DHL Supply Chain is optimising e-fulfillment for online shops with IDEA, its own plug and play software solution. The software uses algorithmic analysis and data science to optimise picking routes and warehouse staff allocation.
DHL Supply Chain is increasingly relying on intelligent, IT-based forecasting and analysis tools to optimise warehousing and processing of online orders for major e-sellers during the COVID crisis.
Online orders have increased, but the size of shipments is smaller. New and more diversified product ranges means more stock keeping units for online retailers. Moreover, end customers expect fast, sometimes even same-day delivery with high transparency and traceability.
DHL Supply Chain developed and designed its IDEA software solution specifically for use in e-fulfillment warehouses.
The contract logistic specialist employs a dedicated team of some 350 developers, engineers and solutions designers to develop and optimise warehouse logistics processes on behalf of its clients.
“The COVID crisis has shown us that unforeseen volume fluctuations for individual products can put enormous stress on supply chains. Lack of clarity regarding stock levels and incorrect data on availability can lead to bottlenecks for individual products and then delays in delivering to end customers,”said Markus Voss, CIO & COO at DHL Supply Chain.
“We are working with our customers – large online stores and retail companies – on more stress-resilient, reliable algorithms and tools to better anticipate demand fluctuations, optimise the allocation of manpower and thereby accelerate the throughput of goods and order cycles.”
“Our IDEA analysis tool is one of our many answers to these e-commerce challenges,” said Dietmar Steins, EVP Solutions Design at DHL Supply Chain.
“With its algorithm, this ‘artificial intelligence’ solution helps optimise picking routes within the warehouse. Orders are also clustered logically, which helps optimize picking by our colleagues in the warehouses.”
Dietmar said the integrated, intelligent task planning can also optimise workload distribution for warehouse staff and help prioritise more time-critical shipments. Moreover, IDEA reduces error rates as well as the time required for employee training.