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Ecommerce fulfillment center trends and best practices

Written by: Erhan Musaoglu
Originally published on September 12, 2024, Updated on September 12, 2024
Ecommerce-fulfillment-center-trends-and-best-practices
As demand for ecommerce products continues to grow, so does the importance of the fulfillment center. By providing ecommerce brands with efficient and reliable fulfillment to meet customer demands, fulfillment centers have proven themselves invaluable. The global ecommerce fulfillment services market size was valued at more than USD 23 trillion in 2023 and is projected to grow at a CAGR of 18.9% from 2024 to 2030.

Fulfillment management systems (FMS) are at the heart of operations in a ecommerce fulfillment center. Top AI-driven FMS platforms such as Logiwa IO are revolutionizing high-volume B2B and DTC fulfillment, helping ecommerce merchants fulfill brilliantly and scale operations without costly up-front investments in building fulfillment infrastructure.

Logiwa IO goes beyond legacy WMS with AI-driven automation to boost operational efficiency and optimize overall fulfillment processes. This makes Logiwa IO the choice for established and upcoming ecommerce merchants. Read on to understand how new technologies such as automation, data analytics, and real-time inventory tracking enhance ecommerce fulfillment operations and the best practices you should follow to sustain operational efficiency.

The rise of automation in fulfillment centers

Automation technologies such as machine learning, AI, and robotics transform warehouse inbound operations substantially. Manual warehouse roles such as retrieving and packing items are prime automation candidates because they’re repetitive and time-consuming. Automating repetitive warehouse processes enhances overall workflow efficiency and lowers the chances of common errors such as picking and packing wrong products or mislabelling.


 

 

Watch the video above to learn about Workflows in Logiwa IO.

Warehouse robotics

Robotics is a popular automation technology in modern warehouses. Warehouse robotics include different types, such as Autonomous mobile robots (AMRs), automated storage and retrieval systems (AS/RS), aerial drones, and automated guided vehicles (AGVs). These unmanned machines perform activities such as sorting, picking, and packing, typically performed by human workers.

Warehouse robotics help fulfillment centers manage the fluctuating labor supply of warehouse workers. In Instawork’s 2024 state of warehouse labor report, over 40% of survey respondents reported having lost some revenue because of staff shortages. Warehouse robotics help offset the effects of labor shortages.

How Logiwa IO promotes warehouse automation

Logiwa IO’s warehouse automation system supports free integration with any preferred robotic provider. This enables fulfillment centers to fully adopt and leverage any robotic technology to enhance warehouse workflows and boost operational efficiency. Automation in warehousing using Logiwa IO is seamless thanks to the platform’s integration-rich nature, which is enabled by its headless architecture.

Layout optimization for maximum efficiency

Warehouses are hectic spaces where a million and one activities happen simultaneously. Fulfillment activities, from receiving products to picking, packing, and shipping, start and end in the warehouse. That’s why warehouse layout optimization is essential to maximize warehouse space so warehouse staffers and machines can fulfill their duties efficiently and safely.

Fulfillment centers aren’t limited to specific layout designs. Common layout arrangements include fishbone, U-shaped, I-shaped, and L-shaped. Strategic warehouse layout designs facilitate some basic warehouse workflows:

  • The putaway flow
  • Picking paths for workers and robot paths for AGVs and AMRs
  • Packing / outbound shipping area
  • Warehouse return area

Efficient layout designs reduce fulfillment times because workers and machines can navigate quickly to retrieve and ship customers’ orders.

Data-driven layout changes

Smart warehouse infrastructure, such as RFID tags, sensors, barcode scanners, cameras, and warehouse wearables, collects real-time inventory data. Analyzing this data gives you an accurate estimate of your inventory holdings and inventory flow rate.

Using data analytics tools, you can compute and correlate how the warehouse layout affects the inventory storage techniques and inventory flow. This way, you can leverage the insights to continuously refine and optimize warehouse layouts to accommodate your dynamic warehouse operations and sustain efficient order processing.

Logiwa IO’s contribution to layout optimization

Logiwa’s AI-driven fulfillment management system monitors inventory changes in real-time. Based on the updated data, warehouse operators can implement dynamic warehouse layout optimization. For instance, when there is a large volume of inbound inventory, Logiwa FMS will alert you beforehand so you can do zone optimization and find extra storage space for the incoming inventory.

Enhancing order processing efficiency

Today’s customers expect fast and accurate order fulfillment from online retailers, having been accustomed to expedited delivery from ecommerce giants like Amazon. This means fulfillment centers must invest in technologies that accelerate order processing speed and accuracy. Such technologies include voice-picking solutions and advanced inventory management tools like Logiwa’s fulfillment management system.

Real-time inventory tracking

Tracking inventory changes automatically boosts fulfillment efficiency by helping you avoid common pitfalls such as overstocking or understocking. With instant visibility of inventory levels, warehouse staff can fast-track customer orders by quickly retrieving products from their exact storage location and packing them. It’s also easier for fulfillment personnel to promptly identify the orders they can’t satisfy because of stock shortages, order new inventory in advance, or notify customers about delivery delays.

Logiwa IO’s solution

Logiwa IO helps you succeed in order fulfillment—going beyond customer expectations for fast delivery. Retailers need a strategy that improves every step of the process, from managing inventory to the final delivery. A delay at any stage can disrupt the entire supply chain. Fortunately, the right mix of technology and tactics can handle high demand and deliver at faster-than-ever speeds.

Best practices for the future of fulfillment

Both established and micro-fulfillment centers should follow these best practices to run sustainable logistics and elevate their fulfillment experience:

  • Embrace and integrate emerging technologies like the Internet of Things (IoT) and AI in fulfillment processes. Such technologies are revolutionizing fulfillment operations by enabling fast product identification, retrieval, and shipping. For instance, IoT supports warehouse wearable technology such as smartwatches, smart glasses, and barcode scanners.
  • Embrace omnichannel fulfillment to integrate different offline and online sales channels, and create a single source of truth from which you manage all customer orders. This ensures you don’t miss out on sales from customers who use alternative, less popular, or a mixture of channels.

Logiwa IO’s forward-thinking solutions

Logiwa’s FMS is purposefully designed using headless architecture to enhance customization flexibility. This way, you can quickly integrate innovations to boost operational efficiency, fulfillment accuracy, inventory management, and overall warehouse processes.

Request a demo today, and let our fulfillment experts prep your ecommerce business for future trends to give you a competitive advantage.
 

FAQS about fulfillment center trends

Which ecommerce fulfillment trends will have the most impact on the fulfillment experience?

Warehouse robotics and automation are at the forefront of ecommerce transformation. Robotics is introducing unmanned machines to retrieve and sort products in the warehouse, thus eliminating repetitive manual processes. When all manual fulfillment processes that are possible to automate get automated, consumers will enjoy super-convenient fulfillment experiences such as same-day or instant deliveries.

What will happen to fulfillment centers that fail or delay adopting new market trends?

Operators who refuse to embrace emerging trends like AI and data analytics or take too long to implement will be locked out of the future ecommerce fulfillment infrastructure, which will be cloud-based and AI-driven.

Which best practices for fulfillment centers are likely to last in the long term?

Leveraging IoT and automation on a wide scale and deploying omnichannel fulfillment will likely live on in the long term as we approach a super-digitized fulfillment era. These technologies are experiencing prevalent adoption and will likely become a staple part of the fulfillment infrastructure as they improve daily.

How does AI help to optimize fulfillment centers?

Artificial intelligence is the backbone of all emerging technologies revolutionizing fulfillment centers, from robotics, data analytics, and IoT.

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