Artificial Intelligence for Warehouse Optimization

19. March 2019

When it comes to optimizing warehouse processes, LOXXESS relies on the use of artificial intelligence among other things. LOXXESS has used the warehouse optimization software LOS from the start, which was awarded "Best Product" in the "Software, Communication, IT" category at the Logimat 2019 intralogistics trade fair.

Since July 2018, LOXXESS has been using the warehouse optimization software LOS from Heureka Business Solutions at its multi-user campus in Bor near the Czech border. The logistics for numerous e-commerce and mail order customers is bundled at this location on around 87,000 square meters of warehouse space, with 220,000 rack spaces and 47,000 pallet spaces. Over 6 million packages are sent from here, primarily to end customers in Germany. 

In the e-commerce segment, it is particularly worthwhile to bundle and optimize warehouse processes due to the high number of picking orders. With the help of algorithms, pick tours can be arranged intelligently so that the shortest possible route is created that is optimized for lead-time.

The optimization software supports LOXXESS’s own warehouse management system by continuously optimizing processes in real time, always adapted to the current order structures and customer requirements. This also allows for more accurate forecasts to be made of the remaining processing time for open orders or regarding the required employee capacity. The data obtained can also be used to optimize incoming goods, not only because the system analyzes which items were purchased together in the last two weeks, for example, but rather because over a hundred other factors in the logistics chain are taken into account. Accordingly, it makes a proposal for where to position the items in the warehouse with the aim of increasing the overall logistics performance.

LOXXESS utilizes this potential, among other things, for the e-commerce logistics of the drugstore dm. Michael Gräf, who is responsible for procurement and package logistics at dm-drogerie markt, explained the importance of efficient logistics processes for the company: “The satisfaction of our customers is our top priority at dm. Efficient, fast and reliable delivery and availability of goods play a decisive role in the online business. LOXXESS supports us here with innovative solutions and permanent optimization.”

Dr. Claus-Peter Amberger, CEO of Loxxess AG, added: “The key to efficient warehouse logistics processes clearly lies in digitization, namely in process optimization, in real-time data and automation solutions. We counted on this at an early stage. We are therefore delighted for and with Heureka that the solution tested at our multi-user campus has received the well-respected Logimat award.”