The Need for Speed: How Ecommerce Fashion Retailer Dafiti Enabled Faster, More Cost-Efficient Order Fulfillment

robotic sorting automation

In today’s fiercely competitive labor market, meeting customer expectations has become a daunting challenge for businesses of all types. For fashion e-commerce retailer Dafiti, its customer promise of an exceptional online shopping experience included delivery in 48 hours or less and free 30-day returns. 

Additionally, Dafiti’s warehouse processes were complex, involving manual steps for processes like cross-docking, picking, order consolidation and value-added services (VAS). However, through smart warehouse automation, Dafiti was able to streamline operations, improve efficiency, and significantly reduce labor needs and costs. Ahead, we delve into the e-tailer’s transformative journey and the impact of smart fulfillment automation.

The challenges of a tight labor market and complex inventory flow

Dafiti set an ambitious goal — to offer customers the best online shopping experience through deliveries within 48 hours or less and hassle-free, 30-day returns. However, the labor shortage and several manual, intricate warehouse processes were making it increasingly difficult and costly to keep up with that promise. 

Exploring warehouse automation

Recognizing the need for a change, Dafiti turned its attention toward warehouse automation. The retailer was looking for a solution that would streamline operations, improve accuracy, and accommodate peak volumes without the pitfalls associated with traditional fixed automation, such as high upfront investments, inflexibility and long deployment timelines.

RELATED READ: Robots in the Warehouse: Does Robot + Human = A More Efficient + Happier Warehouse?

The smart fulfillment solution in action

To realize its vision of a more efficient and agile warehouse, Dafiti deployed GreyOrange Ranger™ MoveSmart (RMS) robots powered by GreyMatter for intelligent, automated and adaptable conveying and sorting. The implementation brought about significant improvements to Dafiti’s warehouse operations:

  1. Automated sorting: With 40 RMS bots, Dafiti is sorting up to 1420 parcels per hour to over 120 destinations. Two automatic stations induct parcels as large as 31″x23,” making it a highly versatile, productive solution.
  2. AI-driven inventory optimization: GreyMatter AI-driven multi-agent orchestration enables real-time inventory optimization. With dynamic decision-making and a continuous flow of inventory, GreyMatter supports cross-docking, inbound and outbound sortation, automatic generation of shipping manifests, and timely notifications to relevant stakeholders.
  3. Streamlined processes: All flows are processed in a single field, significantly reducing the footprint, storage costs and handling, while increasing efficiency.
  4. User-friendly interface: The GreyMatter command center application provides real-time performance analytics and modular control. Dafiti users can easily configure RMS workflows, redefine sortation logic, and switch between multiple sort configurations.

“We chose GreyOrange to support our fulfillment operations because we want to provide our customers with the best possible shopping experience with reliable, fast delivery times and complete visibility. As we plan for future growth, we knew that within the next five years, we’d need a solution that could give us increased flexibility and scalability.”

Jose Miguel Cortés, Chief Operating Officer for Spanish-speaking countries, Dafiti Group

The transformative impact: Greater fulfillment efficiency and accuracy, with the potential to save millions

With the implementation of GreyOrange intelligent fulfillment, Dafiti achieved remarkable results:

  • Faster and more accurate deliveries: Dafiti can now ship customer orders faster and with greater accuracy. This will boost customer satisfaction, especially during peak seasons.
  • Cost and time savings: Dafiti experienced a 50% shorter go-live time and 50% lower costs compared to fixed conveyor installations.
  • Increased throughput: GreyOrange fulfillment automation enabled Dafiti to achieve up to 65% higher sortation throughput, boosting overall productivity.

Looking ahead

Dafiti anticipates substantial cost savings in the coming years through the reduction and reallocation of manpower. With GreyOrange warehouse automation, Dafiti has the potential to decrease labor needs by up to 40%, translating to savings of approximately $3 million over 5 years through the reduction and reallocation of manpower.

With GreyOrange smart warehousing, Dafiti revolutionized its warehouse operations, paving the way for faster, more accurate and cost-efficient order fulfillment. GreyMatter-powered RMS robots brought automation and intelligence to the forefront, enabling Dafiti to exceed customer expectations while optimizing internal processes. As ecommerce continues to evolve, intelligent fulfillment and multi-agent orchestration will become indispensable for retailers seeking to thrive in a competitive landscape.

>> Download the full case study here.

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