Under pressure e-tailers must increase automation, Conveyor Networks

Online retailers need greater automation in the warehouse to help meet delivery schedules during peak periods, according to research from Conveyor Networks.

Surveying 100+ mid-tier online retailers, the company found that 83% believe automation will drive future online retail growth. 76% claim to be handling up to 50,000 orders per day, with this rising to 75,000 orders per day for some during peak periods. Online retailers admit they’re facing big challenges and are feeling the pressure to deliver on time. And almost half blame a lack of staff to fulfil orders (45%) and order errors (42%) as hurdles to be overcome. Yet 74% of respondents have less than half of their warehouse management processes currently automated, and 49% are planning to further reduce manual warehouse processes before their next peak spell.

Almost three quarters believe that increased warehouse automation will improve their customer service capabilities. 41% said it would help them to respond to orders more quickly, while 38% believed it would reduce picking and packing errors. Online retailers also feel that customers are more concerned about the ability to track their order online than they are about next day delivery, with just over half planning to offer tracking service capabilities in the future.

David Carroll, MD, Conveyor Networks, says: "Today’s savvy online shoppers want to receive their goods quickly and conveniently and if they don’t want to keep them, return them just as easily. As a result, online retailers can no longer suffer order delays or errors, or difficult ordering and returns processes because shoppers will take their business elsewhere. Many are also concerned about the impact of customers leaving negative comments on their social media channels if they’ve received bad service, so are working hard to ensure all parts of the order and delivery process are as seamless as possible."