How can intralogistics help e-commerce players optimize their operations?
E-commerce is experiencing rapid growth, amplified by the pandemic and the widespread use of digital technologies. In Europe, this sector is growing by 10% (source: ecommerce-europe.eu), illustrating a significant change in consumer habits. Today’s consumers are looking for tailored shopping experiences, fast and reliable delivery, and simplified return options. The emergence of giants like Amazon has raised the bar in terms of customer experience, prompting other players to innovate.
Faced with increasing competition and ever-higher expectations, e-tailers face a number of challenges. Managing complex supply chains, adapting to seasonal peaks in activity and managing returns are major challenges. What’s more, customers are increasingly attentive to sustainability and ethical issues, forcing companies to review their practices.
Against this backdrop, intralogistics is a key lever for optimizing operations and meeting new expectations. By automating processes, improving traceability and reducing processing times, e-tailers can increase efficiency, cut costs and offer a distinctive customer experience.
Intralogistics as a differentiating strategy for e-commerce players
Warehouse performance in the age of e-commerce rests on three key pillars that guarantee maximum optimization of flows and operations:
Flexibility
Recent events, such as the Covid pandemic and geopolitical crises, have highlighted the need for companies to prepare for major and unpredictable disruptions to their supply chain. But flexibility isn't just about crisis management. It also enables us to anticipate market changes and adapt quickly to fluctuations in demand, whether in terms of volumes, product types or delivery methods. By strengthening the resilience and responsiveness of their supply chain, companies can easily adjust inventories, redeploy resources and modify processes, while maintaining business continuity.
Traceability
By tracking goods throughout the supply chain in real time, companies can significantly optimize the accuracy of their operations, particularly order picking and returns management, two complex processes that have a direct impact on customer satisfaction. Reverse logistics, which mainly concern returns and second-hand goods in e-commerce, is constantly on the rise (representing between 20% and 30% of online purchases, according to Statista), and is putting great pressure on companies' processes. To cope with this, e-tailers are banking on optimal traceability of goods flows to optimize inventory management. They can identify bottlenecks and fast-moving parts more quickly, adjust their replenishment and organize orders according to delivery schedules, to ensure that deadlines are met as far as possible.
Connectivity
Connectivity makes it possible to analyze performance in real time, and quickly identify areas for improvement. Yet, according to Gartner, only 7% of companies are able to react immediately with corrective action. The rest see their productivity severely affected by decisions taken too late. By interconnecting different warehouse systems and software, companies can improve visibility of their operations and reduce processing times. This interconnection enables better resource planning and greater resilience in the face of fluctuating demand.
The best 4.0 technologies for improving intralogistics efficiency
To remain competitive, e-tailers need to rely on innovative intralogistics systems and technologies. Among the most popular solutions are :
Robotisation
The adoption of picking robots, Automated Guided Vehicles (AGV/AMR) and Goods-to-Person systems is booming, and is set to grow by 10% between now and 2028. Operating 24 hours a day, 7 days a week, these solutions considerably reduce the number of operator movements and guarantee unrivalled picking reliability. They are particularly well suited to e-commerce, especially in high-volume warehouses, where the risk of human error is high.
A real race for innovation is underway among manufacturers, who are seeking to develop increasingly innovative solutions by combining different technologies, such as AS/RS systems.
Automated sorting systems
New solutions have been developed and perfected to simplify sorting, storage and order picking. These systems integrate seamlessly into modern logistics chains, automating the entire fulfillment process. The latest generations of sorting machines, which make full use of artificial intelligence, can process several thousand items per hour.
The pocket sorter, for example, combines several functions in a single overhead system, thus optimizing space and resources. Using routing algorithms, it transports, stores, sequences and prepares customer orders in record time. (Read our article)
Warehouse management software
Warehouse management software, such as WMS (Warehouse Management System) and WCS (Warehouse Control System), plays a central role in optimizing logistics operations.
A WMS orchestrates all warehouse activities, from goods receipt to order dispatch, including inventory management and order picking. It provides instant visibility of all operations, and generates detailed reports to measure performance. The WCS, meanwhile, coordinates the warehouse’s automated equipment, optimizing the flow of goods. Integration of WMS and WCS with other systems, such as ERP and TMS, enables 360° control of the supply chain.
The future of e-commerce is intimately linked to the evolution of the supply chain. To meet consumers’ growing expectations in terms of personalization and speed of delivery, companies need to adopt innovative intralogistics solutions.
The coming years will see increased automation, with the emergence of intelligent technologies capable of optimizing processes and making autonomous decisions. Human-machine collaboration will be at the heart of these transformations, requiring employees to be trained in new skills. Companies will also need to be highly agile in order to adapt to fluctuations in demand and changes in the market. Urban micro-warehouses, flexible solutions and the integration of emerging technologies such as blockchain and virtual reality are all examples of trends that will shapeintralogistics 4.0. By adopting pragmatic strategies, companies will be able to position themselves as leaders in an increasingly competitive market and consolidate their relationship with consumers.
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