Largest home furnishing chain in Japan
This largest home furnishing chain in Japan operates over 400 stores across the country. Its Osaka distribution center fulfills online orders – from over 10,000 SKUs - for the western region. The company faced major challenge with efficiency and speed that was needed to fulfill and consolidate increasing volumes of online orders for same and next day deliveries.
- Problem Statement
- The total volume of online orders was increasing and order-lines per order were slightly decreasing – this was due to customers ordering online more frequently, with fewer items in each order
- More customers were expecting same and next day delivery which was putting pressure on their existing manual and rigid automation systems to handle
- New SKUs were often added into the inventory which required flexible storage, and real-time inventory traceability
- Seasonal products for summer and winter had longer periods of storage, if not managed efficiently
- Benefits Delivered
- The GreyOrange Butler robotics system accelerated the process for order fulfilment by queuing the items for picking.
- Using Artificial Intelligence the Butler placed the racks with the more popular items closer to the picking area, increasing efficiency.
- In real-time, the Butlers use ABC analysis to optimise where the racks would be placed within the warehouse space; this is effective for seasonal items.