The English term “boxing clever,” loosely translated, means behaving in a careful, clever way to gain advantage in a difficult situation. Today’s challenging logistics environment offers a new, more literal definition, as warehouses deploy advanced software to optimize their packing operations.
The COVID-19 crisis has only accelerated a broader two-decade market shift from traditional in-store retail to e-commerce. A war of attrition for market share among large online players like Amazon, Walmart and Best Buy is forcing change down to smaller online competitors and distressed brick-and-mortar mall stores.
At relatively little incremental cost, retailers can provide distinct customer experiences remotely, display full inventories, adjust pricing and promotions in real time, and process payments instantly in the cloud, with free shipping and returns. But it’s the warehouse and last mile where all of that rubber hits the road. Managing customer expectations for free shipping, same-day or two-day delivery, with multiple items combined in a single package, isn’t easy.
COVID-19 has taken e-commerce fulfillment to the next level. Operational pressures to move freight quickly through strained fulfillment centers now coincide with an urgent need to wring time and cost savings out of the fulfillment process to remain competitive. Omni-channel and safe delivery strategies add further complexity.
As in football, it’s a game of inches in which small process improvements can yield outsized gains. A key area targeted for improvement is the distribution center packing station.
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