When done right, fulfillment automation not only improves operational efficiencies, decreases cost-of-goods sold, and reduces labor and shipping costs, it also dramatically enhances a retailer’s ability to move product, execute marketing initiatives, control profit levels, and increase customer loyalty and retention.
As a result, a retailer can adopt both a more nimble and strategic approach to purchasing, marketing, sales, and product pricing.
As the “intelligence” that gets encoded into the warehouse execution software that ultimately controls system performance, optimization algorithms provide the step-by-step instructions for dynamically orchestrating the movement and interplay of inventory, labor, and equipment needed to enable an optimal order fulfillment process.
In this white paper, we not only examine the central role algorithms play in system performance, but also take a deep dive into the highly methodical and scientific process we use for the creation, testing, and validation of the algorithms that are responsible for optimizing performance under widely fluctuating operational conditions.
Technology is unceasing in its advancement, system design is constant in its pursuit of efficiency, and warehouse execution software is ever improving. So how do ecommerce and omnichannel retailers maintain a competitive edge without reinvesting in brand new fulfillment systems every few years? The answer lies in the practice of continuous improvement.
Invata’s strategic plan for continuous improvement is built on the use of sophisticated data science techniques that enable our Intralogistics Science team to analyze correlations and understand causality between fulfillment system activities that must seamlessly work together to enable sustained fulfillment performance.
Conventional approaches in use in many omnichannel operations today are built on fulfillment strategies that predate the emergence of e-commerce.
Realizing that such approaches will not give our omnichannel clients the strategic advantage they seek in today’s consumer-driven pull-based distribution model, Invata has pioneered new and innovative ways to rethink fulfillment and distribution strategies and solve the complex logistics challenges faced by omnichannel retailers today.
The dawn of the fourth industrial revolution, aka Industry 4.0 is here, offering tremendous opportunity for business to tap into the potential for improved efficiency, transparency, and productivity in the supply chain.
The optimization of the systems and operations within the physical infrastructure of existing and new supply chain nodes will result in a paradigm shift in intralogistics, the art of automating, integrating, managing, and optimizing the logistical flow of material goods with the flow of information within the walls of a fulfillment center, distribution center (DC), or warehouse, known as Intralogistics 4.0.
To achieve the kind of productivity improvements that are necessary to offset the capital investment modern automation systems require, certainty becomes a key criteria in both the strategic planning and the provider selection process.
With that in mind, Invata has created an Algorithm for Certainty that not only ensures that the Invata process is a highly transparent one, but also provides assurance that we deliver exactly what we promise. We present our algorithm along with a detailed analysis of our process in this new white paper.