Black Friday and Cyber Monday in logistics

Five Questions for Torben Posert, Sales Director Logistics Automation

These days, customers expect increasingly shorter delivery times and transparent, secure transport procedures. VITRONIC paves the way for powerful automation. The latest technologies help optimize processes in distribution centers worldwide, significantly reduce costs, and thus help to substantially improve performance. Modular systems ensure that parcels, letters and other items can be identified automatically and then efficiently sorted.
On Cyber Monday and Black Friday, the biggest days in E-Commerce, VITRONIC asks five Questions for Torben Posert, Sales Director Logistics Automation.

What do Black Friday and Cyber Monday mean to the CEP industry?

For the CEP industry, these days of the year mean an extreme increase in the number of packages that must be sorted and delivered. The fourth quarter is the biggest sales quarter for the industry with December as the strongest month. However for online retailers, both of these e-commerce holidays in November are basically the most important days of the year and generate the bulk of their revenue. And they have the same impact on the logistics chain. Peak season isn't just during Christmastime.

What are the logistical challenges this time of the year?

A high number of packages must be delivered to customers in a short amount of time—and with an increase in shipment volume of up to 20%. These packages must be sorted and handled just as reliably as they would be on any other day, because the customer expects good service no matter what day it is. And this is especially true when customers find a good deal.

Are these just temporary trends of the holiday season or will the industry need to prepare for long-term changes in online shopping?

In any given year, there are always peaks in package volume— for example, Christmas, Easter, or Chinese New Year. Generally speaking however, we will see the number of shipments continue to rise. Projections indicate the volume will double in the next five to eight years. This excludes big data trends such as anticipatory shipping or goods delivery by means of drones, robots, airships, and the like. Same-day delivery will continue to be another topic of focus.

How can VITRONIC help ensure that bargain hunters receive their orders quickly and help the CEP industry keep processes running smoothly?

As we know, fast delivery also involves reliable identification of packages. Customer- and object-related information on goods and packages must be captured and processed automatically. This is where VITRONIC's Auto-ID solutions very frequently come into play—and not just domestically but also internationally. These high-performance systems ensure high read rates during automatic package sorting so that a minimum of manual post-processing is required. Manual post-processing, in particular, is one reason for shipment delays. Only packages that are sorted immediately make it through the process on schedule and reach the customer on time.

What can our Auto-ID systems do to optimize the processes of CEP service providers?

Along with a high read rate, camera-based systems have other advantages. Serving as a link to the digital supply chain, Auto-ID systems play an important role by capturing data automatically, integrating it into connected systems and thus ensuring seamless documentation. Our camera-based systems enable automatic reading and processing of all information on letters and parcels, transport packaging, loading units or pallets at various points along the process chain. Auto-ID systems create and save images that can then be used to optimize processes.
They help uncover the reasons for no-reads, such as defective code or hidden code, and make it easier to analyze them.

Furthermore, the customer or end user benefits from a greater degree of transparency. He can see images of his package before receiving it. Defects and damage can be identified early on and countermeasures can be put into place. We like to think of it as a worry-free "package".

Your Contact

Torben Posert

Head of Sales, Logistics Division

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