5 key Strategies for your Fulfillment Logistics Efficiency in Mexico

Last week, we talked about the role of AI in fulfillment logistics and that one of its goals is to improve the processes of the businesses, whether it is in time effectiveness, cost reduction or optimization of deliveries. 

 

As you know, in Buho Logistics, we're committed to offering our partners solutions and strategies that engage with customers' satisfaction and optimize their processes. That's why, week after week, we create these articles to distribute valuable content regarding 3PL and Mexican fulfillment solutions.

 

This time is no exception; today, we will share with you some of the 5 key strategies we implement to gain logistics efficiency for all our partners. So, if you are interested in knowing more, keep reading. 

1.- One order management system 

An order management system, better known as OMS, is a program that manages every order that enters a business. How do these systems work? Well, usually, they are applications or software that, along with AI, automate every process of the order lifecycle.

 

These types of solutions reduce errors in order dispatch and help businesses to efficiently and effectively manage the process of accepting, tracking, fulfilling, and handling customer orders.

 

While you can have one for your industry, OMS in fulfillment companies are specialized to have the best outcome for businesses across various industries, including retail, e-commerce, manufacturing, and distribution.

 

Also, OMS can integrate other systems, such as customer relationship management (CRM) software, accounting software and ERP systems, to streamline operations and ensure data consistency across the business.

2.- AI in picking and packing

Our second key strategy is the integration of AI in picking and packing processes to enhance efficiency, accuracy, and productivity in warehouse operations. How can they achieve this? 

 

AI-powered picking/packing systems use machine learning algorithms, as discussed in the last article about AI and fulfillment logistics, to identify and locate items within the warehouse. This is accomplished thanks to the vast data of images captured by cameras installed in the warehouse to recognize the products based on their shape, size, color, and other visual features, as well as the data integrated into the OMS. 

 

AI algorithms with all this information can generate pick lists, optimize picking routes, and guide warehouse workers to the exact location of items, reducing picking errors and speeding up the fulfillment process.

 

There are also high-level warehouses that integrate robots to optimize picking and packing processes. AI can also be incorporated into this type of system since it can coordinate with robotic systems to navigate through the warehouse autonomously to locate items and pick them from storage shelves.  

3.- Algorithm to predict future demand

As we have mentioned, having algorithms that help predict future demand is crucial for businesses to optimize inventory management, production planning, and resource allocation. 

 

The above involves analyzing historical data to identify patterns and trends over time. That's why we recommend staying with one 3PL partner with techniques such as moving averages and autoregressive integrated moving average (ARIMA) models.  

 

These models consider seasonality, trend, and random fluctuations in the data to make predictions about future demand. For example, seasonal-trend decomposition using LOESS (STL) decomposes the time series data into seasonal, trend, and residual components. Businesses can better understand seasonal patterns and make more accurate forecasts by analyzing them.

4.- WMS

We've also talked about Warehouse Management System (WMS) because this type of system plays a critical role in fulfillment operations by efficiently managing warehouse processes, inventory, and resources.

 

These systems provide real-time visibility into inventory levels, locations, and movements within the warehouse. We recommend synchronizing or combining WMS systems with OMS and machine learning algorithms to better track stock levels and picking and packing processes, as well as to have access to accurate data of inventory records and minimize stockouts or overstock situations.

 

They can be a tool to monitor labor resources by tracking worker productivity, performance metrics, and task assignments. It also provides visibility into labor requirements, workload balancing, and performance analytics.

5.- Cross-docking

Lastly, cross-docking is a well-known strategy within the fulfillment logistics world, but its importance is remarkable. This strategy is used in warehousing and distribution operations to streamline the flow of products from inbound to outbound shipments, bypassing the need for long-term storage in the warehouse. 

 

In other words, instead of storing merchandise in the warehouse for an extended period, these are immediately transferred (or "cross docked") from the receiving dock to the outbound shipping dock, where they are sorted, consolidated, and loaded onto vehicles for delivery to customers or other distribution centers.

 

Now that you have learned more about key strategies to optimize the efficiency of your industry remember to call us to talk about solutions for your own company and start our partnership. Also, if you find this article helpful, stay tuned to our blog for more information.