Case Study Efficient Warehouse Logistics for LPP S.A. With PSIwms AI
LPP optimizes its logistics to meet the increasing e-commerce requirements.
LPP S.A. is a leading Polish clothing manufacturer and owner of five well-known brands, including Reserved, Cropp and Mohito. With over 2,000 stores and an extensive online offering, LPP is one of the fastest growing companies in Central Europe. Its subsidiary LPP Logistics operates and manages an extensive distribution network that distributes over one hundred million items annually to almost 40 countries in Europe, Africa and Asia.
Challenges
Since the beginning of the cooperation in 2007, LPP has relied on PSI's logistics solutions. As the company continued to grow, the demands on logistics also increased. In particular, the dynamic growth of online trade presented LPP with major challenges. The increasing demand, combined with rising costs for fuel, materials and wages, made it essential to optimize the logistics processes. LPP also had to combine various warehouse automation systems from different manufacturers and significantly increase the efficiency of online order processing.
Objectives
LPP aimed to significantly increase efficiency in logistics, particularly in the processing of online orders. Short delivery times, high accuracy and reliability of the processes were key requirements. In addition, a solution was to be implemented that integrated several warehouse locations and supported various methods of goods receipt and goods release, including cross-docking.
Solution approach
To meet the increasing requirements, LPP implemented the PSIwms warehouse management system, which fully automates the flow of goods in the distribution center. PSIwms optimizes the picking routes through the use of artificial intelligence, enabling routes to be shortened by around 30 percent. The entire warehouse logistics is based on a carton flow in which goods are processed either in full cartons or as individually sorted products. PSIwms controls both automatic and manual goods receipt, picking, sorting and dispatch of the goods.
Result
Thanks to the implementation of PSIwms AI, LPP S.A. was able to significantly improve its ware-house logistics. Picking routes were reduced by more than 30 %, which led to an increase in order processing efficiency of more than 20 %. In the long term, the solution contributes to coping with the increasing volume of e-commerce and enables significant cost savings in warehouse logistics in the future.
The advanced AI solution brings us several significant benefits. Both the increase in picking efficiency and the reduction in workload help us to optimize time to market. As a result, we can offer our customers even better performance and an even better shopping experience.
Lessons Learned:
- Integrating AI into existing logistics processes offers significant efficiency gains.
- Early integration of AI solutions into project planning enables faster implementation and optimization.
Conclusion
The implementation of PSIwms and the AI platform PSIwms AI has helped LPP to successfully master the increasing challenges of e-commerce. By optimizing picking routes and efficiently managing the flow of goods, LPP was able to significantly improve its logistics processes and secure a competitive advantage.
