Case NetOnNet
Smart box calculation brings success
NetOnNet has been a part of the Swedish home electronics market for over 20 years. It is now one of the largest retailers in this sector. As the company serves customers online and in-store, any improvement in its logistics processes or efficiency affects profits.
Through the implementation of Astro WMS®and the Smart Box Calculation functionality, NetOnNet continues to evolve in an ever-changing landscape.
Challenge
A 2019 research by the Swedish postal service PostNord found that, on average, each package shipped contains 30% unnecessary air. If all packaging were optimized, it could lead to 300 fewer trucks on the roads.
Package optimization has a lasting impact on NetOnNet´s operation as well. The company has three streams of businesses running through its main warehouse:
- E-commerce
- The restocking of the warehouse stores
- Fulfillment of orders that third parties supply
On a typical day, it sends a few thousand packages on the e-commerce side and around 250 pallets for the warehouse shops. However, it does much more than that at peak times, which cover October, November, and December.
The company was looking for a package optimization solution that makes it possible to:
- Manage volatility in the number of packages
- Plan picking runs better
- Rationalize shipping costs
- Improve warehouse sustainability
- Boost customer experience
Solution
NetOnNet has been working with package optimization for many years. Together with Consafe Logistics, it has added the Smart Box Calculation functionality into its operation. The AI-based module of Astro WMS® selects the optimal packaging material for each individual shipment based on dimensions, cost of materials, and transportation.
The system works based on the data provided to it. NetOnNet prioritizes getting the necessary measurements from the suppliers and ensuring these are accurate as soon as possible. The solution allows for correctly predicting freight prices and ensures that everything will fit where it needs to be in a packing run. If a warehouse worker is out to pick 100 items, it makes a big difference to know with absolute certainty that they will all fit.
Since the introduction of the new solution, NetOnNet can benefit from the following:
- Saving time and resources due to more efficient picking and packing processes
- Meeting delivery deadlines Having stable management for normal flows as well as peak periods
- Paying the right amount of fee for each item shipped
- Cutting down on the carbon footprint due to fewer trucks needed for transportation and fewer picking trips executed in the warehouse
- Improving the quality of customer service due to neater packages and reduced delivery costs
