Dynamic buffer zone

Posted on Wednesday 1 November 2023

WITH CONSUMER spending under pressure and online return rates of between 20-30%, fashion retailers are facing a hit to margin, says Darcy de Thierry.

A return is often a fast mover, so why put it back into deep storage? Dynamic buffers could provide the agility needed to turn returns around faster. Overhead pouch sortation systems offer a flexible and highly scalable, conveying, sorting and dynamic buffering solution appropriate for both fulfilling ecommerce orders, assembling store friendly sequenced replenishment and, importantly, buffering fast-moving returned items ready for a quick call-off for resale. 

One pouch system is capable of sorting and processing many thousands of orders an hour, with each pouch able to carry both hanging garments and flat items, such as shoes and flat pack goods, enabling fast order fulfilment from a single pool of inventory that serves both retail stores and online orders. Efficiencies in accessing available stock, greater flexibility in allocating stock to maximise sales and faster processing times for preparing orders, are just some of the key advantages.

Critically, pouch technology lends itself to efficient returns processing. Overhead dynamic buffers can offer a cutting-edge solution to removing the time, cost and effort of placing returned items back into stock. Manually sorting and placing items back into deep storage is a very time consuming and costly process, which in large organisations can involve thousands of items across numerous skus. But all that effort and extra handling costs can be avoided. And at the same time, the business can be more responsive, with increased availability and faster fulfilment of re-sale items.

For high-demand fashion products, keeping returned items in a buffer close to the packing area enables a quick and efficient re-despatch of the item. In fact, some clever retailers anticipate and predict levels of returns, allowing them to re-sell items even before they are returned to the warehouse. Such techniques help boost sales in a tight, finite window of opportunity.

Large dynamic buffers may be used for holding ‘predictive picking’ items too, so instead of picking one item for one order, several items can be picked and held against known or predicted sales. Using buffers in this way helps improve pick rates and smooths the flow of orders, creating greater efficiency across the fulfilment cycle – particularly useful at peak. 

Darcy de Thierry, managing director, Ferag UK

For more information, visit www.ferag.com

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