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Tag: Ferag

Solution Agnostic Automation Brings Warehouse Agility

Posted on by David Priestman

Freedom to integrate best-of-breed technology delivers the flexibility, scalability and fast ROI businesses crave. So, where do some businesses go wrong? Chris More, head of Sales for Ferag’s UK and Nordic regions, explains.

Competitive pressures on margins combined with ever greater expectations from customers on service, product choice and speed of delivery, place a heavy and growing burden on the fulfilment function and its supporting intralogistics infrastructure.

Fulfilment now needs to be faster, more efficient and infinitely flexible, capable of dealing with constantly changing product profiles and more frequent peaks. A capability to leverage availability, service and costs across slick Omini-channel operations is increasingly in demand. And the need for easily scalable technologies /solutions is considered essential in facilitating growth and securing future performance.

Rising labour costs

Set against these high demands on performance, manual processes are becoming increasingly difficult to support. Faced with escalating labour costs and a shrinking labour pool, businesses are sensibly looking to automation to build-in agility, increase responsiveness and to keep competitive. But how should SMEs best approach a transition to, or an upgrade in, warehouse automation? How do you ensure the most appropriate technology is deployed, offering the flexibility and scalability needed, with the fastest ROI? Taking a wrong step at the outset can lead to restricted options and, ultimately, suboptimal outcomes.

Two approaches

There are two common approaches. The first is ‘Solution Dependent’: A prospective buyer can be tempted to identify a technology that looks appropriate and simply approach a manufacturer or vendor for advice. It may work out well, but there is a danger that the solution is limited to the vendor’s portfolio of products, imposing a major constraint on the solution design. As such, the ‘Solution Dependent’ approach tends to be very limited in scope and often fails to flex for future needs, locking clients into systems that are difficult to upgrade or integrate with new technologies.

The best outcomes result from allowing the client’s operational requirements define the best possible solution, and then selecting and integrating the most appropriate, cost-effective technology available. It’s all too easy to be sold a system that may work ‘okay’, as a compromise, but doesn’t necessarily offer you the best result – perhaps, falling short on flexibility, scalability, performance at peak or overall value. What’s missing here is independent informed thinking, combined with the freedom to choose best-of-breed technology.

‘Solution Agnostic’ approach

The alternative is to take a ‘Solution Agnostic’ approach, where an independent integrator is chosen that is free to select the most appropriate technology for the task. There are many advantages to working with an independent integrator. Firstly, and most importantly, being independent means that recommendations relating to technology and potential suppliers are unbiased, and are not determined by the need to sell a proprietary product. A good integrator with strong software capabilities can therefore bring together the very latest and most advanced technologies for the task, producing a best-in-class solution. Automation can offer a whole host of possible solutions to a range of warehouse processes – from goods-received, storage and order picking to packing, sorting and despatch.

Low Capex, fast ROI

Fast-developing technologies, such as Autonomous Mobile Robots (AMRs) combined with pick-to-light technology, have transformed goods-to-person order processing in recent years, bringing highly flexible and scalable, low-Capex solutions within easy reach of SMEs. However, the choices can be complex, making unbiased technical expertise an invaluable resource to tap in to.
AMRs are highly flexible and scalable forms of warehouse automation which can offer a really fast ROI. And technologies, such as zone-routing conveyors, flow-racking and cross-belt sorters, can all be brought together as a cohesive value-adding solution. Smarter picking software too can be deployed, along with pick-walls, to create continuous wave picking – boosting productivity and reducing dependency on labour.

As an integrator focused on delivering value to SMEs, Ferag’s ‘solution agnostic’ approach prioritises the needs of the application over a predefined technology set – ensuring the selection of the right technologies for the best possible outcome.

What success looks like

A successful outcome can take many forms. For one leading retailer, significant operational benefits and savings were achieved through creating an Omni-channel fulfilment operation, integrating a variety of picking, sorting and storage methods for efficient processing of ecommerce orders as well as store replenishment. In another application a prominent 3PL has been able to use modular automation to great effect across multiple clients, scaling up or down as demand dictates – giving the confidence to maintain performance, even at peak.

Key to successful integration of best-of-breed technology is the skilled application of versatile software. Ferag’s intelligent proprietary software, ferag.doWarehouse, has the power to connect, control and manage a whole world of smart warehouse technologies from different suppliers, making Ferag the leading independent integrator for SMEs keen to take their first-step into warehouse automation.

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Ferag and Sparck Collaborate for Automated efulfilment

Posted on by David Priestman

In an ecommerce industry first, systems integrator, Ferag, and auto-boxing specialist, Sparck Technologies, have collaborated to develop a continuous ‘one touch’ process from order-picking to individual ‘fit-to-size’ boxes ready for despatch. The technological leap closes the gap between order-picking and packing, enabling ecommerce businesses to offer its customers secure and compact boxed orders prepared with complete accuracy, and without manual intervention, from pick right through to despatch. A ‘one touch’ operation.

Single system solution

The innovative step, considered a ‘game-changer’, came about soon after Ferag installed its Skyfall automated pouch sortation system at a leading retail brand’s ecommerce centre in the UK. Equipped with 24,000 overhead pouches the Ferag system carries, directs and sorts a wide variety of picked goods from pick-stations, served by ASRS and Autostore systems, to over 70 manual packing benches and one automated ‘fit-to-size’ boxing system – a CVP Everest from Sparck Technologies.

Ferag’s Skyfall pouch system is located on a mezzanine level above the Autostore, maximising the use of available overhead space. Here ordered items are picked from totes into open pouches and carried away, sorted and accumulated within dynamic storage buffers, before being called off to order and delivered at speed to packing benches. The system is designed for a throughput of 16,000 pouches per hour, with a buffer capacity of an hour, where pouches can be held for single or multiple item orders. A key advantage of the system is that each pouch is designed to carry multiple items together – hanging garments, as well as flat-packed and boxed items, such as shoes.

Auto-unloading pouch

The Skyfall overhead pouch sorter was originally sourced to deliver single and multi-item orders to mainly manual packing desks. However, Ferag had recently developed an automated unloading capability for its pouches. This prompted the idea of closing the gap between picking and auto-packing, creating a direct infeed to Sparck’s CVP Everest to automate the whole process. The CVP Everest is capable of producing 1100 boxes per hour with two operators. So, the question was, could Ferag’s pouch sorter and the new Everest boxing system be integrated to produce a continuous process from pick to despatch, with no manual intervention? If so, it would be a game changer.

The challenge

It was a great idea, but it wasn’t without its complications. The highly versatile Ferag pouch sorter is designed to carry a diverse range of goods, making it well suited for varied product profiles, such as garments, accessories, and shoes.

Chris More, Ferag UK’s Head of Sales, explains how the pouch design was critical: “When it came to tendering and specifying the type of pouch needed, we put forward a couple of technologies for consideration, one being our soft pouch and the other being a hard pouch. The hard pouch has a wire frame which allows it to be opened automatically by our newly developed auto-unloading technology. We had various options for unloading, and a gentle unloader was ultimately selected. This would prove critical.”

But the challenge was, how to present a wide variety of products with different profiles in the right order and orientation to Sparck’s CVP Everest? It was a complex issue.

As it happens, Sparck Technologies’ development team was in the process of looking at ways of auto-infeeding items, as singles and possibly multiple units, into their automated boxing machines to remove the need for manual intervention. The CVP machines had always required manual induction of order-items for an otherwise completely automated process of 3D scan, cut-to-size, fold, seal and label, and then on to despatch.

“We immediately knew we could provide a solution as we were already working on a more holistic approach to the problem, with agnostic, scaleable and modular solutions,” said Jo Bradley, Business Development Manager for Sparck Technologies in the UK.

More added, “We understood exactly what was needed, so we entered into close collaboration with Sparck to set out how the two systems would exchange information, creating a tight integration between upstream and downstream processes, with reliable hand-over and acknowledgement of product and order information.”

Meanwhile, Sparck carried out further work related to ensuring a smooth and consistent induction of a variety of sized items to the CVP Everest. A clever ‘Z’ shaped conveyor section efficiently aligns and positions each item ready for 3D scanning and processing, providing a well matched, consistent pace sequenced with the upstream Ferag sorter.

Counting the benefits

After thorough testing in late summer 2023, the ‘one touch’ solution went live. The performance of the system has exceeded the retailer’s expectations, with accurate, consistent and reliable delivery of ‘right-sized’ boxes to despatch, maximising the full potential throughput of the system and standing as testament to the successful collaboration between Ferag and Sparck.

Bradley says: “Automating the interface between order-picking and ‘fit-to-size’ boxing has been a ‘Holy Grail’ for the sector for a number of years. Creating a smooth, seamless process free from human intervention has not been easy, given the complexity of the task, but now we have developed technology that aligns and positions individual items for induction into our CVP machines with great speed and accuracy. We are delighted to have worked with Ferag on achieving an industry first.”

With no need for direct human intervention between upstream order-picking processes and the fast, automatic production of ‘right-size’ ecommerce boxes – cut, formed sealed and labelled, ready for dispatch – exposure to risks, such as labour shortages and sickness, are significantly reduced. Flexibility to ramp up easily for peaks is an added bonus. This innovative step takes out cost, increases throughput and offers the retail client the reassurances they need to perform efficiently at peak.

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I-Pack Delivers Automated Packaging Performance

Posted on by David Priestman

Leading Finnish logistics services provider Inex Partners Oy has partnered with SEE to enhance packaging automation, as part of its strategy to further improve efficiencies, automated packaging performance, customer satisfaction and capacity for managing sales peaks.

Inex handles fulfilment and distribution of E-Commerce orders for one of Finland’s largest retailers. The logistics company picks, packs and sends a variety of products from its distribution centre in Sipoo, Finland to consumers right across the country. Goods range in size, shape and weight, and Inex was keen to invest in the latest packaging automation to boost performance.

Packaging challenges

A high volume of products, ranging from clothing through to personal care items and hardware, are sold through the retailer’s E-Commerce channel. Packaging these different goods can create multiple challenges.

Pasi Siilmaa, Vice President, Consumer Goods Logistics at Inex, explains: “Varying product weights and dimensions can lead to overpackaging and wasted space in boxes. Our goal is to avoid this, as it isn’t sustainable and can negatively impact end-customer satisfaction. These factors can also increase operating costs and cause packaging inconsistencies that risk product damage and unhappy consumers.

“Fulfilment of different products can also slow packaging lines, with this challenge intensified during peak trading when E-Commerce orders spike significantly. Our goal was to invest in an automated packaging solution that can deliver both high speeds and precision packaging.”

An automated solution

To achieve Inex’s goal, SEE specified its I-Pack® Void Reduction System. The automated solution has been specifically designed for high-volume E-Commerce fulfilment, where packaging efficiency, speed and protection are crucial.

Garance Kropp, Sales Representatives for the Nordics at SEE, explains: “I-Pack® technology has been developed to optimise fulfilment and packaging processes by automatically adjusting pack sizes. The automated system calculates product dimensions to rightsize, fold, close and seal corrugated boxes according to the exact size of what is being packaged. Unnecessary voids in boxes are eliminated, which reduces packaging material usage and overpackaging. As well as delivering cost savings on excessive packaging, this can also reduce transportation costs and carbon emissions, because more customer orders can be loaded per delivery vehicle.”

I-Pack® uses a mechanical sensor plate to process boxes, and depending on size, can package between 400 to 900 boxes per hour. The automated packaging solution also sizes and folds boxes using no knife technology to reduce potential hazards for operators and to lower the total cost of ownership for Inex.

Automated Packaging Performance

Pasi Siilmaa concluded: “It’s our responsibility to process E-Commerce orders quickly, efficiently, and effectively, so that customers receive them on time and in perfect condition. SEE understands this and specified a solution that produces high-quality, easy-to-open packages at high speed, and which can effectively deal with spikes in sales and customer orders.

“Inex is proud to be an innovative organisation that implements the latest solutions to improve performance. SEE’s automated packaging solution has enabled us to double productivity in picking and packing, and is a great fit for how we work and achieving our goals.”

Seamless Integration Solution

Ferag spearheaded the thorough development of the overall solution design. Embarking on a journey of quality and efficiency, this chapter unveils Ferag’s collaborative prowess with sub-suppliers, presenting a meticulously layout solution that seamlessly integrates conveyor lines, inkjets, labelers, and sorting units, while ensuring the implementation of an advanced EAS alarm detection system and overseeing the flawless installation and commissioning of the production line. Notably, the Intralogistics Specialist’s commitment extends beyond proprietary components, naturally integrating both its own and third-party elements if needed with an unwavering focus on meeting and exceeding customer needs and requirements.

“We are delighted and privileged to announce our partnership with INEX Partners”, says Marko Roini, Managing Director at Ferag Nordic OY. “We have been chosen as the trusted partner to develop the solution design and layout of their packing automation line, a testament to our expertise and innovation in the field. We have ensured the full integration of all modules to provide a seamless and efficient packaging process”.

The challenge was significant yet exciting; “INEX sought to double their productivity in e-commerce packaging processes. We rose to this challenge with enthusiasm and dedication together with SEE seamless co-operation” continues Marko Roini, and ads: “We are confident that our state-of-the-art solution will not only meet but exceed expectations, marking a significant milestone in INEX’s journey towards enhanced efficiency and productivity.”

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Omni-channel integration during ongoing operations

 

Consolidate Inventory to Accumulate

Posted on by David Priestman

Pooling inventory to serve both fashion retail stores and ecommerce channels can create an engine for growth, with increased sales and higher margins. Darcy de Thierry, Managing Director of Ferag UK explains how.

Fashion brands face an ongoing battle to protect margin. Constantly under pressure to provide value to the customer – regardless of rising labour costs, the channel, or consumer expectations on free returns – retail businesses are having to think hard about their cost-to-serve. That is, if they wish to grow and remain profitable. So, how can multi-channel retailers offer value, along with product and service consistency, across all their channels, while keeping costs to a minimum? Is there an intelligent way of, not only protecting margins, but growing them?

Automation offers obvious advantages in terms of streamlining fulfilment processes, providing capacity to facilitate growth and cope with peak demand. It also helps to reduce reliance on increasingly costly and difficult to find labour resources. But all too often the scale isn’t there to justify the investment. Perhaps, operations are too fragmented, carried out across a number of sites.

Scaling for automation

However, for a great many fashion retailers the answer could be relatively simple: create the necessary scale for automation by consolidating inventory into one omni-channel facility that serves both high street stores and ecommerce channels. Pooling stock in this way not only offers the scale and throughput needed for automation, but it also holds the potential to create huge flexibility, where fashion goods flow quickly and smoothly to satisfy demand, whether that be on the high street, click n’ collect, or ecommerce. With this agility, there are no longer complications around moving stock between locations or being out of stock in one channel only to find excess stock in another.

What’s more, a single automated omni-channel facility could, with the right technology, handle returns too. Processing items swiftly and making them immediately available for sale again – via whichever channel is best suited – has the potential to increase sales and may reduce the need for markdowns. Much depends upon acting quickly, before a product loses its fashion moment!

Overcoming technology barriers

A major barrier for many businesses considering an omni-channel approach is the thought of how to bring together disparate technologies and systems to cope with the diverse needs of assembling replenishment for high street stores and on the other hand, picking single or few items for a large number of ecommerce orders. What could be needed – sorters, multi-shuttle and mini-load systems, hanging garment solutions, specialist technologies for returns processing? How do you bring flat-pack / boxed items (such as shoes or accessories) together with soft clothing – will that require a separate sorter? Will all these systems integrate to create a cohesive and flexible solution capable of serving high street stores and ecommerce channels? And, how much space will all this take up?

These concerns can be put aside. There is a form of warehouse automation technology that offers all the capabilities necessary to orchestrate and fulfil orders for high street stores and ecommerce, all in a single seamless operation – offering automated movement, sorting and buffering of hanging goods and boxed items in one system. Overhead pouch sortation systems, such as Ferag’s advanced Skyfall solution, are capable of sorting and processing many thousands of orders an hour, with each pouch able to carry both hanging garments and flat items, such as shoes and flat pack goods, enabling fast order fulfilment from a single pool of inventory.

Store friendly sequencing

Critically, the same high-speed pouch sorter system used for fulfilling ecommerce orders can also be deployed to create store friendly sequenced consignments for high-street shops – pulling from the same, pooled inventory. The benefit of sequencing product for a particular store’s layout is that the shop assistant assigned to replenishing shelves and rails is able to perform the task quickly and efficiently, freeing them to spend more time with customers – potentially, to secure more sales.

An obvious advantage of a high-speed pouch solution, like Ferag’s Skyfall, is that it uses available overhead space – the third dimension of the building – keeping floor areas free for pedestrians and other processes. What’s more, pouch systems are a highly cost-effective alternative to other forms of goods-to-person automation, like multi-shuttle and mini-load solutions, that can cost up to 30% more. Then there is the core benefit that the Skyfall overhead pouch system undertakes high-speed sorting, conveying and buffering processes too, which with Ferag’s modular conveyor technology allows for tremendous flexibility and scalability. And as the pouch has the ability to carry flat items, such as shoes, and flat pack goods along with hanging items, there is no need to have a separate cross-belt sorter for flat items, with all the issues associated with bringing flat and hanging items together.

Buffering between processes

The ability to buffer between processes with different throughput rates – for example, ecommerce, retail store, returns handling – is powerful. It means that, for example, the elements for a store-friendly sequenced consignment can be gathered together at the same time as individual ecommerce orders are being processed. It means that ecommerce orders for a particular despatch slot/vehicle can be consolidated in advance, with only final additions to be made as the cut-off time approaches – which in turn means that cut-off can be postponed, offering the consumer a faster service and increases the potential for sales.

Importantly, picking efficiency is enhanced using a single pouch system that serves both the high street and ecommerce channels. High pick ‘hit’ rates can be achieved when blending ecommerce with retail, as instead of picking just one or two items per pouch when inducting for an ecommerce order, several more items can be picked at the same time, into the same pouch, to satisfy high street demand as well. The result is fewer pouches in circulation, more efficient picking and faster throughput.

Fulfilling potential of AI

But, perhaps, one of the greatest benefits of creating such a highly responsive, agile fulfilment capability is only now, just about to be fully realised. Artificial Intelligence (AI) will soon be capable of understanding and predicting sales patterns, both in a geographical sense, which will allow more precise allocation of stock and ranges to particular stores, and factors that may influence ecommerce customers, such as social media trends. Having a fulfilment system that has the capability to respond appropriately and quickly to AI predictions, across channels, will allow product to be optimally deployed to maximise sales and margins. Seeing this future and the need for highly responsive, ‘intelligent’ intralogistics systems, Ferag recently acquired the Australian warehouse automation software developer, dereOida.

A number of leading fashion brands are taking advantage of pouch sorter technology to increase capacity and boost performance of their fulfilment operations. Ferag has recently installed a flexible high-speed Skyfall system at a new distribution centre for children’s fashion company, Mayoral Group, in Malaga, Spain. The extensive overhead pouch solution is one of the largest to date, with a mix of hanging pouches and garment hangers totalling more than 58,000 Skyfall hangers, and a throughput of up to 12,000 units per hour. The system sorts and sequences thousands of carriers and hangers with a random mix of pockets and garments, processing orders in batches and actively sorting them in a dynamic buffering solution that offers the flexibility to fulfil both store replenishment and online orders. The same system efficiently handles returns.

Consolidating inventory in a single, highly automated omni-channel facility can drive greater efficiencies, improve productivity, and boost responsiveness – creating an engine for growth that has more opportunities for sales with higher margins.

Ferag Acquires dereOida

Posted on by David Priestman

In a strategic move, Ferag AG and dereOida have announced their merger, combining their expertise and innovations to create a comprehensive, single solution for all intralogistics requirements.

Ferag AG, a renowned family-owned Swiss company with over 65 years of experience as a global market leader in material flow systems, and dereOida, an Australian pioneer in warehouse automation software with their revolutionary doWarehouse system, are uniting their strengths to offer an unparalleled intralogistics solution to businesses across various industries.

dereOida’s flagship product, doWarehouse, presents a holistic single view across the warehouse. With the freedom to select any automated system, customers can seamlessly integrate their chosen hardware into doWarehouse, all while benefiting from dereOida’s outstanding support services. The doWarehouse system enables the user to streamline processes, enhance productivity, reduce costs and allows for continuous improvement through insightful analytics. Notably, it provides a single source of truth, revolutionises sortation management, replaces cumbersome spreadsheets, and optimises warehouse space utilisation.

Ferag AG’s legacy as a family-owned Swiss company specialising in intralogistics solutions and the development, design and distribution of material flow systems is built upon innovation, quality, and a commitment to customer satisfaction. With a global presence across 18 countries and a team of over 600 dedicated professionals, Ferag has consistently delivered cutting-edge sorting, conveying, buffering and Order Fulfilment Solutions to a diverse range of industries.

The merger of these two industry innovators presents a transformative offering for businesses seeking to optimise their warehouse operations. By combining Ferag’s unparalleled expertise in material flow systems and design with dereOida’s state-of-the-art software solutions, customers can expect an end-to-end solution that addresses every aspect of intralogistics with unprecedented quality, reliability, and support.

Key Benefits of the Merger:
Comprehensive Intralogistics Solutions: Customers now have access to a complete suite of intralogistics solutions that cover the entire spectrum of warehouse automation and management.
Synergy of Expertise: The merger brings together Ferag’s decades of experience in equipment intralogistics with dereOida’s cutting-edge automation software, resulting in a holistic and advanced hardware and software intralogistics solution.
Optimised Productivity: Businesses can leverage the power of doWarehouse’s real-time insights and analytics to drive continuous improvements and optimise their operations.
Simplified Support: dereOida’s single point of contact for hardware and software support ensures seamless assistance and quick issue resolution for enhanced customer satisfaction.

Tommaso Ramundo, CEO Ferag AG, commented:
“We are thrilled to announce our merger with dereOida, a strategic move that not only strengthens our position in the market but also propels us forward in achieving our long-term goals. This partnership is a pivotal part of our goal to attain Ferag Excellence 2025, as we relentlessly pursue the realignment of our global sales strategy to effectively meet the changing needs of our customers. By combining the strengths of Ferag and dereOida, we are poised to deliver an even more comprehensive suite of solutions to our valued customers, reaffirming our commitment to excellence and quality in every aspect of our business.”

Karl Friesenbichler, CEO dereOida, commented:
“I am very excited to announce our merger with Ferag. As we embark on this journey together, our focus remains steadfast on delivering unmatched quality, unwavering customer service, and cutting-edge solutions. The synergy between our teams and the complementary nature of our offerings create a powerful force that will undoubtedly shape the future of our industry. Our customers have always been at the heart of what we do, and this merger only strengthens our ability to provide them with the best. We are dedicated to ensuring a seamless transition, maintaining the highest standards, and upholding the trust you have placed in us.”

Both CEOs commented:
“The combined expertise and resources of Ferag and dereOida enable us to explore new horizons and drive innovation at every turn. Not only can we unite our wealth of expertise and resources, but we can also nurture synergies by sharing knowledge and technology, thus leveraging the finest aspects of both entities. Our existing networks provide newfound access to untapped markets, driving growth and expansion. The amalgamation stimulates innovation as we synergise our creative capabilities and diverse skill sets. With this merger, we are confident that our overall competitiveness will be strengthened, enabling us to achieve remarkable results and elevate the level of value we offer to our customers, partners, and stakeholders.”

Return to Profit via Sortation

Posted on by David Priestman

With consumer spending under pressure and online return rates of between 20 – 30%, fashion retailers are facing a hit to margin that could ultimately undermine profitability. Darcy de Thierry, Managing Director of Ferag UK, sets out how to protect margin and maximise re-sales using innovative returns processing.

As UK interest rates rise to levels not seen for 15 years, consumer discretionary spending is being squeezed, and for fashion retailers that means keener pricing will become a competitive necessity. According to a recent forecast published by VoucherCodes, ‘2023 Spending and Saving Report’, 50% of UK consumers are planning to cut back their spending on clothing over 2023.

But that’s not the worst of it.

Omni-channel businesses face an even greater challenge. The combined effect of reduced sales margins and persistently high returns rates, commonly between 20-30% in the online fashion sector, could see profits at some fashion brands significantly impacted. Adding to this, new data from returns specialists, ReBound, suggest that UK retail returns in 2022 were 26% higher than 2021, despite online retail purchases falling by 11.5%.

Clearly, fashion retailers need to act quickly to address the corrosive effects of mounting returns on overall profitability.

The dilemma facing businesses is whether to charge the customer for returns or continue with the widely accepted practice of a free returns policy. Some large brands have started charging returns fees, but consumers have become accustomed to slick returns processing, with fast repayment, at no extra cost. In fact, research from Appinio finds that 71% of UK consumers would avoid shopping online if they were required to pay to return items.

Given that returns are an inevitable consequence of online fashion retail, businesses need to look to their returns processes for savings, and importantly, find new ways of increasing the resale rate of returned items. Speed and efficiency in processing returns can take out cost and pay big dividends in capturing more sales when a fashion item is on-trend.

A return is very often a fast mover and is highly likely to be sold within three days, so why put it back into deep storage? Dynamic buffers could provide the agility needed to turn returns around faster.

Overhead pouch sortation systems offer a flexible and highly scalable, conveying, sorting and dynamic buffering solution appropriate for both fulfilling ecommerce orders, assembling store friendly sequenced replenishment and, importantly, buffering fast-moving returned items ready for a quick call-off for resale.

One pouch system is capable of sorting and processing many thousands of orders an hour, with each pouch able to carry both hanging garments and flat items, such as shoes and flat pack goods, enabling fast order fulfilment from a single pool of inventory that serves both retail stores and online orders. Efficiencies in accessing available stock, greater flexibility in allocating stock to maximise sales and faster processing times for preparing orders, are just some of the key advantages.

Critically, pouch technology lends itself to efficient returns processing. Overhead dynamic buffers can offer a cutting-edge solution to removing the time, cost and effort of placing returned items back into stock. Manually sorting and placing items back into deep storage is a very time consuming and costly process, which in large organisations can involve thousands of items across numerous skus. But all that effort and extra handling costs can be avoided. And at the same time, the business can be more responsive, with increased availability and faster fulfilment of re-sale items.

For high-demand fashion products, keeping returned items in a buffer close to the packing area enables a quick and efficient re-despatch of the item. In fact, some clever retailers anticipate and predict levels of returns, allowing them to re-sell items even before they are returned to the warehouse. Such techniques help boost sales in a tight, finite window of opportunity.

Large dynamic buffers may be used for holding ‘predictive picking’ items too, so instead of picking one item for one order, several items can be picked and held against known or predicted sales. Using buffers in this way helps improve pick rates and smooths the flow of orders, creating greater efficiency across the fulfilment cycle – particularly useful at peak.

The same technology can help push back cut-off, giving ecommerce brands an extra edge. The speed and reliability of Skyfall, Ferag’s ultra-fast automated pouch sorter solution, enables retailers to gain greater operational efficiencies by accumulating orders in advance of a final pick-wave at 10pm. With processing speeds of up to 25,000 units per hour orders can be picked, sorted, packed and dispatched within the shortest time window, giving a retailer the keen competitive edge of a late cut-off with an early next day delivery.

An obvious advantage of a high-speed pouch solution, such as Ferag’s Skyfall, is that it uses available overhead space – the third dimension of the building – keeping floor areas free for pedestrians and other processes. What’s more, pouch systems are a highly cost-effective alternative to other forms of goods-to-person automation, like multi-shuttle and mini-load solutions, that can cost up to 30% more.

Then there is the core benefit that the Skyfall overhead pouch system undertakes high-speed sorting, conveying and buffering processes too, which with Ferag’s modular conveyor technology allows for tremendous flexibility and scalability. And as the pouch has the ability to carry flat items, such as shoes, and flat pack goods along with hanging items, there is no need to have a separate cross-belt sorter for flat items, with all the issues associated with bringing flat and hanging items together.

A number of leading fashion brands are taking advantage of pouch sorter technology to increase capacity and boost performance of their fulfilment operations. Ferag has recently installed a flexible high-speed Skyfall system at a new distribution centre for children’s fashion company, Mayoral Group, in Malaga, Spain. The extensive overhead pouch solution is one of the largest to date, with a mix of hanging pouches and garment hangers totalling more than 58,000 Skyfall hangers, and a throughput of up to 12,000 units per hour. The system features fully automatic unloading of pouches, including flat goods.

Fashion businesses looking to protect their bottom line should consider the full range of options that overhead pouch technology can deliver. Returns processing is just one important aspect of this highly flexible, multi-functional technology.

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