Industry digitalisation analysis

Digitalization of storage and order execution

More accurate warehouse work and clearer customer service

Digital maturity

Typical digital maturity

Shows the level of digitalisation companies in this line of business typically operate at.

The assessment considers use of core systems, how far processes are digitalised, integrations, data readiness and advanced use of data.

A 3 means ordinary, middling maturity. A 5 is given only where real-time data, automated decisions and advanced optimisation are already a routine part of core operations.

high
Digitalisation potential

Digitalisation potential

Shows the scale of business impact digitalisation could have in this line of business.

It weighs economic leverage, the scope for digital impact, the scale and repetition of processes, value lost today, and the leverage of better data and decisions.

A business area’s score is calculated from five weighted dimensions. A sector’s score is derived from the scores of its business areas.

84/100
Biggest challenge
Stocks and location not accurate enough
Biggest opportunity
Storage balance updated by physical action

Operating model

The operator stores goods from different customers, collects orders and accepts returns. Different terms of customer set-up or return may apply to the same product.

Own Stock Warehouse

The company holds its goods or raw materials in stock. The team accepts purchases, provides production or collects sales orders and records the movement of goods.

E-commerce order fulfilment

The warehouse collects a large number of small orders and transfers them to the carriers before the agreed time. Returned goods are inspected and handled in accordance with the terms and conditions set by the seller.

Multi-customer storage operator

The operator stores the goods of several owners in the same premises. For each customer, it tracks stocks, order rules and services provided separately.

Automated Distribution Center

The task is physically performed by automatic equipment. If the data transmission is interrupted, it is necessary to check whether it has fulfilled the task and how the location and balance of the goods have changed.

Market context

The warehouse operator can enforce different reception, storage and order rules of several customers. The customer needs reliable information about their balance and execution, and the operator needs to use the same confirmed warehouse data for the settlement of the actual transaction register.

  • Order PeakLarge quantities of incoming goods or sales orders compete for the same people and jobs.
  • Differences in customer rulesPacking, kitting and evaluation of the returned item may vary by the owner of the item.

Services and responsibilities

01

Basis for admission

Compatible item code, owner, unit and pending receipt.

02

Physical Reception

The resulting quantity and the result of the check determine the location and allowable use.

03

Execution of order

The reserved stock is collected and completed under realistic packaging and dispatch conditions.

04

Return check

The resulting item is assessed separately from the sold balance and transferred to an authorised solution.

05

Verification of completed task and stock change

Performance or correction reaches the owner of the stock, booking and service accounting.

Digital maturity scale

1

Separate records and manual work

Information is mainly held in separate files or notes. Employees pass it on and reconcile it manually.

2

Organised data within individual teams

Teams record their work consistently, but sharing information with colleagues still requires considerable manual checking.

3

Partially integrated systems

Core work is managed in systems. Some information is transferred automatically, but repeated data entry remains.

4

Coordinated systems and teams

Systems deliver the required data on time. Employees can see unfinished work and know who is responsible for resolving discrepancies.

5

Continuous measurement and improvement

The team checks data quality, evaluates results and uses them to improve operations. Automation is applied where its value can be demonstrated.

Executive conclusion

The warehouse team must see the owner of the goods, location and suitability for the order. Admission and return checks protect against inaccurate sales of the proposed balance.

Related topics

Warehouse management systemCompositing optimizationWarehouse automation

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