Claus-Peter Amberger (left), Member of the Management Board, and Christina Thurner, Member of the Management Board at Loxxess, with the Smile project team Marcel Breusch (2nd from left), Lars Gutermuth (center) and Patrick Mense (right) at the award ceremony as a finalist for the German Logistics Award at the end of October 2019 in Berlin © Loxxess

The Smile logistics solution consists of a combined use of simulation software, optimization algorithms and AI, which lead to a reduction in the workload and more efficient deployment of warehouse employees. A key role is played by the warehouse optimization software LOS, an intelligent planning software based on real data, which takes into account a quantity of data that can no longer be understood by humans due to its sheer volume.

Loxxess was able to implement extensive optimization measures in various warehouse processes with the logistics solution. Based on historical data, detailed analyses of warehouse topology, routes and picking tours etc. were carried out. In a first step, it was possible to determine which key factors have which effects on the logistics processes in order to initiate corresponding optimization measures in a second step. With the help of the software, it was even possible to reorganize the entire warehouse topology with the aim of optimizing incoming goods and replenishment control as well as item positioning. This was achieved using so-called "heat maps", which display the frequency of the storage locations accessed by employees when picking orders.

Increased data transparency
Ultimately, AI took on an increasingly controlling function in the area of scheduling. After all, it is estimated that around 30 percent of process time is lost due to human error. These can be eliminated through the use of artificial intelligence, because: The new data transparency, in conjunction with AI, makes it possible to take the right measures in every situation, from goods availability and putaway strategy to picking and packing. And it does so with foresight, as the system learns from analyzing the past. This means that bottlenecks, for example due to increased packaging requirements for glass items, can be identified and avoided in advance.

Logistics solutions of tomorrow
The fact that innovation is a top priority at Loxxess is demonstrated not only by the successful development of the Smile logistics concept, but also by the family-owned company's involvement in the 11th Innovation World Cup (IWC). As part of the IWC, initiated by Navispace AG, Loxxess presented the "Logistics Game Changer Award", which promotes innovation exactly where it is created: in the hands of young, successful companies, start-ups and "techpreneurs" who are already working on the logistics solutions of tomorrow.

The jury's selection of finalist projects reflected the current, most important trends in the logistics sector. Accordingly, most of the projects and solutions came from the fields of software, AI and automation. This included the winning project Bcon from the German start-up CapLab. Bcon is a controller that can be worn on the hands and feet and has so far been used primarily in the gaming sector. It is the first wearable technology to rely on gestures to control or execute functions in a game. The application also opens up new possibilities in logistics for process design in the warehouse, particularly for hands-free working and order picking.

Cooperation with start-up
Loxxess is offering winner CapLab the opportunity to test and further develop the developed solution together with Loxxess experts at one of the company's locations. "There is no question that digitalization will change the logistics sector in the long term. As an established partner, we are delighted to be able to help develop and advance innovative technologies and solutions together with young companies," says Amberger.

Digitalization and sustainability combined
At Loxxess, however, affinity with the relevant trends is not an end in itself. Rather, the family-owned company wants to make itself fit for the diverse global challenges. Sustainability is an important area of focus and action. This was recently demonstrated by the collaboration between Loxxess and Vodafone Kabel Deutschland. Together, the two companies introduced new sustainable and resource-saving transport containers at the Loxxess site in Bor in summer 2019. The containers are designed for internal deliveries, storage, disposal, returns and repair transports and are far more durable than the old version with pallet boxes. After all, the new boxes can be used for up to 60 transport cycles and therefore for seven to nine years. Immediately after implementing the reusable container system, both partners began to design ways of using IoT on the new containers, for example with chips for narrowband communication. The reusable containers would be visible through the chips and could be localized at any time. Repair service providers, among others, would benefit from the data collected, allowing them to better coordinate their work processes. Loxxess would also have a better overview and control over containers and their use. "A number of innovations in e-commerce and logistics are already based on the IoT. In recent years, exciting opportunities for interaction between employees, systems and hardware have emerged that have the potential to change logistics processes in the long term," says Amberger. "That's why we at Loxxess are also exploring new ways to make IoT applications fruitful."

AI offers further opportunities in the project
Despite the success of the Smile logistics concept, Loxxess still sees a lot of potential for further development. The project team is already working on new ways to use AI even more profitably. "With Smile, we have successfully demonstrated a forward-looking solution for e-commerce, which is becoming increasingly important. At the same time, we don't see the concept as the end of a development process," says Amberger. "On the contrary: it's just the beginning."