Scaling for tomorrow
Planning for the future can be complicated — especially if your logistics supply chain comprises manufacturing, wholesale, distribution to retail stores and your own online order fulfillment. Seismic shifts in demand and sustainability initiatives just add to the planning complexity.
An iconic brand built a new multi-mezzanine regional fulfillment center (FC) with another automation vendor. It soon became obvious that the FC wouldn’t be able to meet massive eCommerce growth without substantial increases in space and labor.
Supporting rapid eCommerce growth with the existing fulfillment center would require building infrastructure that could handle hundreds of additional people. That, in turn, meant more parking lots, bathrooms, lockers and break rooms.
By leveraging modular autonomous robotics, intelligent logistics software and sector-specific experience, the company found a way to reduce:
- Headcount
- Extra hiring during peaks
- Heavy and unsustainable reliance on the labor market
The solution? Better utilize the existing space. The new system features:
- A multi-function shuttle system that gives the retailer capacity to store up to five million units in one system and recovers braking energy for operation
- An overhead pocket sorter that utilizes previous unused overhead space for efficient handling of flat goods and polybags, as well as an innovative dynamic sorter that enables flexible sequencing
- Fully-automated packing technology that significantly reduces dunnage, shipping volume, transport weight and C02 emissions
This “all-in” approach delivers a 50% reduction in touches and labor savings that helps achieve IRR targets.
Top Supply Chain Challenges
Supply Chain Disruptions
0
%
Hiring & Retaining Workers
0
%
Demands for Faster Response Times
0
%
Out-of-Stocks
0
%
Supply Chain Synchronization
0
%
-The 2022 MHI Annual Industry Report
Realize real-time operational intelligence and resilience
For even more savings, the retailer can add an operations control tower. This intelligent software:
- Sits above existing warehouse management, execution and control systems
- Uses AI-powered predictive modeling and prescriptive analytics
- Enables operational excellence every hour of every day
The control tower provides real-time updates and instant feedback into how you’re performing against expectations. It tells operations managers:
- What’s happening
- Why it’s happening
- What’s likely to happen
- What they should do about it
Armed with this information, managers can efficiently mitigate operational issues as they occur and make better decisions faster. The control tower also helps managers:
- Build better teams
- Optimize team performance
- Automatically rotate jobs
- Engage and empower the workforce
- Improve employee satisfaction and retention
