Olive Young Streamlines Outbound Order Fulfillment with OPEX® Sure Sort® Sorting system
The versatile sorting solution from OPEX and Hokoshu Korea increased productivity by 30%.
The Background
Olive Young, South Korea’s leading health and beauty retailer, operates a growing network of micro-fulfillment centers (MFCs) to support its thriving e-commerce operations. The company currently has around 12,000 SKUs, including skincare, makeup, and collectible K-Pop products. Initially, Olive Young prioritized proving the viability of its fulfillment model over optimizing efficiency, investing conservatively in its first MFC. After successfully establishing multiple MFCs in Seoul, the company planned a metropolitan area MFC to support faster delivery times and a broader inventory assortment. To meet these increasing demands, Olive Young sought a robust, scalable automation solution.
The Challenge
Before implementing OPEX® Sure Sort®, Olive Young’s fulfillment process relied on order-based picking, using personal digital assistants (PDAs), such as hand-held scanners, and digital picking carts (DPCs). This manual approach limited efficiency, capping productivity to approximately 90 orders per person per day. As Olive Young planned its new metropolitan area MFC, it recognized the need for faster order processing while accommodating a wider variety of SKUs. The new MFC needed to enhance customer value, drive sales, and shorten delivery lead times. To achieve these goals and effectively scale operations without significantly increasing labor costs, Olive Young proposed that the new MFC include an automated sorting solution.Key Challenges
Limit of 90 orders completed per person per day with existing labor and resources
Need for faster order processing in a new MFC with a wider inventory assortment
Orders were handled individually rather than with a batch- or total- picking process
The Solution
When originally building its new MFC, Olive Young researched automated sorting systems, finding OPEX early on in the planning process. Partnering with Hokoshu Korea, Olive Young deployed the OPEX Sure Sort system at the new MFC to streamline outbound order fulfillment. The new process introduced total picking, allowing workers to batch-pick inventory, feed items onto Sure Sort’s conveyor, and automatically sort items to corresponding bins using iBOT wireless robots.
The Sure Sort system handles over 80% of items in Olive Young’s outbound operations. Olive Young’s new process consists of two fulfillment workflows. In the first workflow, outbound orders are filled using the total-picking method, with up to 240 orders per batch. These items are inducted into the Sure Sort utilizing the system’s conveyor and are precisely sorted by iBOTs, enabling faster packing and shipment. 30% of these items are in small poly bags, while 70% are in large poly bags. In the second workflow, fragile, bulky, and luxury items are still picked by order, accounting for roughly 20% of products not handled with Sure Sort.
Reducing manual sorting and streamlining order fulfillment allowed Olive Young to improve accuracy, decrease processing time, and boost overall efficiency. With Sure Sort, productivity rose to an average of 110-120 orders completed per person per day from the previous rate of 90 orders per person per day, a 33% increase in orders handled. With the success of the first Sure Sort, Olive Young has introduced the OPEX system to six MFCs, with each Sure Sort operating at over 80% utilization.
Key Results
33%
Increase in daily orders completed per person
60%
Max increase in productivity
120
Orders picked per person per day on average
80%
Of outbound operations use Sure Sort in six MFCs
“IT WAS AN HONOR AND A VALUABLE OPPORTUNITY TO SUCCESSFULLY CARRY OUT THIS PROJECT TOGETHER WITH OPEX, A GLOBAL LEADER IN LOGISTICS AUTOMATION, AND HOKUSHO KOREA. ”
Mr. Jang Min Hyoung
Operations Director, Olive Young
The Future
With Sure Sort successfully implemented in six MFCs, Olive Young is poised to continuously enhance customer value, drive sales, and shorten order delivery times with significantly less manual, labor-intensive workflows. Olive Young plans to expand its health and beauty product distribution with more strategic, optimized MFCs.
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