Case Study – E-commerce

The Customer currently runs 11 brick and mortar stores. Since they are planning to expand their sales by e-commerce a tender was organised and the best partner for this project was to be selected.

Goal

Due to the constantly developing e-commerce market, the main goal of the Customer was to establish collaboration with a logistics operator who will be able to ensure high operational flexibility and the highest efficiency. Additionally, the Customer pays attention to the quality of the provided service. A necessary condition before signing the contract was to meet several requirements and standards by 3LP which are specified in the quality policy of IKEA.

Technology

For executing such a demanding project we decided to use our automatic system Shuttle which is equipped in 50k totes. It also has 4 PTT (pick to tote) stations, thanks to that we are able to pick even 2,000 pieces per hour. The whole automatic system is connected to 48 packing stations – each stations is equipped in CCTV video camera thanks to which we continuously track a packing process and analyse reported claims.

Results

The best proof that we were right to use the automatic solutions for that kind of e-commerce project was the beginning of pandemic in 1Q of 2020. The number of orders doubled within several days. Thanks to high flexibility we were able to maintain short lead times to Customers. In the peak seasons we are ready to provide even 160k lines per week.

Customer’s Expectations

14 months of negotiations led to signing a contract on logistics cooperation and the Customer decided to select 3LP SA appreciating experience and competence of our company. The highly motivated team, unique equipment, and advanced warehouse management software guaranteed the highest quality of services and maintaining competitive costs.

Using the CUBY shuttle automatic warehouse allows processing a large number of orders in a short time. Thanks to an agreement with a leading shipping company the Customers’ orders are delivered nationally in the next business day mode.

For our Customer the key element, defined at the very beginning of the request for proposal conditioning the effective completion of orders, was the automation of goods warehousing processes and packing orders.

Summary

Choosing 3LP SA as a logistics operator will allow the Customer to launch e-commerce sales project on time. Using the CUBY shuttle automatic warehouse system fulfilled the requirements regarding the on-time execution of operations and the required flexibility resulting from the seasonality of sale and changes in the end-customer preferences.

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Customer managing eleven brick and mortar stores which needs to expand its sale to e-commerce channel.

  • Large operational flexibility and the highest productivity
  • Continuous streamlining and improving of processes
  • Meeting a series of quality policy requirements and standards
  • The highest quality of the provided service