E-commerce logistics

Set up the right warehouse

Shipping more and more goods in less and less time: a task for which many online retailers rely on warehouse automation. AM Logistic Solutions would like to provide more clarity in terms of warehouse planning and system selection with a white paper.

Which system is the right choice when it comes to warehouse planning for e-commerce companies? A white paper helps with the decision. © AM Logistic Solutions

No other sector in Germany has experienced such a pronounced boom in recent months as e-commerce. The German E-Commerce and Mail Order Association has reported growth of almost a quarter for retailers in the first half of 2021. To achieve this, providers have to meet ever greater customer expectations. But what is actually important when setting up a new mail order warehouse? This is the key question in the publication, which is aimed at online retailers in particular. Many of them have been surprised by the great success of their stores in recent months and are looking at expanding their logistics capacities. In any case, they have to deal with the key question of whether they want to automate their sites. As order volumes increase, for many of them the daily throughput can only be managed with technical support. The rule of thumb for maintaining manual warehouses is the combination of goods structure and warehouse throughput:

A slow-moving portfolio of particularly large and heavy products is reserved for a manual warehouse. If the throughput increases and the items have a system-compatible size, automated systems come into their own. The contents of the white paper The publication from AM Logistic Solutions is divided into eight chapters and looks at the key areas that are relevant when setting up a new warehouse:

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- Concepts, strategies, technologies
- Density
- speed
- Efficiency
- flexibility
- reliability
- Security and safety
- Software

In addition, the publication contains references from online stores from several sectors whose warehouses have been set up by AM Logistic Solutions. However, the focus is on the fact that the key questions when setting up a new warehouse must be answered at the planning stage. The integrator for automated storage systems therefore recommends analyzing the product portfolio in terms of dimensions, size and weights as well as sales volumes. In addition, AM Logistic Solutions advises including the expected order volume and the planned staffing levels in the considerations. "Our experience shows that most e-commerce warehouses work with both manual sections and automated storage systems. As a general contractor, we attach great importance to offering our customers the optimum solution for their tasks, rather than necessarily selling a specific product. In addition to simple communication and process planning, this is the biggest advantage of working with a general contractor," explains Norbert Golz, Managing Director of AM Logistic Solutions.

Most important factors: storage space and throughput

When weighting the selection factors, the available storage space and the expected item throughput play the decisive role. Large floor areas in combination with a slowly rotating range of rather large items are best suited for a manual warehouse. Particularly tall buildings, on the other hand, are ideal for setting up automated high-bay warehouses and automated small parts warehouses (AS/RS). These systems create the option of almost unlimited stackability. The AutoStore system shows its greatest strength in compact rooms of normal height: according to the company, it allows the highest storage density of system-compatible small parts. Depending on the configuration, it also enables a particularly high shipping speed. A higher picking performance per hour can only be achieved by shuttle systems, which can also store slightly larger goods within the system dimensions.

Efficiency, flexibility and reliability are required

Storage systems that allow fast throughput with high storage density are particularly efficient. This applies in particular to smaller products. Shuttle systems and AutoStore warehouses can excel in this area. They can handle a particularly large number of shipping orders per hour, have very high stock accuracy and are considered to be particularly reliable because they do not have a single weak point. When it comes to flexibility, the AutoStore system scores highly in a number of aspects. It can be expanded during operation and has ports and robots that allow different speed levels. In addition, AM Logistic Solutions' customers can expand it with rental robots that the integrator has fully licensed from the manufacturer. This allows the system performance to be significantly increased, even selectively for seasonal order peaks.

Software: crucial for convenient online trading

In e-commerce, the suitability of a warehouse for everyday use stands and falls with its connection to the store front end and the merchandise management system. In addition to accurately managed inventories, it is important that the availability status is displayed at all times. According to studies, the check-out process with an exact delivery date is one of the most important decision criteria for store customers. To make this possible, automated storage systems must be optimally integrated with the software. Only then can the material flow computer optimally convert the incoming shipping orders into warehouse system actions.

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