Warehouse Bottlenecks: Overcoming Inefficiencies in Order Fulfillment

Daniela Todorova

3 min read

Updated: Mar 11

Challenge: Optimizing automated warehouse operations to enhance efficiency and improve order fulfillment.

Solution: Integrated AutoStore with a custom-developed Warehouse Management SYstem (WMS), enabling seamless communication between hardware and software through real-time inventory updates.

Outcome: Achieved a 40% increase in operational efficiency and significantly reduced manual errors.

Background

Web retailer and leader of Bulgarian e-commerce, with more than 15 years of experience in online and physical store sales both within Eastern Europe. With very fast growth, it developed a portfolio comprising many online shops that exist independently of each other, managed on an in-house software platform that merges functionalities for ERP, product catalogue, and WMS. The customer dominates the niche by building exceptional customer experiences that will retain high-end customers.

Challenges

As the company grew, its warehouse became a bottleneck, unable to keep pace with increasing order volumes and peak periods like Black Friday. Limited storage and challenges in completing orders quickly and accurately highlighted the need for AutoStore to streamline operations and meet competitive demands in a fast-changing market.

Key Requirements	Key benefits
Seamless integration between AutoStore and WMS via a newly developed component. Automation Shift: Move from "Person-to-Goods" to "Goods-to-Person." User-Friendly App: Develop ASA with an intuitive UI to streamline workflows. Optimized Distribution: Enhance item placement in AutoStore storage boxes. SKU Validation Policies: Ensure efficient storage and streamlined processes. Multi-Order Logic: Enable simultaneous preparation of multiple orders.	Optimized warehouse space and workflows Reduced preparation time and minimized errors Lower warehouse costs Improved employee UX and security Enhanced preservation of goods and packaging

Key Requirements

Key benefits

Seamless integration between AutoStore and WMS via a newly developed component.

Automation Shift: Move from "Person-to-Goods" to "Goods-to-Person."
User-Friendly App: Develop ASA with an intuitive UI to streamline workflows.
Optimized Distribution: Enhance item placement in AutoStore storage boxes.
SKU Validation Policies: Ensure efficient storage and streamlined processes.
Multi-Order Logic: Enable simultaneous preparation of multiple orders.

Optimized warehouse space and workflows
Reduced preparation time and minimized errors
Lower warehouse costs
Improved employee UX and security
Enhanced preservation of goods and packaging

Challenges vs Solutions

Manual handling led to item misplacement, reduced productivity, and order delays due to double-checking. Integration of WMS with AutoStore addressed these issues by automating order collection, optimizing space, and enhancing accuracy, security, and efficiency.

Solution

The Client invested in AutoStore (automated storage and retrieval system (ASRS) that uses the power of warehouse robots for 24/7 order fulfillment within a cubic layout). Auto Store is a leading goods-to-person solution with a modular design, quadruple capacity, and 99.7% uptime. Off-the-shelf software lacked the flexibility required for unique workflows, so a custom ASA integration was developed to align with specific needs and storage policies.

The Result

Integration of ASA with WMS and AutoStore significantly optimized space and efficiency. The intuitive UI facilitated a smoother transition, reduced manual tasks, and improved order accuracy and security. Automated SKU validation streamlined goods receipt and storage directly into AutoStore. Flexible design optimized box utilization regardless of item size, further enhancing productivity.

Project outcomes

The integration of ASA with AutoStore and the existing WMS transformed warehouse operations, setting new benchmarks for efficiency and productivity. This advanced automated system:

Reduced Manual Labor: Streamlined processes minimized reliance on human intervention, allowing employees to focus on higher-value tasks.
Minimized Errors: Automation dramatically reduced the chances of mistakes, enhancing order accuracy and customer satisfaction.
Optimized Storage Capacity: By maximizing the utility of existing space, the warehouse could store a larger inventory without expanding its footprint.
Faster Order Collection: Orders were processed more swiftly and with greater precision, enabling rapid order fulfillment and shipment.
Streamlined Operations: Implementation of a flexible SKU validation policy and optimal box volume usage ensured seamless sorting and storage of goods, further enhancing efficiency.
Cost Savings: The improved workflows and reduced manual errors led to significant cost reductions, improving overall profitability.
Enhanced Security: Automated processes limited unauthorized access to inventory, providing greater control and protection of goods.
Improved Workflow: The integration smoothed out operational bottlenecks, ensuring that processes flowed seamlessly across the entire system.
Boosted Productivity: The warehouse saw a significant increase in throughput, handling more orders with greater speed and reliability.

This integration not only enhanced operational efficiency but also laid a scalable foundation for future growth, ensuring that the warehouse remains competitive in an evolving market.