Digital twins help postal and logistics companies plan for the future

Outside of fantasy novels, nobody has a crystal ball to see into the future. However, postal services and logistics companies are building digital twins to achieve just that. Powered by data-driven virtual models that can simulate real-world operations, digital twins are allowing the sector to predict the future and plan for it.

Alexandra Ballestrem, Key Account Director, and Roosmarijn Schopman, Proposition Manager at Prime Vision, explore how digital twins are providing unparallelled foresight in logistics operations.

Reducing uncertainty

Postal and logistics processes are beholden to a multitude of factors, many of which are outside the control of a business. With customer expectations regarding speed of delivery at an all-time high, maintaining service levels during operational shocks is a constant challenge, as nobody knows what’s coming next. Consequently, companies are looking for tools to mitigate uncertainty and assist in contingency planning.

Mature logistics operations are highly automated. Whenever a parcel or letter travels through a sorting centre, it is photographed, scanned and tracked by a wide array of equipment. This generates masses of data, which can be stored and analysed to offer insights into an operation. Increasingly, postal and logistics companies are using these data streams to build digital twins.

A digital twin is a virtual representation of a physical object, or in this case, a process. By feeding real-world data into bespoke mathematic models that accurately reflect operations, owners of a digital twin can simulate how changing parameters can affect their business. With the masses of data required to drive the system already available from existing automation equipment, a digital twin allows almost limitless experimentation with minimal risk. While no crystal ball, it enables businesses to conduct effective contingency planning, and possibly more.

Digital Postage Twins

Take, for example, an increase in parcel or letter volumes. The key question is, are existing processes flexible enough to effectively manage this higher volume between current facilities? If not, is investment in a new sorting centre, equipment or staff required? Using a digital twin, businesses can feed increased parcel and letter volumes into the models, testing operations to get an answer. A new sorting centre will require at least five years to offer return on investment (ROI), so having a data driven system to properly inform the decision is invaluable.

Unforeseen breakdowns are another event that can be modelled and mitigated by a digital twin. With postal services operating 20 to 80 hubs in a country depending on size, what would happen if one were to go down? This can be replicated in the digital twin and the effects observed. More than that, it allows businesses to proactively plan and strategize to keep downtime and delivery delays to a minimum. Using the simulation, operators can find the best way to spread volumes and reduce the impact, rather than carrying out a time-consuming postmortem after the event.

The virtual world exerting physical control

While these scenarios focus on sortation, digital twins have plenty more possibilities. Simulations can be carried out to test how to use available floorspace within a warehouse and discover new efficiencies. Companies using robots can replicate their entire fleet digitally and find ways to optimise movement within a facility. If the data is available, delivery vehicles can be included to predict how goods could travel between different sorting centres for processing.

With coverage over an entire operation, a digital twin can actively influence the physical world and open the door to dynamic sorting and self-organising logistics. By creating a virtual counterpart of letters, parcels and pallets, the digital twin can make automatic decisions to adjust pick-ups, inbound goods, sorting and outbound deliveries to improve the speed, quality and flexibility of logistics processes. As a result, users can improve service while lowering operating and capital expenditure.

A proven partner for digital twins

Accessing the benefits of a digital twin is no easy task. First of all, a business must record as many physical events as possible via equipment in its facility. This helps to build a complete data set and deliver accurate predictions. With data collected and stored, a knowledgeable expert must turn customer process parameters and factors into working mathematical models and software. An analytical dashboard is also required to present results.

 

Digital twins

Prime Vision is an expert in building digital twins from the ground up. Its computer vision systems, analytical software, data storage solutions and robotics are embedded in the sortation process from start to finish, providing customers in its install-base with the data required to build an accurate simulation. Its digital twins are even compatible with products from other vendors, ensuring widespread coverage. The company specialises in seamlessly integrating its automation products with existing customer infrastructure.

In all cases, Prime Vision can flexibly unite sporadic sources of data to build a functional and impactful digital twin. Its research and development engineers are adept at translating physical operations into working software models and providing an accurate digital representation of unique customer processes. This can be hosted within a customer environment or by Prime Vision, either at a premises or on the cloud.

For postal or logistics companies looking to take a proactive approach to contingency planning, a digital twin is essential to make the right predictions and decisions. By partnering with an expert like Prime Vision, these businesses have no need of a fortune teller to secure efficiency and future resilience.

More from Prime Vision:  https://primevision.com/the-letterverse-digital-twins-help-postal-and-logistics-companies-plan-for-the-future/

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E-fulfilment Automation Attracts Repeat Customers

What brings you back to your favourite online retailer? Other than product quality and range, it’s probably how quickly and competently they deliver your order. Consequently, the efficiency of e-fulfilment warehouses is critical for sales, as service level is a defining factor for customer retention. Automation solutions from experts such as Prime Vision provide warehouses with the tools and data that increase the accuracy and speed of order fulfilment, leading to enhanced customer satisfaction and repeat orders in the future.

Order, receive, repeat

An intuitive, attractive e-commerce platform with a good range of products is highly effective at catching potential customers’ attention. However, beyond initial exposure, holding onto them relies not only on the product meeting expectation but also on the service that follows the payment. A long delivery time, or a late arrival, will often push a consumer to another retailer that can do it faster. Shipping the wrong item means an unhappy shopper too, along with a costly return. All result in lost revenue and potentially, damaged reputation.

Customer retention is essential for the long-term viability of any business and is dependent on fostering loyalty and trust. It’s no secret that attracting a new customer is usually more expensive than retaining an existing one. Performing poorly at the dispatch and delivery stage will most likely result in a one-off order. Customer lifetime value (CLV) to the retailer would be equal to that single purchase and, considering customer acquisition costs linked to marketing and sales, the return on investment (ROI) could be disappointing – especially if that one order is returned.
Repeat customers are more lucrative, so retaining them is a top priority, and e-fulfilment operations must function effectively to keep consumers coming back.

Meeting service expectations with automation

Today, an efficient fulfilment operation is an automated one, and there is a wide range of smart automation solutions available that can raise service level and ensure customer orders are more than a one-time deal.

For example, automatic storage and retrieval systems paired with Prime Vision mobile autonomous robots (AMRs) and computer vision systems allow items to move faster through the warehouse. As a result, parcels containing orders are sorted quicker, reducing overall delivery times and the risk of a customer choosing another retailer with a shorter lead time.

This is achieved while improving accuracy. Inventory management systems, analytics software and computer vision provide full traceability across the warehouse. Operators can therefore usually identify errors before an item is dispatched, minimising returns and boosting customer satisfaction. Additionally, bottlenecks in warehouse sorting processes can be identified and resolved, further promoting efficiency.

Automation in peak demand

Automated operations are exceptionally proficient at catering for periods of high demand too – like Black Friday or Cyber Monday. An overwhelmed logistics operation results in delayed deliveries that can scare shoppers away. On the other hand, offering a consistent service level during these peak times is highly profitable. The latter is no easy task with current labour shortages in the sector. Thankfully software, robots and computer vision systems are very scalable. This means businesses can achieve higher warehouse throughput with limited resources, ensuring that existing staff aren’t overworked during peak periods.

Solutions such as Prime Vision’s Flow Projectors remove mind-numbing, time intensive tasks such as label reading, instead projecting a number that corresponds to a destination or chute on each parcel. Therefore, workers find sorting faster and easier. With these twin benefits, automation enables high demand to be met sustainably, protecting the existing workforce and safeguarding customer loyalty.

Data and discerning buyer behaviour

Gathering sales, warehouse stock inventory and other customer relationship management (CRM) data also empowers businesses to enact a feed-forward approach that can predict and influence customer behaviour. Working out buying habits means e-commerce platforms can use cross-selling or ‘frequently bought together’ features, encouraging shoppers to order more. For consumable products that are purchased repeatedly, the platform can suggest setting up a subscription.

On the fulfilment side, access to historical warehouse CRM data also allows buyer behaviours to be identified, so businesses can tailor their inventory management to capitalise. Bespoke analytics software backed by expert consultation focusing on particular areas of the fulfilment process are solutions Prime Vision has offered to its customers for leaner warehouse management.

Such an approach allows warehouses to optimise inventory volumes and individual product locations by actioning findings on what sells when and where, like surfboards in summer or by the coast. Businesses can then ensure availability for seasonally popular products and reduce delivery times by holding them locally. Often-paired items can even be stored in close proximity within the fulfilment facility itself. Once the data is gathered and analysed, the results can be a true eye-opener and, by addressing even a minor issue, a smoother, more efficient operation and time-saving practices can be established.

Get e-fulfilment right first time

In the experience of Prime Vision, automating e-commerce logistics can positively impact sales. The ability of automation to improve the efficiency of every aspect of a warehouse operation means faster delivery and reduced errors, enhancing customer service and fostering loyalty. Scalability ensures that this service level stays consistent even during peak times, protecting staff from burnout and maximising profitability at key moments. Using data to analyse and predict buyer behaviour can be used to enhance fulfilment operations, translating into high value, repeat purchases thanks to order accuracy and the speedy service received by customers.

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