use of AMRs complements robotics for maximum flexibility. 360° management software controls the entire process, and powerful algorithms automatically calculate and control the positioning of layers and cases to optimize pallets. Finally, a buffer area allows product pallets to be placed as close as possible.

Read more here:

Automation Solutions for Swedish Sorting Centre

 

Methanol-Powered Vessels

Unifeeder Group has successfully completed a long-term charter agreement for two additional methanol-capable container feeder vessels. This follows the agreement for two initial vessels announced in October 2023, underscoring the group’s commitment to greener shipping solutions.

The latest agreement is in partnership with German-based ship owning group Elbdeich Reederei and Norwegian shipowner MPC Container Ships (MPCC), who are responsible for one vessel each. The 1250 twenty-foot equivalent unit (TEU) vessels, scheduled for delivery in 2026, will be deployed on Unifeeder’s European network. The addition of these new vessels reinforces the group’s ongoing efforts to reduce emissions across its network. Simultaneously, Unifeeder is enhancing fuel efficiency throughout the fleet while increasing the utilisation of biofuels in its conventional vessels.

In alignment with its parent company, DP World, Unifeeder collaborates with industry partners to address the challenge of renewable methanol supply. This requires off-take commitments to establish production at the scale needed to replace conventional fossil fuels within the industry.

Methanol-Power

Jesper Kristensen, Group CEO of Unifeeder Group, said: “Building upon our commitment to methanol-powered vessels last year, this marks another significant stride towards the green transformation of our fleet and operations. We anticipate the vessels to enter into operation in the next two years, advancing our steadfast commitment to sustainable solutions. We offer our customers alternatives that align with their sustainability journeys while making meaningful progress towards our own ambitious decarbonisation goals.”

The investment in the two new additional ships further supports Unifeeder Group’s ambitious decarbonisation plan. Surpassing the industry average, Unifeeder has committed to a 25 per cent reduction of emissions by 2030 and to reach net-zero by 2050 with no new fossil greenhouse gas emissions. It aims to achieve this by emphasising fuel-efficient practices, regular maintenance and refitting processes of the existing fleet and fostering a culture of learning and collaboration, sharing best practices across markets to drive effective carbon reduction strategies.

Unifeeder Group is part of DP World Marine Services, which announced in December 2023 it had reduced its carbon footprint by more than 16% in 2023 from its 2019 baseline of 2,118 ktCO2e by creating efficiencies across its operations. DP World also joined the First Movers Coalition, setting a target for 5% of its marine power to come from zero-emissions fuels by 2030, marking its commitment to decarbonisation – a sentiment echoed by the Unifeeder Group.

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Unifeeder Invests in Methanol-Powered Vessels

Extensive Material Handling Lineup at LogiMAT

LogiMAT 2024 will see the first showcasing of an extensive lineup of material handling products from Bobcat. The global rebranding and integration of Doosan Industrial Vehicle (DIV) under the Bobcat brand with its range of forklift trucks and warehouse equipment, will provide even more solutions to help Bobcat customers to accomplish more. From 1st January 2024, all of the company’s material handling equipment has been produced in the signature Bobcat colours – white and orange.

The Bobcat brand is world famous for an extensive range of compact machines, which are used in construction, the agricultural sector, landscaping, demolition and many other industries. Bobcat loaders and telehandlers, which can be equipped with attachments such as pallet forks, buckets, grabs, bale clamps or dump hoppers, are often used for material handling and logistics tasks. So the addition of a complete range of IC and electric forklift trucks and warehouse equipment is a natural extension to the Bobcat range.

“Through our unwavering commitment to innovation and excellence, we have significantly broadened our product portfolio to not only meet the needs of our loyal customers but also to inspire and empower new customers to conquer their toughest challenges,” said Scott Park, CEO and Vice Chairman of Doosan Bobcat. “With an expanded range of solutions, we’re empowering even more customers to accomplish more.”

Bobcat Material Handling Products at LogiMAT

At LogiMAT 2024, the Bobcat product display will include diesel and electric forklifts, reach trucks and warehouse equipment such as pallet trucks and stackers. The display will also include Bobcat’s TL25.60 super compact telehandler, which allows work in tight spots without compromising performance, thanks to the machine’s compact dimensions and excellent manoeuvrability.

Lineup at LogiMAT
Lineup at LogiMAT

The Bobcat material handling products on the stand at LogiMAT include:

Diesel forklifts: • D160S-9, • D50SC-9

Electric forklifts: • B25NS, • B20X-7 Plus, • B80NS

Reach truck: • BR16J-9

Warehouse equipment: • BPL18S-7 pedestrian pallet truck, • BPR20S-7 ride-on pallet truck, • BDR13S-7 double stacker, • LSM12N-7 pallet stacker

These models are representative of products from the comprehensive Bobcat range for the logistics and material handling market, which include various lines: a series of diesel forklift trucks with lifting capacities from 2 to 16 ton; a series of LPG forklift trucks with lifting capacities from 2 to 7 ton and a series of electric forklift trucks with lifting capacities from 1.2 to 10 ton. The latter segment also includes a line of electric forklifts with three wheels for light work from 1.2 to 2 ton. As mentioned above, the warehouse solutions include pallet trucks, stackers and reach trucks.

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Doosan Forklifts Transition to Bobcat Brand

Supply Chain Optimisation Key to Retail

Businesses across all sectors are looking to AI, whether it’s to improve productivity and efficiencies within their operations or to offer a more personalised experience to customers, writes Faki Saadi (pictured), Director of Sales, UK, Ireland and France at SOTI. A message echoed at the National Retail Federation conference, which saw retail giants such as Amazon, Walmart and Victoria’s Secret reveal new AI-enhanced offerings.

However, a recent SOTI study revealed that underwhelming in-store device experiences and frustrations with deliveries and returns processes are tempering consumer excitement for AI, with just one in five British shoppers looking forward to its arrival in the retail market. Before more brands integrate advanced technologies, either in-store or online, it is critical that they nail down the basics to provide a frictionless experience and gain consumer trust.

Need for Speed

A key consideration for many shoppers before they make any purchase is the expected delivery time. In fact, 42% of UK consumers now expect to pick up an item ordered online from a physical store on the same day of purchase and 43% will look elsewhere if delivery or pick up of an item exceeds two days.

The ability to offer this level of service to shoppers lies in having an optimised supply chain. Through the integration of AI and implementing a fleet of connected devices, businesses can access essential intelligence data to better manage inventory, re-route stock depending on requests for products and ensure logistical operations are strategically planned.

This eliminates any manual processes that are slowing down procedures and creates a network of connected warehouses and distribution channels, that can react and adapt depending on a company’s current needs. As such, brands will now be in a stronger position to guarantee both fulfilment and consumer satisfaction.

Removing Blind Spots

Consumers demand direct exposure to retailer’s supply chains, requiring a synchronised reflection of what is available, through what channels and in what time period. True transparency is key to helping consumers feel in control during their journey through the sales funnel while offering them the flexibility to shop where it is most convenient for them. The appetite is clear, with nearly three quarters (73%) of shoppers expressing a desire to always know where their order is within the delivery process. For brands to offer this level of insight, they need to invest in supply chain optimisation so that they can access accurate real-time data and intelligence.

Through this, organisations will benefit from having immediate detection and reaction to operational challenges by integrating both device and operational data, including status of on-time deliveries, inventory status and driver behaviour. This will allow retailers to provide precise information directly to consumers, on when a product has been dispatched, when it has been received by a local courier and how far that parcel is from the recipient at any time on the date of expected delivery.

We have seen this in action through our work with DPD. This logistics giant has achieved greater visibility and control of its entire mobile operations, making it far easier to meet expectations and increase customer satisfaction.

Fluid Returns

For many shoppers, the ability to return an item in a convenient way can be enough for them to choose one retailer over another. Nearly three in five (59%) UK consumers say they would be more likely to choose a retailer if multiple return points were offered. Therefore, it is essential that brands offer a variety of couriers, returns lockers or the option to drop products off at any branch nationwide or at partner stores. But, how can retailers make that happen and still maintain visibility over all the moving parts?

From the point of a customer registering a return, to arranging delivery back to the warehouse and getting inventory processed into the system to be sold again, businesses should be making use of connected devices to retain as much data as possible. By developing an optimised supply chain, this data can then be made accessible and shared between various warehouses so that stock can be re-distributed to areas in need and operations managers can have a clear view of any movements in the facility. By integrating a fully automated process, retailers can then improve efficiency and ensure that the return journey is smooth and uninterrupted.

The Takeaway

Customer loyalty is becoming increasingly fickle, and all organisations should be using every tool at their disposal to build and retain it. A SOTI customer, American Airlines, which leverages remote control help desk tools to maintain customer satisfaction, proves that having the right technology at your fingertips can exponentially improve the overall experience of your customer base.
So, as retailers look ahead to advanced technologies like AI, it is critical that they revise their existing tech strategies now, both in-store and across the supply chain, so that when they do make the transition to AI, consumers are receptive, excited and optimistic.

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