Long Tail Management: transforming complexity into opportunity with the Skypod system

The long tail represents that part of the inventory consisting of a substantial number of low-turnover SKUs, i.e. those that are less in demand but numerous, whose management represents a significant challenge for companies.

Although these items generate lower sales volumes than best sellers, managing them correctly can become a real competitive advantage.

Thanks to automated logistics, companies now have the opportunity to transform this complexity into operational efficiency and new business opportunities.

What is the Long Tail in logistics?

The concept of the long tail refers to all those products that have lower or intermittent demand, but which together represent a significant share of overall sales.

In traditional logistics, managing these items can be costly and complex: they require dedicated storage, less frequent handling and greater attention to picking to avoid errors.

The challenge of managing the Long Tail

The main problems associated with managing the long tail include:
• Thousands of SKUs that are ordered infrequently but require constant availability
• The physical space required to store them is expensive and limited
• Picking times increase because ‘sporadic’ items are scattered throughout the warehouse
• Errors and lead times increase when items need to be found that traditional storage has not optimised

How automated logistics with Exotec’s Skypod system is transforming the Long Tail

Automated warehouse solutions , such as the Skypod system , enable efficient long tail management. Here’s how:

High vertical storage density

The robots are capable of moving on racks up to 14 metres high, utilising vertical space rather than just the ground floor. This allows many more SKUs to be stored in a smaller area.

Quick access and efficient selection of each SKU

The Goods-to-Person system: robots directly pick up containers or trays containing the item and take them to the picking stations. This significantly reduces picking times for rare items.

Integrated buffer and semi-finished order preparation

Skypod integrates internal buffer functionality into the system: orders or containers that are ready or partially prepared remain within the system until it is time to ship them. This allows you to ‘accumulate’ long tail items without taking up dedicated external space.

Integrated pick & pack

Orders are prepared directly in the destination containers, reducing transfers and extra packaging, which are particularly critical for infrequent SKUs. Optimising the right container minimises empty space and inefficient handling.

Output sequencing

The system can manage the order of outputs (sequencing) in a rigorous manner: robots group and deliver containers in a precise sequence, which is useful if many ‘long tail’ orders must be placed in shipments or pallets according to specific criteria (e.g., by carrier, by store), preventing rare SKUs from slowing down the preparation flow.

Modular scalability

It is possible to add robots and containers and expand the system seamlessly. This is essential when the product portfolio grows, even in the presence of slow-moving but necessary SKUs.

Visibility and management through advanced software

With tools such as WES/WCS software, system control (container location, stock levels, order priorities) is in real time. This helps to anticipate when a long-tail SKU needs to be replenished or when it is at risk of stock-out, even if it is not requested often.

Turning complexity into opportunity

Managing the long tail is not just about addressing operational challenges; it is also about creating value. Slow-moving products can differentiate your offering, improve customer satisfaction and increase overall sales.

Automating the process allows companies to maximise these benefits without increasing costs or compromising efficiency.

Exotec’s robotic solutions, with their scalable and flexible systems, offer a concrete answer to this problem: they allow you to effectively manage your entire SKU range, from the most popular items to the long tail, without sacrificing speed or accuracy.

Thanks to a modular approach and intelligent automation, Exotec transforms the long tail from an operational challenge into a strategic opportunity to improve service levels and business competitiveness.

How automated logistics is transforming the Long Tail

Managing a vast and fragmented product catalogue can become a significant logistical challenge.

Errevi Automation solutions help companies optimise Long Tail Management by combining intelligent automation and tailor-made warehouse systems.

Thanks to AS/RS technologies such as Exotec’s Skypod and integrated software, it is possible to manage small quantities of SKUs efficiently, reducing picking times, errors and operating costs.

With Errevi, even the management of slow-moving products becomes strategic, transforming complexity into a competitive advantage.

If you want to discover how your company can leverage automated logistics to better manage the long tail, contact us today and start turning complexity into a competitive advantage.