Overcoming the Challenges of Last Mile Deliveries

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Effectively managing last mile deliveries has always been challenging, but never more so than during the past year. It is one of the fastest-growing and often the most complicated part of a supply chain.

Challenges Facing eCommerce Companies

Demand for all types of goods delivery has increased exponentially, creating major headaches for shipping companies trying to satisfy their customers. A considerable part of the demand has come from the huge increase in e-commerce, and these consumers want faster fulfillment and faster last mile deliveries.

Nowadays, more companies offer online shopping, and consumers have a considerable choice as to how they shop, which places more pressure on brands and retailers to ensure they can adequately meet these demands. Increasingly, companies are offering free shipping for a minimum spend which is often quite low, further eating into the all-important bottom line. Then there is the question of ensuring an adequate supply of inventory to meet consumer demand. The pressure is on to create more efficient delivery premises and to have a good logistics network in place, including transportation for last mile deliveries, and which can meet expansion plans.

Ensuring Your Logistics Network is Ready to Meet Demand and Expand

It is important to know your customer base and understand their needs, so you can meet demands and expand when the time is right. These include product selection and delivery times. You may have some products that consistently outsell others. Think about how best to prioritize this inventory and fulfill orders quickly.

Inventory

While you need an adequate inventory, it can be risky to tie up large amounts of capital with a product that may fail to sell promptly, especially given the fickle nature of consumer demand. Work out the percentage of sales from best-selling inventory and identify items that may be slow to move but need to remain in stock.

Smaller Fulfilment Centers

Adding smaller fulfillment centers nearer to high-density areas can reduce costs and ensure faster delivery for best-selling items. Although adding more fulfillment centers can increase warehousing costs, it will reduce transportation costs and increase sales through more efficient last mile deliveries to customers.

Efficient Packaging

Another important part of the logistics network is the packaging. Inefficient packaging can increase costs greatly, especially for companies that choose to offer free or low-cost shipping. It can also be extremely irritating for customers to receive a poorly packaged item. They may be left with an excess of packing material to dispose of, or the item is more likely to arrive damaged.

This is where MagicLogic can help. One of the main applications of our BlackBox® software is Cartonization. It selects the correct box for eFulfillment orders in near real-time, order after order. Maximum fill rate is its main objective, and it is lightning fast so that the results can be used during checkout. Add sophisticated loading rules into the mix, and you can be sure customers receive well-packaged items in properly sized cartons in perfect condition. Your company saves time and money in packaging costs and fewer returns due to damaged goods.

BlackBox is compatible with any WMS/ERP system, and minimal work is needed to achieve integration. Many companies are already leveraging the power of BlackBox, including multiple Tier 1 logistics service providers. To get an idea of how we could help you, read our case study on Toysmith here.

Pallets, Palletization Software and the Supply Chain

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We tend to take pallets for granted as they are everywhere and can be a nuisance for businesses once unloaded. However, they are a critical part of the supply chain, and the supply of pallets is affected when they remain in one place for too long. Around two billion pallets are estimated to be in circulation in the United States alone, and over 90% of goods are shipped on pallets. Palletization software ensures pallets are loaded optimally and securely. A poorly loaded pallet results in damaged goods and an unstable load, and of course, can waste valuable and expensive space.

While pallets might have been around for decades, they are becoming more important than ever to supply chains, especially as warehouses become increasingly automated. The need to keep pallets in circulation has never been more important than during the past fifteen months, as consumer demand for paper goods, cleaning supplies, and food and drinks increased exponentially. Dwell time, or the time it takes for a pallet to be delivered for use, loaded with products, and delivered before being returned for re-use, is a particular headache for shippers. But today’s pallets are getting smarter, thanks to newer technologies.

Pallets can be fitted with barcodes and RFID tags. RFID tags are particularly useful for companies that haven’t yet integrated their technology systems as they are easily tracked across different systems. They also allow for easy recall of products, if needed.

The materials used to make pallets are also changing. Although traditional wood pallets are still used, plastic pallets are increasingly in demand for automated systems. They can last longer and don’t have any nails or broken boards or leave behind dust and debris that could affect smooth automation or cause product damage. Additionally, plastic pallets are easier to clean and ideal for the post-pandemic world – and can be produced sustainably.

Plastic pallets can be made from manufacturing or packaging waste. Once they come to the end of their useful life, they can be ground down and remade into new pallets. Wood pallets tend to have a more limited lifespan, and it takes valuable resources to manufacture and recycle them. Anyone who has recently had the dubious pleasure of needing lumber will realize the huge price increases make switching to plastic pallets even more attractive.

As automation becomes the norm, high-speed palletization helps to ensure every pallet earns its keep. It is an area where MagicLogic can help with our advanced mixed-palletization software.

Utilizing the Power of BlackBox Palletization Software

BlackBox load optimization software has a separate engine developed specifically for mixed palletization. It includes the building of layers, semi-layers, and an automatic switch to free stacking when necessary. Our mixed palletization engine has pallet stability as its main goal, achieving maximum fill quality and maximum load stability. BlackBox can also provide a stacking sequence suitable for robotics, including configurable parameters for different end of arm tools and approach points. Interested in learning more? Read about BlackBox and its capabilities on our website. Contact us today for your software demonstration.

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Robotics Can Increase Employment According to Canadian Study

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Most people assume that introducing robotics into an industry would decrease the need for a human workforce, but a recent study has discovered this isn’t necessarily the case. Statistics Canada found that Canadian companies investing in robotics over the past two decades have also increased their human workforce.

Companies that had automated certain tasks had approximately 15% larger workforces than comparable companies in the same industry. The increase in employment was attributed to the need for more high-skilled jobs such as university-educated computer programmers and less skilled positions requiring high school diplomas. Middle range employment positions held by people with trades tended to disappear, largely due to natural attrition as these workers left the company or retired and were not replaced. Interestingly, these firms tend to need fewer managers as workers gained more control over making decisions, with the added benefit of performance incentives.

Even so, introducing robotics will inevitably disrupt the workplace. While the need for some workers has increased, the nature of other jobs has changed. In 2019 it was estimated that ten percent of jobs might become automated over the next fifteen to twenty years, while nearly a third may need to change significantly.

Twelve years ago, in 2008, Canada’s stock of robots was worth CAD$1.2 billion, with nearly half of this value found in the automotive industry. By 2017, the total stock value increased to CAD$1.5 billion, with less than CAD$400 million in the automotive sector, while investments in construction, agriculture, health and mining registered increases. Rather than reduce wages, companies have been introducing robotics to improve service and product quality.

MagicLogic Optimization sees increasing demand for robotic solutions here in North America and Europe, and our BlackBox software offers manual and robotic capabilities and integrates perfectly into automated warehouse systems. Using programmable robots allows companies to optimize orders more quickly and efficiently, packing out cubes and reducing unnecessary waste packing materials. BlackBox is useful in achieving complex mixed case pallet stacking, following even the most stringent rules.

Palletization is one area where customers are finding robotics to be especially useful. Robots can recognize specific packages or cartons and can select and orient them perfectly on pallets. Additionally, robots can place items in packages before sealing them and labelling them with machine-readable codes. The entire process is more precise and efficient and reduces workplace injuries that can occur when large objects must be palletized.

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