A common misconception in e-commerce and 3PL is that the threshold is too high and that automation solutions are expensive. Many believe that some kind of robotic warehouse is the only way to go.
In this article, we want to give you a better understanding, and offer more companies the chance to have a successful and profitable automation journey. With the support of data from your system (e.g., WMS or ERP), we will discover what we at e-motions call “the sweet spot”.
The image to the left shows a percentage of completed picks compared to picking locations. And it is this – and only this – we need to focus on in terms of automation.
With our Pick-to-Light solution (or Pick-by-light, as some say), you can see an enormous difference with only a small investment. The PTL solution often solves a higher percentage of the total order backlog than what you first might think. In the image above, we can see what a typical curve looks like for 3PLs or e-retailers between the number of storage locations (x-axis) and the percentage of orders that we can complete (y-axis). For example, if you have 96 picking locations, we can fulfil 60% of all orders.
Here are three important takeaways:
Let the data guide you to optimise your flow as much as possible.
Focus on your high-rollers.
Identify your sweet spot and apply the 80-20 rule.
Would you like to know more about how we can help you find your sweet spot? Contact me.
