Automation Helps NEXT make Delivery on Time

Leading fashion and homeware retailer, Next plc recently invested in a brand-new DC near Wakefield, connected to existing facilities by a link bridge. Looking to replace its legacy split tray sorter in order to increase throughput and reduce order-processing times, Next selected the AutoPocket sortation solution from KNAPP for its new warehouse.

AutoPocket is the latest generation of KNAPP’s pocket sorter technology, which arranges suspended pockets of goods into the precise sequence required for dispatch. “The key benefit of AutoPocket,” explains Craig Rollason, Managing Director of KNAPP UK, “is that it enables items to be deposited precisely and fully automatically anywhere in the warehouse, while moving at full speed. The ability to release items without needing to stop, or even slow down, makes the system incredibly fast.”

Every second counts

With Next promising next-day delivery for orders placed by 11pm, rapid order processing is critical. The AutoPocket system transports pockets with single-item orders directly to the packing stations, while those with goods from multi-line orders are sequenced by the system’s matrix sortation algorithm.

Two challenges, one solution

In the new DC, the KNAPP team has solved two challenges with one solution. While two AutoPocket modules consolidate and sort e-commerce orders highly efficiently, a third module handles sortation in the goods-out area. Combined with intelligent software, AutoPocket optimises the flow of goods for Next from picking all the way to shipping.

The two order-processing modules handle 15,000 items per hour, while the outbound module sorts 5,000 parcels per hour. In total, the AutoPocket system at Next features 32,300 pockets and processes around 240,000 items a day. The savings for Next, compared to a traditional cross-belt sorter, amount to 35% in weekly personnel hours. “In addition to reducing order-processing times,” says Craig Rollason, “using a single technology obviously secures benefits in terms of ease of maintenance and spare parts availability.”

Automated tote store

KNAPP has also supplied an OSR Shuttle automated store as part of its solution for Next. Containers from the store are automatically conveyed to one of 20 pocket-loading stations – 10 for each of the order-processing AutoPocket modules – where up to 1000 items per hour are taken from the totes, scanned and loaded into an automatically supplied pocket. From here, pockets are forwarded to the module distributor, which allocates them to one of the AutoPocket modules, balancing the workload between them to maximise throughput.

Buffer pocket storage

In the order consolidation area, each of the two modules has 14 buffers across two levels, where pockets of individual items are stored temporarily until all parts of an order have been processed and consolidated. Completed orders are automatically diverted from the rotating buffer to the six packing loops by the warehouse control system. Here, the pockets release their contents automatically at one of 240 chutes, which slide them to 60 packing stations. Employees pack all the items in an order into a polybag and these parcels are then fed onto a conveyor that transports them to the outbound sortation system.

Outbound sorter

Packed customer orders are inducted into the third AutoPocket module at one of six loading stations. The parcels are then sorted and distributed across 40 courier-specific drop-off points via the outbound sortation loop, from where they are shipped to customers worldwide.

“We are delighted to have delivered this successful project for Next,” comments Craig Rollason. “The AutoPocket is an incredibly versatile technology. As well as the order-fulfilment and outbound sortation tasks performed at the South Elmsall DC, AutoPocket can act as a highly efficient solution for processing returns. In addition, its modular construction means that the system can be scaled flexibly by adding sorter modules as volumes grow.”

similar news

Fashion Retail Fulfilment Centre

 

NEXT DC gets Rail Guided Vehicles

The global clothing and home products retailer, NEXT, has modernized its supply chain operations by joining forces with Körber Supply Chain. After a successful partnership through ten years, a nearly 2-kilometer Rail Guided Vehicles (RGVs) track will now ensure seamless transportation of products between two warehouses in Doncaster, South Yorkshire, UK.

Starting their partnership in 2011, Körber and NEXT Doncaster have consistently worked on enhancing NEXT’s Home business operations. Their journey began with an innovative storage solution for sofas and space for 27,000 pallets. Over time, they have added advanced conveyor systems, set up a new Distribution Centre, while their latest addition is an RGV system paired with modern monitoring software. Each venture has been a strategic move to modernize NEXT’s supply chain operations.

“Our objective is to drive down overall costs, minimize the risk of product damage, and secure efficiency and competitiveness within a dynamic market landscape. Upholding stringent operational standards within our warehouses is paramount for sustaining a profitable business model in today’s market. The decision to modernize our warehouses through automation, a journey we began with Körber back in 2011, became imperative,” explains Ryan Loska, Engineering Manager at NEXT Doncaster.

Expertise bolsters operations

To facilitate future growth, NEXT has opted for a turnkey solution from Körber Supply Chain – featuring the integration of Rail Guided Vehicles (RGVs) within its warehouse infrastructure. This automated logistics system is designed to streamline supply and routing processes while meeting the capacity to manage sizeable home furniture and carry it substantial distances to designated storage and outbound locations. It is a critical facet in the operations of a global clothing and home products retailer.

“Our selection of Körber as a collaborative partner was rooted in their well-established industry expertise and capability to provide an integrated pallet handling solution adapted to our products. Since incorporating the RGVs, the system’s energy efficiency has reduced operational expenses and reinforced our overall business resilience. It enables efficient transportation of goods within the warehouse, while the storage system helps us keep track of what is always in stock. All of which is essential for our business,” added Loska.

The transportation system integrates two warehouses, which are linked by a track spanning approximately 1.5 kilometres. The system incorporates 81 RGVs for seamless transportation of products.

Modernizing supply chain operations

With the advancements within automated supply chains, finding the most suitable solutions to enhance supply chain efficiency is crucial. Körber Supply Chain’s core priority is to support businesses with cutting-edge logistics solutions that create vital value for growth and accommodate the issues the customer faces.

“Our mission revolves around equipping companies with resilient and future-proof logistics solutions. Therefore, we are proud to be part of NEXT’s aspirations towards establishing a more sustainable business model, working in collaboration with them to achieve greater robustness and efficiency in their system through automation. The outcome is a solution that caters to immediate operational needs while proactively anticipating future challenges, which is crucial in the modern market,” says Renata Pinedo, UK General Manager at Körber Supply Chain.

Supply chains are growing more complex by the day. Körber provides a broad range of proven, end-to-end supply chain solutions fitting any business size, strategy, or appetite for growth. Their customers conquer the complexity of the supply chain thanks to Körber’s portfolio, which includes software, automation, mail and parcel solutions, voice solutions, robotics, and materials handling – plus the expertise to tie it all together. Körber helps to manage the supply chain as a competitive advantage. The Business Area Supply Chain is part of the global technology group Körber.

Balancing Customer Expectations & Costs in eCommerce Delivery

In a world where rising bills seem to be the norm for families and businesses alike, the delicate dance of balancing service quality with cost-efficiency has become a challenge for retailers and ecommerce delivery, writes Gemma Vasey, Business Development Manager, Asendia UK.

As consumers search for ways to stretch their budgets in the face of economic strains, businesses are also grappling with increased shipping, labour and operational expenses. Yet, the decision to pass on these costs to loyal customers is not a simple one, as transitioning from free to paid-for delivery and returns can stir frustration among value-conscious shoppers. So how can they find equilibrium between service excellence and cost-effectiveness, especially in times of economic uncertainty?

The influence of delivery costs on consumer behaviour

Recent surveys spotlight the pivotal role that delivery costs play in shaping shoppers’ purchasing decisions. A report by Asendia underscores this, revealing that 43% of the 8,000 global online shoppers surveyed rank delivery costs as a key consideration. Alongside criteria such as overall value for money (54%) and product quality (50%), the price of delivery exerts a significant influence on consumer behaviour. Moreover, authenticity emerges as a crucial factor in the post-Covid era, with 70% of UK shoppers expressing a willingness to support retail brands they perceive to be authentic, even during economic downturns.

Defining authenticity in the eyes of shoppers

For UK shoppers, authenticity translates to straightforwardly delivering promises (57%), transparent supply chains (41%), commitment to sustainability (39%), clear brand values (39%), and active adherence to those values (32%). Astonishingly, 43% of respondents noted that a brand’s authenticity would make them less sensitive to price increases caused by inflation, a sentiment particularly strong among Generation Z (48%) and Millennials (51%).

These insights underscore the need for brands to optimise their delivery services to provide transparent, fairly-priced, and reassuring shopping experiences. Communicating openly about the necessity of delivery charges can help prevent basket abandonment when policies change. To cater to diverse customer needs, retailers should consider offering an array of delivery options, especially for cross-border shipping.

Asendia, for instance, integrates various delivery choices into their clients’ websites, allowing customers to opt for lower-cost international postal services for non-urgent, lower-value items. Simultaneously, expedited services with enhanced tracking, notifications, and insurance cater to those seeking premium delivery options, and willing to pay for them.

Green delivery is a growing priority

The concept of sustainability is gaining traction among consumers, who are beginning to realise that fast and free deliveries often come at a cost to the environment. Brands that offer more sustainable delivery options not only align with eco-conscious consumers but also contribute to more environmentally friendly practices. Although options like carbon offsetting are not long-term solutions, they can assist retailers in reaching their Environmental, Social, and Governance (ESG) goals. Consideration should also be given to low-emission delivery methods, even though they entail additional supply chain costs.

Emphasising sustainability initiatives opens doors to new customer segments and fuels sales growth as environmentally-conscious consumers prioritise eco-friendly options. By adopting sustainable practices and leveraging intelligent technologies, retailers can transform formidable fulfilment expenses into opportunities to connect with eco-conscious buyers.

Uncovering hidden value

The potential within re-commerce platforms is another avenue for brands to unlock hidden value. Retailers can seize the chance to sell clearance stock and returns to business buyers, contributing to the flourishing circular economy. This strategic move reduces carrying costs and streamlines operations, proving advantageous for retailers aiming to enhance their bottom line.
Collaborating for success

A dialogue with logistics partners can be instrumental in kickstarting these endeavours. Many third-party logistics providers offer valuable advice and support for setting up returns consolidation through their networks, for example, as well as managing stock reuse, resale, donations, or disposal. Amidst these considerations, the tightrope walk between convenience and cost remains an ongoing challenge. As inflation fluctuates and the peak spending season approaches, retailers are better served to explore resource optimisation through inventory recovery solutions rather than resorting to strict shipping and returns policies that could alienate potential buyers.

Utilising delivery strategies

In this landscape, delivery deals can serve as potent marketing tools. While the annual delivery subscription model may work well for industry giants like Amazon and Next , smaller brands may encounter difficulties in efficiently managing costs and operations. In its place, brands can leverage special delivery options as a loyalty reward to strengthen customer relationships. Smart brands harness these opportunities to cultivate customer loyalty and trust, showcasing the intricate interplay between service and cost.

As the cost-of-living crisis persists and retailers grapple with rising overheads, brands are rightly seeking smart ways to offer more, for less. By delivering transparent and reasonably-priced delivery options aligned with consumer values, retailers can cultivate lasting customer relationships, ensuring both shopper satisfaction and their own financial stability in these uncertain times.

Subscribe

Get notified about New Episodes of our Podcast, New Magazine Issues and stay updated with our Weekly Newsletter.