Turning Legacy Logistics Operations into Smart Warehousing with 35✖ Faster Order Processing
About Client
The NineHertz partnered with a third-party logistics company based in the Netherlands that offers distribution and warehousing services to retail and e-commerce brands across European markets. The client has multiple fulfillment centers with an inventory of more than 50,000 SKUs, handling storage, order picking, inbound receiving, and last-mile dispatch.
The company consists of stakeholders like supervisors, associates, and inventory planners who coordinate via paper-based checklists and manual stock counts. As the order volume spiked, the accuracy was compromised, and it became impossible to scale with legacy tools.
Key Challenges
The client organization was highly dependent on a siloed system for warehouse operations management, in which locating, picking, and verifying each order consumed more than 18-22 minutes. The manual process to count the stock always caused an error rate of 12-18%, leading to misplaced SKUs and overselling. It even led to customer complaints and refund cases.
The company faced a lack of real-time visibility as supervisors had no view of stock movement, associated productivity, or warehouse activities. Decisions were only made based on inaccurate daily reports. The firm was unable to scale further without upgrading its tech infrastructure.
Our Solutions
NineHertz developed an AI-powered warehouse management system with a mobile-first design that automates workflow while offering real-time visibility into operations.
IoT-Enabled Inventory Tracking
Our team implemented barcode scanners and RFID tags to allow the real-time monitoring of each SKU in the storage, receiving, and dispatch areas. All the stock movements are now captured automatically.
AI-Powered Pick Path Optimization
The new solutions are based on machine learning to analyze warehouse layout, order patterns and related workloads to determine the shortest pick-paths to each order. Pickers get the exact location, reducing movement across the floors.
Real-Time Dashboard
Our solution gave a real-time dashboard which would give a live view of inventory and order status, SLA compliance, related productivity, and much more, leading to decisions based on data.
Scalable Cloud Architecture
We implemented the solution on a cloud-native architecture that assists in supporting the operations of the multi-warehouse, integrating current ERP and online shopping platforms, and scaling without issues.
Impact That Drives Results
The logistics, storage, and distribution company has reported significant operational gains quickly after the deployment of the solution.
35x
Faster Order Processing
Automated verification, picking, and dispatching of the orders took 20 minutes which reduced to 34 seconds. The saved time allowed the team to work on much more orders.
99.5%
Inventory Accuracyy
Inventory accuracy of the new IoT-based tracking solution was 99.5% which minimized the occurrences of overselling as well as the overhead of the reconciliation.
60%
Reduction in Operational Costs
The cost of operation was reduced by 60% in the first year of implementation through automated logging, less reliance on the temporary staff, and pick-path optimization.
3x
Increase in Fulfillment Capacity
The warehouses and the team have now been able to handle three times the amount of orders which allows the company to accommodate new retail partners without additional physical facilities or personnel.
