DHL Makes Order Processing More Efficient for Online Retailers

DHL Supply Chain achieves significant improvements in order picking processes through the complementary use of IDEA in its warehouses. With IDEA, DHL Supply Chain has developed a plug-and-play software solution that enhances e-fulfillment for online shops.

(Bonn) During the COVID crisis, online shop sales have been steadily increasing, and everyday goods such as groceries, medications, and drugstore products are being ordered online more frequently than before the pandemic. This trend presents challenges for retailers worldwide. The total number of orders has increased, but shipments have also become smaller. Additionally, the new and more diverse product ranges increase the number of stock-keeping units that retailers must maintain. Furthermore, end customers expect fast, sometimes even same-day delivery, with high transparency and traceability.

IT-Based Forecasting and Analysis Tools

To meet the needs of online retail, DHL Supply Chain, the market leader in contract logistics and part of Deutsche Post DHL Group, is increasingly relying on intelligent, IT-based forecasting and analysis tools to simplify and accelerate inventory management and order processing for online orders on behalf of major webshops. “The COVID crisis has shown that unforeseen volume fluctuations for individual products can put enormous stress on supply chains. Unclear stock levels and incorrect availability lead to bottlenecks for certain products and, consequently, to delivery delays for end customers,” explains Markus Voss, CIO & COO at DHL Supply Chain. “Together with our customers, the operators of online shops and mail-order companies, we are working on more stress-resilient and reliable algorithms and tools to better predict demand fluctuations, optimize workforce deployment, and accelerate throughput and order cycles.”

Routes in Order Picking are Optimized

“Our analysis tool IDEA is one of our many responses to these challenges in e-commerce,” says Dietmar Steins, EVP Solutions Design at DHL Supply Chain. “This ‘artificial intelligence’ helps optimize routes in order picking within the warehouse through its algorithm. Additionally, orders are logically bundled, which also optimizes processing by employees. The integrated, intelligent order distribution allows for optimal distribution of workloads in the warehouse and high-priority orders. The fact that IDEA also reduces error rates and shortens employee training times underscores its practical benefits.”Overall, the complementary use of IDEA in DHL-operated warehouses significantly improves order picking processes. The cost investment is comparatively low, as the software developed by DHL is compatible with almost all common warehouse management systems and can be easily integrated into existing IT infrastructures. Specifically, initial deployments have shown that the distances traveled by employees in the warehouse can be reduced by up to 50%, and the productivity of individual DHL locations can be increased by up to 30%.

Software IDEA is a Proprietary Development

The software IDEA is a solution that DHL Supply Chain has specifically developed and designed for use in e-fulfillment warehouses. The contract logistics specialist relies on its own team of around 350 developers, engineers, and solutions designers who work on the development and optimization of processes in warehouse logistics for customers.Photo: © DPDHLwww.dpdhl.com