60-Second Summary
Automated fulfillment systems revolutionize how businesses manage orders by integrating advanced technologies across inventory, order processing, and shipping with minimal human input. These systems improve accuracy, speed, and scalability by leveraging tools like robotics, RFID, and real-time data to streamline inventory tracking, automate picking and packing, and reduce errors. As e-commerce continues to surge—with projections reaching $7.9 trillion by 2027—automation becomes essential for staying competitive and meeting customer expectations for faster delivery. Solutions like OPEX’s Perfect Pick®, Infinity®, and Sure Sort® help companies like Newegg and NPFulfillment drastically cut cycle times, scale effortlessly during peak seasons, and reduce operational costs, all while boosting customer satisfaction and loyalty.
Manual order fulfillment has been the standard for warehouses and e-commerce businesses, but these manual practices lead to challenges in productivity, profitability, and efficiency. Automated systems replace manual processes to transform each stage of order fulfillment, from managing inventory to dispatch.
Understanding Automated Fulfillment Systems
Automated fulfillment is a form of supply chain automation where orders are fulfilled and shipped with little human intervention. This process uses advanced technologies to manage tasks related to receiving, processing, picking, packing, and shipping orders.
Three primary systems work together in automated fulfillment:
- Inventory management: Monitor and organize inventory using technologies such as RFID scanning and real-time data synchronization. These systems monitor stock quantities, predict consumer demand, and manage replenishment through automatic reordering.
- Order management: Integrate with inventory data and manage activities for receiving, processing, and fulfilling orders. This process is critical for reducing errors and allowing for prompt order fulfillment.
- Shipping automation: Automate picking-, packing-, and shipping-related tasks using tools such as conveyor belts, robotics, and sorting mechanisms. Shipping automation increases accuracy, improves order dispatch speed, and minimizes manual handling errors.
The warehouse automation market is growing rapidly, with an expected CAGR of 16.20% from 2024 to 2029. By 2030, the adoption rate of automation and robotics is expected to reach 85%, up from 36% in 2019. This growth is predominantly driven by an expanding global e-commerce industry, which is predicted to be worth more than $7.9 trillion in 2027.
The rise in e-commerce brings increased order numbers and a demand for faster delivery. Implementing automation in order fulfillment is essential to staying competitive and meeting consumers’ needs.
The Challenges of Manual Fulfillment Processes
Automating the various stages of order fulfillment can help your business overcome manual process challenges, such as:
- Lack of inventory accuracy: Inefficient inventory management can lead to significant financial losses and a damaged reputation. Inaccurate inventories may lead to backorders or partial order fulfillment, delaying order fulfillment and increasing shipping costs.
- Error-prone workflows: Manual processing is linked to a high error rate. Employee mistakes during picking and packing can also drain your profits.
- Time-consuming tasks: Picking, packing, and shipping are typically time-consuming, repetitive, and labor-intensive tasks. Activities involved in order fulfillment can exhaust time and resources.
- Limited expansion capabilities: Increased order volume requires more time and resources. Manual processes pose challenges for meeting increased demand, stunting potential growth.
How Automation Impacts Fulfillment Processes
1. Inventory Management
Using software, machines, and robotics to fully or partially automate inventory management can help ensure items are optimally stored and tracked throughout fulfillment. Most automated systems collect data at the various stages of fulfillment, which can improve demand forecasting.
2. Order Picking
Using technology such as robotics, automated picking systems can also increase the speed and accuracy of good-to-person workflows. Robots can reduce picking mistakes, increase productivity, and improve customer satisfaction by constantly fulfilling accuracy requirements.
3. Item Sorting
Automated sorting streamlines complex and time-consuming sorting workflows through robotics and pick-to-light systems. Sorting robots or delivery vehicles sort various SKUs to their correct location. Pack-to-light systems can drastically reduce errors and the expenses associated with returns or misplaced items. Sorting solutions allow employees to redirect their time and energy to activities that need a human touch, like customer service or quality control.
4. Shipping and Receiving
Automation streamlines the order dispatch process, which is typically manually operated. These systems may use robots to retrieve totes filled with sorted orders before placing them into the appropriate containers, such as shipping boxes, and then transferring them downstream for processing.
The Benefits of OPEX®’s Automated Fulfillment Systems
OPEX understands that accurate and timely fulfillment is essential, offering a range of automation solutions to help you achieve error-free workflows, increase your order fulfillment speed, and seamlessly manage an increase in volume during peak seasons.
Infinity®, Perfect Pick®, Sure Sort®, and Sure Sort® X are foundational to accurate inventory management. Perfect Pick is an automated storage and retrieval system (AS/RS) that improves SKU handling, increases picking speed and accuracy, and enhances inventory tracking. Infinity is another AS/RS that allows for accurate tracking and placement, minimizing misplaced items and optimizing efficiency.
Both systems are powered by Cortex®, an equipment management and order fulfillment software. This software eliminates the guesswork of identifying products and quantities, empowering your staff to quickly replenish your operation’s inventory. Sure Sort and Sure Sort X are automated sorting solutions that can speed up and optimize item sorting, helping to simplify order fulfillment and inventory flow.
OPEX systems offer a range of benefits:
Increased Speed and Accuracy
Shipping speed correlates with customer satisfaction — almost two-thirds of online shoppers expect their order to be delivered in 24 hours. Reliable deliveries are equally important to meet consumers’ expectations.
Automation can make the entire order fulfillment process more efficient and accurate, minimizing the time between a customer placing an order and it being shipped. Newegg, an OPEX customer, reduced its cycle time to 20 minutes using Perfect Pick.
Satisfied customers typically result in repeat business and share their positive experiences, leading to referrals and increased brand loyalty. Fast shipping also gives your business a competitive advantage, helping to attract and retain customers.
Improved Scalability
Manual order processing makes it difficult to meet higher order volumes. Implementing automation allows you to upscale without expanding your human workforce or experiencing an increase in mistakes or late shipments. Scalability is essential to grow your business, especially during peak seasons or sales.
When NPFulflilment’s orders increased from 12k to 40k during Black Friday, Sure Sort’s iBOT robotic delivery technology allowed them to honor their same-day shipping guarantee without having to adjust their workforce.
Reduced Operational Costs and Errors
Enhancing every stage of fulfillment and limiting your operation’s dependence on human intervention can minimize your operating costs and overheads. By implementing Sure Sort, Kookaburra reduced its reliance on labor by 65% while increasing its sorting rate to 2,400 items each hour. This enhancement in efficiency resulted in a total cost reduction of 470% per order.
Reinvest these savings directly into your business or implement a more competitive pricing strategy to increase customer satisfaction. Save money elsewhere by reducing mistakes such as shipping incorrect items and quantities or mishandling returns. Reducing errors will also help you ensure that orders are delivered promptly.
Automate Your Order Fulfilment Process With OPEX
OPEX is a trusted warehouse automation company with nearly 50 years of experience. Our award-winning automation systems and solutions are engineered to be configurable, flexible, and modular so they can suit your operations’ unique needs, whether you own an e-commerce business or are a warehouse manager.
Beyond transforming your order fulfillment process with cutting-edge technology, partnering with OPEX gives you access to 24/7 support 365 days a year and highly experienced technicians. To learn more about how OPEX’s solutions can streamline your supply chain, contact us today.
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