According to data from Netcomm-Politecnico di Milano Observatory, in 2021 the turnover in Italy for the sole days of Black Friday and Cyber Monday amounted to 1.8 billion Euros.
Not only Black Friday: retail and online sales winter season is dotted with a series of events, influenced by the American culture, that have their peak in the Christmas holidays.
The peak of sales starts from the end of November, at the end of the American Thanksgiving holiday, to continue until the end of January, in conjunction with -end-of-season sales.
While representing an important opportunity for Companies’ business development, this period can put a strain on logistics centers and their organization.
But what are some of the challenges warehouses and their managers are facing in this period?
The increase in demand and sales, in an omni-channel scenario, affects the order volumes, with related effects on goods preparation and shipment processes.
The impulsive, and often last-minute traits that characterize sales in this period require an extreme speed and flexibility in order preparation. Especially in the E-commerce channel, companies rely on promotions and fast delivery service to influence sales.
This is where automation can intervene in improving Companies’ logistics processes, and in optimizing some key-aspects.
The thirty-year experience of ERREVI Automation in the field of logistics and industrial automation can provide fundamental tools for the analysis of these processes, according to a low risk automation methodology.
A focus point of the development of any logistic project is in fact its business case analysis, that means sales data, flows and so-called "ABC" references. Only a proper study allows the development of an effective solution, in terms of goods positioning and management inside the warehouse. Selecting the items with greater rotation, evaluating their positioning nearer the picking stations, allows to reduce staff movements and waste of time.
Technology becomes more and more at the service of goods handling: AGV shuttles, pallet-shuttles, robotic islands, conveyors are all automation systems the help logistic operators to speed up order preparation time and their consolidation.
However, no automation is really effective and efficient without a control system that defines the priorities and criteria for goods supply. From this standpoint, artificial intelligence comes into play. The flexibility and options of the WCS, Warehouse Control System, which manages automation can make a whole difference within logistics processes.
Finally, we need to think over one of the main logistic challenges faced by companies, especially following Covid-19 pandemic and the global economic-political landscape. Although sales volumes can increase from year to year, it is not always easy to make realistic predictions. Therefore, opting for solutions that are "scalable" and modular, without creating interruptions in current operations, can really make a difference for a logistics center.
In conclusion, the management of seasonal peaks is one of the main challenges for retail companies that can offer them an important competitive advantage in the market.