When do automated intralogistics solutions make sense in e-commerce?

Published on: September 29, 2021 / Update from: September 29, 2021 - Author: Konrad Wolfenstein

E-Commerce Automation – Image: Xpert.Digital / gualtiero boffi|Shutterstock.com

Online retail has changed supply chains, and speed and precision are king. Modern intralogistics based on digitalization and automation is a prerequisite for being able to survive in the ever-increasing competition. And digitalization does not just mean switching accounting from paper to an electronic system. In order to remain fit for the future, companies need increasingly intelligent systems for intralogistics. On the one hand, this applies to CEP services , which handle the shipping and returns of goods, but on the other hand, it also applies to internal logistics with storage and picking of items.

The trend here is towards ever greater automation. The industry leader Amazon by purchasing the US company Kiva Systems . This is an innovative and very flexible intralogistics solution in which the shelves are automatically transported to the picking stations using mini robots. Sure, it's a big solution that isn't suitable for every company. But you can also go a size smaller. The use of shuttle systems in the warehouse is also an opportunity for smaller retailers to automate their processes.

Efficient intralogistics is crucial for success

Whether it is a restructuring of the warehouse layout or the use of modern storage systems - efficient intralogistics helps to eliminate weak points in the warehouse. The effort required is worth it because in the end the processes run more smoothly and orders can be processed faster, more precisely and more cost-effectively. And this form of process optimization is not a one-time step, because continuous review of intralogistics is essential for long-term success.

This is especially true as your business grows. Companies quickly run the risk of losing track of the productivity of their own warehouse. This happens, for example, when the existing equipment can no longer keep up with the increased flow of goods.

At that point at the latest, it will be time for the growing company to look at a larger, tailor-made internal logistics solution. The central component is the selection of suitable storage systems to ensure the internal flow of goods. It is important that all components are optimally coordinated with each other. Once this is done, such a solution can minimize losses of time and resources and, despite the sometimes high initial investment, can pay for itself in a relatively short period of time.

The future belongs to digital intralogistics

The flexibility of the systems is an important decision-making feature for online retailers, whose industry is characterized by fluctuating customer demand and a constantly changing product range. It is very important for them that the automated logistics systems react quickly and efficiently to these changes.

But in order to work optimally, the technically complex automated systems often require constant, predictable storage quantities and a homogeneous range of items. This means that you need the aspects that are often not found in e-commerce.

Automatic=(in)flexible?

Nevertheless, there will be increased emphasis on automation in warehousing in the future, according to a result of the E-Commerce & Intralogistics 2020 Systems by the market research company Technomar , supported by the Federal Association of E-Commerce and Mail Order Germany eV . The aim of the study was to identify the future use of automated systems in logistical processes in the e-commerce industry. According to this, automated systems are present in at least 26 percent of companies, despite their often lack of flexibility. The main argument for use is the high performance and precision of the systems. For the companies that have currently decided against automation, the reasons for their decision are their heterogeneous product range and/or pronounced fluctuations in demand as well as the lack of willingness to invest - especially in the case of start-ups.

But what should a logistics system that is optimally geared to e-commerce look like? What should companies pay attention to when choosing their logistics and when is it time to rely entirely or partially on automation?

The study also has some answers to this. In order to optimally design storage, picking and subsequent shipping, decisions must be made individually based on the requirements profile of the respective company.

Homogeneous product range, consistently high demand

Automation is easiest here, as the storage devices can constantly work at a high performance level when similar goods are requested, which leads to optimal utilization of the system. Automated storage shuttles or vertical circulation racks are well suited.

Wide range of items, consistently high demand

Heterogeneous items can also be easily stored in automated devices. The additional use of containers for the differently sized goods is a good idea here. In this way, high storage performance is achieved despite a heterogeneous range.

Wide range of items, fluctuating demand

This target group currently has the greatest difficulties when using a standardized automatic solution. The focus here is on the desire for a high level of flexibility when handling fluctuating orders, which currently still gives manual systems advantages. be supplemented by automated systems, such as efficient transport and conveyor technology or robot solutions (see Amazon's Kiva

Service concepts and tailor-made solutions

In any case, it is essential to customize the solution. Tailor-made solutions and concepts require close cooperation between manufacturer and customer. Detailed planning is the focus of this process. The actual construction of the system follows afterwards and is only the implementation of the previous work.

The solutions are often based on modular systems that are customized or expanded for each customer. For an optimal and tailor-made system, it is therefore important to get the customer on board as early as possible. Initial details are usually discussed in a workshop in which both parties agree on the procedure. In addition, further, continuous rounds of discussions are necessary so that everyone involved is always up to date and any changes can be incorporated into the planning immediately.

Logistics consulting: Xpert.Plus for intralogistics solutions and automation in the e-commerce sector

Xpert.Plus is a project from Xpert.Digital. We have many years of experience in supporting and advising on storage solutions and in warehouse optimization , which we bundle in a large network Xpert.Plus

Konrad Wolfenstein

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