Insights 

Our outbound operation required a significant number of internal cross-dock movements after picking. Orders were picked individually and subsequently transported to the outbound grid, where additional sorting, scanning, consolidation, and internal transport were required before the goods could be loaded.

This created multiple non-value-added handling steps and required additional workforce to process the same outbound volume.

The Approach:

We challenged the traditional flow by focusing on one key question:

How can we consolidate orders earlier in the process and eliminate handling steps after picking?

Together with Smart-Flow, we developed a solution based on two principles:

1. Order consolidation by ship-to location
   Orders with the same destination are grouped before release, allowing sufficient volume to be built up for direct consolidation.

2. Smart Pallet Boxes
   Instead of picking individual orders that require further sorting on the outbound grid, goods are picked directly into Smart Pallet Boxes dedicated to a specific ship-to location.

Once picking is completed, the Smart Pallet Box no longer requires additional sorting on the outbound grid and can move directly towards loading and transportation.

This eliminated a significant number of cross-dock activities, including:

• Additional scanning and handling

• Manual sorting on the outbound grid

• Order consolidation after picking

• Internal transport movements

• Non-value-added forklift driving kilometres

Because the goods are already linked to the correct HU during picking, much of the downstream processing is eliminated.

The Impact:

The redesigned process allowed us to:

• Reduce the required workforce by approximately 15% while processing the same volume

• Significantly reduce cross-dock movements

• Eliminate outbound sorting for these flows

• Reduce scanning and handling activities

• Reduce internal forklift movements and driving kilometres

• Simplify the overall outbound process

• Create a more direct flow from picking to transportation

The main operational trade-off is that orders need to be accumulated for a longer period before release. Sufficient volume is required to efficiently fill the Smart Pallet Boxes, meaning that the order release moment moves closer to the transport cut-off.

Overall, the project demonstrates how earlier consolidation and smarter load carriers can remove entire process steps rather than simply optimizing them.