2. Food for thought
e-Retail firms are compelled to put a serious thought about
warehousing and inventory logistics as this is one of the key
areas that will help you to economically deliver products into
the hands of online shoppers.
Companies who have realized and worked on this have
become run away leaders in online sales
by sheer efficiency of their warehouses and supply chain
that speed orders with ruthless efficiency.
3. Operation flow in e-retail environment
Replenishment
Case
Picking
Reserve Storage
and
Pallet Picking
Replenishment
Broken
Case
Picking
Accumulation, Sortation & Packing
Direct
Put away
to reserve
Direct
Put away
to primary
Receiving
Shipping
Cross-docking
4. Key problems
that efficient warehouses can solve
•
Storage capacity
•
Effective utilization of available storage space
•
Inventory management at warehouses & high demand
SKUs
•
Stock damages
•
Stock identification
•
Managing perishables – FIFO
5. Key problems
that efficient warehouses can solve
•
Demand for an increased throughput
•
Progressive reduction in order sizes
•
Reduced lead times
•
Managing higher number of part numbers & higher level
of order customization
•
Pilferage
6. Problem: Storage capacity
Solution
•
Flexible & scalable
warehouse infrastructure
Scope of addition of new
products/ SKUs
Scope to use the existing
infrastructure for different
products/ SKUs
Representative image of an e-retail
warehouse
7. Problem: Effective utilization of
available storage capacity
Solution
•
•
•
•
Strategic division of available storage capacity into
reserve area and order picking area
Use of high density racking (high rise) in reserve area
Use of next gen forklifts, reach trucks and VNAs to
service reserve area
Deploying efficient MHE in order picking area
10. Problem: Inventory management at
warehouses & high demand SKUs
Solution
•
•
Standard pallet racking
with an underpass to
increase storage and
reduce travel time of
equipment
Gravity flow racks
12. Problem: Enabling quicker stock
identification
Solution
•
•
•
Forklifts with the flexibility to
integrate RFID/ barcode scanners
Storage systems integrated with
stock identification features like
put to light, bar code scanners,
etc.
RFID reader gates between
reserve (High density storage)
area & order picking bay
13. Problem: Enabling quicker stock
identification
RFID scanners
RFID reader gate
Tracking incoming goods into reserve
warehouse right from the source
Pick to light
14. Problem: Demand for an increased
throughput
Solution
•
•
Drive in pallet racking increases
storage capacity & reduces travel
time
Very high bay warehousing
further leverages property
footprint potential
VNAs
High rise warehouses Drive in pallet racking
15. Problem: Pilferage & stock damages
Solution
• Vertical automated systems
solves problems like stock
pilferage & damages which is
rampant in the industry
16. Conclusion
• Operational effectiveness of e-retail warehouses depends on
optimizing the available storage space and its division between
order picking & reserve storage space
• This enables high utilization of storage space while simultaneously
fulfilling orders quickly & reliably with least amount of effort