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limbiq Raises €1M to Accelerate Growth

Posted on by David Priestman

limbiq.com has closed its oversubscribed EUR 1 million pre-seed round with Motion Ventures and renowned angel investors.

The round is lead by Motion Ventures, a strategic global venture investment fund with a focus on early-stage investments in the maritime supply chain sector. Further backers are renowned Angel Investors such as Patrick Merkel, co-founder of Prologue solutions and Nikolaus D. Bayer, founder of IRIS Analytics and recently awarded BAND-Business Angel of the year.

limbiq was founded in 2020 with the ambition to create the world’s most flexible and efficient supply chain workflow solution to revolutionize communications in international logistics and to ease the daily pains of supply chain professionals that are facing increasingly broken supply chains, having to deal with unreliable offline data, thus lacking transparency and visibility at the core of their value chain.

The Germany-based company is serving to enterprises from industry, trade and logistics. What their B2B-customers share with hundreds of thousand other enterprises is having complex global supply chains and a lot of communication and data exchange related to it. This communication work is mainly done manually and offline, with email and excel sheets.

“Imagine, organizing one single container shipment from overseas requires an average of 50 emails, just to get it started,” says limbiq CEO Arne Oltmann, adding: “It is because legacy company software such as ERP or WMS come to limits when data exchange and communication with external partners across corporate boundaries is required. We’ve managed to cut this routine work by half. And by providing better transparency, we help our customers to reduce their working capital, avoid revenue losses due to delivery delays, thus leveraging their profitability.”

limbiq’s SCM solution is designed to digitize and streamline exactly these processes. Their AI-enhanced platform flexibly reads and analyses partner communication, thus integrating many heterogeneous data sources regardless of their format. This helps customers to digitally integrate large parts of their supply chain in a very flexible way and with little integration effort.

“Limbiq.com is leveraging cutting-edge AI technology to provide a more comprehensive overview of goods in the supply chain, combining both existing and alternative data to streamline processes. This innovation is crucial to a more resilient global economy, and limbiq.com is leading the charge to automate every day operational workflows,” says Shaun Hon, General Partner at Motion Ventures.

The funds will be used to accelerate the company’s growth plans to triple revenues in the next twelve month. limbiq plans to hire more staff in technology, including engineers and developers, and to grow the project management team to cope with the increasing demand.

Automation: Key to Sustainable Warehousing

Posted on by David Priestman

The way to sustainable warehousing is through automation, says Craig Whitehouse, Managing Director of Invar Group.

Creating more sustainable logistics operations is a priority for businesses, governments and increasingly, consumers. The warehouse is the beating heart of the supply chain, but it may not be immediately obvious that investment in warehouse automation can significantly contribute to sustainability goals.

On the face of it, automation may appear resource heavy, requiring metals, plastics and electrical power. How can this be more sustainable than resource- and energy-light manual processes?
However, sustainability isn’t just about the headline issues of rare earth metals and carbon emissions, important though these are. We need sustainability in land use and water management, in transport capacity, in the reduction of waste in all its forms, in enabling the goods and packages we handle themselves to be more sustainable. Further, labour and money are also finite resources, which need to be managed sustainably. Automation, of physical processes and of control systems, can contribute to achieving sustainability goals in all these areas.

Consider, for example, Automated Storage and Retrieval Systems (ASRS) in all their variety. By using high-density storage right up to the eaves and in very narrow aisles, the required building footprint, with its associated impact on hydrology, can be reduced – along with the amount of steel and concrete that goes into construction. ASRS can save energy too, as lights-out operations are often possible, and less empty space is being heated, air-conditioned, or refrigerated.

Automated processes, perhaps combining ASRS, conveyor runs and Autonomous Mobile Robots (AMRs), can greatly reduce or even eliminate the requirement for carbon-emitting forklift trucks – with all the health and safety benefits of a reduced exposure to the possibility of collisions, back injuries and repetitive strain grievances. And as labour is a scarce resource in itself, freeing people up for more thoughtful, dexterous tasks.

However, automation can offer even more. The automated loading/unloading of vehicles reduces waiting time and thus the yard space required, enables more efficient vehicle utilisation, and again has safety benefits. Automated handling can also reduce waste through lowering stock damage, and with the latest packaging innovations can facilitate the use of ‘greener’ packaging solutions, with less waste of cardboard as a result of more compact packages.

These benefits can be amplified through the appropriate use of automated planning, management and control systems. Warehouse simulation, together with tailored Warehouse Management Systems (WMS), can optimise layout and activities to minimise movements and thus energy consumption – for example, by minimising the number of movements in and out of cold stores. A well-attuned WMS can also contribute to more efficient and sustainable use of transport, making it is easier to plan and assemble full loads for a destination within the necessary timescale. Automated goods-to-person order picking using, increasingly more affordable mobile robots combined with pick-to-light technology, or voice with human operators, can reduce mis-picks, and thus waste and returns.

Meanwhile, environment management systems can save on heat, refrigeration, and turn the lights off when an area of the warehouse is free of workers. Management systems for AGVs and AMRs can, within limits, plan for vehicle recharging off-peak, which is both cheaper and may reduce the demand for fossil-based energy generation.

Finally, machine monitoring systems informing preventative maintenance procedures can ensure that equipment is operating at peak energy efficiency as well as contributing to safe and healthy operation, while the general use of digital systems can greatly reduce the operation’s consumption of paper. These are just some of the automation options which, sensibly combined, can make a real contribution across the whole range of sustainability goals of the business, from climate change to human welfare and, yes, sustainable profitability.

Invar Group, headquartered in Cranfield UK, is focused on delivering complete turnkey warehouse automation solutions using advanced technologies such as industrial robotics, AMR goods-to-person solutions, pick-to-light technology, sortation systems, as well as conventional warehouse automation. The Group comprises: Invar Systems, a developer of warehouse control and management systems; Invar Integration (Greenstone Systems), a front runner in solutions design, hardware integration and project management; and Invar Controls, specialists in the design, implementation and maintenance of PLC software and hardware.

Manhattan Associates Reports Record Results

Posted on by David Priestman

Leading Supply Chain and Omnichannel Commerce Solutions provider Manhattan Associates Inc. (NASDAQ: MANH) today reported revenue of $198.1 million for the fourth quarter ended December 31, 2022. GAAP diluted earnings per share for Q4 2022 was $0.60 compared to $0.32 in Q4 2021. Non-GAAP adjusted diluted earnings per share for Q4 2022 was $0.81 compared to $0.48 in Q4 2021.

“Manhattan’s business momentum is strong, and our fourth quarter results exceeded expectations. This contributed to the company achieving record top- and bottom-line results in 2022,” said Manhattan Associates president and CEO Eddie Capel. “We enter 2023 optimistic about our market opportunity and remain committed to investing in market leading innovation. We are confident these investments will contribute to our high levels of customer satisfaction and extend our positioning as the leading innovator in core Supply Chain Execution, Omni-channel and retail Point of Sale solutions,” Capel concluded.

Results for the fourth Quarter ended December 31, 2022: Consolidated total revenue was $198.1 million for Q4 2022, compared to $171.5 million for Q4 2021.
• Cloud subscription revenue was $51.7 million for Q4 2022, compared to $34.8 million for Q4 2021.
• License revenue was $5.0 million for Q4 2022, compared to $11.9 million for Q4 2021.
• Services revenue was $99.8 million for Q4 2022, compared to $81.6 million for Q4 2021.
• GAAP diluted earnings per share was $0.60 for Q4 2022, compared to $0.32 for Q4 2021.
• Adjusted diluted earnings per share, a non-GAAP measure, was $0.81 for Q4 2022, compared to $0.48 for Q4 2021.
• GAAP operating income was $44.7 million for Q4 2022, compared to $27.1 million for Q4 2021.
• Adjusted operating income, a non-GAAP measure, was $59.9 million for Q4 2022, compared to $39.1 million for Q4 2021.
• Cash flow from operations was $55.2 million for Q4 2022, compared to $40.1 million for Q4 2021. Days Sales Outstanding was 77 days at December 31, 2022, compared to 67 days at September 30, 2022.
• Cash totalled $225.5 million at December 31, 2022, compared to $197.1 million at September 30, 2022.
• During the three months ended December 31, 2022, the Company repurchased 206,418 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors for a total investment of $25.2 million. In January 2023, our Board of Directors approved replenishing the Company’s remaining share repurchase authority to an aggregate of $75.0 million of our common stock.

Full year 2022 financial summary:
• Consolidated total revenue for the twelve months ended December 31, 2022, was $767.1 million, compared to $663.6 million for the twelve months ended December 31, 2021.
– Cloud subscription revenue was $176.5 million for the twelve months ended December 31, 2022, compared to $122.2 million for the twelve months ended December 31, 2021.
– License revenue was $24.8 million for the twelve months ended December 31, 2022, compared to $37.1 million for the twelve months ended December 31, 2021.
– Services revenue was $394.1 million for the twelve months ended December 31, 2022, compared to $334.8 million for the twelve months ended December 31, 2021.
– GAAP diluted earnings per share for the twelve months ended December 31, 2022, was $2.03, compared to $1.72 for the twelve months ended December 31, 2021.
– Adjusted diluted earnings per share, a non-GAAP measure, was $2.76 for the twelve months ended December 31, 2022, compared to $2.23 for the twelve months ended December 31, 2021.
– GAAP operating income was $152.7 million for the twelve months ended December 31, 2022, compared to $134.3 million for the twelve months ended December 31, 2021.
– Adjusted operating income, a non-GAAP measure, was $212.1 million for the twelve months ended December 31, 2022, compared to $177.9 million for the twelve months ended December 31, 2021.
– Cash flow from operations was $179.6 million for the twelve months ended December 31, 2022, compared to $185.2 million for the twelve months ended December 31, 2021.
– During the twelve months ended December 31, 2022, the Company repurchased 1,352,954 shares of Manhattan Associates common stock under the share repurchase program authorized by the Board of Directors, for a total investment of $175.4 million.

Robotics Provider Expands Product Range

Posted on by David Priestman

Today Exotec, a global warehouse robotics provider, expands its product portfolio with three innovative solutions: a new conveyor system, an improved picking solution, and new proprietary warehouse software.

As inflation, economic headwinds, and labour shortages continue to place mounting pressure on supply chains, businesses around the world are looking for ways to address their immediate needs while also positioning themselves for an unpredictable future. Increasingly, this means doing more with less.

New additions to the Skypod system bring Exotec one step closer to becoming an end-to-end provider for automated warehousing solutions

To help meet these needs, Exotec is releasing a new conveyor system, updated robotic picking solution, and proprietary warehouse software that all perfectly integrate with the Skypod system. Each of these new solutions leverages Exotec’s signature modular design allowing customers to meet their dynamic business needs by easily adding new solutions to their existing systems. The new products bring Exotec closer to its vision of fully-automated warehouses that enable humans to work smarter not harder.

Exotec customers who use the Skypod system can also take advantage of the following:

The Skypath is a modular conveyor system that can reach a maximum throughput of 2,500 totes per hour. The modular design consists of straight, curved, and inclined building blocks that fit most logistic needs and layouts and can easily adapt to customer needs.

The Skypicker is an intelligent picking solution for modern warehouses. It features machine learning-based vision that automatically detects each item’s dimensions to intelligently place items in preparation containers in a way that optimizes for the available space and smooth package handling. Improvements to the system allow the Skypicker to reliably reach outputs of up to 600 items per hour.

Deepsky (pictured) is an end-to-end warehouse software that seamlessly integrates Exotec technology with most warehouse management and control systems as well as third-party automation equipment. It automatically collects data and feeds it into pre-configured dashboards for immediate visibility and optimizes for consistent performance.

“With these innovations, we are further enabling our customers to run efficient, scalable, and modular warehouses that flex to fit their unique needs,” says Exotec CEO and Co-founder Romain Moulin. “Our work with more than 30 industry-leading brands provides us with a unique perspective on the most pressing warehousing needs and allows us to continuously innovate to unlock even more value for our customers.”

INFORM Software Appoints USA CEO

Posted on by David Priestman

INFORM, a global software provider for AI-driven Digital Decision-Making optimizing business operations, headquartered in Aachen, Germany, announced today the promotion of Justin Newell to Chief Executive Officer (CEO), INFORM North America. He succeeds INFORM North America founder and Chairman, Adrian Weiler, who will continue in his role as ongoing advisor to the CEOs across all INFORM Group entities, as well as serving as a representative of the organization in leading industry associations and conferences. In addition to his new role as CEO of INFORM North America, Newell will retain his role as Chief Operating Officer, which he has held since January 2019, and as CEO emphasize profitable growth of INFORM’s business in North America by delivering INFORM’s Hybrid AI-based decision-making technologies.

As CEO of INFORM North America, Newell will continue to focus on business development in North America with a primary emphasis on key sectors. Additionally, he will continue his focus on developing the INFORM North American-based project delivery teams. In performing his role, Newell will continue to consult with Weiler and collaborate with the CEOs both in INFORM headquarters and across the other INFORM entities globally.

In discussing his new appointment, Newell said, “I was fortunate to have been recruited by Adrian and to directly work with him over the past four years. His mentorship, guidance and friendship have created a very rewarding atmosphere that has helped me contribute to the substantial growth of INFORM in North America. Adrian’s strategic vision and guidance will continue to be a resource as we continue to grow our revenue and overall capabilities in this very strategic market.”

Newell continued, “I am looking forward to assuming my new responsibilities as CEO of INFORM North America. Over the past few years, and despite the challenges brought on by the global pandemic, climate change and socio-economic developments, INFORM has advanced its mission and supported the increased profitability, process optimization, and crisis resilience for North American companies in diverse industries. Applying our Hybrid AI-based decision-making technologies, we also are enabling our customers to meet their sustainability goals by optimizing their operations and maximizing their vehicle, equipment, and human resources.”

Newell came to INFORM after having successfully performed in senior level roles with such leading brands as Reliable Carriers, Inc, Porsche Cars North America Inc., and Genuine Parts Company (NAPA). At that time, INFORM’s North American customer base was predominantly within the aviation industry, which it had been since 1992. Under the direction of Weiler, Newell’s role as COO was to focus on growing the Manufacturing Logistics (Automotive), Logistics (Maritime, Terminal, Intermodal and Distribution Centers) and Fraud Prevention business.

Newell added, “Over the past four years, the automotive and finished vehicle logistics area has grown immensely and is now INFORM’s second largest in revenue in North America following aviation. Our fraud prevention business is also on a trajectory for excellent growth opportunities as we have placed a large focus on strategic partnership alliances with companies such as Huron and will continue to pursue other valuable partners when doing so would complement our capabilities and target growth areas.”

As evidence of its growth, INFORM recently entered contracts with leading companies such as AMPORTS, a leader in the global automotive service industry and one of the largest auto processors in North America; Norfork Southern’s Rossville and Austell terminals; VinFast, a leading manufacturer of smart electric vehicles (EVs); and Volkswagen Group of America, as well as a strategic partnership with the Huron Consulting Group, among others.

Dr. Andreas Meyer, INFORM Group CEO noted that, “INFORM has established a strategic global footprint with an international presence that includes our headquarters in Aachen, Germany and our subsidiary in Lisbon, Portugal; our South American subsidiaries in Santiago, Chile and Sao Paulo, Brazil; and our Asia-Pacific subsidiaries in Sydney, Australia and Singapore, as well as our North American organization in Atlanta, Georgia. We have been very selective in establishing strong executives to lead our organization across our global network. As a result, we have been realizing steady growth and a loyal customer base that has experienced the high value and return on their INFORM optimization software investments many times over. Our focus will continue to be one of internationalization as we realize there are many organizations that have yet to embrace INFORM’s Hybrid AI technology including Machine Learning, Fuzzy Logic and Operations Research that clearly are needed to compete effectively in today’s marketplace.”

INFORM develops software for the optimization of business processes using Digital Decision Making based on Artificial Intelligence and Operations Research. The company supplements classic IT systems and increases the profitability and resilience of many companies. While data management software only provides information, INFORM systems can analyze large amounts of data in a matter of seconds, calculate numerous planning variants and suggest the best possible solution to the user for execution, often in real-time. Today, more than 900 software engineers, data analysts and consultants support more than 1,000 customers worldwide in manufacturing, trade, airports, ports, logistics, banks, telecommunication, and insurance companies. Planning and execution processes are optimized in many business operations, like sales planning, production scheduling, supply chain and inventory optimization, staff deployment, logistics and transport management, and financial crime fighting in banking, insurance, and telecommunication.

Fulfilment technology is key to DTC success

Posted on by David Priestman

Direct-to-Consumer (DTC) is a type of business-to-consumer retail sales strategy where a business will market, sell and ship a product directly to the customer, writes Will Lovatt, General Manager and Vice President, Deposco Europe. According to recent figures from eMarketer, US Direct-to-Consumer (DTC) ecommerce sales have more than tripled over the past six years. The market has grown from $36.08bn in 2016 to $128.33bn in 2021 – a gain approaching $100bn in about half a decade. We expect it will add almost another $100bn in the next three years, reaching $212.90bn by the end of 2024.

Unfortunately though, warehouse facilities in general are struggling to keep up with this trend. Their layout and processes are often unsuited to the emerging distribution model, populated as it often is, by racks of pallets and a wide range of automated materials handling equipment. The operation will typically be highly automated, focused on efficiency and moving inventory in bulk. Problems can therefore arise when a DTC capability is introduced and a consumer orders a single packet of biscuits, lipstick or pair of trainers,

Many warehouses are simply not ready or prepared to operate like this. If working practices and flows through the warehouse are configured for a retail business-to-business (B2B) approach, then looking after DTC can be a major challenge. It is not possible to pick a single item with a forklift truck, for example.

Many of these businesses have been set to run retail or wholesale B2B operations and while they may have these bulk operations under tight control, they might, at the same time, be forced into running a rudimentary ad hoc DTC operation in a corner of the facility or squeezed onto a mezzanine floor. It is far from the ideal set up for driving efficiencies.

Introduction of DTC workflows

Equally critically, the introduction of DTC workflows into the process mix within the warehouse makes it still more important that the business has the right inventory identified for each and every channel. Processes that were traditionally established predominantly for manufacturing efficiency must now be re-calibrated to handle DTC workflows.

Maintaining and segmenting inventory across different channels is tough to achieve, largely because each channel’s inventory needs to be considered separately. Legacy order fulfilment and ERP workflows are typically cumbersome and unwieldy to deal with, while the dynamic needs of ecommerce need rapid execution. When this mix of processes are handled manually, errors often creep in, and the accuracy of decision-making is therefore compromised. Moreover, these traditional processes typically only offer visibility at a case or pallet level, while today’s consumers needs are satisfied at a single-unit (EACH) level.

Orchestrating orders with a manual, user-driven, non-real-time process will not only result in inaccuracies, it will also run the risk of overselling – selling the same product simultaneously in two different channels – and increasing customer frustration. In line with this, a recent survey by Emplifi polling consumers across the UK and the US, found that 86% will leave a brand they were once loyal to after only two to three bad customer service experiences.

A route map forward

The most effective way for ecommerce companies to provide a great experience across the whole DTC cycle, especially one operating alongside other distribution and fulfilment processes, is by optimising warehouse operations. That effectively means selecting a Warehouse Management System (WMS) with the breadth and richness of functionality to fulfil the organisation’s current needs together with the flexibility to scale and grow as the business migrates into new areas.

In addition to this, retailers, wholesalers, 3PL service providers and ecommerce organisations alike, will all need to be sufficiently agile to fulfil through pick and pack processes with accuracy and speed, whatever the nature of the order. In contrast to the full vehicle transport optimisation mindset of the traditional supply chain, a system that directly integrates with parcel carriers and calculates dimensional weights, and rate shops from available carriers will offer additional service options to the customer while also saving time and money for the business itself.

Towards error-free fulfilment

Warehouse management and order fulfilment systems also need to support operational efficiency and enhanced productivity, of course. In this context, scanning technology with system directives and validation, across all warehouse processes creates a clear error-free fulfilment process for teams to work efficiently. Organisations can achieve further efficiency and productivity benefits by integrating in real-time to automation systems like fulfilment robotics, pick-to-light, and sortation systems. That, in turn, enables them to process higher volumes of orders, avoiding worker cost increases as the business develops.

Once again, having absolute network-wide inventory visibility is critically important here. Organisations require systems that allow them to manage all inventory processes inside their warehouse, from tracking and replenishment to cycle and physical counting. Moreover, to drive efficiencies across their modern warehouse and store operations, they need 100% visibility of where all inventory is located at all times across all locations.

In light of this, it is increasingly key that the business ensures it is running high-quality Warehouse Management and Order Management Systems that are flexible, scalable and capable of bringing in added functionality as and when needed, to address rapidly changing needs in the dynamic consumer-focused world they serve.

BW Retail replaces manual picking with Descartes solution

Posted on by David Priestman

Descartes Systems Group, a global leader in uniting logistics-intensive businesses in commerce, has announced that Michigan, US-based BW Retail, a leading ecommerce marketing, fulfilment and data analytics service provider, replaced manual pick, pack and ship practices with Descartes’ integrated ecommerce warehouse management and shipping solution to efficiently scale fulfilment operations and improve customer satisfaction.

“BW Retail has grown rapidly to become an industry leader in end-to-end ecommerce retail brand management and logistics operations. As we expanded from one warehouse in Michigan to additional locations in Georgia and Ontario, Canada, things we used to be able to do manually we no longer could,” said Christopher Ball, Chief Executive Officer at BW Retail. “We needed to have more real-time visibility into fulfilment across our facilities and to reduce efforts to manage inventory. With over one million shipments annually today, the Descartes solution has been essential to our growth, helping us gain greater control and improve the efficiency of our operations.”

Descartes’ ecommerce warehouse management solution helps ecommerce services providers, like BW Retail, direct-to-consumer brands and ecommerce retailers gain significant efficiencies across order fulfilment processes to improve the customer experience. It helps retailers ship the right items on time, prevents overselling of existing inventory, and provides full transparency into warehouse operations. The cloud-based solution is pre-integrated with major ecommerce platforms, like Channel Advisor, Shopify Plus, Magento and others, to accelerate implementation and time to value.

Descartes solution integrates with WMS

Descartes’ multi-carrier shipping solution is integrated with its ecommerce warehouse management solution to seamlessly execute the entire ecommerce fulfilment process, improving accuracy and productivity, reducing order lead-time, and minimising shipping costs. The quick-to-deploy solution allows businesses to grow their shipping volume through advanced automation capabilities, a powerful business rules engine, and a robust set of APIs for rating, shipping and tracking. The solution also connects ecommerce companies to their parcel and LTL carriers of choice using negotiated rates or using rate discounts available through the platform.

“We’re pleased to help BW Retail improve fulfilment performance across its growing operations with our ecommerce warehouse and shipping solution,” said Troy Graham, VP Business Development at Descartes. “For ecommerce service providers and retailers alike, the combined solution drives fast, accurate warehouse and shipping workflows and this type of operational excellence in fulfilment translates into a great customer experience.”

WMS is not just for Christmas

Posted on by David Priestman

This is the time of year when the majority of online retailers are going through their peak sales period in the run up to Christmas. During the pandemic and lockdown period almost every business with an ecommerce dimension saw sales peaks that were higher than anything they have ever encountered. And despite the fact the pandemic is probably behind us, growth in online sales have continued to soar. In any event, with events such as Halloween and Black Friday having driven sales this year, it is not hard to foresee that demand for online items will continue in the run-up to the festive season.

To cope with this, advanced preparation and planning done beforehand will pay off. The systems and procedures you have put in place to handle significantly increased seasonal volumes should mean that even with temporary hired-in resource, things will still go relatively smoothly. Or will they?

Even before they experienced business during the pandemic, most online resellers could cite at least one experience of underestimating the impact of the festive season. And in order not to repeat that, a common practice is to hire in agency staff at a premium to help with the increased workload. On Christmas Eve, all being well, they can sit back and breathe a sigh of relief, knowing they have just about coped, once again.

Extra sales at Christmas

And it is easy to see why, with the extra sales and profits potentially generated at Christmas, the short-term cost of the labour involved is easily justified. However, cost aside, using temporary labour at any time can bring problems. With greater awareness of the consequences of illness to others, staff are likely to take time off if they suffer from this year’s flu or another bout of Covid. That will inevitably put pressure on your existing operations but recruiting temporary replacements or adding short-term capacity over the peak season may not be easy.

Even if it is possible to recruit effectively, the main problem with temporary employees is user unfamiliarity. With even the best designed and implemented systems there is a minimum level of training needed for temporary staff to be able to function, even at a basic level. New staff will be well short of the experience and knowledge of regular staff, no matter how well you train them. They will not know the environment, the product, or the processes. So inevitably they will be less productive, absorb more supervisor time, and generate more errors which require correction and incur time and cost. They may also cost you a few lost sales, and some unwanted customer issues.

Minimise labour

So, is there a solution to this? Is it possible to minimise the requirement for additional labour in the Christmas period and still meet order fulfilment targets? Well yes, there is, and it seems odd that many companies would rather have a heavy financial outlay on extra staff at Christmas than deploy an IT system that could lessen or potentially even eradicate the need for those staff.

The die is cast for this year, no doubt, but that does not mean things cannot be improved for the future. While some extra cost is always likely there are many ways that deploying the right IT system, particularly a warehouse management system (WMS), can help. This would not only reduce your seasonal expense, but also minimise your costs and boost productivity all year round.

To paraphrase a well-known expression: “A WMS is not just for Christmas.” Not only will it help you manage workloads and reduce excess labour costs at Christmas, it will bring joy all year round! A WMS is designed to manage your physical stock with optimum efficiency by using simple, efficient, and secure processes for all activities from receipt through to despatch. As these are largely system driven which will reduce reliance on staff knowledge, a particular benefit when using temporary labour.

A WMS will ensure that all the information you need about received goods is correctly recorded. It will then automatically instruct putaway to a system generated location, removing the need for staff to know where product is normally stored. When you receive an order, it will direct your pickers to the correct location to find the stock, taking into account any date or FIFO (first-in-first-out) rotation. It will then manage your pack and despatch process, ensuring you deliver the right product and quantity.

Accuracy, efficiency, productivity, and discipline

The benefits of using a WMS – accuracy, efficiency, productivity, and discipline – are magnified when you use the system in real-time with a dedicated app for handheld devices. This allows everything you do to be recorded in real-time, making your stock data accurate to the minute. It also means you can build in as much barcode verification as you need, trapping errors immediately and ensuring the complete accuracy of everything you receive, pick and despatch.

Having a WMS gives you a solid foundation of operational ‘best practice’ which can deliver even greater benefits at your seasonal peak. When you need extra staff, equipping them with an inexpensive handheld device reduces their training needs, so they can be effective almost immediately. As their work is system-directed and verified by real-time scanning, errors and supervisor intervention are cut to a minimum, allowing permanent staff to focus on their own roles.

To save the punchline to the end, the best part of this is the cost. A WMS like ProSKU WMS Cloud – which is available as software-as-a-service (SaaS) and paid for monthly – needs little cost justification for the normal benefits it can provide. It will make your operation lean, efficient and competitive all year long. That will be a benefit to you every year when sales peaks are likely to be significantly higher than normal. When you consider the high (and recurring) cost of temporary seasonal labour, and how using a WMS could lessen this, the investment becomes positively insignificant.

Inventory – the Next Normal

Posted on by David Priestman

A new survey suggests that a single view of inventory is becoming increasingly important in retail logistics.

At its 2022 ‘European Exchange’ customer conference – this year staged in Berlin – supply chain software leader Manhattan Associates Inc. revealed the findings of its latest international research, ‘Recalibrating For The Next Normal’. It described a retail landscape where the lines between physical and digital commerce are becoming increasingly opaque and complicated.

“Shopping habits have changed forever,” commented Henri Seroux, SVP EMEA at Manhattan Associates. “There can be no return to the status quo, with 83% of retailers now claiming they operate a level of interconnection between their online and in-store functions.”

“As the retail industry recalibrates for this next normal, the ability to navigate disruption, while enhancing the physical and digital customer experience will become increasingly important; as will the technologies that allow retailers to fulfil in-store and online orders in an agile, sustainable and profitable fashion,” Seroux continued.

Single view of inventory

When it comes to fulfilment, the ‘one size fits all’ approach no longer works and retailers are reacting to this. Natalie Berg, retail analyst, author and founder of NBK Retail commented: “While the vast majority of surveyed retailers stated that they have a level of interconnection between their online and in-store functions (83%), only around half are offering buy in-store and return online (50%), or buy online and return in-store (46%). And, only 6% of retailers believed that they had an accurate overview of their inventory across their entire business (in-store and online) 100% of the time.

“Shoppers today expect to shop on their own terms with more than a third (34%) considering click & collect to be the most important delivery method, followed by contactless/curbside pickup at 19%. This finding highlights the importance of offering consumers choice when it comes to fulfilment options and the need for a retailer to possess a single view of inventory, as keeping that all important customer promise just got a whole lot more complicated,” Berg added.

Almost a quarter of consumers (24%) now expect shop assistants to be able to check availability in a nearby store if a product is out of stock, or order that product for home delivery or collection, highlighting the blending of the physical and digital retail spaces.

Seroux continued: “40% of consumers still favour traditional sales checkout in-store, whereas, 19% would like to use more digital methods such as self-checkout on the shop floor with a shop assistant via a mobile device (8%). Interestingly, almost two-thirds (63%) of retailers agreed that checking stock availability was the most important customer-facing duty performed by their shop assistants in 2022.

“Over the last decade bricks & mortar spaces were seen as liabilities in a digital era. However, the perception of the physical store has been fundamentally changed by the impact of the pandemic.

“Today, many retailers are evaluating the roles of their stores, recognising their added value as strategic hubs for online sales, not least as a fulfilment hub for click & collect, returns, endless aisles, same-day delivery and more. While digitalisation and frictionless shopping are certainly two of the big winners from the pandemic, the research shows that we should not be too quick to discount the importance of human interaction or the role of the physical store in the era of digital commerce,” finished Seroux.

Key research findings:

• 51% of consumers reported environmental/sustainability efforts were important to them in shopping
• 26% of retailers believe creating a more environmentally aware and sustainable supply chain is one of their top three priorities for 2023
• 74% of surveyed retailers provide shop assistants with handheld devices that show a consolidated view of inventory across the network
• If a return is made in-store 99% of retailers make the product available for resale with 38% making it available online, 25% putting it on the shop floor and 27% doing both
• 68% of retailers reported that they were now operating micro-fulfilment strategies in efforts to service the numerous channels used by today’s hybrid consumers
• 65% would like to have a choice of couriers and delivery dates, and 18% would like a choice of couriers with different cost options

• Survey: 3,500 adult (18+ years’ old) consumers and 700 management or senior-level retailer respondents, representing Tier 1 retail organisations (generating more than $100m in annual revenue) were surveyed, in France, Germany, Italy, The Netherlands, UK and USA.

BaubleBar revolutionises batch picking with WMS

Posted on by David Priestman

Fast growing trend-led accessories brand BaubleBar has revolutionised its batch picking and single item orders – for much greater throughput – after switching up to cloud-based SnapFulfil.

The New York-based company, which specialises in affordable yet desirable statement jewellery, recently ditched its inflexible and expensive-to-modify warehouse management system (WMS) for Synergy’s functionally rich and highly configurable SnapFulfil solution.

Shipping around 30,000 orders per month from its 40,000 sq ft distribution centre, BaubleBar has achieved an outstanding 10-fold increase in its pick rate, whilst maintaining 100% accuracy, since implementing SnapFulfil. In addition to successfully scaling up its B2B and wholesale channels, the company has also experienced up to a 30% jump in ecommerce/D2C sales.

SnapFulfil’s ‘SPIM’ is the favourite (and game changing) form of functionality for Maritza Mejia, Senior Operations & Customer Care Director at BaubleBar, because it facilitates streamlined and highly accurate single order line processing of multiple products. It also works in tandem with any other rules regarding stock availability and picking priority.

Mejia explains: “It’s quickly given us incredible efficiency and noticeable workflow and volume gains. Our picking rate has quickly gone up from 40 to 400 per hour, eliminating the previous bottlenecks and limitations of the old system.

“A custom made-to-order (MTO) program also allows our warehouse associates to easily pick unique items (without unique SKUs and sales tags) and track individual POs, inventory and order fulfilment through the WMS for the first time. We’ve only started scratching the surface, but with the real time data now available it will be our go-to business model and blueprint for the future and will triple the size of our business.”

BaubleBar’s implementation was handled remotely, giving them further time, money and resource savings and also coincided with a new ERP (NetSuite) and Shopping Cart – both of which directly integrate with SnapFulfil. Mejia and two of her team were also trained up to be Super Users, so they could easily and effectively cascade their system and testing knowledge down to new users accordingly and make Go-Live as seamless as possible.

They were even troubleshooting exceptions themselves online as the big day approached.

Mejia concludes: “Digital implementation initially seems daunting and challenging, but the SnapFulfil team is very diligent and thorough and soon put our minds at ease. We went live and to schedule with basically less zero disruption and they were very clear on what we have, what can further be achieved and the process improvements that go with it. That to me is the essence of a premier WMS system and service, where nothing is too much trouble.

“They also have a very consultative approach and we were able to brainstorm with them and have an input on the likes of the MTO modifications and racking. I also love the fact that they’re willing to let us ramp up and down on SnapFulfil licenses, as during seasonal peaks we now have the demand and capacity to scale up from 15-20 to 100-150 users per day.

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