Manual Package Sorting
Optimizing Warehouse Productivity: A 6-Step Plan
Hub operations are crucial for making logistics profitable. Even minor inefficiencies can lead to increased time spent on tasks within warehouses, resulting in revenue losses.
| 2021 | In 2026, Estimates suggest |
|---|---|
 Volume of packages handled: 159 billion parcels | Projected volume of packages: 256 billion parcels |
 Number of warehouses globally: 156,000 | Estimated number of warehouses globally: 180,000 |
 Number of orders processed per year per warehouse: 1.01 million parcels | Anticipated number of orders processed per year per warehouse: 1.42 million parcels |
 Number of orders processed per day per warehouse: 2792 parcels | Expected number of orders processed per day per warehouse: 3,896 parcels |
Based on these estimations, the total volume of packages handled is expected to increase by more than 60%. So, warehouse operations must maintain peak productivity to:
Prevent revenue blockage
Reduce ROI for warehouse businesses
8 Reasons for the loss of hub productivity
Inaccurate Shipping Address
Load Prioritization Mistakes
Seasonality in Demand
Unforeseen Events
Lack of Real-time Communication
Sorting Items with Similar IDs
No Real-Time Visibility on Packages
6 Ways to tackle productivity issues in hub operations
- Digitized Sorting
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Automate sorting based on factors like delivery speed, service zone, and order nature. Businesses can save 60% of sorting time and decrease the number of sorting personnel by 70%.
- Load Formation
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Assign orders to suitable truck pallets based on volume and cost efficiency.
- Frictionless Loading and Unloading
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Implement First-In Last-Out (FILO) loading operations to minimize time spent in the warehouse.
- Granular Visibility
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Receive timely alerts, proof of delivery, and chain of custody for each fulfillment milestone, both for in-house and outsourced orders.
- Error-Proof Scanning
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Utilize robust inbound and outbound scanning to eliminate delays caused by missing orders.
- Hub-Level Insights
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Access real-time execution data, including time spent in the warehouse, delays, undelivered SKUs, orders, assets, and volume utilization.
By addressing these issues and implementing these solutions, hub operations can maintain high levels of productivity and efficiency.
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